Nowadays we are placing on a constantly changed business environment. The global economy is full of both problems and opportunities. Finding out an appropriate organizational structure to grasp opportunities at the meantime solve problems has become one of the biggest business concerns of contemporary management. To understand why today's rapid change is causing traditional structures to be replaced by more responsive ones, it is useful understand two important factors, namely environment change and technology change, under which organizations should consider restructure (Dessler, 1998, p.250).
Organizational structure is the formal presentation of systems of positions and relationships within the firm, which is designed as a statement from senior management as to how they wish the firm to work (staniforth, 1994). Also, Robbins et al. (2003) defined that organizational structure is the formal framework by which job tasks are divided. Although the outcomes of changes in structure can be hard to evaluated, potential benefits from changed structure may include cost benefits, decision-making benefits, communications benefits and managerial control benefits (staniforth, 1994).
In this report, I will discuss environmental and technological change influencing organizations' existing structures by examining two extreme types of organizations-mechanistic and organic. I will also discuss the possible benefits changed structures contribute in organizations through some examples from readings and my personal experience. Lastly, I will conclude by calling for a change for those organizations that are under the pressure of environmental and technological evolutions.
Given it is impossible for organizations to exist in vacuum and they are always influenced by contextual factors such as environment. Organisational change is demanded when an organisation is under substantial pressure. These pressures could include technological change, communication, and an increase of competition.
Change of environment lead to structure changing
External stimuli- business globalisation
A significant part of external environmental change is...