Some factors that influence organizational structure are size, the products, skills and talents found in the organization and most structures will mainly be based on these factors.
Different theories have been placed forth about why different organizations have the structures they do. According to Abraham Maslow, organizational structures mainly depend on their needs. In his works he clearly places these needs in a hierarchy system where the satisfaction of one level of needs leads to the organization striving to fulfill the other levels of needs of the organization. These needs, in order of priority are; physiological needs such as food and shelter, safety needs such as safety in the environment, social needs like love and friendship, esteem needs like self respect and status and at the top of the hierarchy is self actualization which is actually reaching one's full potential. A good organizational structure should be one that aids in fulfilling these needs among employees in the organization in order to maximize output. Herzberg insists that intrinsic factors are related to job satisfaction while extrinsic factors lead to job dissatisfaction. The structure and job environment that is positive creates interactions leading to self-esteem that improves quality of work. ...Show more