Organizational Structure & Framework

Organizational Structure

• It is the framework that organizes a group, ensuring its operation.
• It outlines how members are accepted, leadership is chosen, and decisions are made.

Developing a Structure

• Provides members with clear guidelines.
• Maintains order and resolves disagreements.
• Unites members, giving meaning and identity.
• Is inevitable for any organization.
• Should be addressed early in an organization's development, aligning with its growth.

Elements of Structure

• Governance: A person or group makes decisions.
• Operating rules: Can be explicit or implicit.
• Distribution of work: Division of labor can be formal or informal.
• Key tasks include envisioning change, transforming the community, planning for integration, and supporting change efforts.

Common Roles

• Initial steering committee: Starts things, creates plans, generates by-laws, and may dissolve. Can evolve into a coordinating council.
• Coordinating council: Modifies objectives and strategies based on input (also known as a coordinating committee, executive committee, or executive council).
• Executive Director/Project Coordinator/Program Director/President: This person may coordinate, manage, inspire, supervise, and support the work.
• Task forces: Integrate community work ideas around broad objectives.

Problems with Misaligned Structure

• Rapid reorganization can cause structural gaps in roles and information flows.
• Capability and agility issues arise when lower-level employees or higher-level executives take on inappropriate duties.
• Disorganization can affect cost structure and service delivery.
• Reduced workforce engagement can lower retention, customer loyalty, and performance.

Aligning Structure with Business Strategy

• Key elements for profitable performance include leadership, organization, jobs and people.

Types of Organizational Structures

• Factors determining structure include revenue, employees, product diversity, customers, and geographical spread. Smaller companies tend to have more informal practices, while larger firms tend to act more formally.
• Common types include functional, departmental, and matrix structures.

Functional Departmentalization

• Employees in a specific function form a department such as sales, accounting, marketing, finance, research, and production.
• There's a firm hierarchy with upward reporting lines.
• It is effective for large corporations with homogeneous product lines
• Smaller organizations may utilize more creative structures so that they can adapt more quickly to marketplace changes

Advantages of Functional Structures

• Focus on specialized skills.
• Clear chain of command.
• Clear promotion opportunities.

Disadvantages of Functional Structures

• Limited communication between departments.
• "Tunnel vision" or "silo" effect prevents seeing the strategic direction.

Attempts to Solve Communication Problems

• Creating cross-departmental teams help in improving communication at organizations

Divisional Structures

• Activities are organized into geographical areas, products, markets, or service groups.
• Each division has a complete set of functional departments.
• Companies with numerous products, markets, or regions use divisions.

Advantages of Divisional Structures

• Clear accountability because each division operates separately.
• Enables swift reactions to changing market conditions.
• Unique cultures can develop within divisions that cater to the diverse wants of demographics.

Disadvantages of Divisional Structures

• Higher costs because total number of employees will likely be higher.
• Potential loss of economies of scale.
• Inter-divisional rivalries if managers lack collaboration incentives.

Matrix Structures

• These structures are used to manage new products or marketing campaigns.
• Matrix organizational structure combines specialized skills into a project grid.
• It fosters cooperation across functional silos.
• Two chains of command exist: one for the project and one for functional skills.

Advantages of Matrix Structures

• Clear objective when matrix organization is generated.
• Integration of employees with the required skills and knowledge for an objective.
• Dissolution of a matrix once its mission completes.

Disadvantages of Matrix Structures

• Increased complexity with vertical and horizontal authority lines.
• Potential conflicting directives from project and functional managers.
• Special talents needed by managers for compromise and negotiation.

Deciding the Right Structure

• Thought and analysis are needed to decide the best organizational structure, which is critical for success
• Changes can be painful, which makes getting it right at the beginning being important.

Definition of a Software House

• Provides software products, specializing in business, consumer software, or SaaS.
• Invested in developing and distributing software products.
• Committed to software development, testing, and maintenance.

Structure of a Software House

• Includes project managers who fulfill client requirements and oversee the team's work.
• Involves team work independently on projects.
• Teams include engineers, assistants, Q/C managers, designers, and programmers.

Product Life Cycle of a Software House

• Design: Technical specifications and user interface.
• Coding: Software development.
• Testing: Quality management and bug fixing.

Why the Software Industry is of Interest

• Home to the fastest growing companies.
• Houses the highest gross and net profit margins.

How Software Houses Operate

• Empower businesses by automating and streamlining workflows.
• Business analysts audit client operations to build customized software.
• Programmers add functionalities to drive workflow.
• Responsible for research and development and offer after-sales services.

Types of Software Companies

• Project oriented companies; create projects rather than hunting for them
• Product oriented companies; Take up software product idea
• IT service providers; Usually don’t develop their software project/product and outsource it to the other project oriented companies
• Software enterprises; Dedicated to some enterprises

Types of Software Provided

• Operating systems, device applications, firmware, translators, utility software
• Software companies such as Microsoft, HP, Adobe, Oracle, and SAP.
• Operating systems connect users and hardware.

Software enterprises

• Mainly dedicated to some enterprises
• Usually focus on what company wants, as usually enterprises now have their own software house/ team of developers.
• From requirement to development and business analysis they are dedicated to what that enterprise needs.

Organizational Chunks

• Leaders, founder, graphic designers, developers
• Chief Financial Officer, Board of Directors, Network Engineers
• Marketing Officers, Project Managers, Data Entry Specialist
• CEO, Database Designers, Quality Assurance Engineers, HR Manager, Chief Legal Officer

The overall process

• Includes planning, design, development, and testing.
• Important for business operators to opt for an experienced software house when developing applications.

Impact of Computers on Finance

• Transformed the financial industry enabling storage of large data amounts, intricate calculations, and management of financial transactions.
• Enables global economic capabilities and influences business as well as personal financial management.

Enhanced Communication

• Within organizations as computers enhance communication within members of an organization
• Key policy changes are communicated via email like price modifications

Spreadsheet Software

• Influences how firms and individuals organize financial data.
• Offers programs like Microsoft Excel for planning finances.

Computerization

• Makes data storage manageable and less bulky for organizations

Financial Records

• Financial records are easily accesible and aid in tracking payment records and debts.
• Helps organizations audit and analyze performance.

Transactions

• Financial transactions are conducted rapidly in finance departments by computerized software
• Includes Grant Management application and payroll software

Policies

• They are principles or rules used to determine decisions and actions
• Are implemented consistently.

Financial Practices Definition

• Financial practices are common methods or standard operating procedures for accounting, financial reporting, budgeting, and related activities.
• Supports business policies and establishes accountability.

Organizational Culture Impact

• Every person or employee in an organization has their own different values and beliefs that he/she works with.
• When joining any organization, an employee is allowed to internalize first with the organization’s culture to know whether he can come up with them or not
• Organizational culture has a deep impact on employee performance.

Ethics and Financial Results

• Companies with a strong ethical identity maintain a higher degree of stakeholder satisfaction
• Ethical behavior can improve profits whereas questionable practices can lead to negative results

Knowledge for Effectiveness

• Requires a basic understanding of business finance.
• Recommendations include research and consulting with advisors.

Knowledge About

• Relating to cash management, budgeting, and forecasting, costing, employee tax requirements, and financial reporting.
• Ensures the better the position you’ll be in to ensure financial practices and fraud prevention

Financial Directives Example

• Annual stockholder meetings, board of director meetings and the release of financial documents related to forecasting reporting and analysis.
• If the business raises capital through asset acquisition, bank loans, leasing or stock options, the procedures for these activities need to be delineated.

Policies and Documenting

• It one of the fundamental requirements of a sound and strong financial management system
• Ensure that institutional memory of how and why things were done in the past is not lost.

Reminders and Cautions

• A policy can be defined as the principles or rules that are used to determine decisions and actions.
• Policies and procedures clear with the process.
• Procedures documentation can be either in hardcopy or electronic
• Procedures can be outlined in documents and created easily with new employees

Financial Policy Steps

• Determine why the policy is needed with an explanation of why and outline it's purpose.
• Delineate policy terms and identify who the policy applies to.
• Put new policies in detail, circulate it for practice, and provide a policy manual for new hires.

Security

• It may be a component of SOP
• Security measures are to be a component of the company's policy for ethics

Professional Development

• A professional development as an investment as it help avoid getting in a rut while developing strengths.
• Provides insights on skills needing to be strengthened.

Skills to Strengthen

• Written expression for communications
• English proficiency
• Media proficiency

Communication - Plato's View

• Plato believes that taking the first step is the most important to build on progress.

Ethical Communication Importance

• Ethics and a persons character builds the relationship for societies.
• Impacts culture on how we communicate and provide our ideals.
• Be just as influential in our ability to communicate with other languages.

Communication Standards

• Bring improvements to relationships and moral changes in the society with ethical communication.
• Discourage societal practices that is unethical.
• Communication's definitions depends on one's culture

Communication Impacts

• Encourages others on how to communicate
• Promotes understanding and is an ethical foundation of relationships

Ethical Duties

• Institutions must communicate without prejudice.
• Institutions have the power to influence a large group.

Standards

• Obeying the company’s rules and regulations
• Some common rules are tardiness, inappropriate dressing, and language, etc.

Effective Communications Factors

• Means different things to people at different points in time
• Communications requires sensitivity, a level head, respect and more skill

Career-Building Communication

• Creating strong relationships encourages great support/work ethic.
• Developing meaningful relationship can promote career work ethic

Take responsibilities

• Its very important for employees to take responsibility and is a key factor of leadership.
• Understandably, employees may want to save their job and are therefore scared of taking responsibility for a particular event.

Standards

• Standards is very crucial on how employees are professional with others

Accountability

• Accountability can measure responsibility
• Lack of accountability may result in your boss thinking you have an “I don’t care attitude” to the company’s project or worst take you as a liar and may lead to job loss in the long run.

Trust

• Trust from a boss is very impactful on an employees career.
• An employee should not do anything that may make his or her employee withdraw trust

Without Being told Tips

• The company helps complete deadlines
• Provide a poster for all
• Respect colleagues, including interns and junior hires.

In Conclusion

• Constructive criticism and support help employees be productive and strive for growth
• Smart work is more important than hard work
• Formplus data collection is preferred by more workers
• People are responsible for using data collection tools and real time results

Lying

• It ruins trust in the company
• Employees are afraid of saying the truth sometimes

Credit Others

• A person needs to be able to take credit for others
• It makes better for the staff and relationships to keep together

Verbal Harassment and Violence

• Employees shouldn’t be acting violen
• As a customer care representative, salesperson or any other employee, it is beth important that you don’t use abusive words on customers no matter how provoked.

Non-Office Duties

• Employee side work should be on off hours
• Working overtime can lead to success

Corruption

• Defeating ethics or morale, can be unethical to hire certain people under work standards

Theft/Embezzlement

Employees are known for diverting company funds into their bank accounts at particular projects and rates

• Sexual Harassment can also have companies pay great cost
• There should be zero tolerance.

Professional Improvement

• It may come from formal and informal practice.
• Attending conferences and seminars and networking will help people grow even quicker

Career Counselor Views

• States that career development is key for all employees.
• Mentoring is an important part of career skills development
• Mentoring can enhance others in the workplace for great rewards

Work From Home

• In some cases its better to volunteer or serve on a board from a non-profit organization.
• All ways in which employees develop professionally while not on the job

Career Improvement

• It is best suited for all employees to develop to best serve the organization.
• Managers are important for team skills.

Goals and Value

• Rich Grant notes that ideally, human resource departments would serve a function similar to that of college career services offices on campuses by helping employees find the right career fit

HR Work

• Match employees, improve and help employees best perform with skill with potential
• Money help also and should save employees from tasks and training

Career Planning

• First look the job and if funding is needed.
• It improves relations with the company if your upfront, if it saves the company for the benefits.

Shadow Colleagues

• You can have mentors in your company.
• Shadowing can create relationships with those people or new relationships.

Networking

• Attend conferences and attend workshops and improve yourself
• Look through others to have new ideas, find great inspiration from career growth

Volunteer

• Improve yourself and master tasks, expand networking
• Will provide references to improve the resume

Community

• Grow your community online or offline
• Has helped the growth to be better in career.
• Look what's trending and see job growth
• Online courses help career path
• Make yourself flexible as much as possible to improve your work.
• Hank suggests make sure all is ready so that intentions are clear
• Have great plans to continue

Intentional and Unintentional

• Intentional professional growth focuses or should be planned is the best approach.
• As career progress.
• Also network, communicate new relationships and create wise and expertise

Unintentional growth

• Constant readiness and willingness comes as experiences
• Opportunities are through community organization or participation with a organization
• See opportunities to make career better
• Always find a balance
• Stay flexible and have goals.