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C.7 Factors Influencing Management Choice of Organisation Structure The following are factors that influence the choice of organisation structure i) Nature of business or functions to be performed by the organisation, ii)
Size of the organisation, iii) Line of authority, iv) Organisation objectives/tasks/goals v)
Market trend, vi) Geographical dispersion, vii)
Government policies, viii) Organisational growth rate, ix)
Technology and other resources, x) Strategy xi) Ownership and control, xii) Origin
and history of such firm, xiii) Organisational culture, etc.
C.8 Consequences of Badly Designed Organisation Structure According to Child (1988), the following are the consequences of structural deficiencies ii bLow motivation and morale this may result from apparently inconsistent and arbitrary decisions insufficient
delegation of decision-making; lack of clarity in job definition and assessment of performance competing pressures from different parts of the organisation and managers and supervisors overloaded through inadequate support systems. iii bLate and inappropriate decisions: this may result from lack of relevant, timely information to the right people poor coordination of decision-makers indifferent units overloading of decision makers due to insufficient delegation and inadequate procedures for revaluation of past decisions. iii)
Conflict and lack of coordination may result from conflicting goals and people working at cross-purposes because of lack of clarity on objectives and priorities failure to bring people together into teams or through lack of liaison and breakdown between planning and actual operational work. iv)
Poor response to new opportunities and external change: this may result from failure to establish specialist jobs concerned with forecasting environmental change failure to give adequate attention to innovation and planning of change as a main management activities inadequate coordination between identification of mark etc, changes and research into possible technological solutions. vi bRising costs: may result from along hierarchy of authority with a high proportion of senior positions an excess of administrative work at the expense of productive
work and the presence of some, or all, of the other organisation problems.
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