ORGANIZATIONAL STRUCTURE
Organizational structure is the framework on how employees work based on their duties & positions. Organizational structure, which is predominantly a hierarchy of the employees and the functions, is essential in order to streamline operations and processes within an organization. This is a critical part of a company as it defines the flow of work, accountability & authority to take decisions
Importance of Organizational Structure
There are many functions in a company, who have to work
together to achieve the goal of the business. Every function needs to have
different people with varied skill sets to grow the business. To ensure that
there is flow of information & work, employees have defined roles &
responsibilities, companies have a framework. This is known as organizational
structure. By doing this, the hierarchy, roles, positions, duties, decision
making abilities of all employees are well defined.
An organizational structure usually starts with the CEO at
the apex of the company. Below that there are vertical or functional leads for
different departments like marketing, finance, HR, operations, IT, admin etc.
All these report to the CEO. Below each lead, there are other employees who
have expertise in that particular field. Thus, an organizational structure is a
pyramid like framework, connecting all employees on the basis of their job
profile. Organizational structure departmentalization can be created based on
functions, geography, product, customer & process.
The above
image shows a typical organizational structure.
Features
of Organizational Structure
Some of the
main elements of having an organizational structure are:
1. Clearly
defines roles, responsibilities, position & decision-making power of an
employee.
2. Defines
the flow of communication & work.
3. Divides
work on the basis of functions & skills sets.
4.
Establishes a line of authority & flow of delegation.
5. Defines a
clear path of interaction between different departments.
Organizational
structure is also critical to delegate work & monitor teams as each job
profiles work is defined.
Types of Organizational Structure
The popular organizational structures include:
Functional Structure: In this case, the organization is divided into segments based on the functions performed by the employees. This helps to increase efficiency in each function. It is generally used in large organizations
Divisional
Structure: In this case, the organization is divided into divisions which
could be based on the product, Markets or Geographic area. Each division has
its own set of functions like finance, marketing etc., like small micro organizations
within one large organization.
Pre-Bureaucratic: Found in startups, No standards with a
centralized structure and usually one decision maker.
Bureaucratic: Standardized structures and suitable for
large organizations.
Reference:
https://cnx.org/contents/d6db603c-cd31-4ca4-be19-d29734673b90:80d35af7-b873-4c8d-a71a-cb30c7c67ce2
the main motive of any such structure is to help the company work towards its desires. It brings participants of the business enterprise collectively and demarcates features between them. Secondly, the shape additionally helps in making sure clean and green functioning. In different phrases, it reduces time, cash and efforts.Thank you for sharing.
ReplyDeleteEverything should have structure to be a complete figure. similarly, organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization and it determines how information flows between levels within the company and gives a better picture about the organization to its stake holders.
ReplyDeleteHi kasun. Nice article. In addition, Organizational structure provides direction to all employees by laying out the official reporting relationships that manage the workflow of the company. A formal outline of a company's structure makes it easier to add new positions in the company, as well, providing a flexible and ready means for growing.
ReplyDeleteAn organizational structure is a system that specifies how particular operations should be directed to meet an organization's objectives. It enables groups to collaborate on activities within their individual functions. These actions govern how information moves across levels within the company and involve rules, roles, and duties.
ReplyDeleteThis article is discussed and classify organizational structures. Organizational structures can be complex, with multiple tiers of management separating entry-level employees from senior management. Additionally, they can be flat, with few levels of management between employees and management. A structure's primary function is to define the organization's hierarchy. This way, everyone is aware of their reporting responsibilities. Given the critical nature of organizational structure in numerous facets of business, managers should exercise caution when selecting one. This article discusses the various organizational forms.
ReplyDeleteAn organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company.Structure will give employees more clarity, help manage expectations, enable better decision-making and provide consistency. Organizational charts also assign responsibility, organize workflow and make sure important tasks are completed on time.
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