Organizational Structure
An organizational structure is either formal or informal frame work of policies and rules organized systems which an organization uses to organize its lines of management as well as to provide channels through which information flow in the organization (Robbins, 2007:552). The structure offers organized models through which rights, responsibilities and duties are allocated to various individuals throughout the organization. Stephen (2001), points out that the organizational structure offers a system through which roles; authority and responsibilities in the organization can be organized, delegated, controlled, and coordinated. It also creates channels via which information flows from one level of management to the other throughout the organization (p 5).
An organizational structure can either be centralized or decentralized, tall or flat, depending on the culture and the objectives of the organization as represented in the organizational chart. While in a decentralized organizational structure decision making is solely a responsibility of the top management, a decentralized structure delegates the responsibility of decision making to the various departmental manager; with various department having varying levels of independence (Stephen, 2001:5).
LIPTES ltd is a company that supplies spare parts of heavy machinery. The structure that company has currently is a rather flat structure which is highly decentralized. The structure is made up of only one general manager (I) and who is the overall top manager of the organization and 12 other line managers or departmental manager, each heading a department that are represented in the organizational chart. The 12 departments includes, the strategy department, the finance department, the marketing department, the public relations department, sales department, research department, information technology department, security department, the logistics department, the administration department, personnel department, and the legal department each headed by an independent manager. Each departmental manager reports directly to me (general manager).
Ideally, the organizational structure is composed of departments (Robbins, 2007:556). As a result, the formation must be preceded by departmentalization; although the degree of departmentalization varies from one organization to the other. In this organization, the flat organizational structure that is fully decentralized has to a greater extent encouraged work groups, collaborative decision making and autonomy for respective managers to make appropriate decisions that suits the achievement of the company’s objectives. At LIPTES, the autonomy that the current structure offers to respective manager has not only brought a sense of responsibility in the respective managers but it has also increased the commitment towards the achievement of own set goals. Similarly, consultation among managers is high increasing the accuracy and effectiveness of decision making.
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