International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
A STUDY ON ORGANIZATION STRUCTURE AND DESIGN
1Dr. C.K. Gomathy, 2Swarna Dharshini S, 3U Somaraju Chowdary, 4Vemuri Bharadwaj Sai
1,2,3,4Dept of CSE, SCSVMV University, Kanchipuram, India.
Abstract
An organizational structure is a vital element of any company's success. It helps to define roles,
responsibilities, and reporting relationships, creating a framework for effective decision-making and
communication. In this case study paper, we will examine the organizational structure of three major
companies: Amazon, Netflix, and IBM. It analyses how organizational structure impacts the company's
operations, culture, and overall success. The case study will focus on a specific company and its
organizational structure, examining the different levels of hierarchy, the communication channels, and
the decision-making processes. We will also explore how the organizational structure affects the
company's ability to adapt to changes in the market and the industry. Overall, this case study paper will
provide a detailed analysis of the importance of organizational structure in achieving business success.
By examining a real-world example, we can gain a deeper understanding of how organizational
structure influences a company's performance, and how it can be optimized to achieve better results.
Keywords: organizational structure, organizational design, Amazon, Netflix, IBM
1. INTRODUCTION
The way a corporation sets up its staff and resources to accomplish its objectives is referred to
as its organisational structure. It involves the division of tasks, coordination of activities, and allocation
of resources across different levels of hierarchy. The structure defines how power and authority are
distributed within the organization, and how communication flows between different departments and
individuals.
Organisational structures can be hierarchical, flat, matrix-like, or even network-like.
Hierarchical structures are the most common, with a clear chain of command and centralized decision-
making. Flat structures, on the other hand, have few levels of hierarchy and a more decentralized
decision-making process. Matrix structures combine elements of both hierarchical and flat structures,
with employees reporting to multiple managers or supervisors. Network structures are more fluid and
dynamic, with teams formed around specific projects or initiatives.
The choice of organizational structure depends on several factors, including the company's size,
industry, culture, and goals. For example, a small startup might prefer a flat structure to encourage
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 1
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
creativity and innovation, while a large corporation might require a more hierarchical structure to
ensure efficiency and consistency. Organizational structure also impacts the company's culture and
performance. A well-designed structure can promote collaboration, communication, and innovation,
while a poorly designed structure can lead to confusion, inefficiency, and conflict. Therefore, it is
essential for companies to regularly review and optimize their organizational structure to ensure that it
aligns with their goals and promotes success.
2. FOUNDATIONS OF ORGANIZATION STRUCTURE
The foundations of organizational structure are based on several key elements that shape the way a
company operates. These elements include:
• Strategy: The organization's strategy determines its goals and objectives, which in turn shape
the structure of the organization. The structure must align with the company's strategic goals to
ensure its success.
• Environment: The company's external environment, including the industry, competition, and
legal and regulatory framework, also impacts its organizational structure. Companies must
adapt to changes in the environment to remain competitive and successful.
• Culture: The company's culture, values, and beliefs influence the design of its organizational
structure. Companies that prioritize innovation and creativity may have a more flexible and flat
structure, while those that prioritize efficiency and consistency may have a more hierarchical
structure.
• Technology: Advances in technology have led to significant changes in organizational
structure, particularly in the areas of communication, collaboration, and data management.
Companies must adapt to new technologies to remain efficient and effective.
• People: The skills, knowledge, and expertise of the company's employees also influence its
organizational structure. Companies must consider the roles and responsibilities of their
employees when designing their structure to ensure they have the resources they need to
achieve their goals.
3. ORGANIZATION DESIGN
Organization design is the process of creating or modifying an organization's structure to
achieve its strategic goals and objectives. It involves designing the formal structure, processes,
systems, roles, and responsibilities of the organization with its strategy and capabilities, organizations
can become more efficient, effective, and competitive.
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 2
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
The organization design process typically involves several steps:
1. Analysing the current organization: This involves assessing the current structure, processes,
systems, roles, and responsibilities of the organization, and identifying any areas that need
improvement.
2. Defining the organization's strategy: This involves defining the organization's goals,
objectives, and priorities, and aligning them with its mission and vision.
3. Identifying the required capabilities: This involves identifying the skills, knowledge, and
expertise that the organization needs to achieve its strategic goals.
4. Designing the organization structure: This involves creating a structure that aligns with the
organization's strategy and capabilities. The structure defines how tasks are divided, who
reports to whom, and how decisions are made.
5. Defining roles and responsibilities: This involves defining the roles and responsibilities of
each position in the organization and ensuring that they align with the organization's strategic
goals.
6. Implementing the new design: This involves implementing the new structure, processes,
systems, roles, and responsibilities, and communicating the changes to the organization's
employees.
7. Monitoring and evaluating the new design: This involve monitoring the effectiveness of the
new design and making adjustments as needed to ensure that it continues to support the
organization's strategic goals.
4. CASE STUDY 1 - AMAZON
Amazon is a global technology corporation with expertise in artificial intelligence, cloud
computing, digital streaming, and e-commerce. The company was founded in 1994 and has since
grown into one of the largest and most successful companies in the world. Amazon's mission is to be
Earth's most customer-centric company, where customers can find and discover anything they might
want to buy online.
4.1. Organizational Structure:
Amazon's organizational structure is hierarchical, with clear lines of authority and a focus on
efficiency and consistency. The company is organized into several business units, each of which
focuses on a specific product line or service offering, such as Amazon Web Services, Amazon Prime,
and Amazon Marketplace. These business units are organized into functional departments such as
finance, legal, and human resources that support the entire organization.
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 3
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
4.2. Decision-making:
Amazon's hierarchical structure allows for clear decision-making processes, with decisions
being made by senior management and communicated down the chain of command. The company
places a strong emphasis on customer service and relies on data-driven decision-making to ensure that
it meets its customers' needs.
4.3. Culture:
Amazon's culture is one of innovation and experimentation, with a strong focus on continuous
improvement. The company values risk-taking and encourages employees to think big and challenge
the status quo. However, the company has also faced criticism over its intense work culture and the
pressure it places on employees.
4.4. Effectiveness:
Amazon's hierarchical structure supports the company's focus on efficiency and consistency,
allowing it to deliver products and services to customers quickly and reliably. The company's culture
of innovation and experimentation is supported by a flexible structure that encourages risk-taking and
learning. However, the hierarchical structure can also be a barrier to innovation, requiring ongoing
efforts to maintain a culture of experimentation and agility.
4.5. Summary:
Overall, Amazon's hierarchical structure supports the company's focus on efficiency and
customer service, allowing it to deliver products and services quickly and reliably. The structure also
supports the company's culture of innovation and experimentation, allowing it to explore new
opportunities and technologies. However, the hierarchical structure can also be a barrier to innovation,
requiring ongoing efforts to maintain a culture of experimentation and agility. The company's success
also relies heavily on its ability to balance the demands of its stakeholders, including customers,
employees, and shareholders.
5. Case Study 2 – NETFLIX
Netflix is a multinational entertainment company that specializes in streaming television series,
films, and documentaries. The company was founded in 1997 and has since grown into one of the
largest and most influential media companies in the world. Netflix's mission is to entertain the world,
creating content that appeals to diverse audiences around the globe.
5.1. Organizational Structure:
Netflix's organizational structure is unique, with a culture that emphasizes freedom and
responsibility. The company is organized into several business units, each of which focuses on a
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 4
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
specific content genre, such as drama or comedy. These business units are organized into cross-
functional teams that work together to create, produce, and distribute content.
5.2. Decision-making:
Netflix's culture of freedom and responsibility allows for a decentralized decision-making
process, with employees at all levels empowered to make decisions that align with the company's
values and goals. The company places a strong emphasis on data-driven decision-making, using data
analytics to guide content creation and distribution.
5.3. Culture:
Netflix's culture is one of creativity, experimentation, and innovation. The company values
diversity and inclusivity, encouraging employees to bring their unique perspectives and experiences to
the table. The company also places a strong emphasis on continuous learning and growth, providing
employees with opportunities for professional development and career advancement.
5.4. Effectiveness:
Netflix's unique organizational structure supports the company's focus on creativity and
innovation, allowing it to produce content that appeals to diverse audiences around the world. The
culture of freedom and responsibility allows employees to take risks and experiment with new ideas,
leading to the creation of ground-breaking content that sets Netflix apart from its competitors.
However, the decentralized decision-making process can also lead to lack of coordination and
alignment, requiring ongoing efforts to maintain a cohesive strategy.
5.5. Summary:
Overall, Netflix's unique organizational structure and culture support the company's focus on
creativity, experimentation, and innovation, allowing it to produce content that appeals to diverse
audiences around the world. The culture of freedom and responsibility empowers employees to take
risks and experiment with new ideas, leading to ground-breaking content that sets Netflix apart from
its competitors. However, the decentralized decision-making process can also be a challenge, requiring
ongoing efforts to maintain coordination and alignment with the company's goals and values.
6. CASE STUDY 3 – IBM
IBM is a multinational technology company that provides hardware, software, and consulting
services to businesses and governments around the world. The company was founded in 1911 and has
since evolved into one of the largest and most successful companies in the world. IBM's mission is to
help clients leverage the power of technology to drive innovation, transform their businesses, and
create new opportunities for growth.
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 5
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
6.1. Organizational Structure:
IBM's organizational structure is a matrix structure, which combines elements of both
functional and divisional structures. The company is organized into several business units, each of
which focuses on a specific product line or service offering. These business units are grouped into
three main divisions: Cloud and Cognitive Software, Global Business Services, and Systems. Under
each division, IBM has functional departments such as finance, human resources, and legal that
support the entire organization. Additionally, IBM has a global matrix structure where employees
belong to both their business unit and a specific functional department, such as research or
development.
6.2. Decision-making:
IBM's matrix structure allows for a flexible decision-making process that is based on
collaboration and consensus-building. Decisions are made through a complex network of committees
and teams, with input from employees at all levels of the organization. This structure encourages cross-
functional collaboration and knowledge sharing, which can lead to innovation and improved problem-
solving.
6.3. Culture:
IBM's culture is one of collaboration, innovation, and continuous learning. The company
values diversity and inclusion and encourages employees to bring their unique perspectives and ideas
to the table. IBM also places a strong emphasis on ethics and corporate responsibility, with a
commitment to sustainability and social responsibility.
6.4. Effectiveness:
IBM's matrix structure allows the company to balance the needs of its different business units
and customers. The structure promotes collaboration and innovation, which can lead to new product
development and improved customer service. However, the complex decision-making process can also
lead to slow decision-making and lack of accountability. To address this, IBM has implemented
initiatives to streamline decision-making and increase accountability.
6.5. Summary:
Overall, IBM's matrix structure supports the company's culture of collaboration and innovation,
allowing it to adapt to changes in the market and meet the needs of its customers. The structure also
allows IBM to leverage its diverse resources and capabilities to drive innovation and achieve its
strategic goals. However, the complex decision-making process can be a challenge, requiring ongoing
efforts to improve efficiency and accountability.
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 6
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
7. CONCLUSION
An organization's aims are directed at certain activities according to its organisational structure.
Successful organizational structures define each employee's job and how it fits within the overall
system. Types of organizational structures include hierarchical, flat, matrix, and network. Prior to
determining which style of organisation is appropriate for their company, senior leaders should take
into account a number of variables, including as the company's culture, industry, and business goals.
The paper has examined the organizational structures of three major companies: Amazon,
Netflix, and IBM. Through an analysis of their structures, we have gained a deeper understanding of
how organizational structure impacts a company's performance, culture, and ability to adapt to changes
in the market. This case study highlights the importance of organizational structure in achieving
business success. Each company's structure is shaped by its strategy, environment, culture, technology,
and people, and is constantly evolving to meet changing business needs. By regularly reviewing and
optimizing their structures, companies can ensure that they remain competitive and effective in a
rapidly changing business environment.
8. REFERENCES
• Dr.C K Gomathy, ACHIEVING SUSTAINABILITY HUMAN RESOURCES DEVELOPMENT
International Journal of Scientific Research in Engineering and Management (IJSREM) Volume:
06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, CONFLICT MANAGEMENT AND ITS IMPACT ON ORGANIZATIONAL
PERFORMANCE, International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 03 | March- 2022 ISSN: 2582-3930
• Dr.C K Gomathy, EFFECTS OF EMPLOYEES ATTITUDE TO WORK ON PRODUCTIVITY,
International Journal of Scientific Research in Engineering and Management (IJSREM) Volume:
06 Issue: 02 | Feb- 2022 ISSN: 2582-3930 - Impact Factor :7.185
• Dr.C K Gomathy, EMPLOYEE MOTIVATION AND PRODUCTIVITY OF AN
ORGANISATION, International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 03 | March - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, IMPACT OF HUMAN RESOURCES PLANNING ON THE
ACTUALIZATION OF ORGANIZATIONAL GOAL, International Journal of Scientific Research
in Engineering and Management (IJSREM) Volume: 06 Issue: 03 | March - 2022 ISSN: 2582-3930
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 7
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
• Dr.C K Gomathy, CUSTOMER SEGMENTATION TECHNIQUES,International Research Journal
of Engineering and Technology (IRJET) Volume: 09 Issue: 031 | March - 2022 , p-ISSN: 2395-007,
e-ISSN: 2395-005, Impact Factor:7.529
• Dr.C K Gomathy, ORGANISATIONAL BEHAVIOUR IN HUMAN RESOURCE
DEVELOPMENT, International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 02| Feb- 2022 ISSN: 2582-3930
• Dr.C K Gomathy, OVERVIEW OF RECRUITMENT AND SELECTION PROCESS IN HRM,
International Journal of Scientific Research in Engineering and Management (IJSREM) Volume:
06 Issue: 03 March - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, A CONSEQUENCE OF ACCURATE RECORDS MANAGEMENT ON
WORKERS PRODUCTIVITY, International Journal of Scientific Research in Engineering and
Management (IJSREM) Volume: 06 Issue: 03 March - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, EFFECTS OF GLOBALIZATION ON HUMAN RESOURCE
DEVELOPMENT AND MANAGEMENT IN INDIA, International Journal of Scientific Research
in Engineering and Management (IJSREM) Volume: 06 Issue: 03 March - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, SOCIAL AND ECONOMIC BENEFITS OF WORKERS IN INDUSTRIAL
COOPERATIVE, International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 03 March - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, STUDENT INFORMATION MANAGEMENT SYSTEM, International Journal
of Scientific Research in Engineering and Management (IJSREM) Volume: 06 Issue: 03 March -
2022 ISSN: 2582-3930
• Dr.C K Gomathy, TALENT MANAGEMENT AND EMPLOYEE JOB SATISFACTION,
International Journal of Scientific Research in Engineering and Management (IJSREM) Volume:
06 Issue: 03 March - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE EFFECT OF COMMUNICATION BARRIER ON THE PRODUCTIVITY
AND PERFOMANCE OF EMPLOYEES, International Journal of Scientific Research in
Engineering and Management (IJSREM) Volume: 06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE EFFECT OF INCENTIVES ON JOB PERFORMANCE IN AN
ORGANIZATION, International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy , THE EFFECT OF MOTIVATION ON STAFF PERFORMANCE, International
Journal of Scientific Research in Engineering and Management (IJSREM) Volume: 06 Issue: 04
April - 2022 ISSN: 2582-3930
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 8
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
• Dr.C K Gomathy,THE EMPLOYEE STIMULUS AND RELATIONSHIP EFFICIENCY,
International Journal of Scientific Research in Engineering and Management (IJSREM) Volume:
06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE HUMAN RESOURCE MANAGEMENT SERVICE IN HOTEL AND
CATERING INDUSTRY, International Journal of Scientific Research in Engineering and
Management (IJSREM) Volume: 06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, The Impact of Job Satisfaction on Workers’ Productivity, International Journal of
Scientific Research in Engineering and Management (IJSREM) Volume: 06 Issue: 02 | Feb - 2022
ISSN: 2582-3930
• Dr.C K Gomathy, THE IMPACT OF MOTIVATIONAL INCENTIVES ON EMPLOYEE
PERFORMANCE., International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE INSPIRATION OF SUBORDINATE LABOURS FOR ENRICHED
MANAGEMENT., International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE RECRUITMENT POLICIES AND PROCEDURES IN
ORGANIZATIONS AND COMPANIES, International Journal of Scientific Research in
Engineering and Management (IJSREM) Volume: 06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE STRATEGIES FOR BOOSTING EMPLOYEE MORALE IN AN
ORGANISATION, International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE TALENT MANAGEMENT AND EMPLOYEE JOB SATISFACTION,
International Journal of Scientific Research in Engineering and Management (IJSREM) Volume:
06 Issue: 02 | Feb - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE USE OF PERFORMANCE APPRAISAL AND REWARD SYSTEM IN
ENHANCEING EMPLOYEE PERFORMANCE IN AN ORGANISATION, International Journal
of Scientific Research in Engineering and Management (IJSREM) Volume: 06 Issue: 03 March -
2022 ISSN: 2582-3930
• Dr.C K Gomathy, EMPLOYEE ENGAGEMENT STRATEGIES IN INFORMATION
TECHNOLOGY COMPANIES, International Journal of Scientific Research in Engineering and
Management (IJSREM) Volume: 06 Issue: 03 March - 2022 ISSN: 2582-3930
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 9
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
• Dr.C K Gomathy, HUMAN RESOURCE DEVELOPMENT PROGRAMS FOR DIVERSIFIED
EMPLOYEES, International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 04 April - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE EFFECTS OF STRESS ON EMPLOYEES’ PRODUCTIVITY IN
SERVICE INDUSTRY, International Journal of Scientific Research in Engineering and
Management (IJSREM) Volume: 06 Issue: 04 April - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE EMPLOYEE RETENTIONS AND ITS STRATEGIES, International
Journal of Scientific Research in Engineering and Management (IJSREM) Volume: 06 Issue: 04
April - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE EMPLOYEE TRAINING AND DEVELOPMENT IN MULTI
NATIONAL CORPORATIONS, International Journal of Scientific Research in Engineering and
Management (IJSREM) Volume: 06 Issue: 03 March - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE IMPACT OF HUMAN RESOURCE PLANNING ON PRODUCTIVITY,
International Journal of Scientific Research in Engineering and Management (IJSREM) Volume:
06 Issue: 04 April - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE IMPACT OF SOCIAL NETWORKING SITES ON EMPLOYEE JOB
RECRUITMENT, International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 03 March - 2022 ISSN: 2582-3930
• Dr.C K Gomathy, THE ROLE OF WOMEN AND THEIR IMPACT ON OVERALL
LEADERSHIP AND MANAGEMENT, International Journal of Scientific Research in
Engineering and Management (IJSREM) Volume: 06 Issue: 03 March - 2022 ISSN: 2582-3930
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 10
International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 07 Issue: 05 | May - 2023 Impact Factor: 8.176 ISSN: 2582-3930
AUTHOR’S PROFILE
Dr. C.K. Gomathy, Assistant Swarna Dharshini S,
Professor in Computer Science Final Year Student, B.E.
and Engineering, Computer Science and
SCSVMV University, Engineering,
Kanchipuram, India. SCSVMV University,
Her area of interest: Software Kanchipuram, India.
Engineering, Web Services, swarnadharshinis@[Link]
Knowledge Management and
IoT
U Somaraju Chowdary, Vemuri Bharadwaj Sai,
Final Year Student, B.E. Final Year Student, B.E.
Computer Science and Computer Science and
Engineering, Engineering,
SCSVMV University, SCSVMV University,
Kanchipuram, India. Kanchipuram, India.
[Link]@[Link] bharadwaj.vemuri7071@[Link]
m
© 2023, IJSREM | [Link] DOI: 10.55041/IJSREM20880 | Page 11