Organization Structure And Design

Organization Structure And Design

Organizational structure is a stable representation of the organization. Organization structure is the corporate chart structures which provides the relationship between one job function to another by rows of members, managers and leaders, and different command chains. on the other hand the organization design is a dynamic representation of the organization. Which uses building processes and services to ensure that the business continues to operate at its best. The main point of the organization design criteria are the continuous process. The economy, the market forces, the governing structure, the buyer's tastes, and the external environments of the business.

Organization structure

Organization structure refers to the individual departments in a company depending on the size and nature of the organization. The major form of organization's structure are,

Tall Versus Flat Organization Structure

In most organizations, there is a hierarchy level, even though there is only one individual as head of the organization. This can be described as a flat surface standard structure with a very few layers interspersed between the top and bottom. On the other hand The tall structure has several layers between top and bottom.

Product Departmentalization Organization Structure

Departmentalization means the mode of operation of a business divided between different workers. The role of departmentalization is a division of activities in a company that relates to specific business functions. In a product departmentalization organization, the focus of the business units is on a particular product. For example, in a company the manager can be assigned to a particular department product, to supervise all aspects of one particular offering provided by the company.

Matrix Departmentalization Organization Structure

With large-complexities organization, matrix departmentalization structure is very common. Matrix departmentalization uses cross functional groups to operate on both products and functions. For example, automobile manufacturers would combine their design units with the commerce division in order to create specialized design for that model, thereby combining the knowledge and skills of each group.

How To Design An Organization

In an organization design the Galbraith Star model is a very useful tool. It uses asking and answering questions in five cores, which are,

Strategy

Organization's design strategies are the organization objectives, mission, vision and values. What are your competitive advantages, and value you provide to your clients? which products or services to be offered, which markets you serve, and the unique selling proposition.

Structure

How is distributed power structured centralized or decentralized? Do you want to organize tasks, divisions, or products into a matrix structure? For most businesses, the structure goes hand in hand with design.

Processes

How do you plan your budget for different tasks? How do document and procedural regulations ensure that the product or service is delivered into the hands of customers? What are the details of the completed metric process? and how are they valued?

Rewards

What reward systems are needed to motivate staff and keep them aligned to the goals of the organization? What you offer, promotions, bonuses, stoke options, commissions or pay based?

People

This section focuses on the company's recruitment, promotion, training and development plans to produce the talent they need to implement the strategy.

Organic Versus Mechanistic Organization

Now we have discovered some elements of the organizational structure and the types of structures that organization can choose to use when arranging its projects and employees. Some of these structures are very strict and hierarchical, like the official model, and some structures, as endless, fairly loose and free. They have all their advantages and disadvantages. When administrators connect the elements of organic structures together, the performance has some characteristics that can be better understood through the lens of organic engineering.

Organic organization

Organic organizations have the lowest level of formality, specialization and standardization. The organic model is mostly flat, and uses cross-range, hierarchical, and cross-functional systems with a comprehensive network of information that has lateral and upward concepts in addition to sharing below. They allow administrators to develop more creative ideas because the business is not so rigidly structured. Organizational structures are also used in a dynamic, unstable environment where things need to be quickly adapted to change, as the organic structure gives the organization the flexibility to act on the steps of environmental change and among many different elements. an organization that uses an organic structure is a consulting firm. A firm responds to buyer's questions while they arise, and questions change with the business environment. Firms want to respond to changes in consultations quickly, so that they can also address the needs of their customers.

Mechanistic Organization 

Mechanistic Organizations have centralized decision making and direct standardized formal systems. They work in simple, stable environments. Administrators integrate the clear departments through formal channels and formal meetings. Relationships are often hierarchical in mechanistic organization and focus on several layers of relationships.