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. He insists that factors such as recognition, responsibility, the work itself makes up for some of the motivators creating job satisfaction. The factors that lead to dissatisfaction are supervision, company policy, salary, relationship with peers and subordinates. It is therefore paramount that the organizational structure supports job satisfaction and reduces incidences of job dissatisfaction. An organization should set up a structure that makes employees feel satisfied with their jobs, so that a job is not a task. Frederick Winslow insists on scientific management. His theory puts forth the idea that management of an organization, which largely depends on the structure, can be scientific. This insinuates that it can be put down to an exact science, where the tried and tested ways after years of observation are sure and true to succeed. The four step process is-develop a science for each element of the individuals work, heartily cooperate with workers so as to ensure all work is done and done properly with no grudges or ill feelings, divide work equally between management and workers instead of the old methods where workers would labor while the management did much lesser work and that management should take the work that it's better suited than the workers in order to have a balanced work environment. A good structure should incorporate some if not all of these in order to reach goals, make workers happy and the management satisfied with the output. All these management theories lead to different organizational structures depending on what works best for the organization. Though some theories put forward have been disputed or declared obsolete, this has not meant that some proposed points are not accommodated and incorporated in the making of organizational structures in today's business world. Some of these include matrix method, flat, centralized or decentralized structure, tall [traditional] structure] and many more (Learning Management2.com 2008). Small to medium sized organizations mostly have the functional and tall structure. This is where there is a clear