Question

Analyze the effects and applications of various organizational structures and levels of authority on employee motivation, morale, and culture.

Answer 1

Various organizational structures affect employees in various ways. Let's take the case of flat structure organization. In this structure, there are less or no middle management which allows employees to take decisions on their own without asking their superior. They can take project related decisions on their own and this is a creative task for beginners. So flat structure is motivating for the self-starters but others need guide to move ahead. Flat structure is responsible for developing positive employee morale as they have the freedom to take decision on their own. But only starters can enjoy positive morale but others have a negative morale.

Hierarchical structure helps employees as there is no confusion regarding the hierarchy, employees have the clear information about their manager and superiors. They know whom to report and their responsibilities. It motivates them to work and they have a positive employee morale.

In a matrix structure organization, employees get more opportunities to shine as the project managers recruit employees from different departments for the team. But this structure is more confusing for the team members as they are not sure about whom to report and what are their responsibilities. This structure develops a positive employee morale as employees are happy to get more opportunities but at the other time they feel unhappy as there is confusion regarding whom to report. This structure affects employee culture in a positive way. As employees from different departments and different cultures can be selected for the project team, they enjoy a diverse culture.

Centralized structure is more transparent as decisions are handled at the top level only. Lower level managers and employees rarely got the chance to participate in decision making process. But this type of structure is not good for the employees who wants to participate in decision making, these type of employee develops negative employee morale. On the other hand there are employees who like this structure as there is no confusion to work and there is little room for change.

In a decentralized organization, employees are invited to take part in decision making process and are motivated to share their new innovative ideas. Employees feel happy and like to work with different groups of people having different levels of authority in the hierarchy.