Do you think an organization structure plays a crucial role in how rigid or flexible their system are in context to delivering goods and services.

Provide explanation and examples

Organization structure directs employees on the system to follow to adhere to their responsibilities and stick to the rules. It ensures that there is flow of information and reporting relationships are working smoothly.

When delivering goods and providing services, rigidity of the system is determined by the organization structure since it impacts the performance of the employees, supports centralized decisions and limit delegation of work as explained below.

Step-by-step explanation

Organization structure outlines roles and responsibilities to be adhered to by the employee. It is a system which shows reporting relationships which directs the workflow and activities of the organization. The flow of information between organizational levels is guided its structure.

When delivering goods and providing services, rigidity of the system is determined by the organization structure since it:

• Impact on the performance of employees: A strong organization structure means that the employees knows their responsibilities and targets. This means that they work hard to achieve them and deliver quality results. Delivery of goods and provision of services becomes flexible since it is not limited to certain growth. Therefore, growth becomes flexible as there is high generation of revenue. For example, in the production department, employees knows their working areas and responsibilities. It does not limit them from producing high volumes. If they put more effort, output increases. This means their performance is flexible and not rigid.
• Centralized decisions: Organization structure outlines the reporting relationships. This makes the system rigid since it is structured and ought to be adhered to. Decision and information flows from top management and it is communicated to the other levels of the organization. The approval of a transaction have to follow a laid down procedure. For example, if delivering goods or providing services, operations manager have to approve, even if he is not in, he have to be waited delaying the delivery.
• Limited delegation of work: Organization structure outlines roles and responsibility of each employee thus less work delegation. This makes it difficult to delegate work and if it is done, there is a procedure to be followed for its approval. It therefore results in rigid system in delivery of good and provision of services. For example, where the executive have to authorize delegation of work to support delivery of goods and he is not in the office, the delivery can not be done. He have to be waited to report to work.