Management 1
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The document discusses different types of organizational structures that companies can adopt. It states that senior leadership should determine the best structure by considering functional groupings of work and natural team formations. Some common structures mentioned are hierarchical, matrix, functional, product-based, customer-based, and geographic structures. The hierarchical structure relies on vertical reporting relationships, while the matrix structure allows for horizontal reporting across teams in addition to functional reporting. Choosing the right organizational structure is important for clarifying responsibilities and enabling efficient collaboration within a company.
Management 1
- 2. Large or small, every organization should operate with a defined organizational structure.
- 3. The board and senior leadership should be the group who determines the type of organizational structure that would best support the internal operations, how work is carried out and the chain-of- command.
- 4. Determining the best structure is done by answering these questions:
- 5. 1-What are the functional groupings of work processes? 2-Are there natural groupings of teams, work groups or units?
- 6. NOTE:Senior leadership looks at all functions and determines how they would like work activities to be organized and carried out.
- 7. Note: This process also identifies natural reporting relationships and chain-of-command. Reporting relationships can be both vertical as well as horizontal.
- 8. 1. Hierarchical Organizational Structure 2. Matrix Organizational Structure 3. Functional Organizational Structure
- 9. 4. Product Organizational Structure 5- Customer Organizational Structure 6-Geographic Organizational Structure
- 11. Note :Organizations that use a traditional hierarchical structure rely on a vertical chain of command as the prime method of organizing employees and their responsibilities
- 12. EX:Military, government, and other very large organizations use a hierarchy to determine the level of control employees have over their work as well as their rank relative to others.
- 13. De merts :Hierarchical structures typically feature multiple layers of management and are therefore prone to bureaucracy and the creation of silos that prevent cross-team collaboration.
- 15. 2. Matrix Organizational Structure A matrix structure provides for reporting levels both horizontally as well as vertically. Employees may be part of a functional group (i.e. engineer) but may serve on a team that supports new product development (i.e. new album). This kind of structure may have members of different groups working together to develop a new product line.
- 16. For example, a recording engineer who works for a music publisher, may have engineers who report to him but may also use his expertise and work with teams to develop new music albums.
- 17. The advantage of a matrix organizational structure is that employees have responsibility not only for their department but for organizational projects. A challenge with this type of structure presents itself when employees are given direction from two different managers and they need to prioritize their work responsibilities.
- 18. ex
- 19. Wrapping Up Deliberate time and thought should go into the design of an organization’s structure. This is important so employees have a visual of how the organization functions and understands the chain-of-command. Operating within a defined structure, with good communication processes and work-flows, help to ensure efficient management of resources – people, time and money.
- 20. End part 1