It is essential that every company has a Organizational structure, that defines the characteristics of how work is organized in it and establishes the authority, hierarchy, chain of command, organizational charts and departmentalization, etc.
In addition, it is important that the organizational structure is in accordance with all the activities or tasks that they intend to carry out, a correct structure allows you to establish the departments and their functions and in order to produce following an order and adequate control to achieve the goals and objectives.
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Based on this importance, it is clear that it is something that cannot be overlooked, therefore This content seeks to strengthen knowledge regarding the subject, providing concepts that will be of great help.
In this article you will find:
What is the organizational structure?
It is the division of each and every one of the activities of the company, which are grouped to form areas or departments, establishing authorities that, through organization and coordination, pursue certain objectives.
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The intentional arrangement of roles is considered, where each person occupies a place and assumes a role in the expectation that she will do it with the highest possible performance. That is why the main purpose of an organizational structure is to establish a system of roles that must be develop the members of the company to work together optimally and achieve the goals set in the planning.
In even simpler terms organizing is:
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- Identify and classify all the activities carried out in the company.
- Group these activities.
- To appoint to each resulting group a director with authority to make decisions and supervise the development of activities.
- Coordinate vertically and horizontally the resulting structure.
Characteristics of the formal organizational structure
Specialization:
It establishes the way to divide the work according to the degree of difficulty of the tasks, of the tasks more simple to more complicated or specific and how they are grouped into different units organizational.
Coordination and command areas:
It presents explicit groups under the coordination and command of a boss.
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Formalization:
It has an implicit degree of standardization of activities under the existence of procedures, norms and hierarchies.
Types of organizational structure
The Organizational structure refers to the way in which the activities carried out in the organization are divided, grouped and coordinated, taking into account the relationships between managers and employees, managers and managers and also between employees and employees.
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According to this, the departments of a company are structured in the following basic ways: by function, by product / market or in the form of a matrix.
Functional Organization
The functional organization It is the organization structured by functions, it brings together in a department or area, all those employees who are dedicated to a certain activity or to several related ones (called functions). It is probably the most logical and basic form of departmentalization, in a company.
Used primarily by small businesses, which offer a limited line of products. In this type of organization efficiency is used specialized resources, supervision is facilitated, because each manager must be an expert in a variety limited skills and also provides the movement of specialized skills, to the points where they are most needed, thus being able to efficiently.
Organization by product / market
This type of organization is often called division organization and brings together in a unit or work area all those employees who participate in the production and marketing of a product or related group of products, to all employees located in a certain geographic area or all those employees who deal with certain types of client.
It is used by most large companies with multiple product lines.
At some point in the growth or development of a company, the size and diversity of products make structuring by functions is not feasible, when departmentalization becomes too complex to coordinate its functionality, the high management, will create somewhat autonomous divisions, where managers and employees design, build and market their own products.
Matrix organization
Sometimes called a multiple command system, it is a hybrid that combines the benefits of the previous two, while trying to avoid their drawbacks.
A Matrix organization It has two types of structure, employees have two bosses, that is, they work under two chains of command.
One chain of command is that of functions or divisions and the second is a horizontal arrangement that combines employees from various departments functional, to form a project or business team, headed by a project manager, who must be a specialist in the area assigned.
As organizations have grown and expanded internationally, they have used one type of matrix for their international operations.
Matrix structures are complex, but they have certain advantages, such as being efficient in gathering the specialized skills required to solve a complex problem.
Whatever the case, for the process to be successful it is necessary to define the obligations and rights of each of the members of the organization.
