Learn how to develop a framework that gives members clear guidelines on building organizational structure, and keeping the organization functional. Why should you develop a structure for your organization? When should you develop a structure for your organization? What is organizational structure?
Organizational Structure Organizational Structure An organizational structure defines the scope of acceptable behavior within an organization, its lines of authority and accountability, and to some extent the organization's relationship with its external environment.
More specifically, it shows the pattern or arrangement of jobs and groups of jobs within an organization and yet it is more than an organizational chart.
The organizational structure pertains to both reporting and operational relationships, provided they have some degree of permanence. The individual elements of an organizational structure typically include a variety of components that one may usefully see as building blocks: Ideally, organizational structures should be shaped and implemented for the primary purpose of facilitating the achievement of organizational goals in an efficient manner.
Indeed, having a suitable organizational structure in place—one that recognizes and addresses the various human and business realities of the company in question—is a prerequisite for long-term success. Nonetheless, all too often organizational structures do not contribute positively to a company's performance.
This is usually because the structure was allowed to grow somewhat organically and was not redesigned as the company grew so as to more efficiently guide the behavior of individuals and groups so that they would be maximally productive, efficient, flexible, and motivated.
Small business owners seeking to establish a beneficial organizational structure need to recognize that the process may be complex since this task is often left until a start-up organization has already been established. By then, a de facto structure exists and changing it will need to be done carefully so as not to alienating or frustrating key players.
Even large corporations that attempt to restructure or reorganize and implement a new or changed organizational structure may discover that simply announcing a new structure does not immediately translate into actual change.
Hierarchy is an important element of any organizational structure. The more levels of management are present in an organization, the more hierarchical it is. During the late s and early s it became fashionable to reduce the hierarchy in large corporations and the trend was dubbed flattening the corporate structure.
But, as Eileen Shapiro, a management consultant and author told Patrick J. Kiger in his article "Hidden Hierarchies," things aren't always what they seem. But when you really start looking at how things actually work, you find that there is in fact a hierarchy—one that is not explicit. It also prevents the misunderstandings that can arise when the explicit organizational structure does not match the actual, functional structure.
Some firms choose highly centralized, rigidly maintained structures, while others—perhaps even in the same industrial sector—develop decentralized, loose arrangements. Both of these organizational types can survive and even thrive.
There is no one best way to design an organization or type of structure. Each depends upon the company involved, its needs and goals, and even the personalities of the individuals involved in the case of small businesses.
The type of business in which an organization is involved is also a factor in designing an effective organizational structure. Organizations operate in different environments with different products, strategies, constraints, and opportunities, each of which may influence the design of an ideal organizational structure.
But despite the wide variety of organizational structures that can be found in the business world, the successful ones tend to share certain characteristics. Indeed, business experts cite a number of characteristics that separate effective organizational structures from ineffective designs.
Recognition of these factors is especially important for entrepreneurs and established small business owners, since these individuals play such a pivotal role in determining the final layout of their enterprises.
As small business owners weigh their various options in this realm, they should make sure that the following factors are taken into consideration: Relative strengths and weaknesses of various organizational forms.Organizational Structure Organizational structure plays an important role in day-to-day functions of an organization.
The delegation of authority, work specialization, and employee reporting framework are some of the elements that help determine what the organizational structure should be. The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization.
Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.. A structure depends on the organization's objectives and strategy.
The Authority’s mandate is to maintain, operate, improve and regulate all scheduled sea ports situated along Kenya’s coastline Public Announcements Customer Service Charter. Organizational authority refers to the hierarchy in a company from top level management to entry level employees.
Members of the organizational authority include line, staff and functional authority. Levels of management that make up organizational authority include operation level, middle level and.
and authority and to create accountability for results. It is an activity of the organizing function. scalar principle (chain of command) a clear definition of authority in the organization. Organizational Structure Organizational structure plays an important role in day-to-day functions of an organization. The delegation of authority, work specialization, and employee reporting framework are some of the elements that help determine what the organizational structure should be. Start studying Chapter 5 - Designing Organizational Structure: Authority and Control. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
Organizational authority refers to the hierarchy in a company from top level management to entry level employees. Members of the organizational authority include line, staff and functional authority.
Levels of management that make up organizational authority include operation level, middle level and. and authority and to create accountability for results. It is an activity of the organizing function.
scalar principle (chain of command) a clear definition of authority in the organization.