Organizational Structure, Power and Influence

Organizational structure has much influence on the power and political structure of an organization. Organizational structure can contribute either to the power and influence of the organization as a whole or can contribute to the power of singular individuals. In a hierarchical organizational structure where management directives typically proceed in top down fashion, those at the top of the managerial chain including CEOs and Board members generally exude the most power and political influence within the organization. In this type of structure politics are generally governed by a select few as the organization tends to be more authoritarian. This type of structure is generally more prevalent within large and bureaucratic organizations, such as public entities. Corporations tend to operate using a hierarchical structure, distributing more power among a select group of individuals and engaging in more bureaucracy during the decision making process.

A more democratic or participative organizational structure lends itself to greater knowledge sharing among managers and employees. This structure is more commonly seen in Limited Liability Corporations and Partnerships. Typically in this environment power is more evenly distributed through a wider selection of middle managers. The political structure of the organization may be more volatile as more employees or staff members are likely to participate in decision making and strategic initiatives. This can contribute to an organizations success however, particularly in a global environment by enhancing diversity and knowledge dissemination throughout the organization. This is the organizational style more often seen in modern or contemporary organizations that have more global influence and deal with more diverse clientele and customer service bases.

Of course hierarchical management is also present in an LLC or partnership, where one or two people may have more power and influence over decision making and strategic planning.

References

MSU Extension Service. (1998). "Selecting an Organizational Structure." Montana State

University, Available: http://www.montana.edu/wwwpb/pubs/mt9708.html

Organizational Structure