Confidential Memorandum Date: [Date] Subject: [Subject] From: [Sender] Company: [Company Name] To: [Recipient(s)] Company: [Company Name] In my quest to help potential leaders to understand about organizational structure, I have undertaken a study that has enabled me to give the following information regarding organizational structure theories. First, an organizational structure theory is a structure that defines the activities that are given to organs of a company (Keep, n.d). These organs deal with issues such as work allocation, flexibility, coordination, and other activities that are necessary for the success of the company. These theories therefore are very important to help give a company a way in which they can plan for successful …show more content…
The first structure is the classical organizational theory on the organization structure. This is the kind of structure that can be used to so many organizations. The key characteristic of this structure is in its bureaucratic nature where it accepts division of power and it emphasizes on specialization. Neoclassic organization theory is the second theory that can be described as a structure that emphasizes cohesiveness and thus in this structure, the subordinates are also given managerial authority. Contingency theory is that structure that deals mainly with conflicts (Tosi, 2009 pp.201). In this structure, flexibility characterizes the management so that they can make decisions that are in connected to the prevailing changes. System theory is another and this is a theory that upholds that the entire organization must be interrelated. In this case, (Shukla, 2008) also points out that since systems are never likely to interact in a lineal manner, and for that reason, there are small changes that can affect many part of the organizations. Maintenance of the equilibrium can be achieved through this theory that is Systems theory. The last is the functional structure which is going to be used as an example and explanation in this …show more content…
This structure has also been encouraged by (Shukla, 2008) who also points out that the structure can operate in an environment here there is little dynamics. This structure also further entails that the people with the similar skills and knowledge are classified together. This kind of arrangement makes it possible for employee to be professionals in the field that they are operating in (Tosi, 2009 pp.201). Additionally, it means that there is need for a performance management system that give room for promotion, visibility, and development. But also, it is important to say that in-depth knowledge and skills are increased and strengthened and the result of this is that there is room for the company to achieve the functional