Six by that particular employee, thereby promoting efficiency.

Six elements of organizational structure
Structure is basically designed to ensure effective and efficient operation of business through proper mobilization of resources including human component. Reforming an organisation’s structure can impact intensive decision making, as well as goals and priorities (Goswami, C. 2010). Following 6 widely accepted elements of organizational structure have been incorporated by Commonwealth Bank of Australia in its structure, with desirable improvisations, to comply with industry standards.
1. Work Specialization: This element focusses on the notion of getting right set of tasks performed from the people with right set of skills. Each employee is different in terms of acquired knowledge, education, training and experience. Thus, the task allocated to each employee must closely fit the set of expertise possessed by that particular employee, thereby promoting efficiency.
2. Departmentalization: The idea behind departmentalization is to break down how jobs are grouped together to create departments (Brookins, M. 2017). Since a financial institution like CBA needs to operate remarkably large volume of transactions based on real-time data processing, coordination between departments is a must. Central database helps to achieve optimal coordination without overlapping the scope and jurisdiction of each departments and units.
3. Chain of Command: Clearly designed chain of command is expected to facilitate efficiency and effectiveness of the decision making process. It is more closely related to the reporting relationship between subordinates and seniors in organization’s hierarchy. The internal management policies drafted by Commonwealth Bank tend to promote bi-directional flow of information, instruction and decisions so as to mitigate any possibilities of error due to clash of authority and communication mishap.
4. Span of Control: Span of control determines the number of employees reporting directly to one supervisor/manager. In hierarchical business entities in the past, the span of control was narrow and it was believed to be more productive in terms of goal attainment through close supervision. Contrary to this, modern day organizations advocate wider span of control. As CBA has flattened organizational structure, the span of control is much wider compared to other entities operating in the same industry within Australia.
5. Centralization and Decentralization: Generally, modern day organizations are marked by decentralized structure allowing employees at all levels to participate in decision making roles depending on the gravity of issue being dealt with. CBA is no exception to this trend. However, crucial policy level decisions are still taken by central management.
Formalization: Formalization ensures that the roles within an organization and relationships between those roles are made visible through an organization chart (Webster, A. 2017). Application of formalization in CBA has underlying benefits in terms of maintaining routine nature of succession for smooth flow of day-to-day operations.

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