The Effects of Organizational Structure on Behavior

Every organization follows certain guidelines and policies, which help in forming a structure. The specific set of values determines the activities in order to attain objective. Organizational structures project the process of undertaking efficient operations with the intention of achieving business goals. It also determines the functioning of the company and the responsibilities of the workers. However, if you are curious to know the effect of organizational structure on behavior, then you need to look into various areas of the enterprise. It plays a crucial role in forming employee morale, improving internal communications for effective outcome. Therefore, organizational structure is undoubtedly a controlling factor.

As already mentioned, organizational structure affect employee morale. Their inspiration and motivation depends on how they are been treated in the organization. There can be both positive and negative impact. For instance, if the entire decision making rests with the senior officers and they get all the credits for solving issues, this is undoubtedly demoralizing.  The employees who are actually doing the tasks hardly get recognized in such a structure. Management like this disheartens the lower level workers as they are debarred of the expected bonus or salary hikes. Hence, such a structure creates a negative behavior that discourages innovation.

The nature of communication is yet another effect of organizational structure. In case it is a line organizational structure, the environment is informal because the decision makers can directly interact with their staffs. However, rigidly structured organization creates just the opposite environment, where the employees are unable to access information. There can even be confusion in identifying the person who should be referred to while having issues about a project. Such a structure develops lax performances and employees feel a negative essence of distrust and suspicion. Therefore, flexibility among departments is crucial for organizational structure.


A transparent organizational structure should always share the corporate goals and plans with the employees. A structured organization will always produce effective results with little wastage because the amount of work necessary to reach performance goal is already determined. So, it is better to simplify the process of command chains and work on the system that does not slow down the working behavior.

The behavior of the organizational structure towards the employees is yet another factor. Unfair treatment, misbehavior, unnecessary reaction and other such actions reduces the self-esteem. The loyalty level of the employees decreases within organizational structure.

In other words, organizational structure can be defined as skeleton of a company. According to the agenda and objective, businesses should set up their own organizational structure. If necessary the company can even invite organizational coaches to analyze dynamics and find major insight by investigating the characteristics, interests, and values. Such an effort can motivate the individuals and groups in the company promising successful results.

Author Bio: Riya Bagaria is a passionate writer and she shares information about the best PGDM College in Kolkata.

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