When the structure is faulty

Problems and solutions may lie in the way an organization is designed
By Ginty Burns
|Canadian HR Reporter|Last Updated: 05/09/2006

Increased expenses, high turnover and decreased employee satisfaction are all telltale signs an organization isn’t structured for optimal success. But senior managers can usually sense when something is wrong even without those indicators.

After all, they have an eye on the outside environment and know when the organization design needs to be tweaked or reworked to respond to changes. But what they don’t always have is a set of principles on which to base organizational changes.

In the absence of such principles, senior managers make the best decisions they can. They may cut a layer of management, or they move, remove and even promote people to mitigate what are perceived to be personality or capability issues. If they are lucky, the strategy works. More often than not, however, the problems remain or are exacerbated.