ASSIGNMENT#2

Organizational structure plays crucial role in a number of organizational decisions and

activities.
Each element of structure has a unique influence on ethical decision making &
behavior.

ORGANIZATIONAL STRUCTURE:
“An organization is a group of people who together work to achieve a common goal. In
order to work together efficiently, the group must find the best way to organize the work that
needs to be done in order to meet the goals of the organization. Organizational
structure defines how tasks are divided, grouped, and coordinated in organizations”

DEPARTMENTALIZATION:

Departmentalization refers to how the organizational structure groups the company's

functions, offices and teams. Those individual groups are typically referred to as
departments. Departments are usually sorted on the basis of the kinds of tasks the workers
in each department perform. Decision making becomes slower and more bureaucratic and
De-emphasis of overall company objectives occur and employees ideas are not given value
due to which honesty and loyalty get effected and employees indulge themselves in unethical
actions and activities which can damages the organizations image .So, owners never get to
know what kind of disruption is ongoing at department level.

CHAIN OF COMMAND:

In a business organization, the chain of command refers to levels of authority in the

company from the top position, such as a CEO or business owner, down to workers on the
front line. Most organizations, from businesses to non profits to the military, utilize a chain
of command.. Managers assign tasks, communicate expectations and deadlines to
employees, and provide motivation on a one-to-many basis. Employees of the organisation
have the clarity to whom to approach when they need resources to get work done. After a
breakdown in the chain of command, workers may feel as if nobody is in charge. This can
create an atmosphere of uncertainty and chaos, which affects the morale of all workers in
the organization.

SPAN OF CONTROL:

An organization’s span of control defines how many employees each manager is

responsible for within the company. Based on the manager’s individual style or approach,
the span of control could range from three or four to 15 or more. A narrow span of control
enhances communication between the supervisor and the team members. The team members
can easily access the supervisor for assistance. Enhanced communication also helps in faster
decision-making and problem-solving.

WORK SPECIALIZATION:
the first element that affects the structure of an organization is how tasks are subdivided into
separate jobs. In any business, employees at all levels typically are given a description of
their duties and the expectations that come with their positions. In larger companies, job
descriptions are generally formally adopted in writing. Employees who become specialists
at one task, or a small number of tasks, develop greater skill in doing that particular job. This
can lead to greater efficiency and consistency in production and other work activities.
However, a high degree of specialization can also result in employees who are disinterested
or bored due to the lack of variety and challenge.

FORMALIZATION:

Formalization is the element that determines the company’s procedures, rules and
guidelines as adopted by management. Formalization also determines company culture
aspects, formalization reduces ambiguity and provides direction to employees, it is not
without disadvantages. A high degree of formalization may actually lead to reduced
innovativeness because employees are used to behaving in a certain manner. A formalized
structure is associated with reduced motivation and job satisfaction as well as a slower pace
of decision making. Tenbrunsel et al. (2013) argue that employees are guided by the
organization if there is an ethical infrastructure present, and when this infrastructure is weak,
consequently the employees’ ethical standards will be low.

CENTRALIZATION AND DECENTRALIZATION:

Centralized organizations are characterized by concentration of power at the to p and there

is little scope for delegation of authority. Such structures are said to promote unethical
behavior in the organization because there is no interaction between the decision makers
at the top and the employees at the lowest level of organization. Also, there is hardly any
upward communication due to which the people at the top never come to know of
unethical activities going on at lower levels.

Decentralized organization structure focuses on delegation of authority and individual

responsibility. Such structure also promotes unethical behavior among organizational
members .Decentralized structures run on employee empowerment but if the employees
misinterpret their power; this may lead to immoral acts by employees. There are also
chances that middle-level managers when get pressure from the top may exert
unnecessary pressure on lower level employees and this may again lead to unethical
behavior in the organization .