Organizational Structure Is a Widely

For this reasons, employees report higher level of supervisory trust in such organizations. The effect of interactional justice on supervisory trust is more pronounced in organic organizations.” (p.301) the reason for this is that in mechanistic organizations, supervisors are constrained by rigid rules and hence they are allowed to develop as close an interaction with subordinates as in organic structures.

The second article which occupies a central place in business literature is N. Anand and Richard Daft, titled. “What is the right organizational design”? deals with the obvious subject of organizational structure but explains the changes in the design over the last four decades. It explains how horizontal division separation paved way for more process-based structures and how it finally led to the birth of a fluent and flowing organizational design that became more hollow and virtual.

The authors discusses the advantages and disadvantages of various design to show how each played an important role in its era but failed to deliver when times and trends changed. People are now more interested in organizational designs that promote better interaction with the supply chain actors and also between departments and employees. This has had a significant impact on organizational design in many firms which previously had strict constrained functional structures.

The changes over the years have not been random or abrupt. They were acquired after it became clear that old and obsolete designs were no longer delivering and had to be replaced with more efficient designs. All this however required serious changes in attitude and culture. “Realigning a large company along horizontal processes can require a wrenching change in people and culture.” And where cultural changes were not intensely required, even in those organizations, some other changes were needed such as change in managers thinking and management styles. “Adopting a hollow form may require less change in culture, but a new manager paradigm will be needed, with special focus on finding suitable external partners and building relationships that serve both partners.” (p. 342)

The articles thus illustrate the significance of organizational structure and design and its impact on performance and relationships. It must also be noted that these things have become far more important today than they were ever before. This is because in the global economy, organizations can no longer treat employees like hired hands and everyone in the supply chain has its own bargaining power. Apart from that, organizatons are also expanding rapidly and with maximum effeicincy competing in the global world can.

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