Organizational structure

From Free net encyclopedia

Organizational structure is the way in which the interrelated groups of an organization are constructed. The main concerns are effective communication and coordination.

Contents

Pre-bureaucratic

Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is most common in smaller organizations and is best used to solve simple tasks. They have a very flat hierarchy and most communication is done by one on one conversations.

They are usually based on traditional domination or charismatic domination in the sense of Max Weber's tripartite classification of authority.

Bureaucratic

Bureaucratic structures have a certain degree of standardization. They are better suited for more complex or larger scale tasks.

Functional Structure

The organization is structured according to functional areas instead of product lines. This structure is best used when creating specific, uniform products. They are economically efficient, but lack flexibility. Communication between functional areas can be difficult.

Divisional Structure

Divisional structure is formed when an organisation is split up into a number of self-contained business units, each of which operates as a profit centre. such a division may accur on the basis of product or market or a combination of the two with each unit tending to operate along functional or product lines, but with certain key function (e.g. finance, personnel, corporate planning) provided centrally, usually at company headquarters.

Post-Bureaucratic

Matrix organization

Template:Seealso This organizational type assigns each worker to two bosses in two different hierarchies. One hierarchy is "functional" and assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field. The other direction is "executive" and tries to get projects completed using the experts. Projects might be organized by regions, customer types, or some other schema.


Multi-Unit Organization

Adhocracy

Matrix organization teams are formed and team members report to two or more managers. Matrix structures utilize functional and divisional chains of command simultaneously in the same part of the organization, commonly for one-of-a-kind projects. It is used to develop a new product, to ensure the continuing success of a product to which several departments directly contribute, and to solve a difficult problem

See also