Organizationn Structure, Theory and Design

According to Jones (2004), organizational theory is the function of a company on how it operates in the environment and how the environment affects their operational agenda. In my opinion, this correlates to the law of cause and effect. Organizational theory is the study of organizational designs and organizational structures, relationship of organizations with their external environment, and the behavior of managers and technocrats within organizations. It suggests ways in which an organization can cope with rapid change.

The organizational design and change indicates the how/why various means are chosen, which assist in managing the structure and culture to control activities to achieve its goals. Change process occurs when an organization attempts to move from its present positions to a future state to increase proficiency.

Organization structure defines the formal relationships among people and specifies both their roles and their responsibilities .Structure entails the organization's chain of command; employees and management are made up of people, thus creating a culture, enforcing rules, upholding standards; it is obvious that structure and culture are inherently connected. Thus, structure is a control mechanism implemented by an organization in the way personnel coordinates and carries out tasks, and a means by which to motivate employee's to attain organizational goals. The structure is shaped by the people through shared values and norms to control its member's interaction with both internal and external resources, such as suppliers, customers, and other outside sources.

Organizational design begins with a strategy setting decision guidelines and from this members will take the right course of action. Strategy unifies the intent of the organization and focuses members toward actions designed to accomplish desired outcomes. Organizational change refers to actions that are taken or actions that are not taken in order to solve pressing problems. The choices made by management will either propel the company forward or cause the company to fall back.

Organizational culture is defined as the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors. Members of an organization soon come to sense the particular culture of an organization. Corporate culture can be looked at as a system with inputs and feedback.

Culture evolves through the people and their values within the company for example: organizational ethics, rights of employees, and design structure are a reflection of its culture. It also shapes and controls behaviors internally, what is rewarded, what is not tolerated. For example, the essence of an organization's culture is shown by the way the organization conducts business, in the manner in which it treats customers and personnel, and degree of loyalty expressed by personnel.