Organization Structure

Lighting dark alleys

As per Han Digital research, a common demand of potential job-seekers is to work in a firm which supports a good and liberal organisation structure. Often while interviewing candidates, it is noticed that they give more importance to liberal communication and a decentralised organisation structure.

An organisation structure defines how managerial tasks such as distribution, direction and regulation are focused toward the achievement of company aims. It is one the most crucial elements in managing a business as the structure determines the level of employee engagement and flow of activities. Besides it also enables recruiters to regulate attrition and introduce new opportunities.

How organisation structure shapes talent in the company

According to Han Digital research, 74% of on boarded talent have persistently performed well at jobs due to a properly implemented decentralised organisation structure. Many industrial psychologists agree with organisation structure shaping talent in a company.

After interviewing 50 random candidates/employees of well-established firms with an experience of 3-4 years, the researchers found that the company they worked with had a dynamic internal structure which took into consideration employee perspective and values.

A dynamic organisation structure gives employees the liberty to experiment and the ability to claim ownership of their activities. Employees given this freedom are highly engaged and work for the betterment of the firm.

Decentralisation of authority is the major focus of the firm as it dilutes rigid structures and offers employees a chance to convert their efforts into success. Companies that support a centralised organisation structure are at the brink of closure. According to Han Digital researchers, 87% of the firms that follow a centralised and linear organisation structure face high attrition. Employees of such organisations also complained of nepotism and personal biases held by their bosses.

A centralised authoritative organisation structure can also mar the reputation of a current organisation. As per google reviews and Glassdoor, our experts found out that the marketing index for such companies was low. Candidates had nothing positive to share about the company and also current employees were criticising company policies and management.

In conclusion, decentralised internal structure enables a company to develop better policies and a good brand image.