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Organization and Structure
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There is no single organizational pattern that works well for all writing across all disciplines; rather, organization depends on what you’re writing, who you’re writing it for, and where your writing will be read. In order to communicate your ideas, you’ll need to use a logical and consistent organizational structure in all of your writing. We can think about organization at the global level (your entire paper or project) as well as at the local level (a chapter, section, or paragraph). For an American academic situation, this means that at all times, the goal of revising for organization and structure is to consciously design your writing projects to make them easy for readers to understand. In this context, you as the writer are always responsible for the reader's ability to understand your work; in other words, American academic writing is writer-responsible. A good goal is to make your writing accessible and comprehensible to someone who just reads sections of your writing rather than the entire piece. This handout provides strategies for revising your writing to help meet this goal.
Note that this resource focuses on writing for an American academic setting, specifically for graduate students. American academic writing is of course not the only standard for academic writing, and researchers around the globe will have different expectations for organization and structure. The OWL has some more resources about writing for American and international audiences here .
Whole-Essay Structure
While organization varies across and within disciplines, usually based on the genre, publication venue, and other rhetorical considerations of the writing, a great deal of academic writing can be described by the acronym IMRAD (or IMRaD): Introduction, Methods, Results, and Discussion. This structure is common across most of the sciences and is often used in the humanities for empirical research. This structure doesn't serve every purpose (for instance, it may be difficult to follow IMRAD in a proposal for a future study or in more exploratory writing in the humanities), and it is often tweaked or changed to fit a particular situation. Still, its wide use as a base for a great deal of scholarly writing makes it worthwhile to break down here.
- Introduction : What is the purpose of the study? What were the research questions? What necessary background information should the reader understand to help contextualize the study? (Some disciplines include their literature review section as part of the introduction; some give the literature review its own heading on the same level as the other sections, i.e., ILMRAD.) Some writers use the CARS model to help craft their introductions more effectively.
- Methods: What methods did the researchers use? How was the study conducted? If the study included participants, who were they, and how were they selected?
- Results : This section lists the data. What did the researchers find as a result of their experiments (or, if the research is not experimental, what did the researchers learn from the study)? How were the research questions answered?
- Discussion : This section places the data within the larger conversation of the field. What might the results mean? Do these results agree or disagree with other literature cited? What should researchers do in the future?
Depending on your discipline, this may be exactly the structure you should use in your writing; or, it may be a base that you can see under the surface of published pieces in your field, which then diverge from the IMRAD structure to meet the expectations of other scholars in the field. However, you should always check to see what's expected of you in a given situation; this might mean talking to the professor for your class, looking at a journal's submission guidelines, reading your field's style manual, examining published examples, or asking a trusted mentor. Every field is a little different.
Outlining & Reverse Outlining
One of the most effective ways to get your ideas organized is to write an outline. A traditional outline comes as the pre-writing or drafting stage of the writing process. As you make your outline, think about all of the concepts, topics, and ideas you will need to include in order to accomplish your goal for the piece of writing. This may also include important citations and key terms. Write down each of these, and then consider what information readers will need to know in order for each point to make sense. Try to arrange your ideas in a way that logically progresses, building from one key idea or point to the next.
Questions for Writing Outlines
- What are the main points I am trying to make in this piece of writing?
- What background information will my readers need to understand each point? What will novice readers vs. experienced readers need to know?
- In what order do I want to present my ideas? Most important to least important, or least important to most important? Chronologically? Most complex to least complex? According to categories? Another order?
Reverse outlining comes at the drafting or revision stage of the writing process. After you have a complete draft of your project (or a section of your project), work alone or with a partner to read your project with the goal of understanding the main points you have made and the relationship of these points to one another. The OWL has another resource about reverse outlining here.
Questions for Writing Reverse Outlines
- What topics are covered in this piece of writing?
- In what order are the ideas presented? Is this order logical for both novice and experienced readers?
- Is adequate background information provided for each point, making it easy to understand how one idea leads to the next?
- What other points might the author include to further develop the writing project?
Organizing at the sentence and paragraph level
Signposting.
Signposting is the practice of using language specifically designed to help orient readers of your text. We call it signposting because this practice is like leaving road signs for a driver — it tells your reader where to go and what to expect up ahead. Signposting includes the use of transitional words and phrasing, and they may be explicit or more subtle. For example, an explicit signpost might say:
This section will cover Topic A and Topic B.
A more subtle signpost might look like this:
It's important to consider the impact of Topic A and Topic B.
The style of signpost you use will depend on the genre of your paper, the discipline in which you are writing, and your or your readers’ personal preferences. Regardless of the style of signpost you select, it’s important to include signposts regularly. They occur most frequently at the beginnings and endings of sections of your paper. It is often helpful to include signposts at mid-points in your project in order to remind readers of where you are in your argument.
Questions for Identifying and Evaluating Signposts
- How and where does the author include a phrase, sentence, or short group of sentences that explains the purpose and contents of the paper?
- How does each section of the paper provide a brief summary of what was covered earlier in the paper?
- How does each section of the paper explain what will be covered in that section?
- How does the author use transitional words and phrases to guide readers through ideas (e.g. however, in addition, similarly, nevertheless, another, while, because, first, second, next, then etc.)?
WORKS CONSULTED
Clark, I. (2006). Writing the successful thesis and dissertation: Entering the conversation . Prentice Hall Press.
Davis, M., Davis, K. J., & Dunagan, M. (2012). Scientific papers and presentations . Academic press.
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7 Organizational Structure Types (With Examples)
Updated: May 29, 2024, 5:39pm
Table of Contents
What is an organizational structure, 4 common types of organizational structures, 3 alternative organizational structures, how to choose the best organizational structure, frequently asked questions (faqs).
Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial. This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included.
Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.
Centralized vs. Decentralized
Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.
Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.
Hierarchical vs. Circular
A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.
On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next “level,” information flows out to the next ring of management.
Vertical vs. Flat
A vertical organizational chart has a clear chain of command with a small group of leaders at the top—or in the center, in the case of a circular structure—and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.
With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.
Benefits of Creating an Organizational Structure
There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Clearly disseminating this information to employees:
- Provides accountability
- Clarifies expectations
- Documents criteria for promotion
- Designates decision-making authority
- Creates efficiency
- Fosters collaboration
Essential Elements of Clear Organizational Structure
Regardless of the special type of organizational structure you choose, it should have the following components:
- Chain of command
- Roles and responsibilities
- Scope of control
- Decision-making authority
- Departments or teams within the organization
Functional/Role-Based Structure
A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority. A functional structure facilitates specialization, scalability and accountability. It also establishes clear expectations and has a well-defined chain of command. However, this structure runs the risk of being too confining and it can impede employee growth. It also has the potential for a lack of cross-department communication and collaboration.
Product- or Market-Based Structure
Along with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams.
Geographical Structure
The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. From a broad perspective, it appears very similar to the product-based structure above.
Process-Based Structure
Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. For instance, the structure can be broken down into R&D, product creation, order fulfillment, billing and customer services. This structure can foster efficiency, teamwork and specialization, but it can also create barriers between the teams if communication isn’t prioritized.
Matrix Structure
With a matrix organizational structure, there are multiple reporting obligations. For instance, a marketing specialist may have reporting obligations within the marketing and product teams. A matrix structure offers flexibility, enables shared resources and fosters collaboration within the company. However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees.
Circular Structure
Similar to the functional and product-based structure, a circular structure is also centralized and hierarchical, but instead of responsibility and decision-making authority flowing down vertically, responsibility and decision-making authority flow out from the center. A circular structure can promote communication and collaboration but can also be confusing, especially for new employees, because there is no clear chain of command.
Organic Structure
Unlike vertical structures, this structure facilitates communication between and among all staff. It is the most complex, but it can also be the most productive. Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees don’t feel like they have “superiors.” This structure can also be more cost-efficient because it reduces the need for middle managers.
There is no one “right” organizational structure. When deciding which structure will work best for your company, consider the following:
- Current roles and teams within the company. How are job functions currently organized? Does it foster communication and productivity? Does it impede or encourage employee growth?
- Your strategic plan. What are your company’s goals for the short-term and long-term?
- Feedback from employees, leadership and other stakeholders. What do those within your company say about how the company is structured? What feedback do you have from other stakeholders, such as customers and suppliers?
- Alignment. What structure will best support your strategic plans and address any feedback received?
What is the most common organizational structure?
A functional organizational structure is one of the most common organizational structures. If you are still determining what kind of structure to use, this organizational structure can be an excellent place to start.
What is the difference between an organizational structure and an organizational chart?
An organizational chart is a graphic that depicts the organizational structure. The chart may include job titles or it can be personalized to include names and photos.
What are the four types of organizational structures?
A functional—or role-based—structure is one of the most common organizational structures. The second type—the product- or market-based structure—is also hierarchical, vertical and centralized. Similar to these is the third structure—the process-based structure—which is structured in a way that follows a product’s or service’s life cycle. Lastly, the geographical structure is suitable for businesses with a broad geographic footprint.
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Essay on Organizational Structures
An organization’s organizational structure provides the framework for running and planning its activities. The hierarchy, organizational structure, and channels for communication and decision-making make up an organization (“ Organizational Structure ,” 2012). An organization’s performance and capacity to adapt to environmental changes are impacted by its organizational structure. This essay will contrast the benefits and drawbacks of mechanical and organic organizational structures. The gauge, discover, and reflect framework will also be covered.
Mechanistic Structure
The conventional method of organizational design is the mechanical structure. A hierarchical structure with distinct lines of authority and control characterizes it. It is an extremely organized, centralized process in which tasks are divided into distinct roles and responsibilities. The mechanical structure is ideal for organizations with a highly specialized workforce because it emphasizes efficiency and control.
Efficiency: Mechanistic structures divide work into manageable, efficiently completed components to maximize efficiency and productivity, making it possible to make decisions quickly and help prevent wasting time on useless pursuits. A system in place enables tasks to be completed quickly and efficiently, increasing the organization’s overall effectiveness. It also ensures that resources are used as effectively as possible and that the final product is of the highest caliber.
Control: By giving one person or group complete control and decision-making power, an organization can have much control over its actions, enabling the adoption of strict standards and the upkeep of output consistency. This structure ensures that those in charge can more effectively implement their vision and goals because decisions are made from the top down (“ Organizational Structure ,” 2012). Mechanistic structures help ensure the organization’s success.
Stability: Mechanistic structures are highly organized and structured, giving the organization a higher level of stability. As a result, they are less susceptible to disturbances and changes from the outside world, which enables the organization to maintain stability and consistency. Due to its structural design, the organization is protected from outside influences and disruption to the greatest extent possible. This stability enables the organization to carry on operating without the need for significant modifications or changes.
Disadvantages
Rigidity: Mechanistic structures are rigid and highly structured, and they can be challenging to alter or adapt to changing conditions. As a result, the company might become inert and need help to seize fresh opportunities.
Inefficiency: If the structures are appropriately managed, they may result in efficiency. Tasks not broken down into manageable parts may take longer than necessary and require more departmental coordination.
Lack of Innovation: Organizational structures may need more innovation by making the company too committed to upholding the status quo and closed to novel concepts, potentially leading to a lack of creativity and making it harder for the company to remain competitive.
Organic Structure
An alternative to the mechanical structure is the organic structure. A decentralized structure with adaptable roles and responsibilities best describes it. It is a flexible strategy emphasizing employee innovation and creativity (“ Organizational Structure ,” 2012). The organic structure prioritizes cooperation and teamwork and is ideal for businesses demanding innovation.
Flexibility: Organic structures are designed to be more flexible, allowing for greater autonomy and creativity and enabling the organization to quickly adapt to changing circumstances and take advantage of new opportunities.
Innovation: Greater innovation can result from organic organizational structures because they are more flexible and unrestricted by strict rules and regulations. Greater creativity may result from this, supporting the company’s ability to compete.
Collaboration: Roles and responsibilities need to be more clearly defined in organic structures, which can increase departmental collaboration. Increased communication and problem-solving may result from this.
Inefficiency: If organic structures are appropriately managed, they can result in efficiency. With clearly defined roles and responsibilities, tasks might be finished on time, and departmental coordination might improve.
Lack of Control: Organic organizational structures can lack control because they are less centralized and less concerned with upholding the status quo. This results in inconsistent output and a lack of organization-wide discipline.
Uncertainty: There may be uncertainty as the organization needs to be more structured and unpredictable with organic structures, resulting in the absence of predictability and making it challenging to make long-term plans.
Gauge, Discover, and Reflect Framework
The gauge, discover and reflect framework creates an effective organizational structure. Three steps make up the procedure: gauge, discover, and reflect. Organizations assess their current environment and gain an understanding of their current situation in the first step (“ Organizational Structure ,” 2012). Organizations identify the ideal situation and plan to get there in the second step. Organizations review their progress in the third step and make any necessary modifications.
The gauge, discover and reflect framework’s primary benefit is its future-oriented approach. Organizations can use the process to plan and create strategies to reach their objectives. The process also encourages organizations to evaluate their performance and adjust as necessary, encouraging ongoing development and keeping businesses on course.
The main disadvantage of the gauge, discover and reflect framework is its complexity. The process requires significant time and resources and may not be feasible for smaller organizations. The process also requires organizations to clearly understand their current situation and desired state, which can take time.
Organizational Chart
A sample organizational chart for a Pharmaceutical Company with a Functional Departmentalization Structure is shown in Figure 7.6. An overview of the Pharmaceutical organization’s structure, including its hierarchy and lines of authority, is given in this chart. The organization’s three primary levels comprise the board of directors, senior management, mid-management, and line management (“ Organizational Structure ,” 2012). Each level contributes to the organization’s success and has distinct roles and responsibilities.
A hospital organizational chart is shown in Figure 7.7. This diagram gives a broad overview of the hospital’s organizational structure, including its hierarchies and power relationships. The organization’s four primary levels are the Board of Directors, the Medical Director, the Nursing Director, and the Clinical Staff (“ Organizational Structure ,” 2012). Each level has specific tasks and obligations, and they all work together to make the hospital successful.
Any organization must have a clear organizational structure. Performance and the organization’s capacity to adapt to environmental changes are impacted. This essay has contrasted the benefits and drawbacks of mechanical and organic organizational structures. The gauge, discover, and reflect framework has also been covered. Finally, two examples of organizational charts have been given, one for a hospital and the other for a school district. To ensure their success, organizations must carefully consider their organizational structure.
Organizational Structure . (2012). 2012books.lardbucket.org. https://2012books.lardbucket.org/books/management-principles-v1.1/s11-02-organizational-structure.html
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Essay: Organisational Structures: An Overview
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INTRODUCTION AND DEFINATION OF ORGANIZATION According to the (council dictionary fourth edition, p 1103) organisation means means union organization comprising parts and other people in a body (association, corporation, etc.) for specific purposes (mutual interest ). According to (Professor Schein (1973), the organization serves as a rational adjustment of human activity in order to achieve the goals set by the division of labor, and also functions through authoritative hierarchy ) . (Ralph Davis (1951) also quote that the organization is a group of a number of a group of large men who worked under one head or manager to achieve an objective) Chester Barnard in his book, “The Function of the Executive” published by Harvard University Press, 1938, said that the organization is a system of personal power activity, consciously coordinated to achieve organsation goal. (Ralph M. Stogdill, the author of “Dimensions of Organizational Design” output of Pittsbury University Press, 1966,) defines the organization as a system of work that is done with structure that contains position and feelings are shaped and determined in advance of the role and the position filled by actors or workers. However what is important in the definition of organization is that it is a group that has certain parts in it which consists of a group of people who work together and help each other and their surroundings are interwined with each other in order to achieve the objectives and goals of individuals, groups or organization. Based on the chart, the Department of YAYASAN TERENGGANU has established the functional structure of different tasks or work to achieve the objectives and goals of the plan. Refering to a functional structure that has formed above, the Director General of YAYASAN TERENGGANU has the highest function power where he is responsible for administering and directing an organization with established policies, rules, working methods, making legal advise, coordinate the activities of the organization, department or unit / interior and goals of the organization , There are two parts function under the direct order Director General which is the Deputy Director (Operations) and Director General (Development) where both the function serves as chairman of the unit / section below. The parts have different functions or tasks workflow. In addition, the functional structure is also designed to enable many individuals with expertise and experience in controlling and supervising the work of each taskforce . Besides, it can provide opportunities for member organizations to learn from other people and become more efficient in their job. Thus, indirectly it has facilitated the process of controlling and adjusting the good work. In addition, the functional structure has been set up to facilitate the work and service operation which is designed to run more smoothly. In addition, the functional structure serves as the focus and gather members or employees to facilitate organisational needed skills and use certain skills where the staff are needed. This functional structure allows the division of labor as a whole and indirectly facilitate the process of communication and interaction that can improve the ability and efficiency in producing the best technique in performing its obligations and is the best way to resolve any problem Moreover, it also facilitates the performance of some top managers know- how divisions, units or departments within an organization. The work done or carried as a whole can be adjusted for all activities and skills will be classified or grouped in one place / divisions under one head. In addition, the division function makes supervision easier because each unit has a chief and specific skills. In addition, the function can be used according to the change of the work, fast and effectively done
THE BENEFITS OF FUNCTIONAL STRUCTURE 1) The task of supervision becomes easier because each head of department has and equipped with specific skills. 2) Any functional problem between units, departments and divisions can be easily identified and brought to attention immediately 3) Resources can be used efficiently 4) The functions and individual position is clear. 5) Expertise, knowledge, skills and experience can be consolidated or combined among individuals.
THE DISADVANTAGES OF FUNCTIONAL STRUCTURE 1) The response time might be slow and interupted because of waiting above from higher authority 2) It does not encourage innovation between staff and its perspective of view is narrow 3) Recaiving feedback may be slow because of the units, departments and divisions current un-done task 4) It contributes unto the lack of communication between units, departments and divisions. 5) It is weak in addressing all individual needs because of the slowness might occured in terms of action plan that can leads to un-achievable organisational objectives
Retrieved from : http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/annual-report-2007b.pdf1.2 THE GEOGRAFIC STRUCTURE OF AIR ASIA ORGANISATIONAL BRANCHES IN VARIOUS COUNTRIES
The organizational structure of geography divide the workers by geographical area designated as below at different part of its bracnches operation . It was formed on the request of customers who are far away or outside an organization’s operations center. The organizational structure of geography in operation among different staff is responsible for carrying out business activities in designated locations. The chart below shows an example of the organization of geographical structure adopted by The Air Asia Management . At below of the image, I also present the advantages and disadvantages of the organizational structure of geography. In this geographic structure, units and divisions based on the places and the geographical area. This structure is suitable when companies or offices operate in many different geographical areas in which the state, religion and country. In addition, the geographical structure is the coordination of work and workers in the unit or where different parts are all responsible for each of the organization or activity in a specific geographical area. Based on the geographical structure chart of the Air Asian Management , it has expanded its production in some specific geographical area. The advantage gained is the company able to expand its business across borders including financial markets , social relationships and the resulting product or products to the local market. In addition, the company is able to foster a closer relationship between places worldwide. The company is also able to expand the understanding and friendship between the peoples of the world with opportunities for personal conversion that is progressively emerged. Thus indirectly the company has formed or able to meet its own slogan which is “Now, Everyone Can Fly”. In addition, the company is also able to improve the standards prescribed or used in the ranking of global requirements such as the standards prescribed or used in the ranking of global requirements such as copyright law. The company on the other hand is also able to shape the universal’s value and get the technology needed to help in spreading its market (marketing) throughout the world. The company is also conducting management activities between the border and the processes of development which will be adopted when the emergence of a global market in the future. In addition, these companies are also more frequent use of advanced technologies because it often built connection or get connected between the border and to develop a global telecommunications infrastructure
ADVANTAGES OF GEOGRAFIC STRUCTURE 1) The whole organisation is able to use the expertise of all staff in ‘worldwide’ speaking according to the geographical location of the organization. 2) Products and services can be produced and marketed to different countries thus, make marketing job easier and effective 3) It is able introduce the organization to the world. 4) The organization becomes larger. 5) ) It can reduce organisation costs by putting the resources of the organization closer to the geographical area specified.
DISADVANTAGES OF GEOGRAFICAL STRUCTURE 1) There might be difficulty in coordinating the departments in the geographical area because its location that isfar from each other.
2) Lack of control might occur to each geographical department of the organization
3) Redundancies can happen
4) It can not guarantee the full loyalty of employees to the organisation
5) The existence of a change in products ( travelling ) and services as cultural factors, physical and weather
Retrieved from : http://kamarularnizam.blogspot.com/2015/02/contoh-pbs-pengajian-perniagaan.html
1.3 THE PRODUCT STRUCTURE OF SAMSUNG COMPANY The product is the output of an organization that can be produced in the form of goods or service . This refers to the coordination of work between workers in a unit or the other. This means each unit hold different responsibility to produce the output of products or services that have been set. The advantage of this section is to allow employers and employees to broaden their experience and expertise in relation to the overall activities of the products or services to be offerd. Accordingly, this allows management to assess the performance of work done in each work unit. From the image of product structure below , SAMSUNG company is capable of designing and producing a wide range of different products which generally meet the needs of everyone. All of these products are produced in different part or unit of work and function. Each division will be headed by a chairman and a chief that is responsible for coordinating the work or production activities as well as other activities such as purchasing, marketing and distribution of any products. Products produced by SAMSUNG company headed by a chairman with responsibility to ensure the product is produced in accordance with the criteria set and ensure marketing, distribution is done correctly. Thus working to produce each product is easy because each product will be distributed to the head that will manage it and supervise it The separation of individual products and these products have facilitated the production of such products. This separation is important because it can generate and collect ideas and brilliant creative in producing these products to market s. Each product has a function, purpose, use, benefits and advantages of its own. The resulting product is equipped with features such as it is psysicalll attractive, colorful, and the materials used to form the product . ( in eaxample: how a new I-Phone is formed with its colourful structure and its function) Apart from the physical characteristics SAMSUNG companies also produce products based on non-physical characteristics such the image, concept and its flexibility to use. These features make the users and buyers interested in purchasing. With the diversity of the products it can also solve the needs of purchasers or users and the importance of such a requirement in other words, the higher term needs of a person, the higher the consumer is willing to buy The company further then makes high quality products and good price comparable with other competitors after a thorough discussion of each of the products made
THE BENEFITS OF PRODUCTS STRUCTURE 1) Managers and employees can develop their talents, their experience and expertise in product development activities. 2) Managers in every department can monitor the activity of each unit and staff in the production of the product under operation. 3) A very clear lines of responsibility between departments. 4) The structure of the product is very suitable for large-sized organizations. 5) It is appropriate for organizations that produce various kind of products
THE DISADVANTAGES OF PRODUCTS STRUCTURE 1) The Manager is focused only in products management 2) There is a lack of communication between departments and its staff 3) The cost of the operation is big because each department has its own managers and experts. 4) It requires a high amount of workforces . 5) It does not promote cooperation which is a very important value because each department is of different expertise
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1.4 MATRIX STRUCTURE OF AN ORGANISATION DOING SITE PROJECT( IBM INTERNATIONAL COMPANY
Matrix structure is a result of two or more of the combined organization at the same time and the matrix structure is suitable for use when an organization has to handle a large project or task at a time. It is very complicated and complex structure as of individuals from different organizational structures work together to control and ensure the success of a project to achieve the intended purpose. There are some factors that distinguish this matrix structure that differentiates with other structures such workers report and work-related contact of two ifferent supervisors or managers. “Matrix structure developed as a way to improve horizontal coordination and information sharing” (Richard. L Daft, 2008). Managers have a responsibility to ensure the success of the projects undertaken while the departments of other acts to maintain technical competence in their work. (Harold Kerzner, 2003) also quote that there were certain rules that exist for the construction of a matrix structure 1) “participant must spend full time on this project to ensure the loyalty” 2) “there must be good communication channels between managers and independent access” 4) “there must be a quick and effective methodto resolve the conflict ”
For organizations like this ( image 1.4 ) that are experts iin commissioning employees from different units and parts to perform tasks for one or more projects led by a project manager. The project was carried out on a temporary or contract where its members consist of different functional departments that collaborate in carrying out the project. In this structure, the manager will be responsible to his supervisor or the head. There are lots of advantages to be obtained. Including the presence of matrix functions provide flexibility (flexibility) to the organization. Besides, it enable the employee to discipline themselves to do two or more tasks provided with full responsibility. It also stimulates the matrix function of co-operation between the employees and other employees in two or more work done. Among other advantages derived from this organizational structure is that they can learn new skill at one time during the working process. Matrix organizational structure also allows them to transfer skills to the other participant workers to the areas that are and this in turns help when desperation of skills workes are in demand in certain areas. In addition, the matrix structure of this organization can strengthen the relationship between each worker because they are connected and can carry out their duties in accordance with the requirements set. This organizational matrix structure will also be able to further develop desired goals and is of good use when the organisation need to use two or more employees to perform two or more tasks / work in an organosation ADVANTAGES OF MATRIX STRUCTURE IN AN ORGANISATION 1) It encourage the staff to use resources more effectively. 2) It provides more accurate and extensive information. 3) Collaboration between disciplines and expertise is available to all sections. 4) Flexibility and adaptation to the changing environment. 5) It fosters the spirit of cooperation which is an important asset for all organisation
THE DISADVANTAGES OF A MATRIX STRUCTURED’S ORGANISATION 1) Confusion can happen because there are two directions. 2) It can be a complicated approach because instructions can come between the two sides of different departments 3) More meetings and discussions need to be held to determine action plan 4) Distribution of resources becomes difficult when many projects are carried out simultaneously. 5) There will be a dominant power struggle when there are managers who are more prominent.
Each organization has a clearly established objectives and goals of its own. In general, the organizational chart has been used by many organizations to assist their operations. Without careful planning and the right implication or action plan, the organization would not be able to operate at the level best to achieve the goals set. It also requires knowledge and efficient management of the organization is to ensure great success. In short every organization should take into account every factors either internal or external to make sure every task is done accordingly and smoothly in line with the goals set
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151 Organizational Structure Essay Topic Ideas & Examples
🏆 best organizational structure topic ideas & essay examples, 👍 good essay topics on organizational structure, 🥇 most interesting organizational structure topics to write about, ✍️ organizational structure topics for college, ❓ research questions on organizational structure.
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- Advantages and Disadvantages of Formalization in Organizational Structure Essay One of the key advantages of formalization is the fact that formal organization have easy to fathom leadership structures that are placed in concert by the given rules and regulations thereby eliminating the question of […]
- Air Canada’s Organizational Structure: A Case Study Background & statement of the problems/issues The company in the case study is Air Canada, involved in air travel. Increased competition in the airline industry has been a serious problem to the operations of Air […]
- The Organizational Structure in Kraft Foods Group It is imperative to note that the organization structure is the one that influences communication within the organization. One of the secrets to the organization’s success is the depth and quality of its employees.
- Toyota’s Organizational Structure Throughout its entire market history, Toyota Corporation has been referred to as the flagship of the automobile industry due to the genuine quality of its produce.
- Hewlett-Packard Firm’s Organizational Structure The company’s current CEO is Enrique Lores and the CFO is Marie Myers. This aspect emphasizes that he is trying to develop and maintain a certain vision in the company.
- Organizational Structures The rationale for choosing this type of organizational structure for the company 1 is that each of the workers in this company has a specific task to perform depending on the specialization.
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- Lack of Organizational Structure in Business Management, its Causes and Possible Solutions Organizational structure can be defined as the manner in which a company allocates its management responsibilities and how different activities are coordinated within the firm.
- Boeing Company Organizational Structure One can argue that the operations of the company can be viewed as the main force that determines the organizational structure of this company. This is one of the issues that can be distinguished.
- Volkswagen Company: Applying Organizational Structure The strained relationship between the CEO, Martin Winterkorn, and the chairman of the board revealed the managerial challenges affecting the corporation.
- Mechanistic vs. Organic Organizational Structure Formalization of an organization can be defined as the degree by which it relies on the procedures and the rules which monitor the behavior of the employees.
- General Motors Company’s Organizational Structure The organizational structure of an entity is a critical aspect of management. In Europe, the GM subsidiary now adopts this structure to complement the overall structure of the organization.
- Freshii: Flat Organizational Structure By giving employees a share in the company the heads of departments and CEO ensure their effectiveness. Franchises of Freshii are interested in making big profit because they are a business organization, therefore they guarantee […]
- Uniqlo Organizational Structure Evaluation Essay The commitment of the UK government to enhance the country’s economic recovery is likely to improve the consumer’s purchasing power and this trend is likely to lead to improvement in Uniqlos’ sales volume in the […]
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- Organic and Mechanistic Organizational Structures In this regard, a bureaucratic organizational structure is viewed as a network of tasks and not people, as is the case in an organic organizational structure.
- Matrix Organizational Structure The unit managers may in some instances report to the vice president who in turn reports to the president or the chief executive officer.
- Samsung Group: Organizational Structure Samsung Group is one of the leading companies in the global electronics industry. Samsung began to market its diverse products to different consumers in every part of the world.
- Company Profile and Organizational Structure Vermont Teddy Bear In the customer relationship management paradigm, the management of customer data in eCommerce is necessary, and this is facilitated by the creation and adherence to distinct IT policies. In support of the VTB, the role […]
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- Avon Hospital: Organizational Structure The board of directors counsels the executive team, and the IT manager is also on the hospital’s leader board. The board of directors counsels the executive team, and the IT manager is also on the […]
- Microsoft Corporation’s Organizational Structure The aim of this paper is to analyze Microsoft Corporation, the agency problems facing the company, its job design and compensation packages to its executives and the employees.
- Walmart Company Organizational Design and Structure The Chief Executive Officer and the representatives of the annual shareholders general meeting are responsible for making strategic decisions in the organization, which are then implemented by the board of directors.
- Sinai Hospital Baltimore: Organizational Structure and Improvement The vision of the hospital is to emerge as a model of comprehensive health care providers in the country through strengthening its Jewish heritage, outstanding clinical strength, and its record of service.
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- Divisional Organizational Structure: Pros and Cons The divisional structure, also known as the decentralized one, improves the motivation of employees and control of operations in different locations.
- Thika Road Project Organizational Structure To attain project goals and objectives, the project management team needs to be constituted in the right for the benefit of the entire project.
- McDonald’s Burger: Evaluating Organizational Structure The organizational structure is influenced by the objectives of the company and tailored by its marketing strategy.
- Organizational Culture and Physical Structure According to Griswold, ontology is a philosophical study that involves gaining knowledge on the nature of being, the existence of a given phenomenon or a reality about something, and the categorization of the being and […]
- The Concept of Functional and Divisional Organizational Structure For instance, in a functional structure, the most common formation, the business seeks to group workers in line with a specialized or comparable set of duties. Organizational structures may influence the activities of a company […]
- Formal Organization Structure One of the potent examples of such a formal organization is that of the army. Therefore, many researchers believe that formal organizations, in modern world are expected to lose their bureaucracy and hierarchy and have […]
- A Church’s Organizational Structure and Behavior These systems contribute to the wellbeing of the society through various means, for example, they bring together resources in order to accomplish a society’s needs, help to facilitate innovation, they facilitate easy accommodation of ongoing […]
- Apple Organizational Structure: Key Considerations In 2007, the name of the company changed to Apple Incorporation. The company’s innovative strategy is making it easier for more customers to purchase its products and services.
- Aspects of New Organizational Structure Additionally, they make sure that everyone is held accountable for their particular tasks and that the team is working together successfully and efficiently. Encourage team members to offer their thoughts and work toward the group’s […]
- Pfizer Company: Organizational Structure It is based on the principle of double subordination of performers: on the one hand, to the direct head of the active service, on the other hand, to the project manager.
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- Public Transport Organization: Functional Organizational Structure Apple is one of the companies that has used the functional organizational structure and has managed to become one of the most innovative firms around the world.
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- “Effect of Organizational Structure on Strategy Implementation”: Organization Structure and Design Therefore, the reconsideration of the organizational structure and the effects that its design has on the creation and implementation of strategic management is critical to a company’s performance.
- Walmart Organizational Structure There are a total of 41 Walmart regions, each with it’s own Regional Vice-President who works out of Bentonville.
- Preferred Organizational Structure: Functional Organizational Structure One of the vital advantages of the functional organizational structure is the fact that functions are run on the basis of expertise, which allows for maximum productivity of each individual because they are engaging in […]
- Health Care Organization Delivery Structure: Pain Medicine The traditional hospital structure restricts the natural process of development reasoned by the development of the organization.
- Nursing Rehabilitation Center Organizational Structure At the top of the organizational structure is the owner who has the full control of the facility. The nursing director takes care of the nurses and the nursing services in the facility.
- Lee Memorial Health System’s Organizational Structure & Function The nurse leader will provide a detailed account of the organizational structure of the company; how the organizational structure influences daily operations; how the organizational structure affects its ability to function efficiently; and finally, how […]
- Organizational Structure and Culture Within Hospital The organization’s administration act as collaboration between the governing board and clinical staff, and is answerable for implementing a strategic scheme for sustaining the task and objectives of the institution.
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- Modern Management and Organizational Structure Definitely the modern concept of organization boundary-less is not intended to do away with these distinct functions but to make them more porous and flexible to the changes taking place in the modern day business […]
- Burton Menswear Company: Organizational Structure To begin with, the world of management is full of different innovations which are additionally emphasized due to the flow of scientific thought in the world.
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- Fundamental of Organizational Structure There should also be a supervisor to ensure that the work done by the designer is in line with those of the client.
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Organizational Structure, Essay Example
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The organizational structure that should be adopted by companies is one that will maximize the firm’s performance by attaining balance between the technical and the social requirements. Since an organization entails coordination of activities amongst different stakeholders of the company, there is the need to develop powerful communication network and make sure that there is apparent understanding of interdependencies and relationships among the different members of the organization (Baligh, 2006). This will make the organization process simple and meet the objectives of the organization in a cost-effective manner. The system managers in a given organization should ensure that the managers are allocated different responsibilities in their different departments of the company and their responsibilities coordinated by the systems managers.
Organizational change is a tough activity to undertake, therefore, it is advisable to make announcement after consulting all the stakeholders in the company. Making announcements without informing all the members who will be affected by the announcement will spark some resistance. There is need before making any announcement to answer employees’ questions as well as responding to their issues and communicating all the elements contained in the announcement. Any appointment of the manager will be made during the announcement, which after consulting the entire major stakeholders in the company (Baligh, 2006).
While restructuring the organizational structure of the company it is essential that system managers invite all the stakeholders of the company and other consultants. This will ensure that feasible management decisions are made to avoid any conflict that may arise while implementing the management decisions.
In order to train people in the company concerning the organizational structure of the company, there is need to undertake it in an outside seminars. Outside seminars will eliminate the bore down on the usual environment and will impact the trainees on matters related to organization of the company (Hall & Tolbert, 2005).
The matrix organization structure has many complicated and it is not simple to adopt it. In this structure the organization is divided as per the functions and their services/products. For example, a company which produces consumer goods may have three functional divisions: personal care, foods, and cleaning products. In the same company, it may have three functional divisions, which include marketing, research and development, and distribution (Baligh, 2006). Therefore, every individual in the company serves two divisions, one product, and functional division. Consequently, this structure is confusing to both the employees and the managers. The matrix structure is extremely encouraging of knowledge sharing and collaboration between divisions. The matrix structure is not devoid of challenges, though. Since workers in a matrix organization report to two departments, there might be conflicts in their responsibilities.
Downfall of functional managers arises when these managers do not understand their responsibilities where their functions are not well defined in the organization. This will eventually lead to potential conflicts, which will affect their performance. Downfall among the functional managers develops poor reporting systems that do not meet the communication structures set by the company. This is true for the situation of matrix structure that has not clear structures. In some cases, the functional managers can delegate some management roles to inexperienced staff leading poor performance of tasks or projects being undertaken by the firm. Therefore, lack of understanding of their roles by the functional managers is the leading cause of downfall because conflicts always arise in such circumstances (Baligh, 2006).
Baligh, H. H. (2006). Organization structures: Theory and design, analysis and prescription . New York, NY: Springer.
Hall, R. H., & Tolbert, P. S. (2005). Organizations: Structures, processes, and outcomes. Upper Saddle River, N.J: Pearson Prentice Hall.
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Essay on Organizational Structures
Introduction
The existence of various internal and external factors shape organizations in the corporate world. These factors determine the strengths and weaknesses of an organization. The organization’s success is also based on strategies used to develop and sustain a good relationship among organizational stakeholders. When starting a company, choosing a relevant structure that suits the organization is the best idea, although these structures present some challenges. This paper explores various concepts, theories, and frameworks, which form part of organizational structures.
Factors Determining Stability and Uncertainty in an Organization
Organizational success or failures are based on various factors that determine stability and uncertainty in an organizational setting. Factors include socio-cultural differences, organization legal frameworks, technological aspects, political environment, shareholders, and economic base influence organization stability and uncertainty. Madinda (2014) classified four environmental forces: competitive environment, internal environment, external environment, and general environment, as forces that influence the organizational environment. Below is descriptions of these forces.
Technological Factor
Technology is an emerging trend in the organizational setting and the entire corporate world. Technology involved processes in which various kinds of work in an organization are conducted. It comprises machines, devices, operating systems, hardware, or software. Technology improves access and provision of organizational services to benefit customers, employees, and business associates. Technology enhances the organization’s stability by producing high-quality products and services, allowing the organization to remain competitive in the market. In contrast, technology leads to uncertainty, especially to administrators, when deciding on technological choices due to dynamic and ever-changing technology (Madinda, 2014).
Legal Factor
Madinda (2014) explores legal factors by demonstrating the significance of employment laws that regulate employee’s lives at the organization. These laws safeguard employees from exploitation, including financial, unfair dismissal, discrimination, safety environment, and unbiased decision. These laws protect the welfare of employees, thus increasing their productivity in the workplace. However, these laws present uncertainties to the organization since they are not fixed. The laws subject to amendments over and again based on the employee’s well-being. Besides, these laws are characterized by concerns like inequalities in employment relationship between employers and employees.
Socio-Cultural Factor
Social factors, including leadership approaches and attitudes towards work, are attributed as leading factors to environmental uncertainty. Also, the issues of gender sensitivity and equality pose a challenge to policymakers and administrators. In the workplace, there is a challenge in maintaining an optimum balance between men and women in a leadership position (Madinda, 2014).
Political Factor
The introduction of political systems and reforms has significantly influenced the organizational environment. For example, the introduction of deregulation policies and privatization has negatively undermined various organizations. For example, privatization has given the private sector more freedom to venture into productions initially controlled by the government. As a result, this has motivated investors to impose a high cost of products and services, thus undermining some organizations’ operations and existence, leading to uncertainties (Madinda, 2014).
Comparisons between Open and Closed Systems
As open or closed, the classification of systems in organization is based on systems capacity to interrelate with the environment. An open system can describe as a system that interrelates with its environment and exchanges resources and information with the environment. An open system can be ascribed a ‘self-organizing,’ since the system changes the organization according to changing situations. In contrast, a closed system is one that does not correlate with its environment (Allen & Sawhney, 2015).
From the humanistic management perspective, an open system depicts workers as a team of work organizations that contribute to external influences through values and behaviors, which positively reinforce internal organizational functioning. At the heart of this system, an organization forms part of the external environment. The models of open systems are entrenched on human relations theory, whose characteristics differentiate the open system models from models of closed systems, such as mutual respect, human dignity, motivation, and individual difference. In contrast, the closed system models assume that the external environment, including technological advancement, legal decisions, and demographic features, does not affect the organization’s functioning. As such, models of close systems do not rely on the external environment to solve managerial issues or provide any other explanations. The strategies of central management are believed to be key to solving any issue. In open systems, the external environment contributes significantly to solving organizations’ issues (Allen & Sawhney, 2015).
Additionally, unlike closed systems, open systems are very difficult to understand because of complexities and dynamic interrelationships from external factors. Moreover, employees in an open system are driven by the desire to achieve more for the organization. In case of any issue, every employee expresses commitment to the solution to the issue. However, employees in a closed system do not participate actively in development and providing a solution to problems. This model states that organizational problems shall be addressed only by the management; hence employees have no role. Lastly, a closed system is associated with Max Weber’s bureaucratic model. This model emphasized that highly rational bureaucracy is important in attaining the objectives of the society. In a closed system, bureaucracy gives departments and those in authority to developed mentality that departments and management are more important than the organization. In contrast, open system theorists have a different perception of organizational structure and its role in society. To them, models of open systems perceive organization roles in society to be interrelating and interlocking (Allen & Sawhney, 2015).
Strategies for Enhancing Inter-Organizational Relationships
Building and maintaining a good relationship are at the heart of every organization. Strong inter-organizational relationships among employers, employees, and other stakeholders is key to attaining or organizational goals. The strength of an organization is anchored on the power of connections among organizational stakeholders. Below are ways of building and sustaining the inter-organizational relationship.
A good relationship is based on understanding and learning about other people’s cultures. Knowing one another could lead to increase concern and caring for each other. This will minimize cases of oppression or discrimination in the workplace. A strong relationship is built when employees act boldly on behalf of one another. Besides, establishing collaboration enhance good relations. Collaboration fosters good relations in which individuals communicate effectively and share their thoughts and emotions without any concerns or fear. Likewise, collaboration allows workers to make more informed and profitable decisions. Also, establishing trust among workers is key to creating a healthy setting where relationship-building can be nurtured. Trust builds transparency by enabling employees to understand organizations’ strategies, goals, expectations, and paths for individual development (University of Kansas, 2018).
These relationships can be sustained through various approaches. For example, paying attention to another and helping each other in accomplishing the organizational task. Also, communicating openly encourages good relations by avoiding misunderstandings that could build tensions among workers. Also, scheduling regular meetings sessions brings together workers to share their ideas, perspectives, and suggestions to improve operations within the organization. Regular meetings allows organization stakeholders to read from the same script and provide a win-win relationship among them. Lastly, loyalty is an important value that sustains a healthy relationship. Regardless of the disagreement, with loyalty, workers would respect each other’s opinions (University of Kansas, 2018).
Implications of Organizational Structures
The four basic organizational structures include functional, divisional, matrix, and flatarchy structures. Each organizational structure has different advantages and disadvantages, as discuss below;
This structure is based on an organization being subdivided into smaller units with certain roles and responsibilities. For instance, an organization may have a unit working in finance, another in information technology, and another in public relations. Each unit has a manager or supervisor who reports to an executive. One of the advantages of a functional structure is that employees are clustered according to their skills and experience, thus allowing them to concentrate and contribute their competencies. Also, workers are dedicated and committed to a single role. However, one of the challenges presented by this structure is the lack of inter-departmental communication, whereby decision-making only occurs in the managerial position (Point Park University, 2019).
Many larger corporate institutions use this structure. The divisional structure offers more autonomy to employees within the organization. Also, every unit functions by controlling its financers and resources, thus providing more flexibility to the organization. Under this structure, sub-division can be established geographically, with many units in various parts of the world. This structure is disadvantageous on issues to do with high tax implication and accounting practices.
Matrix structure comprises the functional structure blending with the projected structure. Employees can report to more than one boss, including project managers and department managers. Also, this structure has a lot of flexibility and well-adjusted to decision-making. Employees can also share their expertise across various divisions, leading to the widening of their professional development. However, reporting to various managers lead to confusion. Failure to establish clear functions causes employees to get confused about their duties (Point Park University, 2019).
Flatarchy structure works well with startups or small organizations. This structure provide foundation for more decision making process since there is no bureaucracies or hierarchies involved. Also, this structure encourages innovation since employees are constantly motivated to suggest ideas. Just like other structures, flatarchy could be confusing and inconvenient, especially when everybody is involved in decision-making disagree (Point Park University, 2019).
Various structures influence modern businesses or companies in an organization. Factors including technology, social-cultural factors, among others, determine the company’s stability and uncertainty. The company’s success is also based on developing strategies that create and maintain a good inter-organizational relationship. Based on the basics of organizational structures, each structure has benefits and limitations, as discussed in the paper.
Allen, J. M., & Sawhney, R. (2015). Chapter 2: Open Versus Closed Systems. SAGE Publications, Inc , 9781483350707/ , 27–43. https://www.sagepub.com/sites/default/files/upm-binaries/33001_2.pdf
Madinda, A. S. (2014). THE UNCERTAINTY OF ORGANIZATIONAL ENVIRONMENT IN DEVELOPING COUNTRIES. International Journal of Emerging Trends in Science and Technology , 1 (5), 774–782. https://doi.org/ISSN 2348-9480
Point Park University. (2019, January 28). 4 Types of Organizational Structures . Point Park University Online. https://online.pointpark.edu/business/types-of-organizational-structures/
The University of Kansas. (2018). Chapter 14. Core Functions in Leadership | Section 7. Building and Sustaining Relationships | Main Section | Community Tool Box . Ku.Edu. https://ctb.ku.edu/en/table-of-contents/leadership/leadership-functions/build-sustain-relationships/main
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Organizational Structure Explained: A Comprehensive Guide for Businesses
Discover the different organizational structures, their benefits, and how they can shape your company's success in 2024 and beyond.
Organizational structure aligns and relates parts of an organization, so it can achieve its maximum performance. The structure chosen affects an organization's success in carrying out its strategy and objectives. Leadership should understand the characteristics, benefits and limitations of various organizational structures to assist in this strategic alignment.
Overview Background Business Case Key Elements of Organizational Structures Types of Organizational Structures
Vertical structures (functional and divisional)
Matrix organizational structures, open boundary structures (hollow, modular virtual and learning).
The Impact of Growth Stages on Organizational Structure Metrics Communications and Technology Global Issues Legal Issues
This article addresses the following topics related to organizational structure:
- The case for aligning organizational structure with the enterprise's business strategy.
- Key elements of organizational structure.
- Types of organizational structures and the possible benefits and limitations of each.
- The impact of an organization's stage of development on its structure.
- Communications, technology, metrics, global and legal issues.
Organizational structure is the method by which work flows through an organization. It allows groups to work together within their individual functions to manage tasks. Traditional organizational structures tend to be more formalized—with employees grouped by function (such as finance or operations), region or product line. Less traditional structures are more loosely woven and flexible, with the ability to respond quickly to changing business environments.
Organizational structures have evolved since the 1800s. In the Industrial Revolution, individuals were organized to add parts to the manufacture of the product moving down the assembly line. Frederick Taylor's scientific management theory optimized the way tasks were performed, so workers performed only one task in the most efficient way. In the 20th century, General Motors pioneered a revolutionary organizational design in which each major division made its own cars.
Today, organizational structures are changing swiftly—from virtual organizations to other flexible structures. As companies continue to evolve and increase their global presence, future organizations may embody a fluid, free-forming organization, member ownership and an entrepreneurial approach among all members. See Inside Day 1: How Amazon Uses Agile Team Structures and Adaptive Practices to Innovate on Behalf of Customers .
Business Case
A hallmark of a well-aligned organization is its ability to adapt and realign as needed. To ensure long-term viability, an organization must adjust its structure to fit new economic realities without diminishing core capabilities and competitive differentiation. Organizational realignment involves closing the structural gaps impeding organizational performance.
Problems created by a misaligned organizational structure
Rapid reorganization of business units, divisions or functions can lead to ineffective, misaligned organizational structures that do not support the business. Poorly conceived reorganizations may create significant problems, including the following:
- Structural gaps in roles, work processes, accountabilities and critical information flows can occur when companies eliminate middle management levels without eliminating the work, forcing employees to take on additional responsibilities.
- Diminished capacity, capability and agility issues can arise when a) lower-level employees who step in when middle management is eliminated are ill-equipped to perform the required duties and b) when higher-level executives must take on more tactical responsibilities, minimizing the value of their leadership skills.
- Disorganization and improper staffing can affect a company's cost structure, cash flow and ability to deliver goods or services. Agile organizations can rapidly deploy people to address shifting business needs. With resources cut to the bone, however, most organizations' staff members can focus only on their immediate responsibilities, leaving little time, energy or desire to work outside their current job scope. Ultimately, diminished capacity and lagging response times affect an organization's ability to remain competitive.
- Declining workforce engagement can reduce retention, decrease customer loyalty and limit organizational performance and stakeholder value.
The importance of aligning the structure with the business strategy
The key to profitable performance is the extent to which four business elements are aligned:
Leadership. The individuals responsible for developing and deploying the strategy and monitoring results.
Organization. The structure, processes and operations by which the strategy is deployed.
Jobs. The necessary roles and responsibilities.
People. The experience, skills and competencies needed to execute the strategy.
An understanding of the interdependencies of these business elements and the need for them to adapt to change quickly and strategically are essential for success in the high-performance organization. When these four elements are in sync, outstanding performance is more likely.
Achieving alignment and sustaining organizational capacity requires time and critical thinking. Organizations must identify outcomes the new structure or process is intended to produce. This typically requires recalibrating the following:
- Which work is mission-critical, can be scaled back or should be eliminated.
- Existing role requirements, while identifying necessary new or modified roles.
- Key metrics and accountabilities.
- Critical information flows.
- Decision-making authority by organization level.
See Meeting the Challenges of Developing Collaborative Teams for Future Success.
Key Elements of Organizational Structures
Five elements create an organizational structure: job design, departmentation, delegation, span of control and chain of command. These elements comprise an organizational chart and create the organizational structure itself. "Departmentation" refers to the way an organization structures its jobs to coordinate work. "Span of control" means the number of individuals who report to a manager. "Chain of command" refers to a line of authority.
The company's strategy of managerial centralization or decentralization also influences organizational structures. "Centralization," the degree to which decision-making authority is restricted to higher levels of management, typically leads to a pyramid structure. "Centralization" is generally recommended when conflicting goals and strategies among operating units create a need for a uniform policy. "Decentralization," the degree to which lower levels of the hierarchy have decision-making authority, typically leads to a leaner, flatter organization. Decentralization is recommended when conflicting strategies, uncertainty or complexity require local adaptability and decision-making.
Types of Organizational Structures
Organizational structures have evolved from rigid, vertically integrated, hierarchical, autocratic structures to relatively boundary-less, empowered, networked organizations designed to respond quickly to customer needs with customized products and services.
Today, organizations are usually structured vertically, vertically and horizontally, or with open boundaries. Specific types of structures within each of these categories are the following:
- Vertical — functional and divisional.
- Vertical and horizontal — matrix.
- Boundary-less (also referred to as "open boundary")—modular, virtual and cellular.
See What are commonly-used organization structures?
Two main types of vertical structure exist, functional and divisional. The functional structure divides work and employees by specialization. It is a hierarchical, usually vertically integrated, structure. It emphasizes standardization in organization and processes for specialized employees in relatively narrow jobs.
This traditional type of organization forms departments such as production, sales, research and development, accounting, HR, and marketing. Each department has a separate function and specializes in that area. For example, all HR professionals are part of the same function and report to a senior leader of HR. The same reporting process would be true for other functions, such as finance or operations.
In functional structures, employees report directly to managers within their functional areas who in turn report to a chief officer of the organization. Management from above must centrally coordinate the specialized departments.
A functional organizational chart might look something like this:
Advantages of a functional structure include the following:
- The organization develops experts in its respective areas.
- Individuals perform only tasks in which they are most proficient.
- This form is logical and easy to understand.
Disadvantages center on coordination or lack thereof:
- People are in specialized "silos" and often fail to coordinate or communicate with other departments.
- Cross-functional activity is more difficult to promote.
- The structure tends to be resistant to change.
This structure works best for organizations that remain centralized (i.e., a majority of the decision-making occurs at higher levels of the organization) because there are few shared concerns or objectives between functional areas (e.g., marketing, production, purchasing, IT). Given the centralized decision-making, the organization can take advantage of economies of scale in that there are likely centralized purchasing functions.
An appropriate management system to coordinate the departments is essential. The management system may be a special leader, like a vice president, a computer system or some other format.
Also a vertical arrangement, a divisional structure most often divides work and employees by output, although a divisional structure could be divided by another variable such as market or region. For example, a business that sells men's, women's and children's clothing through retail, e-commerce and catalog sales in the Northeast, Southeast and Southwest could be using a divisional structure in one of three ways:
- Product—men's wear, women's wear and children's clothing.
- Market—retail store, e-commerce and catalog.
- Region—Northeast, Southeast and Southwest.
A divisional organizational structure might look like this:
The advantages of this type of structure are the following:
- It provides more focus and flexibility on each division's core competency.
- It allows the divisions to focus on producing specialized products while also using knowledge gained from related divisions.
- It allows for more coordination than the functional structure.
- Decision-making authority pushed to lower levels of the organization enables faster, customized decisions.
The disadvantages of this structure include the following:
- It can result in a loss of efficiency and a duplication of effort because each division needs to acquire the same resources.
- Each division often has its own research and development, marketing, and other units that could otherwise be helping each other.
- Employees with similar technical career paths have less interaction.
- Divisions may be competing for the same customers.
- Each division often buys similar supplies in smaller quantities and may pay more per item.
This type of structure is helpful when the product base expands in quantity or complexity. But when competition among divisions becomes significant, the organization is not adapting quickly enough, or when economies of scale are lacking, the organization may require a more sophisticated matrix structure.
A matrix structure combines the functional and divisional structures to create a dual-command situation. In a matrix structure, an employee reports to two managers who are jointly responsible for the employee's performance. Typically, one manager works in an administrative function, such as finance, HR, information technology, sales or marketing, and the other works in a business unit related to a product, service, customer or geography.
A typical matrix organizational structure might look like this:
Advantages of the matrix structure include the following:
- It creates a functional and divisional partnership and focuses on the work more than on the people.
- It minimizes costs by sharing key people.
- It creates a better balance between time of completion and cost.
- It provides a better overview of a product that is manufactured in several areas or sold by various subsidiaries in different markets.
Disadvantages of matrix organizations include the following:
- Responsibilities may be unclear, thus complicating governance and control.
- Reporting to more than one manager at a time can be confusing for the employee and supervisors.
- The dual chain of command requires cooperation between two direct supervisors to determine an employee's work priorities, work assignments and performance standards.
- When the function leader and the product leader make conflicting demands on the employee, the employee's stress level increases, and performance may decrease.
- Employees spend more time in meetings and coordinating with other employees.
These disadvantages can be exacerbated if the matrix goes beyond two-dimensional (e.g., employees report to two managers) to multidimensional (e.g., employees report to three or more managers).
Matrix structures are common in heavily project-driven organizations, such as construction companies. These structures have grown out of project structures in which employees from different functions formed teams until completing a project, and then reverted to their own functions. In a matrix organization, each project manager reports directly to the vice president and the general manager. Each project is, in essence, a mini profit center, and therefore, general managers usually make business decisions.
The matrix-structured organization also provides greater visibility, stronger governance and more control in large, complex companies. It is also well suited for development of business areas and coordination of complex processes with strong dependencies.
Matrix structures pose difficult challenges for professionals charged with ensuring equity and fairness across the organization. Managers working in matrix structures should be prepared to intervene via communication and training if the structure compromises these objectives. Furthermore, leadership should monitor relationships between managers who share direct reports. These relationships between an employee's managers are crucial to the success of a matrix structure.
More recent trends in structural forms remove the traditional boundaries of an organization. Typical internal and external barriers and organizational boxes are eliminated, and all organizational units are effectively and flexibly connected. Teams replace departments, and the organization and suppliers work as closely together as parts of one company. The hierarchy is flat; status and rank are minimal. Everyone—including top management, managers and employees—participates in the decision-making process. The use of 360-degree feedback performance appraisals is common as well.
Advantages of boundary-less organizations include the following:
- Ability to leverage all employees' talents.
- Faster response to market changes.
- Enhanced cooperation and information sharing among functions, divisions and staff.
Disadvantages include the following:
- Difficulty in overcoming silos inside the organization.
- Lack of strong leadership and common vision.
- Time-consuming processes.
- The possibility of employees being adversely affected by efficiency efforts.
- The possibility of organizations abandoning change if restructuring does not improve effectiveness quickly.
Boundary-less organizational structures can be created in varied forms, including hollow, modular and virtual organizations.
Hollow organizations. Hollow structures divide work and employees by core and noncore competencies. Hollow structures are an outsourcing model in which the organization maintains its core processes internally but outsources noncore processes. Hollow structures are most effective when the industry is price competitive and choices for outsourcing exist. An example of a hollow structure is a sports organization that has its HR functions (e.g., payroll and benefits) handled by outside organizations.
Advantages of this type of structure include the following:
- Minimizing overhead.
- Enabling the organization to focus on its core product and eliminating the need to develop expertise in noncore functions.
Disadvantages include:
- Loss of control over functions that affect employees regularly.
- Restriction by certain industries (e.g., health care) on the extent of outsourcing.
- Lack of competitive outsourcing options.
Modular organizations. Modular structures differ from hollow organizations in that components of a product are outsourced. Modular structures may keep a core part of the product in-house and outsource noncore portions of the product. Networks are added or subtracted as needs change. For a modular structure to be an option, the product must be able to be broken into chunks. For example, computer manufacturer Dell buys parts from various suppliers and assembles them at one central location. Suppliers at one end and customers at the other become part of the organization; the organization shares information and innovations with all. Customization of products and services results from flexibility, creativity, teamwork and responsiveness. Business decisions are made at corporate, divisional, project and individual team member levels.
Advantages include the following:
- Minimizing the specialization and specialists needed.
- Enabling the company to outsource parts supply and coordinate the assembly of quality products.
Disadvantages include concerns about the actions of suppliers outside the control of the core management company. Risk occurs if the partner organization removes itself form the quality check on the end product or if the outsourced organization uses a second outsourced organization. Examples of supplier concerns include the following:
- Suppliers, or subcontractors, must have access to—and safeguard—most, if not all, of the core company's data and trade secrets.
- Suppliers could suddenly raise prices on or cease production of key parts.
- Knowing where one organization ends and another begins may become difficult.
Virtual organizations. A virtual organization (sometimes called a network structure) is cooperation among companies, institutions or individuals delivering a product or service under a common business understanding. Organizations form partnerships with others—often competitors—that complement each other. The collaborating units present themselves as a unified organization.
The advantages of virtual structures include the following:
- Contributions from each part of the unit.
- Elimination of physical boundaries.
- Responsiveness to a rapidly changing environment.
- Lower or nonexistent organizational overhead.
- Allows companies to be more flexible and agile.
- Give more power to all employees to collaborate, take initiative, and make decisions.
- Helps employees and stakeholders understand workflows and processes.
The disadvantages of virtual organizations include the following:
- Potential lack of trust between organizations.
- Potential lack of organizational identification among employees.
- Need for increased communication.
- Can quickly become overly complex when dealing with lots of offsite processes.
- Can make it more difficult for employees to know who has final say.
Virtual structures are collaborative and created to respond to an exceptional and often temporary marketing opportunity. An example of a virtual structure is an environmental conservancy in which multiple organizations supply a virtual organization with employees to save, for example, a historic site, possibly with the intent of economic gain for the partners.
Understanding the organizational environment is crucial in open boundary models. For example, some industries cannot outsource noncore processes due to government regulation. (For example, health insurance organizations may be unable to outsource Medicare processes). Or, in some cases, outsourcing may have to be negotiated with a union.
The key to effective boundary-less organizations is placing adaptable employees at all levels. Management must give up traditional autocratic control to coach employees toward creativity and the achievement of organizational goals. Employees must apply initiative and creativity to benefit the organization, and reward systems should recognize such employees.
Learning organizations. A learning organization is one whose design actively seeks to acquire knowledge and change behavior as a result of the newly acquired knowledge. In learning organizations, experimenting, learning new things, and reflecting on new knowledge are the norms. At the same time, there are many procedures and systems in place that facilitate learning at all organization levels.
The advantages of learning organizations include the following:
- Open communication and information sharing.
- Innovativeness
- Ability to adapt to rapid change.
- Strong organizational performance.
- Competitive advantage.
The disadvantages of learning organizations include the following:
- Power difference is ignored.
- Process of implementing will be complicated and take longer.
- Fear of employee participation in organizational decisions.
- Breaking of existing organizational rules.
The Impact of Growth Stages on Organizational Structure
Organizations typically mature in a consistent and predictable manner. As they move through various stages of growth, they must address various problems. This process creates the need for different structures, management skills and priorities.
The four stages of development in an organization's life cycle include the following:
The beginning stage of development is characterized by an inconsistent growth rate, a simple structure and informal systems. At this stage the organization is typically highly centralized. "Dotcom" companies are a good example of startup companies.
The expansion stage is evidenced by rapid, positive growth and the emergence of formal systems. Organizations at this stage typically focus on centralization with limited delegation.
Consolidation
The consolidation stage is characterized by slower growth, departmentalization, formalized systems and moderate centralization.
Diversification
The diversification stage occurs when older, larger organizations experience rapid growth, bureaucracy and decentralization.
As an organization grows or passes from one stage of development to another, carefully planned and well-conceived changes in practices and strategies may be necessary to maximize effectiveness. There are no guarantees that an organization will make it from one stage to the next. In fact, a key opportunity for leadership is to recognize indicators that suggest an organization is in a risky or unhealthy stage and to make appropriate structural adjustments.
The art of organizational design is assessing the environment's essential aspects and their meaning for the organization's future. Translating those characteristics into the right structure is critical to increasing efficiency and controlling costs. When selecting the best structure for the organization, company leaders should examine and evaluate current key structural dimensions and contextual factors. See How do I determine which HR metrics to measure and report?
Structural dimensions
Leaders can develop an understanding of the organization's internal environment through measurement and analysis of its structural dimensions. Key dimensions, which are usually measured through a survey, include:
Specialization. The extent to which an organization's activities are divided into specialized roles.
Standardization. The degree to which an organization operates under standard rules or procedures.
Formalization. The extent to which instructions and procedures are documented.
Centralization. The degree to which leaders at the top of the management hierarchy have authority to make certain decisions.
Configuration. The shape of the organization's role structure, which includes:
- Chain of command. The number of vertical levels or layers on the organizational chart.
- Span of control. The number of direct reports per manager or the number of horizontal levels or layers on the organizational chart.
Contextual factors
A review of contextual factors will provide a better understanding of the external environment and the relationship between the internal and external environment. Some of the significant contextual factors to consider in this review include:
Origin and history. Was the organization privately founded? What changes have occurred in ownership or location?
Ownership and control. Is the organization private or public? Is control divided among a few individuals or many?
Size. How many employees does the organization have? What are its net assets? What is its market position?
Location. How many operating sites does the organization maintain?
Productsand services. What types of goods and services does the organization manufacture and provide?
Technology. Are the organization's work processes effectively integrated?
Interdependence. What is the degree to which the organization depends on customers, suppliers, trade unions or other related entities?
After examining the structural dimensions and contextual factors and developing an understanding of the connection between an organization's structure and strategy, organization leaders can consider alternative structures. They may use diagnostic models and tools to guide the design process.
Communications and Technology
The last few years have seen an unprecedented expansion and improvement of online communication. Software has pushed the boundaries of workplace communication beyond e-mail into collaborative social media platforms and innovative intranets. The decline in traditional communication methods and the dramatic increase in cyber communication has had a major impact on the workplace and is leading to restructuring.
As organizations continue to restructure to remain competitive, communications can drive the transition to an effective new organizational structure. Research suggests that companies can positively affect their credibility with employees through various organizational communication programs.
In establishing internal communication channels, leadership must be aware of the advantages and shortcomings of communication technologies and match them to the organization's needs, strategic goals and structure. Employers should also be cognizant of, and be prepared to deal with, the common communication challenges in various organizational structures. For example, communications technology has enabled organizations to create virtual workplaces and teams. In a virtual team, members from various geographical locations work together on a task, communicating via e-mail, instant messaging, teleconferencing, videoconferencing and web-based workspaces.
Although virtual teams have significant advantages—most notably reduced travel costs and flexibility in staffing and work schedules—they also pose challenges. Virtual teams often find coordinating team logistics and mastering new technologies difficult. Communication is also a major challenge because of the absence of visual (body language) and verbal (intonation) clues. Research suggests that organizations can overcome these challenges through effective support and training.
Global Issues
Organizational structures often need to change as companies expand around the globe. An organization's leaders should plan carefully before opening offices in another country.
Many issues arise when an employer plans to open an international branch, hire international workers and formulate a globalized strategy. Among the questions that must be answered are:
- How do human resource legal requirements and practices vary from country to country?
- Should HR officials at headquarters do the work, or should a company open HR offices in the other country?
- Should an organization hire consultants to handle local hiring and personnel services?
Unless employers have a sound HR strategy ready before leaping into another country, they could fail.
When an organization opens international offices, HR professionals and other business leaders should be able to communicate as effectively with workers across the globe as around the corner. That can be a challenge. Having a robust intranet and using videoconferencing are alternatives to face-to-face communication.
As rapid changes in technology affect global communication, employees must be aware of linguistic, cultural, religious and social differences among colleagues and business contacts. The organization should train all employees (not just managers and CEOs who travel) in cultural literacy.
Moreover, employers should be aware that language difficulties, time‐and‐distance challenges, the absence of face‐to‐face contact, and, above all, the barriers posed by cultural differences and personal communication styles make global virtual work far more complex than local structures. These practices can enhance global virtual team relationships:
- Using online chats, video- and audioconferencing in addition to one-on-one conversations and e-mail.
- Posting profiles of team members that outline their expertise and roles in the organization.
- Being sensitive to the level of engagement team members are likely to deliver if they must meet at inconvenient hours across multiple time zones.
Legal Issues
Regardless of the type of structure, employers must ensure compliance with legal requirements in the countries where their organizations operate. Some of those requirements will be quite extensive (for example, public companies must ensure compliance with the Sarbanes-Oxley Act, and most organizations must ensure compliance with the Fair Labor Standards Act and its related state laws).
When organizational structures change, or if the chain of command is weak or fails to keep up-to-date with changes in the business, a company may have compliance problems because the structure has not been evaluated with regard to these laws. Imagine, for example, a restructuring that reduces the number of direct reports for an entire layer of management, which perhaps leads to those individuals no longer being exempt.
As an organization moves internationally, laws in the host countries must also be evaluated and a plan put in place for compliance before the expansion occurs. Employers must anticipate and plan for laws affecting all aspects of the employee experience, including hiring, benefits, leaves and termination.
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10.1 Organizational Structures and Design
- What are mechanistic versus organic organizational structures?
First, an organizational structure is a system for accomplishing and connecting the activities that occur within a work organization. People rely on structures to know what work they should do, how their work supports or relies on other employees, and how these work activities fulfill the purpose of the organization itself.
Second, organizational design is the process of setting up organizational structures to address the needs of an organization and account for the complexity involved in accomplishing business objectives.
Next, organizational change refers to the constant shifts that occur within an organizational system—for example, as people enter or leave the organization, market conditions shift, supply sources change, or adaptations are introduced in the processes for accomplishing work. Through managed change , leaders in an organization can intentionally shape how these shifts occur over time.
Finally, organizational development (OD) is the label for a field that specializes in change management. OD specialists draw on social science to guide change processes that simultaneously help a business achieve its objectives while generating well-being for employees and sustainable benefits for society. An understanding of OD practices is essential for leaders who want to maximize the potential of their organizations over a long period of time.
Together, an understanding of these concepts can help managers know how to create and direct organizations that are positioned to successfully accomplish strategic goals and objectives. 1
To understand the role of organizational structure, consider the experience of Justin, a young manager who worked for a logistics and transportation company. Their success at leading change in the United States gave their leaders the confidence that Justin could handle a challenging assignment: organize a new supply chain and distribution system for a company in Northern Europe. Almost overnight, Justin was responsible for hiring competent people, forming them into a coherent organization, training them, and establishing the needed infrastructure for sustained success in this new market.
If you were given this assignment, what would you do? How would you organize your employees? How would you help them understand the challenge of setting up a new organization and system? These are the kinds of questions that require an understanding of organizational structure, organizational design, organizational change, and organizational development.
One of the first issues Justin will need to address deals with how they will organize the system. “The decisions about the structure of an organization are all related to the concept of organizational design. There are two fundamental forms of structure to remember when designing an organization.
To address these questions, we need to be familiar with two fundamental ways of building an organization.
The formal organization is an officially defined set of relationships, responsibilities, and connections that exist across an organization. The traditional organizational chart, as illustrated in Exhibit 10.2 , is perhaps the most common way of depicting the formal organization. The typical organization has a hierarchical form with clearly defined roles and responsibilities.
When Justin sets up the formal organization, they will need to design the administrative responsibilities and communication structures that should function within an organizational system. The formal systems describe how flow of information and resources should occur within an organization. To establish the formal organization, they will identify the essential functions that need to be part of the system, and they will hire people to fill these functions. They will then need to help employees learn their functions and how these functions should relate to one another.
The informal organization is sometimes referred to as the invisible network of interpersonal relationships that shape how people actually connect with one another to carry out their activities. The informal organization is emergent, meaning that it is formed through the common conversations and relationships that often naturally occur as people interact with one another in their day-to-day relationships. It is usually complex, impossible to control, and has the potential to significantly influence an organization’s success.
As depicted in Exhibit 10.3 , the informal organization can also be mapped, but it is usually very different than the formal organization. The chart you see in this example is called a network map, because it depicts the relationships that exist between different members of a system. Some members are more central than others, and the strength of relationships may vary between any two pairs or groups of individuals. These relationships are constantly in flux, as people interact with new individuals, current relationships evolve, and the organization itself changes over time. 2
The informal organization in Justin’s design will form as people begin interacting with one another to accomplish their work. As this occurs, people will begin connecting with one another as they make sense of their new roles and relationships. Usually, the informal organization closely mirrors the formal organization, but often it is different. People quickly learn who the key influencers are within the system, and they will begin to rely on these individuals to accomplish the work of the organization. The informal organization can either help or hinder an organization’s overall success.
In sum, the formal organization explains how an organization should function, while the informal organization is how the organizational actually functions. Formal organization will come as Justin hires and assigns people to different roles. They can influence the shape of the informal organization by giving people opportunities to build relationships as they work together. Both types of structures shape the patterns of influence, administration, and leadership that may occur through an organizational system.
As we continue our discussion of structure and design, we will next examine different ways of understanding formal structure.
Types of Formal Organizational Structures
Now, Justin will need to choose and implement an administrative system for delegating duties, establishing oversight, and reporting on performance. They will do this by designing a formal structure that defines the responsibilities and accountability that correspond to specific duties throughout an organizational system. In this section, we’ll discuss the factors that any manager should consider when designing an organizational structure.
Bureaucracy
One of the most common frameworks for thinking about these issues is called the bureaucratic model . It was developed by Max Weber, a 19th-century sociologist. Weber’s central assumption was that organizations will find efficiencies when they divide the duties of labor, allow people to specialize, and create structure for coordinating their differentiated efforts, usually within a hierarchy of responsibility. He proposed five elements of bureaucracy that serve as a foundation for determining an appropriate structure: specialization, command-and-control, span of control, centralization, and formalization. 3
Specialization
The degree to which people are organized into subunits according to their expertise is referred to as specialization —for example, human resources, finance, marketing, or manufacturing. It may also include specialization within those functions. For instance, people who work in a manufacturing facility may be well-versed in every part of a manufacturing process, or they may be organized into specialty units that focus on different parts of the manufacturing process, such as procurement, material preparation, assembly, quality control, and the like.
Command-and-Control
The next element to consider is the reporting and oversight structure of the organization. Command-and-control refers to the way in which people report to one another or connect to coordinate their efforts in accomplishing the work of the organization.
Span of Control
Another question addresses the scope of the work that any one person in the organization will be accountable for, referred to as span of control . For instance, top-level leaders are usually responsible for all of the work of their subordinates, mid-level leaders are responsible for a narrower set of responsibilities, and ground-level employees usually perform very specific tasks. Each manager in a hierarchy works within the span of control of another manager at a level of the organization.
Centralization
The next element to consider is how to manage the flows of resources and information in an organization, or its centralization . A highly centralized organization concentrates resources in only one or very few locations, or only a few individuals are authorized to make decisions about the use of resources. In contrast, a diffuse organization distributes resources more broadly throughout an organizational system along with the authority to make decisions about how to use those resources.
Formalization
The last element of bureaucracy, formalization , refers to the degree of definition in the roles that exist throughout an organization. A highly formalized system (e.g., the military) has a very defined organization, a tightly structured system, in which all of the jobs, responsibilities, and accountability structures are very clearly understood. In contrast, a loosely structured system (e.g., a small, volunteer nonprofit) relies heavily on the emergent relationships of informal organization.
Mechanistic and Organic Structures
Using the principles of bureaucracy outlined above, managers like Justin have experimented with many different structures as way to shape the formal organization and potentially to capture some of the advantages of the informal organization. Generally, the application of these principles leads to some combination of the two kinds of structures that can be seen as anchors on a continuum (see Table 10.1 ).
Elements of Organizational Structure and Their Relationship to Mechanistic and Organic Forms | ||
---|---|---|
Mechanistic | Organic | |
Highly formalized | Low | |
High/Narrow | Low/Broad | |
Centralized | Decentralized | |
Functional | Divisional |
On one end of the continuum is mechanistic bureaucratic structure . This is a strongly hierarchical form of organizing that is designed to generate a high degree of standardization and control. Mechanistic organizations are often characterized by a highly vertical organizational structure , or a “tall” structure, due to the presence of many levels of management. A mechanistic structure tends to dictate roles and procedure through strong routines and standard operating practices.
In contrast, an organic bureaucratic structure relies on the ability of people to self-organize and make decisions without much direction such that they can adapt quickly to changing circumstances. In an organic organization, it is common to see a horizontal organizational structure , in which many individuals across the whole system are empowered to make organizational decision. An organization with a horizontal structure is also known as a flat organization because it often features only a few levels of organizational hierarchy.
The principles of bureaucracy outlined earlier can be applied in different ways, depending on the context of the organization and the managers’ objectives, to create structures that have features of either mechanistic or organic structures.
For example, the degree of specialization required in an organization depends both on the complexity of the activities the organization needs to account for and on the scale of the organization. A more organic organization may encourage employees to be both specialists and generalists so that they are more aware of opportunities for innovation within a system. A mechanistic organization may emphasize a strong degree of specialization so that essential procedures or practices are carried out with consistency and predictable precision. Thus, an organization’s overall objectives drive how specialization should be viewed. For example, an organization that produces innovation needs to be more organic, while an organization that seeks reliability needs to be more mechanistic.
Similarly, the need for a strong environment of command-and-control varies by the circumstances of each organization. An organization that has a strong command-and-control system usually requires a vertical, tall organizational administrative structure. Organizations that exist in loosely defined or ambiguous environments need to distribute decision-making authority to employees, and thus will often feature a flat organizational structure.
The span of control assigned to any specific manager is commonly used to encourage either mechanistic or organic bureaucracy. Any manager’s ability to attend to responsibilities has limits; indeed, the amount of work anyone can accomplish is finite. A manager in an organic structure usually has a broad span of control, forcing her to rely more on subordinates to make decisions. A manager in a mechanistic structure usually has a narrow span of control so that they can provide more oversight. Thus, increasing span of control for a manager tends to flatten the hierarchy while narrowing span of control tends to reinforce the hierarchy.
Centralization addresses assumptions about how an organization can best achieve efficiencies in its operations. In a mechanistic structure, it is assumed that efficiencies will occur in the system if the resources and decisions flow through in a centralized way. In an organic system, it is assumed that greater efficiencies will be seen by distributing those resources and having the resources sorted by the users of the resources. Either perspective may work, depending on the circumstances.
Finally, managers also have discretion in how tightly they choose to define the formal roles and responsibilities of individuals within an organization. Managers who want to encourage organic bureaucracy will resist the idea of writing out and tightly defining roles and responsibilities. They will encourage and empower employees to self-organize and define for themselves the roles they wish to fill. In contrast, managers who wish to encourage more mechanistic bureaucracy will use tools such as standard operating procedures (SOPs) or written policies to set expectations and exercise clear controls around those expectations for employees.
When a bureaucratic structure works well, an organization achieves an appropriate balance across all of these considerations. Employees specialize in and become highly advanced in their ability to perform specific functions while also attending to broader organizational needs. They receive sufficient guidance from managers to stay aligned with overall organizational goals. The span of control given to any one manager encourages them to provide appropriate oversight while also relying on employees to do their part. The resources and decision-making necessary to accomplish the goals of the organization are efficiently managed. There is an appropriate balance between compliance with formal policy and innovative action.
Business Structures
Aside from the considerations outlined above, organizations will often set structures according to the functional needs of the organization. A functional need refers to a feature of the organization or its environment that is necessary for organizational success. A business structure is designed to address these organizational needs. There are two common examples of functional structures illustrated here.
Product structures exist where the business organizes its employees according to product lines or lines of business. For example, employees in a car company might be organized according to the model of the vehicle that they help to support or produce. Employees in a consulting firm might be organized around a particular kind of practice that they work in or support. Where a functional structure exists, employees become highly attuned to their own line of business or their own product.
Geographic structures exist where organizations are set up to deliver a range of products within a geographic area or region. Here, the business is set up based on a territory or region. Managers of a particular unit oversee all of the operations of the business for that geographical area.
In either functional structure, the manager will oversee all the activities that correspond to that function: marketing, manufacturing, delivery, client support systems, and so forth. In some ways, a functional structure is like a smaller version of the larger organization—a smaller version of the bureaucracy that exists within the larger organization.
One common weakness of a bureaucratic structure is that people can become so focused on their own part of the organization that they fail to understand or connect with broader organizational activities. In the extreme, bureaucracy separates and alienates workers from one another. These problems can occur when different parts of an organization fail to communicate effectively with one another.
Some organizations set up a matrix structure to minimize the potential for these problems. A matrix structure describes an organization that has multiple reporting lines of authority. For example, an employee who specializes in a particular product might have both the functional reporting line and a geographic reporting line. This employee has accountability in both directions. The functional responsibility has to do with her specialty as it correlates with the strategy of the company as a whole. However, her geographic accountability is to the manager who is responsible for the region or part of the organization in which she is currently working. The challenge is that an employee may be accountable to two or more managers, and this can create conflict if those managers are not aligned. The potential benefit, however, is that employees may be more inclined to pay attention to the needs of multiple parts of the business simultaneously.
Concept Check
- What is an organizational structure?
- What are different types of organizational structures?
- What is organizational design?
- What concepts should guide decisions about how to design structures?
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Organizational tips for academic essays
Published on November 10, 2014 by Shane Bryson . Revised on August 9, 2024.
This article presents some tips to help you figure out how best to structure your essay .
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Table of contents
Four tips for organization, other interesting articles.
In general, the purpose of the essay should dictate the organization of the essay—ask yourself what claims you need to establish in order for your reader to believe that your main claim is right. The claims that help establish your main claim are called “supporting claims.”
In many cases, each supporting claim will get a paragraph. When you’re outlining, try to phrase these supporting claims as rough topic sentences . In some cases, these supporting claims will also require some argument in order for your reader to believe them. If this happens, consider adding an additional argument or two in separate paragraphs to help establish your supporting claim.
Once you get a sense of the supporting claims that will form the basis of your paragraphs , consider the following tips:
Arguments usually proceed from the simplest claim to the most complex
In other words, the body of a good argumentative essay often begins with the more simple and widely accepted claims, and then moves to the more complex and contentious ones. There are a couple of reasons for this:
- Often, a reader must understand the more basic claims before she can understand the more complex claims.
- If you begin with a point your readers agree on without much trouble, you can build on this agreement to convince them of something more contentious.
Give the background early
If you have so much background information that it cannot be given precisely enough in the introduction , this information will usually lead the body of the essay , or the section that it is relevant to.
Define terms as needed
Technical language should be defined as or before it’s used—never wait very long to define a term you’ve used:
- If you can, define your terms as you use them.
- If you have so much technical language that defining terms as you use them is too interruptive, take a paragraph or so to define the terms and show how they relate to each other.
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A hierarchical organizational structure is a traditional pyramid-shaped arrangement of authority and responsibility within an organization. In this structure, employees are organized into layers or levels of hierarchy, with each level having a designated level of authority and reporting relationships. Key features of a hierarchical ...
Organizational Structures Essay. is known as the organization structure formally defined by Wikipedia (2006) as, "the way in which the interrelated groups of an organization are constructed. From a managerial point of view the main concerns are ensuring effective communication and coordination." In respects to project management there are three ...
Essay on Organizational Structures. Published: 2021/11/17. Number of words: 1748. Introduction. The existence of various internal and external factors shape organizations in the corporate world. These factors determine the strengths and weaknesses of an organization. The organization's success is also based on strategies used to develop and ...
Organizational structure plays a crucial role in shaping the functioning and effectiveness of any entity, be it a business, educational institution, or government agency. It encompasses the arrangement of tasks, responsibilities, and authority within an organization. This essay aims to delve into the concept of...
Structure provides the framework for organizational activities and the management. Organization structure can be described as a framework that delegates responsibilities, working roles and relationship, and channel of communication. Organization structure is a framework which discusses the needs of a project to be successful in organizing.
The basic structure of an essay always consists of an introduction, a body, and a conclusion. But for many students, the most difficult part of structuring an essay is deciding how to organize information within the body. This article provides useful templates and tips to help you outline your essay, make decisions about your structure, and ...
11 essay samples found. Organizational structure refers to the way a company or organization arranges its personnel and roles to meet its needs and goals. Essays on organizational structure could delve into different types of structures such as hierarchical, flat, or matrix structures, and how each impacts communication, productivity, and ...
Two main types of vertical structure exist, functional and divisional. The functional structure divides work and employees by specialization. It is a hierarchical, usually vertically integrated ...
To understand the role of organizational structure, consider the experience of Justin, a young manager who worked for a logistics and transportation company. ... Weber, Max, From Max Weber: Essays in Sociology, Oxford University Press, 1958. This page titled 10.2: Organizational Structures and Design is shared under a CC BY 4.0 license and was ...
This structure emphasizes collaboration, flexibility, and shared leadership, breaking down departmental silos and encouraging cross-functional teamwork. Teams are typically granted the autonomy to manage their own processes, promoting a cooperative environment. Advantages of a team-based organizational structure:
The formal organization is an officially defined set of relationships, responsibilities, and connections that exist across an organization. The traditional organizational chart, as illustrated in Exhibit 10.2, is perhaps the most common way of depicting the formal organization. The typical organization has a hierarchical form with clearly ...
Four tips for Organization. In general, the purpose of the essay should dictate the organization of the essay—ask yourself what claims you need to establish in order for your reader to believe that your main claim is right. The claims that help establish your main claim are called "supporting claims.". In many cases, each supporting claim ...