Which of the following terms best represents the following definition decisions made about the structure of an organization?
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The types of organizational structures in business are just as important as its products, marketing plan and long-term strategy. Businesses need a sturdy structure to attract and retain talented employees, as
well as create a workable organizational hierarchy. Typically, businesses choose from four types of organizational structure. Each comes with its own set of advantages and disadvantages. Choosing the right one for your business is imperative because poor organizational structure leads to confusion among employees, poor decision-making among managers and, ultimately, less than ideal results for a business. Students in Point Park University’s online
Bachelor of Arts in Organizational Leadership classes learn about management strategies and approaches to organizational design as part of a curriculum that prepares them for success as business leaders. While there are variations, most companies are created based on one of the following four organizational structures. The goal for
business leaders is picking the structure that works best for their particular situation. A functional structure is the most traditional approach. It calls for grouping together people who do similar tasks based on their area of specialty. In other words, you’ll find all the accountants in finance and all the marketers in marketing. Managers led each area and report up to a director or executive who may oversee multiple departments. The advantage here is clear: it
provides those with similar abilities the ability to easily communicate and work on projects together. That’s also the reason this is the most popular business structure. The disadvantage is that teams may get “siloed,” unaware of what is happening in other areas of a company. In a divisional structure, people are grouped together based on the product or service they provide, not the work they do. For example, a large corporation such as General Electric has divisions
for electronics, transportation, and aviation, each with its own team of accountants, marketers, etc. Global corporations may have divisions based on different geographic areas. On a smaller scale, a restaurant that also provides catering services may have separate divisions to oversee weddings, corporate
events and business within the main restaurant. A matrix structure is a hybrid of the functional and divisional structures. It may involve employees reporting to different bosses depending on their current assignment. For example, a software design specialist may report to her boss in IT, but she’s also brought onto specific projects because of her expertise. When that happens, she will report to a different boss as long as that project continues. The disadvantage is
that employees may find it confusing to report to multiple bosses. But clear communication on priorities at all levels can eliminate these issues. The matrix structure requires a great deal of planning but can allow for the creation of the best possible teams to tackle the biggest challenges. The flat structure dispenses with the usual hierarchy of a functional structure, decentralizing management and doing away with the need for middle manager bosses. Employees essentially
act as their own boss, giving them the ability to communicate directly with peers on ideas and projects. The advantage is a lot more freedom for employees, which requires a group of self-starters who don’t need managers checking up daily on their work. A flat structure is common in incubators and startups where the focus is on product and services design, not production or top-down management structures. All four types of organizational structures in business can work well in the
right situations. While most companies will choose from the functional or divisional approaches, a flat approach is becoming increasingly popular with modern companies. Learn how to develop a framework that gives members clear guidelines on building organizational structure, and keeping the organization functional.
What is organizational structure?By structure, we mean the framework around which the group is organized, the underpinnings which keep the coalition functioning. It's the operating manual that tells members how the organization is put together and how it works. More specifically, structure describes how members are accepted, how leadership is chosen, and how decisions are made. Why should you develop a structure for your organization?
When should you develop a structure for your organization?It is important to deal with structure early in the organization's development. Structural development can occur in proportion to other work the organization is doing, so that it does not crowd out that work. And it can occur in parallel with, at the same time as, your organization's growing accomplishments, so they take place in tandem, side by side. This means that you should think about structure from the beginning of your organization's life. As your group grows and changes, so should your thinking on the group's structure. Elements of StructureWhile the need for structure is clear, the best structure for a particular coalition is harder to determine. The best structure for any organization will depend upon who its members are, what the setting is, and how far the organization has come in its development. Regardless of what type of structure your organization decides upon, three elements will always be there. They are inherent in the very idea of an organizational structure. They are:
Governance The first element of structure is governance - some person or group has to make the decisions within the organization. Rules by which the organization operates Another important part of structure is having rules by which the organization operates. Many of these rules may be explicitly stated, while others may be implicit and unstated, though not necessarily any less powerful. Distribution of work Inherent in any organizational structure also is a distribution of work. The distribution can be formal or informal, temporary or enduring, but every organization will have some type of division of labor. There are four tasks that are key to any group:
Common RolesEvery group is different, and so each will have slightly different terms for the roles individuals play in their organization, but below are some common terms, along with definitions and their typical functions.
Although this list is pretty extensive, your organization may only use two or three of the above mentioned roles, especially at the beginning. It's not uncommon for a group to start with a steering committee, ask others to serve as board members, and then recruit volunteers who will serve as members of action committees. In this broad spectrum of possibilities, consider: Where does your organization fit in? Where do you want to be? Examples of StructureSo how can all of these pieces be put together? Again, the form a community group takes should be based on what it does, and not the other way around. The structures given are simply meant to serve as examples that have been found to be effective for some community-based organizations; they can and should be adapted and modified for your own group's purposes. A relatively complex structure
In diagram form, a complex organization might look like this: And in diagram form:
As smaller size means fewer people, these groups are usually less complex, as they have less need for a formal hierarchy and instead have governance that is consensus-based. A diagram of such a small group might look something like this, with each of the circles representing an individual member: What type of structure should you choose?First, decide upon the formality your organization will have. The following table, adapted from The Spirit of Coalition Building can help you make this first decision.
Organizational structure is something that is best decided upon internally, through a process of critical thinking and discussion by members of the group. In your discussions, your answers to the following list of questions may guide your decisions.
In SummaryStructure is what ensures that your organization will function smoothly and as you intended. You should think about structure early in the development of your organization, but be aware that the type that fits best may change as your organization grows. What is the structure of an organization?An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company.
What are the 4 types of organizational structure?The four types are:. Functional structure. In a functional structure, organizations are divided into specialized groups with specific roles and duties. ... . Divisional structure. In a divisional structure, various teams work alongside each other toward a single, common goal. ... . Flatarchy. ... . Matrix structure.. When an organization has a structure in which decisionline structure. When an organization has a structure in which decision-making authority is delegated as far down the chain of command as possible, it is said to be exercising: decentralization.
What are the 3 aspects of structure of organization?Structure is composed of three components: complexity, formalization and centralization. Discuss each of these components. Complexity is the degree to which activities within the organization are differentiated.
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