Bound by the Structure Organizational structure dictates the chain of command, lines of authority, reporting systems, decision making processes, work allocation, roles and responsibilities, as well as manager/supervisor-subordinate relationships (Aquinas, 2008). Eloise initially worked for a small, family-owned events planning company where she had the freedom to be involved in virtually all aspects of the business and participate in decision making. This suggests a decentralized or flat organizational structure. A decentralized organizational structure is characterized by little or no hierarchies (Aquinas, 2008). There is little distance between supervisors and their subordinates as well as inclusive or participative decision making. In a decentralized organizational structure, employees are not just expected to take orders and instructions -- they can also provide their ideas and perspectives, thereby encouraging an atmosphere of innovation and creativity.

The organizational structure at Eloise's first job differs from that of Events Are Us. While the former is characterized by a flat structure, the latter features a tall or centralized structure. In such a structure, there...

In other words, subordinates have little or no say in decision making. The two major advantages of a centralized structure are that it ensures responsibilities are clearly defined and facilitates quick decision making (Aquinas, 2008). Nonetheless, since subordinates are usually not given an opportunity to offer their input, creativity is often hindered. Furthermore, relationships between supervisors and subordinates may be unhealthy or bitter.
The events planning industry is a unique industry in its own way. Though there may be similarities across the board, clients often want personalized or customized products. Customization has important implications on how service providers deliver their services. Customization means that clients will constantly demand more innovative and creative ideas. With its centralized structure, however, Events Are Us may not effectively customize products to the tastes and preferences of its clients. In a centralized work environment, fresh ideas are rarely welcome -- the organization insists on the same way of doing things all the time. This may be disadvantageous to clients who may want more innovative ideas. In other words, Events Are Us's organizational structure does not fit well with the organization's strategic context. It is indeed important for an organization's structure to fit well with its strategic context (Burton, Obel & DeSanctis, 2011).

The centralized structure at Events Are Us was particularly detrimental to Eloise. In…