Final answer:
The organizational structure of a business should be based on its own objectives and should facilitate the achievement of those goals, taking into account the need for a balance between coordination and flexibility.
Step-by-step explanation:
The choice of organizational structure in a business should be based on the objectives of each individual business. Formal organizations have shifted from traditional hierarchies to more flat structures that emphasize teamwork and collegial relationships. However, the term bureaucracy is commonly associated with organizational structures, implying a system with clear chains of command, explicit rules, and division of labor designed for efficiency during the Industrial Revolution. Today's businesses require a balance between structure for coordination and flexibility for innovation, and the structure chosen should fit the business's strategy, culture, and the demands of the market it operates in.
Ignoring rigid hierarchies when they are not needed can increase both productivity and efficiency. This shift aligns with changes in the work environment during the information age, where adaptability and less adherence to strict protocols are generally more beneficial for organizations. The structure should be designed in such a way that it facilitates the business in achieving its goals, rather than adhering to a rigid set of pre-defined rules or copying competitors' structures without consideration of one's own business objectives.