Organizational Structure and the affect on Its Members

Organizational Structure and the affect on Its Members - 1...

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1 Running head: ORGANIZATIONAL STRUCTURE Organizational Structure and the Affect on Its Members Touro University International MGT501, Module 1, Case
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2 ORGANIZATIONAL STRUCTURE Organizational Structure and the Affect on Its Members In today’s business economy, it is extremely important for companies and businesses to have a management structure, or organizational design, that optimizes the company’s valuable resources. As companies compete in the free market system of Capitalism throughout the global economy, the need for a successful organizational structure becomes extremely important to gain advantage in the competitive market. Businesses and organizations require an organizational design which allows them to compete in the global economy with a high degree of effectiveness and efficiency. Trained and qualified employees are one of the most important assets that companies and organizations have to accomplish company tasks and goals and ultimately have the largest impact on the success or failure of the business or organization. The organizational structure or design of an organization or business has a direct affect or influence on the way that its members communicate, coordinate, make decisions, and how productive they are. The organizational structure may also lead to employee mental health issues such as depression and anxiety, according to C.S. Spell and T.J. Arnold, and the annual cost of lost productivity, increased absenteeism, and turnover because of mental illness to U.S. businesses has been estimated at $44 billion. For this reason, it is necessary for businesses and organizations to analyze and evaluate the effect or influence that the organizational design has on its employees. Organizational Justice Organizational justice is the study of people’s perceptions of justice within an organization. There are three specific types of organizational justice which will be discussed. Distributive justice is the perception of fairness in outcomes, such as equity, equality, and needs.
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3 ORGANIZATIONAL STRUCTURE Procedural justice is the perception of fairness of the methods or procedures used. Examples of procedural justice are decision criteria, the amount of voice employees have, or control over processes. Interactional justice is based on the perceived fairness of interpersonal treatment received, the amount of sensitivity given to those involved, dignity and respect, and the nature of explanations given. In one particular study by, C.S. Spell & T.J. Arnold (2007), hypothesized that organizational structure will moderate the negative relationship between procedural justice climate and both individual depression, and anxiety, beyond the direct effect of individual-level justice perceptions. In a highly mechanistic structure, the negative relationship of procedural justice climate will be strengthened. One the other hand, within a highly organic structure, the negative relationship of interactional justice climate will be strengthened. The findings of their
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This note was uploaded on 06/21/2011 for the course MGT 501 taught by Professor Johnson during the Winter '11 term at Touro CA.

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Organizational Structure and the affect on Its Members - 1...

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