Organizational Structure Impact on Employee Attitude


The problem with all major organisations and even smaller businesses will be the organisational framework they use and use. How limited the resources are and even how employees are positioned and how they ought to work in teams and in what type of relationship they can work with the other employees. The analysis of how employees behave towards these set ups and how they perform under these buildings can show how important it really is for organisations to implement the correct composition for there specific environment the company is employed in.

When taking a look at factors including the organisational constructions itself, staff performance and attitudes, efficiency, the factors influencing the set ups, decentralisation and centralisation, one can identify if there is any relationship between your constructions chosen and employees performance and attitudes.

Employees behaviour and performance has an impact about how the company performs, of course, if every employee's work is performed correctly and when employees enjoy their working conditions. Now if a organisational structure comes with an effect on the performance and frame of mind of employees organisations should examine these problems and use new structures to boost employees, to give them a successful and ground breaking working team to achieve the competitive advantage and edge.


Can organisational composition have an impact on employee attitude and performance? And why?

Organisations make an effort to be the best competitor in the surroundings they are rivalling in, now if the composition they are using can come with an influence how employees are productive, they should verify this fact, output must be high for any organisation to attain the competitive advantages. But if low can take the organisation down the drain.

The organisational composition is the way to do business, how each change is put in place and how each job explanation is made, how the communication of the company will continue to work and the strategic plan to improve productivity.

If one then take the elements of an organisational composition and examine them to find out if it can change lives in how work is done and supervised. These elements are decentralisation, centralisation and levels of management, and these elements are the main foundation of any organisational composition. But how can the structure have an affect on the attitude and performance of employees? Peter Christensen has discovered the main target in the analysis of employee's marriage with organisational composition. He said that Maslow's theory of needs identifies the security needs, and is also safe to state that employees who experienced security and safety in their working environment will have an optimistic reaction on the management and organisational structure if coordinated effectively. How do we give employees security in a working environment, one focus on the attitude and performance of each employee. By analyzing this problem and illuminate it from working conditions you can have a structure that helps employees react better and work faster and harder. The primary objective of the study is to recognize and verify if this is true and why it holds true (Wohner 2011).


Organisational constructions is the coordination of a specific organisation's individuals and team work. If an organisation coordinates the individual's work they can achieve all goals and goals set. A organisational composition is one of few tools an company can use to organize and deal with all employees, due to way it shows different reporting relationships, minimize out the "middleman" in the communication framework and identifies the employee's actions and how they get together. All sorts of organisations may use structures, some change from others but all constructions have some advantages and disadvantages. Despite the fact that an organisation gets the best structure it isn't something the company should leave rather than manage, among the better buildings have failed due to a lack of management which is not the best ideal structure for the surroundings the organisation does business in (Carpenter, Bauer & Erdogan 2009).


Employee performance is a couple of standards lay out for every employee's behavior in his or her working environment. The specific standards not only concentrates about how the employee employs his time, by doing his work, but can be compared by some benchmarks lay out by the company (Moore 2011).

5 EMPLOYEE Frame of mind DEFINED

Attitude is a set in place beliefs, prices and feelings to produce a person act in the way they certainly. But if found in the context of employee frame of mind, there's a dilemna to the term attitude. There is certainly several components of employee attitude:

If a employee is enthusiastic about the job/work they are simply doing.

If the worker doesn't need to be supervised.

If the employee can plan in advance.

If the employee has a positive outlook on the environment.

If the employee is adding towards other work.

(Clark 2011).

6 Production DEFINED

"Productivity can be explained as the overall output of goods or services produced divided by the inputs had a need to generate that end result. " (Robbins & Coulter 2003: 527).

Some factors which can have a impact on productivity is: staff attitude, the dog owner (employer), health, working environment, working equipment, outsourcing and downsizing.


By evaluating an organisations structure you can identify 1 of 2 management styles, these management styles signify how the company is run and when employees perform better or worse. Both main styles are:

A hierarchical management buildings (traditional structure).

A flatter and more available "humanistic" management buildings (New modern framework).

(Organisation Composition: both main types 2011).

7. 1 The traditional organisational structure

Traditional organisational structure's most frequent fact is so it shows the boundary between your management level and the lower levels (normal working employees). The only real reason for this boundary is showing that management is first on the hierarchy and that all decisions should be created by them. Whereas employees are seen as underlying part dwellers and they're unimportant in their working environment, this however gives the management more stress and comes with an impact on the training and inspiration for the rest of the employees. There then follows a response on employee frame of mind and how the employees action towards management.

The traditional structure has two levels:

Level one: Managers

The three levels inside the first levels are:

1. 1 Top management

1. 2 Midsection management

1. 3 Lower management

Level two: Employees

This type of framework is very ancient and research demonstrates humans has used it from the start of humanity. However the structure is common it includes some advantages and it is most used if a group has to work together to find solutions for problems. This sort of management style is employed in armed forces and is also known as the armed forces management style (Company Structure: the two main types 2011).

7. 2 The modern organisational structure

The main distinction between your new structures and the original structures is that there is no clear boundary between employee and management in the new composition, but as stated there is some boundaries in the original ones. This sort of composition is more flatter and open up and employees and management can be seen as equal folks targeting the same goal. Thus giving employees the right to use their creativity and will get rewards for the work they have done. Rewards = satisfied employees = positive employee attitude = higher efficiency.

Some areas of modern buildings are:

Individuals and groups who can manage themselves.

Employees become multi skilled.

Training investment funds increase.

Few status distinctions.

More goals are achieved.

Employee security is higher.

Outsourcing becomes more flexible.

A more secure structure.

(Organisation Framework: the two main types 2011).


The six main organisational buildings:

Functional Organisational Structure

Geographic Organisational Structure

Product Organisational Structure

User/Market Organisational Structure

Hybrid Organisational Framework

Matrix Organisational Structure

(Ledbetter 2003).


Organisational structures can never show every one of the links involved in the organisation.

Communicating with other employees on different levels.

Department discord.

Quality problems.

The time it requires on developing products takes longer.

Customer needs become to high for several levels.

(Liebowitz & Affiliates 2008).

Some organisations find it hard to respond (Organisation Structure: both main types 2011).


The size of the organisation: some companies will have a more intense chain of command and even more levels in the hierarchy framework.

How well the employees are skilled: a Matrix composition will be preferred if the company has a higher level of skilled employees.

The design of leadership preferred: if owners desire to keep control they'll use a narrow structure plus some who wants employees to make own decisions use a far more wider structure.

Type of goals arranged for the organisation: if companies want to increase faster they'll need a vast structure.

External factors: if the earth or country is within recession the organisation should cut some of the employees and change the framework from wide to narrow or make it more flatter.

Technological changes: the introduction of administrative systems disables the coating of administration and the company will remove a few of the employees in the category.

When organisations choose a structure they must be careful, the wrong framework can have huge effects on the communication, costs, how decisions are created, and in motivating employees. This has the same influence on the employees attitudes towards the structure and will end up in having lower productivity (Organisational constructions 2009).


Centralisation Decentralization

11. 1 Information of centralization and decentralization

Centralisation: more important decisions are made at the bigger levels of the structures.

Decentralization: many decisions are created at lower levels, this gives employees the desire to be creative and be impressive, and solve the issues in their own industries.

(Carpenter, Bauer & Erdogan 2009).

11. 2 Centralisation

Definition: Centralisation is a process in which the decision making is designated to different higher levels of the composition.

Centralisation keeps employees from the knowledge and information, when an company uses only top management to make decisions they take away the creativity of employees in support of tell employees how to proceed. What goes on to employees when they aren't encouraged and self manageable, they cant solve problems on their own, if top management is to slow for your choice making process.

Centralisation has a wide period of control in top levels plus more tiers in the framework of the company (Centralization and decentralization 2011).

11. 3 Decentralization

Definition: It is a process where lower levels of the organisation has decision making privileges.

Decentralization is the movement of decision making to some of the other division of the organisation, these departments can be the branches, other divisions and some of the subcontractors. If given all employees the to make decisions, it offers the organisation more creativity, knowledge and suggestions to work with. Employees are given more expert and can improve their attitudes if they fell wanted in the company.

The structure's span of control is smaller plus more levels are given.

(Centralization and decentralization 2011).

11. 4 The three varieties of decentralization

Deconcentration: this is actually the lowest degree of decentralisation and decisions are created by lower levels of the organisation.

Delegation: Is a more advanced system of decentralisation, the decisions are made by lower levels nonetheless they have more specialist in the company.

Devolution: this type of decentralisation only uses autonomous organisational products when coming up with decisions.

(Centralization and decentralization 2011).

11. 5 Talents of centralisation

Organisational change is manufactured by the top levels and uses the perspective of the leaders.

The decision making process is strong and based on the visions of the bigger management.

The execution of the decisions made, is fast and coordinated and have the ability to respond much faster in with a few of the major problems.

Conflict is restricted, it is because only higher management can make decisions and everyone has to do what's expected from them.

(Centralization and decentralization 2011).

11. 6 Talents of decentralisation

Decentralisation concentrates more on bottom-up decision making, culture of the organisations employees and of the organisational culture and working out of employees.

The decision making process is more descriptive and democratic.

The execution of decisions is more emergent and flexible to improve.

(Centralization and decentralization 2011).


From small business ownerships to bigger organisations needs better performance in all their levels, from production to human resources. This is the vision of all companies to be better as their competition by accomplishing better.

The main notion of an organisational composition is to boost decision making and to identify the way the company is working and who gets the authority to make the important decisions and what team works in which team and programs. Employees would like to be identified in a firm or in their division. When employees are acknowledged they are determined. This gives them the positive attitude towards the company and the management of the company, when employees behaviour change from negative to positive they perform better, which is exactly what organisations want; higher performance from employees. Now if the composition is made from the idea of the old traditional type of body, employees can't get the motivation and positive attitude, which provides lower performance ratio towards the organisation or smaller business. This type of structure is not the only one that can have an negative affect on employees, even more modern buildings can, if not used in the correct way or if the structure is not designed for the sort of company. (Meijaard, Brand & Mosselman. 2002).

13 Worker ATTITUDE

The frame of mind of employees towards organisation is counted as everything. When employees are encouraged and positive they are more productive, and its own not science to see it. Promoting from within will also improve the strong prices and norms, build loyalty, and encourage employees to work harder to move forward within the business which gives them the inspiration they need to perform better. Negative attitudes can be a death sentence for any organisation. When providing employees the to authority they become more positive and thus gives more attention towards their work and looks forward to working for the company, they feel more desired and more recognized by the company and then contributes more, this is exactly what productivity is approximately: every worker giving their best to be sure the organisation performs. However employees with a poor attitude can pull the team or office down the drain and drain the positive attitudes of other employees and, subsequently, make sure they are negative (Stringer 2007).

13. 1 Organizational Structure

There will be some factors an company cannot change or manage. And many of these factors may offer an impact on the organisational structure and employee behaviour. Structures regulate how the employees interact to attain their goals, when the factors which have an effect on the composition cannot be maintained the organisation cannot achieve what they are aiming for. Among these factors is organisational culture, culture is the way employees think, feel and respond, how their prices and beliefs come together to work in a team or as an individual.

Some other factors can be:

Employee romantic relationships: If employees work together in a team towards an objective they have to have the ability to work freely and have a positive romance with other employees and management. (George & Jones, 2005).

Communication: employees talk to the other person they build their interactions, to make certain they are able to do it, the organisational structure must be designed to accommodate these kind of communication and give employees the freedom to do so. This has a huge effect how employees behaviour are towards the other person and exactly how they perform together when working in teams.

Employee satisfaction and reactions: staff satisfaction and reactions is seen in seven different areas, specifically; 1) interior work inspiration, 2) expansion satisfaction, 3) general satisfaction, 4) interpersonal satisfaction, 5) supervisory satisfaction, 6) security satisfaction and 7) pay satisfaction.

All of the factors produce an influence on the type of framework used and in the end have an influence on how the employee's attitudes are into the organisation and then have positive or negative result on the output (Oldham & Hackman 1981).


How the precise organisational structure is designed and the way the higher degrees of management provide sufficient motivation for employees, can break the business enterprise or can change it positive to be successful. The design of the structure should be researched completely to ensure that there is no cracks or loose ends in the framework, if it is not, the organisation gets the threat of demotivating employees and having a poor influence on their attitude, this may cause that the look has an effect on the productivity of the organisation and every employee, and in the end they may loose some employees in the future because of bad management and a lack of a perfect structure

(Mathematics 2010).

Some factors influencing output:

Confidence: organisational structures that will be more consistent gives employees security and a good attitude. A consistent structure is one where the hiring of employees are within the organisation, when employees are promoted when they work and when employees can relax about job damage. If an organisation has a consistent framework employees will spend them selves and perform the best at the careers, gives an organisation a higher production rate (Mathematics 2010).

Shared Goals: a clear structure can impact about how employees strive to the goals of the division, when an company can arranged their own goals and meet them with the goals of employees, they'll be able to move the team into an improved productive mode and achieve higher requirements. Organisations can, for example; if they are busy with a fresh budget and plans for another financial time, they can talk about it with middle management and ask them to take action with their own divisions and industries. This can show the employees the goals of the organisation, when these goals are establish each staff can set his / her goals which they want to accomplish for another calendar year. Organisations can also inform employees when goals are fulfilled, so that these employees can easily see how their improvement are going to ensure all goals are satisfied and achieved (Math 2010).

Accountability: All organisations should have some form of confirming system, when this technique is not in place, employees won't know what regarding problems or new ideas. The idea of these types of systems is to make certain that no information will be lost, when employees have issues they should be able to talk to you to definitely make it better, if an employee has a much better way of doing his job, it ought to be viewed and the new idea be explored. However if this system is not strong, this information can get lost and will demotivate employees and present them negative attitudes towards management which will have an affect on the culture of the company and success of the organisation (Mathematics 2010).


Greater employee security: Maslow's hierarchical model shows that any person's security needs are high. If organisational buildings improves staff security, the out come will be a worker with a good attitude and a worker who will work towards goals. Employees will work together to attain greatness and have an different job frame of mind.

Flexible management set ups: Management is one of the most important factors of your organisation, how they do their work and exactly how they treat employees. But within traditional buildings one cannot have these types of flexible management buildings, but can have it when in today's structure. A versatile management structure gives the employees the desire to be always a part of an team and a concept. Employees that are given the opportunity to make a contribution towards an operating program and present ideas are more positive in the sense that they feel sought by the organisation and aren't just a number on something.

People become multi skilled: Working in a company that uses an traditional type of structure limitations each employee's job technical specs. The implication of this is the fact that employees can't increase and be multi skilled. Employed in other styles of modern buildings provides employees the independence of to contribute in other programs and can give his own type when working in teams. The need for multi skilled employees isn't just to own one employee which can do several jobs, but it gives the employee drive and self value. Employees who are motivated and whose personal esteem is high has a good attitude and will have an impact on productivity.

Self managing individuals: Every employer wants employees who is able to think for themselves. When a worker can manage themselves the administrator or boss will not have to tell them what to do as well as how to do the precise process, will have less turmoil and become more positive, the complete reason behind this is not any employee would like to be cared for as if he is a kid. Now, if all employees are self managed, management won't have to do examinations and can do their own work faster, this will improve the working capacity that may lead to higher creation levels.


The examination of this thematic impartial study implies that how an company centralises or decentralises, use different amount of management levels and the way the departmentalization is employed is the main element factors associated with an organisational composition. These factors of the buildings has an have an impact on on how creative and progressive employees are. Which has an results on the performance and attitudes of employees. When each one of these factors get together they form a organic and strong framework which will own an positive outcome overall organisational environment. The organisational structure should be decentralized, efficient, adaptable and help achieve innovativeness. There are some factors which also have an affect on the structure chosen such as the supplier's number of clients and worker numbers however the organisations should have in mind that they have to keep employees motivated and positive towards their working environment. For this is the employees who produce the service and/ or product. The study clearly identifies the partnership between a framework and employee frame of mind and performance and is clear to understand that this romance is complex and really should be thoroughly studied and reviewed to make certain it is the best structure built in for the organisation to help employees perform better and positive. All organisations should choose between structures and choose the correct on for the environment and for employees, it is important to stay wide open minded and think clearly to make sure all employee are satisfied and have the winning attitude and perform to the best of their expertise, structures can come with an influence on these factors and since it will organisations should spend more time on the problem of how different set ups can have an improved production end result.

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