Organization Structure PDF

Organization Structure Organization structure: Identify formal positions and reporting relationships, influence the hierarchy levels, and span of control and grouping individuals into departments within the larger organizations. Effective communication, coordination, and integratio...

Organization Structure Organization structure: Identify formal positions and reporting relationships, influence the hierarchy levels, and span of control and grouping individuals into departments within the larger organizations. Effective communication, coordination, and integration systems are essential to ensure smooth operations across various departments within the organizations. Vertical Information Sharing 1. Vertical linkages: coordinate activities between the top and bottom levels of the organization and designed primarily for control of the organization. 2. Hierarchical referral: The first vertical device is the hierarchy, or chain of command. If a problem arises that employees don’t know how to solve, it can be referred up to the next level in the hierarchy. When the problem is solved, the answer is passed back down to lower levels. The lines of the organization chart act as communication channels. 3. Rules & Plans: To address repetitive problems and decisions Rules help employees respond without direct manager communication and offer a standard information source for coordination without constant dialogue Plans serve as ongoing information, allowing lower-level employees to operate independently within their resource allocations 4. Vertical Information System: Enhance vertical information capacity through efficient communication, include periodic reports, written information, and computer-based communications, and improve communication efficiency within hierarchical structures.(Example: AAST Staff Portal) Horizontal Information Sharing & Collaboration o Collaboration: Is a joint effort among individuals from different departments to achieve a common goal, producing outcomes greater than what could be accomplished individually. 1. Horizontal Linkage: Refers to communication and coordination horizontally across organizational departments. 2. Cross-Functional Information Systems: A key way to achieve horizontal linkage in organizations is through cross-functional information systems because these computerized systems allow managers and frontline workers to regularly share updates on progress, problems, opportunities, activities, and decisions. 3. Liaison Roles: Part of horizontal linkage in which they facilitate communication and collaboration across different departments in an organizations. They work alongside cross-  functional information systems to ensure effective horizontal communication between departments, helping teams work together toward shared organizational goals 4. Full-time Integrator, product manager, project manager, program manager, or brand manager: Coordinates multiple departments from an external position, rather than reporting to any specific functional department. 5. Task Force: Are temporary problem-solving groups 6. Cross-Functional Teams: Are permanent groups composed of members from various functional areas, often working with a full-time integrator. They are effective for long-term coordination and collaboration across departments 7. Relational coordination: The highest level of horizontal coordination Refers to frequent, timely, problem-solving communication carried out through relationships of shared goals, shared knowledge & mutual respect Can’t be Seen In the organization chart. It’s good for multinational organizations with high spatial complexity. Functional structures o In a functional structure, also called a U-form (unitary): Activities are grouped together by common function from the bottom to the top of the organization Divisional & Geographic Structures o In a divisional structure (M-form or multidivisional): Separate divisions are responsible for specific products, services, or profit centers o This structure also known as a product or strategic business unit structure: groups based on organizational outputs. o Geographic Structures: Is the Same as Divisional Structure but not by responsible for specific products but is responsible for specific geographic location  Matrix Structure o It helps organizations achieve the of need a multi-focused structure that emphasizes both product and function or geography o This approach is beneficial when technical expertise and product innovation are vital for meeting goals. o Combines product divisions and functional structures, allowing product and functional managers to have equal authority. Employees report to both, facilitating strong horizontal linkage and collaborative decision-making. Conditions for the Matrix Structure Pressure to Share Resources: Medium-sized organizations with limited resources must share personnel and equipment across product lines, often assigning staff part-time to multiple projects. Environmental Pressure for Multiple Outputs: Organizations need both in-depth technical expertise and frequent new products, requiring a balance of power between functional and product sides. Complex & Uncertain Environment: High interdependence and frequent changes necessitate extensive coordination and information processing in both vertical and horizontal directions  Virtual Network Structure o Features a central "hub" organization that manages tasks through external partnerships. o Key functions like marketing and design are in-house, while manufacturing and IT are outsourced. o Allows for flexibility, market responsiveness, and cost efficiency by concentrating on core strengths. Holacracy Structure A self-management structure that eliminates traditional managerial roles, distributing authority among self-organizing teams called "circles" each circle manages specific tasks and decision making within its scope, promoting autonomy, agility, and employee empowerment, making it suitable for innovative and adaptable companies. o Characteristics Roles are defined collectively within teams to achieve tasks.  Teams can form and dissolve as circumstances change, adapting to new needs. Teams self-design and govern, creating a constitution that outlines operational rules. Leadership is distributed; there are no assigned managers, and responsibilities shift based on needs and team dynamics.