Inappropriate organizational structure : does it contribute to organizational decline

John, Sharman (1991) Inappropriate organizational structure : does it contribute to organizational decline The University of Queensland:

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Author John, Sharman
Title of report Inappropriate organizational structure : does it contribute to organizational decline
Formatted title

Publication date 1991
Place of publication The University of Queensland
Total pages 68
Language eng
Subjects 1503 Business and Management
Formatted abstract
The primary function of an organisational structure is to provide an implementing vehicle for accomplishing an organisation's intended objectives. If it is assumed that a good organisational structure assists an organisation in achieving intended objectives then is it possible to argue that an inappropriate organisational structure contributes to the long term decline of an organisation?

Decline is defined as decline-as-cutback which implies an absolute reduction in organisational resources and ultimate death of the organisation. Other types of decline such as decline-as-stagnation are expressly excluded from this paper.

The literature suggests that an inappropriate organisational structure does contribute to organisational decline when it restricts the company's ability to anticipate, recognise and respond to threats and opportunities which present themselves to the organisation. A company's inability to adequately respond to pressures is restricted when the organisational structure does not allow effective internal and external environmental scanning; information flows are restricted; where there is “misfit” between structure, strategy and management processes; where there is inadequate control mechanisms within the organisation and where synergy between the various divisions is not allowed to develop.

The case studies support the suggestion that inadequate organsiational structure contributes to decline. However/ the case studies are inconclusive as to the extent to which inadequate structure contributes to the decline in performance of an organisation. Consequently further research is required to obtain empirical evidence to either substantiate or reject the argument.

Document type: Research Report
Collection: MBA reports
Citation counts: Google Scholar Search Google Scholar
Created: Thu, 16 Dec 2010, 15:19:03 EST by Ning Jing on behalf of The University of Queensland Library