We explain what an organizational structure is and what the characteristics, types and elements that make it up are.
What is an organizational structure?
The organizational structure It is the internal pattern of a company or organization, that is, the shape of a company. This includes the distribution of work in the areas or departments that comprise it, as well as the hierarchy of their positions and responsibilities and, in general, the way in which the company conceives itself.
In an organizational structure, the work areas are identified and organized, the modes of control or supervision and the relationship dynamics between them are determined. In other words, the organizational structure It is what allows a company to operate as an integrated and coordinated system.
Although there are common patterns and trends in the administrative world, Each company can have its own organizational structure which addresses their nature, their strengths and their weaknesses. However, this is not fixed, it is possible to modify it to adapt it to the new scenarios that arise.
Key points
- The organizational structure is equivalent to the form of the company, that is, its internal organization.
- Each organization can have its own structure, according to its nature, its objectives, its strengths and its weaknesses.
- The organizational structure determines who does what within the company's orderly system.
See also: Organizational culture
Characteristics of the organizational structure
Each organizational structure is, in principle, different from the others, since it obeys the needs of each company. However, in general terms, its characteristics are the following:
- Integrate a formal and official order. Every organizational structure appears in the company's documents and is always reflected in its organizational chart, since it is an established order. This means that it cannot be changed at whim and will.
- It is based on the specialization and departmentalization. Every organizational structure includes work areas in which specific tasks are carried out: public relations, human resources, production, among others. The larger a company is, the more specialized its departments will be.
- Responds to the company philosophy. Every organizational structure agrees with the “spirit” of the company, that is, with its vision, its mission and its values. For example, the sense of authority and the notion of work can determine one or another structure in an organization.
- Facilitates the objectives set. The purpose of every organizational structure is to facilitate the achievement of the company's goals, and therefore it is one of the first aspects to be evaluated in an unsuccessful company.
- It can be centralized or decentralized. Every organizational structure is framed by two tendencies: that of concentrating decisions in the highest positions in the hierarchy (centralized) or that of allowing its departments greater margins of autonomy (decentralized).
Types of organizational structure
Generally, there are five types of organizational structure:
- Linear structures. They are those whose organizing principle is hierarchy, that is, the direct authority of the boss over his subordinates, which is why they tend to centralize decision-making power and responsibility, organizing work in a pyramidal manner. In them, speed and clear and simple accounting are privileged, given that the positions are very well defined. It is the model preferred by small companies, with low production and little human capital.
- Functional structures. They are those that propose a division of labor into hyper-specialized units, each one under the command of an independent boss, in charge of coordinating their team and communicating with others. It is a versatile, flexible and very popular structure, especially for larger companies with large staff.
- Staff structures. They are those that, typical of a minimalist business model, prefer to invest in external contracts (outsourcing or outsourcing) many of the functions that in other models would involve the construction of a work unit. It is a flexible and modern model, but it requires capital fluidity that justifies not having your own team.
- Matrix structures. They are those that structure the company based on autonomous and disconnected work teams, each assigned to a specific project and composed of a diverse group of workers, under the command of a coordinator who reports individually to the head of the organization. It is the most dispersed structure of all, since the work teams are dismantled once the project is completed.
- circular structures. They are those in which the management positions are located in the center of the organization and the workers in different concentric rings around them, according to their degree of importance. This structure is ideal for rapid communication of guidelines and decisions, and is extremely versatile when it comes to distributing work.
Elements of the organizational structure
According to Henry Mintzberg (1939-), a Canadian academic dedicated to the subject, the organizational structure always includes the following five elements:
- The strategic apex. This is the company's top management, where high-level decisions are made and direct supervision functions, strategy formulation and relationships with the company's environment are carried out.
- The middle line. These are the managers who serve as a link and executing arm between the strategic apex and the core of operations of the company. They are responsible for transmitting information vertically and horizontally (that is, among their peers), and making decisions in each of their particular areas.
- The core of operations. This is the basic workforce of the company, made up of its workers, in charge of the main functions of generating products and/or services.
- The technostructure. This is the group of specialists and professionals who, without being part of the company's management or participating in the main production circuit, provide general support, ensuring the necessary changes in the organization, and promoting the stability and maintenance of the organization. structure.
- The support staff. These are generally outsourced or subcontracted personnel who live in the company and who provide support to the structure in specific non-specialized tasks, such as cleaning or security.
Importance of organizational structure
The organizational structure is a fundamental aspect for the life of any company, since it's about the way it conceives and organizes itself.
A suitable structure guarantees more harmonious functionality which allows achieving the desired goals of the company. On the other hand, an incorrect structure can bring inefficiency and other problems to the business environment, sabotaging productive work in various ways.
On the other hand, the organizational structure It is key to the design of other business aspects such as the salary structure of employees and the work organization chart.
What is departmentalization?
The departmentalization It is the sectorization of business tasks into different units called “departments.” . This is one of the basic principles of any organizational structure: each department represents a segment or subdivision of the whole, and therefore addresses a set of needs, according to a specific organizational criterion.
Some examples of departmentalization criteria, that is, reasons for distinguishing two or more departments, may be:
- By time or work day.
- By customer so that each department serves one or a set of them.
- By territory when the departments are geographically distant from each other.
- By project when the specific objectives that one department will deal with are different from those of another.
- By processes depending on their place in the production chain and their specific tasks.
- For products and/or services depending on what type of productive chain it is dedicated to, independently of the others.
What is an organization chart?
An organizational chart It is a graphic representation of the organizational structure of a company. This type of representation is usually made as a visual scheme, distinguishing positions and departments through boxes, balloons and other geometric figures, and also linking them with each other and with their superiors and subordinates using arrows or straight lines.
The organizational charts are useful tools to illustrate quickly and easily the structure of an organization, thus making visible the flow of work, information or command.
References
- Jilli, J.J. (2017). Keys to the organizational structure. Granica.
- Lusthaus, C., et. to the. (2002). Organizational evaluation. Framework for improving performance. International Development Research Center.
- Mintzberg, H. (2012). The structuring of organizations. Ariel.
- University of Pamplona. (sf). Organizational structure. https://www.unipamplona.edu.co/
