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Saturday, December 20, 2014

Signs of a Dysfunctional Organization Structure

Organization structure is very important for the success of any enterprise.

However, many organizations fail to grow due to apparent ignorance of this simple aspect.

Such organizations are started by a group of individuals who keep the control within themselves by creating what can be called as a dysfunctional organization structure.

Such a group of individuals form a well knit coterie where anyone joining at a senior level remains an outsider.

Here are some typical signs of a dysfunctional organization structure. 
  • There are certain functions where the coterie doesn't have the needed skill set but still one from the coterie is made the head of the function. The head is forced from above in a ridiculous way. The only intent is to retain the control with the coterie.
  • Such organizations find it extremely difficult to hire a professional at a senior level. Senior professionals hired by such organizations are trapped in a dysfunctional organization. 
  • Any professional will easily figure out the prevalence of the coterie culture and utter lack of professionalism in such organizations and stay away.
  • Professionals joining such organizations at the middle level will soon find themselves trapped and start feeling suffocated and will move on.
  • There is a glass ceiling due to the strong coterie culture which eventually results in no churn in the senior level and high churn in all other levels below.

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