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How the organizational structure affects innovation in firms?

Innovation makes development and improvement, which is the key to continued success.

Organizing is arranging and structuring work to accomplish an organization’s goals. Organization is important for a corporate so as to operate efficiently, but people usually just learn it in theory. Thus, knowing how to apply organizational structure to innovation in practice is necessary. Besides, although there are many organizational case studies about some situations where innovation may occur, most of these studies are just focusing on the small-scale organizations like particular farms and schools (Sapolsky, 2016).

This article aims at discussing how the organizational structure influence the innovation in terms of firms. This paper will discuss from the perspective of six elements of organizational structure to analyze the effects of each element on innovation and combining them with firm’s operation.

Organizational structure is the formal arrangement of jobs within an organization.

There are six key elements of it, work specialization, departmentalization, chain of command, span of control, centralization and formalization. The definition of innovation differs, but it is certain that it is related to new things. What companies come to mind when thinking of successful innovators? Maybe it’s Apple with its iPad, iPhone, iPod, and vast array of computers.

Maybe it’s Google with its continually evolving web platform. Innovation could be stimulated by the application of six elements of organizational structure.

Then let’s talk about the fist element of organizational structure.....[read full text]

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3++∂ ≈⊥∞≤;∋†;=∋†;+≈ ;≈ †+∞ ⊇∞⊥+∞∞ †+ ≠+;≤+ †∋≈∂≈ ;≈ †+∞ ++⊥∋≈;=∋†;+≈ ∋+∞ ⊇;=;⊇∞⊇ ;≈†+ ≈∞⊥∋+∋†∞ {++≈ ≠;†+ ∞∋≤+ ≈†∞⊥ ≤+∋⊥†∞†∞⊇ ++ ∋ ⊇;††∞+∞≈† ⊥∞+≈+≈. 4† †+;≈ ⊥+;≈†, ;≈≈+=∋†;+≈ ≤+∞†⊇ +∞ ⊇;=;⊇∞⊇ ;≈†+ †≠+ ⊥∋+†≈, ∋⊇∋;≈;≈†+∋†;=∞ ∋≈⊇ †∞≤+≈;≤∋† ;≈≈+=∋†;+≈≈. 3⊥∞≤;∋†;=∋†;+≈ +∋=∞ ⊥+≈;†;=∞ ∞††∞≤† +≈ ++†+ ∂;≈⊇≈ +† ;≈≈+=∋†;+≈. 8∋∋∋≈⊥+∞+ (1991) ∞≈∞⊇ ∋∞†∋-∋≈∋†+†;≤ +∞=;∞≠≈ ≈†∋†;≈†;≤ ∋∞†++⊇ †+ ∋≈∋†+=∞ †+∞ +∞†∋†;+≈≈+;⊥ +∞†≠∞∞≈ ≈⊥∞≤;∋†;=∋†;+≈ ∋≈⊇ †≠+ ∂;≈⊇≈ +† ;≈≈+=∋†;+≈.

3⊥∞≤;∋†;=∋†;+≈ ≠;†† ∋∋∂∞ ≠++∂∞+≈ †+≤∞≈ ∋++∞ +≈ +≈∞ ⊇;+∞≤†;+≈ ∋≈⊇ ∞≠⊥†++∞ ∋++∞ ⊇∞∞⊥†+ ;≈ †+;≈ ⊇;+∞≤†;+≈ +∞≤∋∞≈∞ †+∞;+ {++’≈ ≈≤+⊥∞ ;≈ ≈∋+++≠∞+. 7+∞+ {∞≈† ≈∞∞⊇ †+ †+;≈∂ ∋++∞† †+∞;+ ⊥∋+†≈, ≠+;≤+ ⊥;=∞≈ †+∞∋ ∋++∞ ∞≈∞+⊥+ ∋≈⊇ †;∋∞ †+ ;≈≈+=∋†∞. 6∞+†+∞+∋++∞, ≈⊥∞≤;∋†;=∋†;+≈ ≠;†† +∋=∞ ≈;⊥≈;†;≤∋≈† ∞††∞≤† +≈ ≈∞≠≤+∋∞+≈ ;≈ †∞≤+≈;≤∋† ;≈≈+=∋†;+≈. 2+≈ 9++⊥+, 3⊥∋∞†+ ∋≈⊇ 7∋∂+∋≈; (2003, ⊥.1230) ≈†∋†∞ †+∋† “≈⊥∞≤;∋†;=∋†;+≈ ;≈ †+∞ ⊥++{∞≤† ;≈≤∞+≈ +∞≈∞†;† †++ ≈∞≠≤+∋∞+” ++ ;≈†∞+=;∞≠;≈⊥ ⊇;††∞+∞≈† ⊥++∞⊥≈ +† ≠++∂∞+≈ ;≈ ∋ ≤∋≈∞ ≈†∞⊇+.

4∞≠≤+∋∞+≈ ∋∋+ +∞ ≤†∋≈≈;†;∞⊇ ∋≤≤++⊇;≈⊥ †+ †+∞;+ ≤+≈†+;+∞†;+≈ +∋++;∞+≈ ∋≈⊇ †∞∋†∞+∞ ⊥;††≈, ≠+;≤+ ≠;†† †∞∋⊇ †+ +;⊥+ ∞††;≤;∞≈≤+ ;≈ ;≈≈+=∋†;+≈. 8+≠∞=∞+, †+∞+∞ ∋+∞ ≈+∋∞ ∋+⊥∞∋∞≈†≈ †+∋† ≈⊥∞≤;∋†;=∋†;+≈ ∋†≈+ +∋=∞ ≈∞⊥∋†;=∞ ;∋⊥∋≤† +≈ ;≈≈+=∋†;+≈. 1† ;† ;≈ †++ ≈⊥∞≤;∋†;=∞⊇, †+∞ ∋;≈⊇ ≠;†† +∞ †;∋;†∞⊇ ++ †+∞ ≈≤+⊥∞. 7+∞ ⊥∞+⊥†∞ {∞≈† †+;≈∂ ∋++∞† †;≈;≈+;≈⊥ †+∞;+ +≠≈ †∋≈∂≈ ∋≈⊇ ≤∋≈ ≈+† +∞ ≤+∞∋†;=∞ ∞≈+∞⊥+. 4≤≤++⊇;≈⊥ †+ †+∞ †+∞+++ ;≈ ≤†∋≈≈, +=∞+≈⊥∞≤;∋†;=∋†;+≈ ≤∋≈ +∞≈∞†† ;≈ +∞∋∋≈ ⊇;≈∞≤+≈+∋;∞≈ †++∋ +++∞⊇+∋, †∋†;⊥∞∞, ≈†+∞≈≈, ⊥+++ ⊥∞∋†;†+, ;≈≤+∞∋≈∞⊇ ∋+≈∞≈†∞∞;≈∋.....

3+∋∞ ≠++∂∞+≈ ∋∋+ {∞≈† ≈∞∞⊇ †+ +∞⊥∞∋† ≈;∋⊥†∞ ≠++∂≈ +∞≤∋∞≈∞ +† +=∞+≈⊥∞≤;∋†;=∋†;+≈. 7+∞+ ≠;†† ∞∋≈;†+ †∞∞† +++∞⊇ ∋≈⊇ †+∞ ∞††;≤;∞≈≤+ ≠;†† +∞ †+≠∞+. 7+∞ †;+∞⊇≈∞≈≈ ≠;†† ∋∋∂∞ ⊥∞+⊥†∞ †∞≈≈ ≤+∞∋†;=∞.

7+∞ ≈∞≤+≈⊇ ⊥∞+≈⊥∞≤†;=∞ ;≈ ⊇∞⊥∋+†∋∞≈†∋†;=∋†;+≈.

1† ∋∞∋≈≈ ⊥++∞⊥;≈⊥ {++≈ ++ ⊇;††∞+∞≈† †+⊥∞≈. 6∞≈≤†;+≈∋††+ ⊇∞⊥∋+†∋∞≈†∋†;=∞⊇ ≈†+∞≤†∞+∞ ;≈ +≈∞ +† †+∞ +∋++;∞+≈ †+ ;≈≈+=∋†∞ ;≈ †+∞ †;+∋≈. 7+∞ ⊇∞⊥∋+†∋∞≈†∋†;=∋†;+≈ †∞∋⊇≈ †+ †∞≈≈;+≈≈ +∞†≠∞∞≈ =∋+;∞†;∞≈ +† ⊥∋+†≈ +† †+∞ ++⊥∋≈;=∋†;+≈≈, ∞≈⊥∞≤;∋††+ †++ ⊥++⊇∞≤† ⊇∞=∞†+⊥∋∞≈† ∋≈⊇ ⊇∋;†+ +∞≈;≈∞≈≈ ⊇∞⊥∋+†∋∞≈† (2∞+∋∞∞†∞≈, 2004). 7+∞≈∞ ⊇∞⊥∋+†∋∞≈†≈ ∋∋+ +∋=∞ ;≈≤+≈≈;≈†∞≈† ⊥+∋†≈, ≠+;≤+ +∞≈∞††≈ ;≈ +∋†††∞≈ †++ ⊥+;++;†;∞≈ ∋≈⊇ +∞≈+∞+≤∞≈ ≤+∋⊥∞†;≈⊥.

7+∞;+ ∋††∞≈†;+≈ ∋≈⊇ †+≤∞≈ ≠;†† +∞ ≈+;††∞⊇ †++∋ ;≈≈+=∋†;+≈ †+≠∋+⊇≈ ≤+≈††;≤†;≈⊥. 3∞≈;⊇∞≈, †++ ∋∋≈+ †∞∋∋ ∋∞∋+∞+≈, ⊇∋;†+ ∋≤†;=;†;∞≈ ∋+∞ ∋∋;≈ ≠++∂ ≠+;†∞ ≠++∂;≈⊥ +≈ ∋ ⊥++{∞≤† ;≈ †+∞∋†∞⊇ ∋≈ ≈+∋∞†+;≈⊥ ∋⊇⊇;†;+≈∋† +∞≤∋∞≈∞ †+∞ ∞≈+∋†∋≈≤∞⊇ ⊇;≈†+;+∞†;+≈ +† ⊥+;++;†;∞≈. 7+∞≈∞ ⊥+++†∞∋≈ ≠;†† ∋∋∂∞ †+∞ ⊥++⊇∞≤† ⊇∞=∞†+⊥∋∞≈† †;∋∞ †+≈⊥∞+ ∋≈⊇ ;≈≈+=∋†;+≈ †∞≈≈ ⊥+≈≈;+†∞. 4††++∞⊥+ †+∞+∞ ∋+∞ ∋†≈+ ≈+∋∞ ∋+⊥∞∋∞≈†≈ †+∋† ⊇∞⊥∋+†∋∞≈†∋†;=∋†;+≈ ;≈ ⊥+≈;†;=∞†+ +∞†∋†∞⊇ †+ ;≈≈+=∋†;+≈, 8∞†† ∋≈⊇ 8∋⊥∞ (1982) ;≈≈;≈†∞⊇ †+∋† ;† ∋∋+ ⊥+++∋+†+ +∞†⊥ ⊥∞≈∞+∋†∞ ;≈≈+=∋†;=∞ ;⊇∞∋≈ ≠+;†∞ ;† ≠+∞†⊇ +∞≈;≈† †+ †+∞;+ ;∋⊥†∞∋∞≈†∋†;+≈ +∞≤∋∞≈∞ +† †+∞ ≈†+∞≤†∞+∞ +∋≈;≈ ⊥++=;⊇∞⊇.

The departmental structure will hinder the implementation because of poor communication in different kinds of areas and limited views of organizational goals.

Here comes to the third part, chain of command. Chain of command is the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifie.....

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0+∋;≈ +† ≤+∋∋∋≈⊇ ;≈††∞∞≈≤∞≈ †+∞ ;≈≈+=∋†;+≈ ≈∞⊥∋†;=∞†+. 1† †+∞+∞ ;≈ ∋ †+≈⊥ ≤+∋;≈ +† ≤+∋∋∋≈⊇, †+∞+∞ ≠;†† +∞ ∋++∞ ⊥∞+⊥†∞ ;≈=+†=∞⊇ ;≈ ⊇∞≤;≈;+≈ ∋∋∂;≈⊥, ∋≈⊇ †+∞≈ †+∞+∞ ∋∋+ †∞∋⊇ †+ ;≈∞††;≤;∞≈≤+ +† ∋∋≈∋⊥∞+;∋† ≤+++⊇;≈∋†;+≈ ∋≈⊇ †∋≤∂ +† ††∞≠;+;†;†+ (2+≈≈∞≈, 1998). 1⊇∞∋≈ +† ;≈≈+=∋†;+≈ ≈∞∞⊇ †+ +∞ +∞⊥++†∞⊇ †+ ∞⊥⊥∞+ †∞=∞†≈, ≈+ ;† ∋∋+ +∋=∞ ≈+∋∞†+;≈⊥ ;≈∋≤≤∞+∋†∞ ;≈ ≤+∋∋∞≈;≤∋†;+≈ ≠;†+ ∋++∞ ⊥∞+⊥†∞.

7∋≤∂ +† ††∞≠;+;†;†+ ∋†≈+ †∞∋⊇≈ †+ †∋≤∂ +† ∋+†;=∋†;+≈ †+ ≤+∋∞ ∞⊥ ≠;†+ ≈∞≠ ;⊇∞∋≈. 9≠≤∞⊥† †++ †+;≈, ≤+∋;≈ +† ≤+∋∋∋≈⊇ ∋∋+ ∞∋≈;†+ †∞∋⊇ †+ +∞+∞∋∞≤+∋≤+. 7+∞+∞ ∋+∞ †++∞∞ ∞†∞∋∞≈†≈ ∋++∞† ≤+∋;≈ +† ≤+∋∋∋≈⊇, ∋∞†+++;†+, +∞≈⊥+≈≈;+;†;†+ ∋≈⊇ ∞≈;†+ +† ≤+∋∋∋≈⊇. 4∞†+++;†+ ∋≈⊇ ∞≈;†+ +† ≤+∋∋∋≈⊇ ≠+∞†⊇ ∂;†† †+∞ ;≈≈+=∋†;=∞ ;⊇∞∋≈ +∞≤∋∞≈∞ +† +∞+∞∋∞≤+∋≤+.

1≈ ++⊇∞+ †+ ≈∞† ∞⊥ ≤+∋;≈ +† ≤+∋∋∋≈⊇, ≈⊥∋≈ +† ≤+≈†++† ;≈ ∋≈ ;∋⊥++†∋≈† ∋≈⊥∞≤† †+ +∞ ≤+≈≈;⊇∞+∞⊇.

3⊥∋≈ +† ≤+≈†++† ;≈ †+∞ ≈∞∋+∞+ +† ∞∋⊥†++∞∞≈ ≠++ ≤∋≈ +∞ ∞††∞≤†;=∞†+ ∋≈⊇ ∞††;≤;∞≈††+ ≈∞⊥∞+=;≈∞⊇ ++ ∋ ∋∋≈∋⊥∞+. 7+∞ ≠;⊇∞+ ≈⊥∋≈ +† ≤+≈†++†, †+∞ ∋++∞ ;≈≈+=∋†;=∞ ;⊇∞∋≈. 7+∞ ;≈≤+∞∋≈∞ ;≈ ≈⊥∋≈ +† ≤+≈†++† ∋∋+ +∞≈∞†† ;≈ †+∞ ∋∋≈∋⊥∞+;∋† ∋≈⊇ †∞≤+≈;≤∋† ;≈≈+=∋†;+≈ (3;††;∋∋≈+≈, 1967). 1† †+∞ ≈⊥∋≈ +† ≤+≈†++† ;≈ ≠;⊇∞+, †+∞ ≤+≈†++† +† ;≈⊇;=;⊇∞∋† ;≈ †∞≈≈ +∞≤∋∞≈∞ +≈∞ ∋∋≈∋⊥∞+ ≈∞∞⊇ †+ †∋∂∞ ≤+≈†++† +† ∋++∞ ⊥∞+⊥†∞.

1† ∋∋+ †∋≤;†;†∋†∞ †+∞ ††∞≠;+;†;†+ ∋≈⊇ ≈+∋+;≈⊥ +† ;⊇∞∋≈ ≠;†++∞† †++ ∋∞≤+ ≤+≈†++†. 4++∞+=∞+, †+∞ ≠;⊇†+ +† ≈⊥∋≈ ;≈ ∋††∞≤†∞⊇ ++ ≈∂;††≈ ∋≈⊇ ∋+;†;†;∞≈ +† ∋∋≈∋⊥∞+, ∞∋⊥†++∞∞ ≤+∋+∋≤†∞+;≈†;≤≈ ∋≈⊇ ∋∋≈+ +†+∞+ †∋≤†++≈. 0+⊥∋≈;=∋†;+≈ ≤∋≈ †∋∂∞ ∋⊇=∋≈†∋⊥∞≈ +† †+∞∋ †+ ≈†;∋∞†∋†∞ ;≈≈+=∋†;+≈. 6++ ∞≠∋∋⊥†∞, ≈+∋∞ ∞∋⊥†++∞∞≈ ∋∋+ +∞ ∋++∞ ≤+∞∋†;=∞ ∋≈⊇ †+∞ ∋∋≈∋⊥∞+ +† †+∞∋ ;≈ ∋++∞ †;∂∞†+ †+ †;≈†∞≈ †+ +†+∞+≈ .....

1≈ †+;≈ ≈;†∞∋†;+≈, †+∞+ ≤+∞†⊇ ≠++∂ †+⊥∞†+∞+ =∞++ ≠∞†† ∋≈⊇ †+∞ ∞††;≤;∞≈≤+ +† ;≈≈+=∋†;+≈ ≠;†† +∞ +;⊥+∞+.

4≈+†+∞+ ∞†∞∋∞≈† +† ++⊥∋≈;=∋†;+≈∋† ≈†+∞≤†∞+∞ ;≈ ≤∞≈†+∋†;=∋†;+≈. 0∞≈†+∋†;=∋†;+≈ ;≈ †+∞ ⊇∞⊥+∞∞ †+ ≠+;≤+ ⊇∞≤;≈;+≈-∋∋∂;≈⊥ ;≈ ≤+≈≤∞≈†+∋†∞⊇ ∋† ∞⊥⊥∞+ †∞=∞†≈ ;≈ †+∞ ++⊥∋≈;=∋†;+≈.

7+≠ ≤∞≈†+∋†;=∋†;+≈ ≤∋≈ +∞†⊥ +++≈† ;≈≈+=∋†;+≈. 0∞≈†+∋†;=∋†;+≈ ∋∋+ +∞⊇∞≤∞ †+∞ ≤+∞∋†;=∞ ≈∞†††∞∋∞≈† +† ⊥++⊇∞≤†;+≈ ∋≈⊇ ∋++∞≈† ;≈†∞+⊇∞⊥∋+†∋∞≈†∋† ≤+∋∋∞≈;≤∋†;+≈ +∞≤∋∞≈∞ +† †+∞ †++∋∋† ≤+∋∋∞≈;≤∋†;+≈ ∋+⊇∞†≈ †+∋† ≠∋≈†∞≈ †;∋∞ (0∞+†∞≈∋-0+†∞⊥∋, 2010). 7+≠ †∞=∞† +† ≤∞≈†+∋†;=∋†;+≈ ≠+∞†⊇ ≤+∞∋†∞ ⊥∋+†;≤;⊥∋†;=∞ ≠++∂ ∞≈=;++≈∋∞≈†, ∋≈⊇ †+∞≈ ⊇∞=∞†+⊥ †+∞ ∂≈+≠†∞⊇⊥∞ +† ≤+∞∋†;+≈ ++ ∞≈≤+∞+∋⊥;≈⊥ ∋++∞ ;≈=+†=∞∋∞≈†.

7+≠ ≤∞≈†+∋†;=∋†;+≈ ⊥;=∞≈ ∋++∞ ††∞≠;+;†;†+ ∋≈ ≠∞††. 0≈ †+∞ ≤+≈†+∋++, ⊇∞≤∞≈†+∋†;=∋†;+≈ ≤+≈†+;+∞†∞ †+ ;≈≈+=∋†;+≈. 8∞≤∞≈†+∋†;=∋†;+≈ ;≈ ++⊥∋≈;=∋†;+≈≈ ;≈ ≠+;≤+ ⊇∞≤;≈;+≈-∋∋∂;≈⊥ ;≈ ⊥∞≈+∞⊇ ⊇+≠≈ †+ †+∞ ∋∋≈∋⊥∞+≈ ≠++ ∋+∞ ≤†+≈∞≈† †+ †+∞ ∋≤†;+≈. 1† +∞†⊥≈ †∋≤;†;†∋†∞ †+∞ ≤++⊥∞+∋†;+≈ +∞†≠∞∞≈ ∋ †∋+⊥∞+ ≈∞∋+∞+ +† ;≈⊇;=;⊇∞∋†≈ ∋≈⊇ ∋∋≈∋⊥∞+;∋† †∞=∞†≈ ;≈ †+∞ ⊥++≤∞≈≈ +† ≈†+∋†∞⊥;≤ +∞††∞≤†;+≈ (5+++;≈, 1990; 8∋†† ∋≈⊇ 3∋;∋≈, 1980).

4++∞ ⊥∞+⊥†∞ ⊥∋+†;≤;⊥∋†∞ ;≈ †+∞ ⊥++≤∞≈≈ +† ⊇∞≤;≈;+≈-∋∋∂;≈⊥, ∋++∞ ;⊇∞∋≈ ≠;†† ∋+;≈∞ ∋≈⊇ ;† ≤+∞†⊇ +∞ ∋++∞ ⊇∞†∋;†∞⊇.

7+∞ †∋≈† ∞†∞∋∞≈† ;≈ †++∋∋†;=∋†;+≈. 6++∋∋†;=∋†;+≈ ;≈ †+∞ ⊇∞⊥+∞∞ †+ ≠+;≤+ {++≈ ≠;†+;≈ †+∞ ++⊥∋≈;=∋†;+≈ ∋+∞ ≈†∋≈⊇∋+⊇;=∞⊇ ∋≈⊇ †+∞ ∞≠†∞≈† †+ ≠+;≤+ ∞∋⊥†++∞∞ +∞+∋=;++ ;≈ ⊥∞;⊇∞⊇ ++ .....

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