Organizational Structure

Organizational Structure

According to Hax (Hax & Majluf, 1981, p. 444), the two primary roles of the organizational structure are to support the implementation of strategic programs, and to allow the day to day activities to happen. Additionally, he mentions various symptoms that an organization can present which are signs that the structure needs to be reconfigured to meet challenges brought about by changes in the business landscape. The two indicators I will address are the lack of opportunity for development, and the poor profit performance and low return expectations.

Lack of Opportunity for Development

Lack of opportunity for development is a serious problem in an organization. According to a survey of senior executives done by Robert Half International (Cywinski, 2009), one in three employees leave their job if they do not see opportunities for promotions. This is a common problem that even Microsoft’s Office web site offers a Word template for a resignation letter due to lack of promotion (Microsoft, 2003).

Besides losing top performers in an organization, the unavailability of opportunities at work result in low morale, employee disengagement, deficiency of employee commitment, stress, productivity reduction and, eventually, resignation.

We have experienced and recognized that some leaders forget to focus on job satisfaction and high employee morale because they only look at results, and they also lack a higher purpose to lead at higher level.

According to Situational Team Leadership, recognition and appreciation build and reinforce productivity and morale through focusing on the progress and accomplishment of major goals (Blanchard, 2010, p. 171).

We are currently experiencing tough economic times, and a promotion may not be viable. This should not halt the involvement and growth of all employees. Michael Gooley, branch manager for Robert Half International, states that, "If the current business environment is hindering the ability to offer a promotion, managers may consider rewarding high-potential employees with professional development opportunities and projects to help expand their skill sets" (Cywinski, 2009).

Poor Profit Performance and low Return

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