Org structures are defined by using different criteria. Things to think about are what is the functional grouping of work processes and are there natural groupings of teams, work groups or units. This is a decision from senior management on how they would like work activities to be organized and carried out. This also identifies natural reporting relationships and chain of command. Reporting relationships can be both vertical as well as horizontal. The different structures are:MatrixA matrix structure provides for reporting levels both horizontally as well as vertically. Employees may be part of a functional
Organizational Structure(Sarah Olivarez-Cruz)
SESSION PLAN Communication Organization Structure Speaker: Sarah O. Cruz
COMMUNICATION ORGANIZATION STRUCTURE OS can be defined as the way or method through use of a hierarchy that a group, business, organization, people or objects collaborate to achieve success on one common goal. An organizational structure defines how work tasks are formally divided, grouped and coordinated.
BASIC ELEMENTS OF OS 1. Work specialization 2. Departmentalization 3. Chain of command 4. Span of control 5. Centralization & decentralization 6. Formalization
TYPES OF ORGANIZATIONAL STRUCTURES Line Structure Line and Staff Structure Project-based Structure Matrix Structure
LINE STRUCTURE Authority originates at the top and moves downward Common among small companies Line Functions Functions that contribute directly to company profits Production managers, sales reps, and marketing managers
LINE AND STAFF STRUCTURE Mid-sized and large companies Other employees hired to help line managers perform activities they cannot Staff Functions Advise and support line functions Staff departments include: legal, human resources, and public relations Help line departments do their jobs Authority is limited to making recommendations to line managers
PROJECT-BASED STRUCTURE Brings together people with different skills in order to meet a particular objective Senior managers need not approve decisions by lower-level managers Teams have the authority to make final decisions Employee preferred due to its focus on completing a project rather than a task
MATRIX STRUCTURE Allows employees from different departments to come together temporarily to work on special project teams Provides flexibility to respond quickly to a customer need by creating a team of people who devote all of their time to a project then return to their departments or join a new project team
MINTZBERGS ORGANIZATIONAL TYPES The entrepreneurial organization. The machine organization (bureaucracy). The professional organization. The divisional (diversified) organization. The innovative organization ("adhocracy").
THE ENTREPRENEURIAL ORGANIZATION This type of organization has a simple, flat structure. It consists of one large unit with one or a few top managers. The organization is relatively unstructured and informal compared with other types of organization, and the lack of standardized systems allows the organization to be flexible.
THE MACHINE ORGANIZATION (BUREAUCRACY) The machine organization is defined by its standardization. Work is very formalized, there are many routines and procedures, decision-making is centralized, and tasks are grouped by functional departments. Jobs will be clearly defined; there will be a formal planning process with budgets and audits; and procedures will regularly be analyzed for efficiency.
THE PROFESSIONAL ORGANIZATION According to Mintzberg, the professional organization is also very bureaucratic. The key difference is that professional organizations rely on highly trained professionals who demand control of their own work. So, while theres a high degree of specialization, decision making is decentralized. This structure is typical when the organization contains a large number of knowledge workers, and its why its common in places like schools and universities, and in accounting and law firms.
THE DIVISIONAL (DIVERSIFIED) ORGANIZATION If an organization has many different product lines and business units, youll typically see a divisional structure in place. A central headquarters supports a number of autonomous divisions that make their own decisions, and have their own unique structures. Youll often find this type of structure in large and mature organizations that have a variety of brands, produce a wide range of products, or operate in different geographical regions. Any of these can form the basis for an autonomous division.
THE INNOVATIVE ORGANIZATION ("ADHOCRACY") In new industries, companies need to innovate and function on an "ad hoc" basis to survive. The clear advantage of adhocracies is that they maintain a central pool of talent from which people can be drawn at any time to solve problems and work in a highly flexible way. Workers typically move from team to team as projects are completed, and as new projects develop. Because of this, adhocracies can respond quickly to change, by bringing together skilled experts able to meet new challenges.
WHAT MAKES AN ORGANIZATION EFFECTIVE? Knowing Your Customers and Responding to Their Needs To succeed in the business world, companies must change to keep up with customer needs
KEY POINT 1 Theres no one "right" organizational structure, so its important to understand how structure relates to the variety of attributes in a company. Mintzberg gives us a useful description of common structures that are appropriate in different circumstances. None of these is necessarily ideal, and theyre very simplified versions of what exists in real life. In fact, its common for a company to have a combination of elements of each structural type.
KEY POINT 2 When considering your organizational structure, analyze the environment, assess your internal needs and capacities, and then make sure your structure is a good fit with your strategy and environment