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The theories of the Human Relations School of organizational structure of businesses.

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I)Flat organizational structures have replaced tall  structures.

  • Tall structures were a result of the classic approach and emphasized a limited span of control.
  • They were criticized as several levels of vertical communication removed senior Management too far away from the “shop-floor”.
  • Flat structures were recommended to take advantage of informal relationships.
  • The problem is that they require much better coordination and control and may Result in overload at the top of the structure.
  • Seen as most appropriate for small organizations and those operating in an Uncertain environment.

ii) There has been a move away from specialization.

  • A move away from specialized departments to wide ranging and integrated Departments have been encouraged.
  • The theory is that this gives individuals greater opportunity for growth, challenge and responsibility.

iii) There is increased worker participation.

  • Theory states that higher educational levels among workers means they are capable of and want greater participation in decision making.
  • The benefits are stated as increased productivity, increased commitment to the Organization and reduced conflict.
  • Opponents say that the benefits are not always achieved and that decision making time is increased and responsibility becomes blurred.

iv) Informal structures are recognized.

  • Formal organization is the defined tasks, roles, control structures, etc in an Organization.
  • Informal organization builds up as a result of the social relations between staff.
  • It helps individuals and groups exert control over their work situation.
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