ORGANIZATIONAL STRUCTURE AND DESIGN EFFECT ON PERFORMANCE

Abstract

The main purpose of this article is to emphasize the importance of organizational structure and design effects on work performance. Accordingly, the article explains organizational structure and its definition on several organizational designs and eventually conclude the impacts on work performance. Organizational structures differentiate companies by enabling managers and employees to be more effective problem solvers and more productive in decision making processes in company’ own benefit. The scope of this study is limited by the definition of organizational structure or organizational design on management and business literature. The research is supported by academic journals and books covered the subjects related to organizational structure/design. The key words and terms used are: ‘organizational design’, ‘organizational structure’ and ‘performance’. Articles were chosen by distinguishing the key words on articles abstracts or introduction parts. The aim of this literature review has been to successfully explain the fundamentals of organizational design. Nevertheless, many research papers stated that there is no positive relationship between organizational structure and performance. Simultaneously, organizational design plays a significant role in organizational behavior.