Literature Review of Organization Structure on Employee Behavior

            In this research paper previous research articles related to the research topic "the effect of organizations structure on employee's behavior" is reviewed as literature to develop comprehensive understanding towards the research topic and to get guidance from the previous research work. The literature review provides information about the topic collected from websites, books, and research articles. Several research studies conducted on the research topic studied a number of factors as independent variables that cause to bring changes in the employee’s behavior.

        According to the Griffin, the Organizational structure is linked with the coordination of the employees and team at the workplace. Coordination in the individual employees of the organization in horizontal and vertical dimensions of hierarchy support the overall organization and employee's team to accomplish goals and targets an ineffective manner (Griffin 2015). Through the organizational structure employees positions and roles can be managed.

        The clearly defined organizational structure enables the workforce to understand the reporting process as who will report to whom and who is responsible to coordinate and subordinate to whom (Kainkan 2015). In order words, organizational structure is the main reason through which employees understand that from whom they have to take instructions and to whom they have to report or discuss conflicts regarding work. Thus communication and clear reporting system reduce the chances of ambiguity in the workforce and coordination ensure successful completion of operations in the organizations (Neal, Griffin and Hart 2000).

        Research claim that to succeed in competitive market organizations needs to limit the internal weakness as conflicts, poor management, and communication system in the organization. A rigid organizational can be sometimes proved as good and effective organizational structure and a flexible organizational structure cannot always result as appropriate organizational structure (Bustinza, et al. 2015). While selecting an appropriate organizational structure management need to be very critical. They have to understand the environment, vision, culture, and operations of the organization. Only them a right organizational structure can be identified.

        In the academic literature, two type of organizations structure is common in the organizations. The old/traditional organizational structure that is based on the hierarchical management system and the second one is the new organizational structure that is relatively flatter and open. The new organizational structure is considered as the humanistic structure of organizational workforce and management. literature indicates that in the traditional organizational structure there is two level as management level (that includes top/ corporate level management, middle management, lower management/ front line management) and employees level.

        Traditional organizational structure modifies the behavior and attitude of the employees towards their job but in a quite opposite way as compared to the new modern organizational structure (Kainkan 2015). In the traditional organizational structure, conflicting behavior of the employees can be easily controlled and the team spirit can be developed in them.

        While literature review also provides information about the new and modern organizational system and its impact on the behavior of the employees including the managerial level employees. In accordance to literature, modern organizational structure supports the idea to provide rewards for employee’s satisfaction that make the employees attitude positive and causes to enhance higher productivity (Neal, Griffin and Hart 2000).

        In fact in the modern organizational structure flexible outsourcing, multi-skilled employees, few status distinctions and employees security are higher. Commonly adopted types of modern organizational structure are geographic organizational structure, hybrid organizational structure, functional organizational structure, product organizational structure, and matrix organizational structure (Bustinza, et al. 2015).

        A research study conducted on the organizational structure elaborate that a supportive organizational structure can ensure creativity in the employees. The rigid organizational structure being implemented in the traditional and old styled organizations are causing to reduce the employee's creativity (Chen and Huang 2007). While in the new and flexible organizational structure employees and workers are not strictly obliged to only follow the instructions given to them about the work. Rather than this, they are responsible to work according to the vision and mission of the organization. They follow up the instructions and report to their managers but flexibility in the structure create the gap for the generation of creativity.

        Research indicates that the change in the organizational structure brings changes in the overall workplace environment. In accordance with the research positive workplace environment not only bring satisfaction in the employee's behavior but also encourage them to bring motivation in their behavior with the purpose of promoting innovation in their performance (Olson, Slater and Hult 2005). A research conducted on the companies of Saudi Arabia conclude that flexible organizational structure supports delegation of authority and empowerment of the employees at each level of the organization. As a result of the delegation of authority and empowerment towards decision making employee's behavior towards the organization get change.

        In fact, the organizational structure provides the basis for the employee's relationship. In accordance with a research conducted on the workplace environment and employee’s satisfaction, the integrated relationship of the all organizational worker and management produce the supportive environment for the job satisfaction. In accordance with the views of the researcher, innovation get birth when employees are satisfied with their jobs and when they have space to do things in a new way (Bustinza, et al. 2015).

        Employees who are limited to the strict patterns set out by the organization cannot bring innovation (Bustinza, et al. 2015). The finding of the research concludes that highly innovative behavior of the employees is a sign of the good organizational structure carried out by the corporate management of the organization.

        A research study aimed to investigate the work environment and employees behavior of Saudi Electricity Company presented the findings that organizations are committed to accomplishing the goal of high productivity level in the organization to cut the cost of labor, controlling the cost of quality and to enhance production level (Kainkan 2015). In the organizations' employee's productivity directly depends upon their behavior and attitude. Work relation, supportive managerial behavior, and coordination in the employees thus ensure the employees to work efficiently and promote the productivity in the organization.

        In a centralized organizational structure, decisions are taken by the top/ corporate level management rather than involving the employees in the decision making process. Therefore employee’s behavior in the centralized organizational structure is commonly viewed as less motivated but obedient (Kainkan 2015). while decentralized organizational structure as a modern organizational structure provides the opportunity to the employees to make decisions and to share information and their suggestions at the time of decision making that brings loyalty motivation in them.

        In accordance with the research, authority improves their attitude towards the organizational but excess of authority without check and balance system or employee's performance appraisal systems can cause to promote negative employees behavior in the organization (Chen and Huang 2007). In such situation employees can misuse their authority and power to threaten other people and sometimes extra authority also decreases employee’s productivity and performance outcomes (Griffin 2015).

        Research claim that employees want recognition and appreciation in the workplace. Recognition encourages their intrinsic motivation and makes the behavior of the employee positive from negative (Moore 2017). Employees usually enjoy doing work at the workplace if they are given the authority and right to make decisions for their tasks, they will contribute more to the organizational success by bringing improvement in their job behavior.

        However, not only individual behavior gets a positive influence from the supportive and decentralized organizational structure but also the group and team behavior get influence. Centralized organizational structure promotes discipline in the employees while working on team and group project (Olson, Slater and Hult 2005). While on the other hand, decentralized organizational structure supports individual through contributing, supportive and coordinating behavior in teams and groups projects. (Price 2011)

        The research concludes that loyalty, commitment, job satisfaction, decision making strength, eradication of corruption, individual behavior motivation, determination, trustworthy and responsibility in strategic behavior, team work, and unity are known as the indicator of the positive employee’s behavior for the organizations. Employee's behavior can be modified and changed through adopting the change in the organizational structure.

Research Problem of Organization Structure on Employee Behavior

        In this research paper, the research problem is related to the organizational structure and its impact on the employee's behavior. Research is to investigate whether the organizational structure has an impact on the employee's behavior at the workplace or not? if the behavior of the employees depends upon or gets effects from the organizational structure than whether it results in the positive modification in the behavior or negative modification.

        While research will also discuss the current organizational structure adopted by the Saudi Electricity Company (company selected for the research) and its effects on employee's behavior. The first step in the research is to investigate what type of organizational structure is being in use at the Saudi Electricity Company as a traditional organizational structure, or modern organizational structures. Then in the second step, the research will also collect data about the current behavior of the organization as, whether the employees are motivated or demotivated, loyal or dishonest, committed or not towards the organization.

References of Organization Structure on Employee Behavior

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Chen, Chung-Jen, and Jing-Wen Huang. 2007. "How organizational climate and structure affect knowledge management—The social interaction perspective." International Journal of Information Management 27: 104-118. Accessed 11 18, 2018.

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