Through the organization, channels of authority and responsibility are established for a good direction and control of the planned activities and thus comply with the course of action set with the proposed goals.
This work deals with the organizational structures by which companies are constituted. The various types of organization charts, the great importance that organization charts have in them, because as we know organization charts are the link, the connection of all functional areas of the social organism. In other words, they are the map of every company, since it reflects the hierarchical division and delegation distribution.
The purpose of the organization charts is to show the structure, the hierarchical levels, the various types of functions, the lines of communication, authority and responsibility, depending on the size and business of the company.
Introduction
issue
The way of directing and managing companies has undergone numerous changes over time, but various economic and social factors such as globalization, its management must favor adaptation to new market trends through flexible structures that allow it to be much more competitive. (Englehardt and Simmons, 2002).
According to Paez (2002), an organizational structure in the company must start from the clarity of its operational objectives and be a facilitator that allows the achievement of these through the adequate coordination of human, financial and material resources. He also defines it as the set of functions and relationships that formally determine the functions that each unit must fulfill and the mode of communication.
According to Guillermo de Haro (2005), the importance of the organizational structure is that it helps us define what should be done and who should do it. The structure is one of the bases of the organization as a management process. A good structure will allow a better integration and coordination of all the members of a company. By being better organized, a better use of resources will be achieved that in the long run can make a more efficient company. That is why it is important that as a company we know what the different types of organizational systems are to see which one is suitable for our organization and implement it.
Based on the above, and interested in the application of this topic in the entity, we have given ourselves the task of describing what an organization system is, its types and the importance of implementing an adequate organizational structure in any company, based on in the existing literature, in addition to conducting field research, which will provide us with data on whether companies currently use an organizational system or is directed in an empirical way.
Literature review
The organization is a subsystem of the administrative system, the function of the organization is to coordinate the efforts of the individuals who make up the company in a way that is understood and understood to effectively and efficiently meet the objectives.
The organization is a network of lines of authority and responsibility, functional and communication duties between people assigned to each of them the resources and instruments to maintain their position.
The organization promotes collaboration and negotiation of a group and thus improves the effectiveness and efficiency of communications in the organization.
The organizing function creates defined lines of authority and responsibility in an organization thereby enhancing the manager's activation and control functions.
Importance of the organizational structure:
- It is of a continuous nature; It can never be said that it is over, since the company and its resources are constantly changing (expansion, contraction of new products, etc.), which obviously results in the need to make changes in the organization. which establishes the best way to achieve the objectives of a social group Provides the methods so that activities can be performed efficiently, with minimal effort, avoids slowness and inefficiency in activities, reducing costs and increasing productivity reduces o eliminates duplication of efforts, by delimiting functions and responsibilities Importance pursued with the organizational structure Improve performance or productivity of resources (capital, personnel,material) with a minimum of and as a maximum of for the people involved They delegate through the organizational structure, authority to establish responsibilities They carry out communication, coordination, control processes, etc., to channel efforts in accordance with the aims and objectives of the organization Conceive through these that an effective and efficient action is achieved Establish hierarchical levels that represent authority and which must be obeyed Indicate the type of work to be carried out, as well as the aims and objectives end of the company.To channel efforts in accordance with the aims and objectives of the organization Conceive through these that an effective and efficient action be achieved Establish hierarchical levels that represent authority and which must be obeyed Indicate the type of work to be carried out, as well as the final aims and objectives of the company.To channel efforts in accordance with the aims and objectives of the organization Conceive through these that an effective and efficient action be achieved Establish hierarchical levels that represent authority and which must be obeyed Indicate the type of work to be carried out, as well as the final aims and objectives of the company.
The 4 specific aspects that refer to the organization:
- The structure, where it is perhaps the most typical part of the elements that correspond to the administrative mechanics. How the functions, hierarchies and activities should be. The functions, levels or activities that are to be structured; more or less remotely, it looks to the immediate or remote future. The organization constitutes the final data of the static or mechanical aspect; It tells us how and who is going to do each thing and how it is going to be done. When the organization is finished, it only remains to act, integrating, directing and controlling.
The five basic purposes of the organization are:
- It is of a continuous nature, where the company and its resources can never be said to be subject to constant changes. It is a means through which the best way to achieve the objectives of the social group is established. It provides the methods so that they can perform activities efficiently and with a minimum of effort Avoids the slowness and inefficiency of activities, reducing costs and increasing productivity Reduces or eliminates duplication of efforts, by delimiting functions and responsibilities.
The organizational structure describes the framework of the organization.
Organization design: It is when administrators build or change the structure of an organization.
The ideal design depends on contingency factors such as strategy, structure, size, technology, environment.
Types of organization systems
Linear or Military Organization
It is characterized because the decisional activity is concentrated in a single person, who makes all the decisions and has the basic responsibility of command, the superior boss assigns and distributes the work to the subordinates, who in turn will report to a single boss.
Advantage:
- Easier decision-making and execution No conflicts of authority or leakage of responsibility It's clear and simple Useful in small businesses Discipline is easy to maintain
Disadvantages:
- It is rigid and inflexible. The organization depends on key men, which causes disruption. It does not encourage specialization. Executives are saturated with work, which causes them not to dedicate themselves to their managerial tasks, but simply to operating.
Example:
It consists of dividing the work and establishing the specialization so that each man, from the manager to the worker, performs the fewest possible functions.
Advantage:
- Greater specialization. The highest efficiency of the person is obtained. The division of labor is planned and not incidental. Manual work is separated from intellectual work. The pressure on a single boss is reduced by the number of specialists the organization has.
Disadvantages:
- Difficulty in locating and establishing responsibility, which seriously affects the discipline and morale of the workers due to apparent or real contradiction of the orders.The principle of unity of command is violated, which causes confusion and conflicts.The unclear definition of authority leads to friction between bosses.
It is a combination of Linear and Functional Organization
LINEAR: responsibility and authority is transmitted through a single boss for each special function.
FUNCTIONAL: The specialization of each activity in a function is more applicable in companies.
In it, the types of linear and functional organization are combined, taking advantage of the advantages and avoiding the disadvantages inherent to each one, keeping the functional specialization of each activity in a function, and the linear authority and responsibility that is transmitted through of a single boss for each special function.
This type of organization does not enjoy line authority or power to impose decisions, it arises as a consequence of large companies and the advancement of technology, it provides expert information and advice.
Criteria to differentiate line and staff:
- Relationship with the objectives of the organization: the activities are directly and intimately related to the objectives of the organization or the body of which they are part, while the activities of the staff are associated in an indifferent way. For example, the production and sales organs represent the basic and fundamental activities of the organization: the target activities, the other complementary and secondary organs represent the middle activities. If there is any change in the objectives of the organization, the line-staff structure will also change.Generally, all the line bodies are oriented towards the outside of the organization where their objectives are located, while the staff bodies are oriented towards inside to advise the other bodies, whether line or staff Type of authority:the line area has the authority to execute and decide the main matters of the organization. The staff area does not need that authority because it is exercised over ideas or plans. Its activity consists of thinking, planning, suggesting, recommending, advising and providing specialized services. The line man needs the staff to carry out his activities, while the staff man needs the line to implement his ideas and plans.while the staff man needs the line to implement his ideas and plans.while the staff man needs the line to implement his ideas and plans.
The main functions of the staff are:
- Services Consultancy and advice Follow-up Planning and control
Advantage:
- It allows expert knowledge to influence the way of solving management problems. It makes possible the principle of responsibility and indivisible authority, and at the same time allows staff specialization.
Disadvantages:
- If advisory duties and responsibilities are not clearly delineated through charts and manuals, it can lead to considerable confusion throughout the organization. It can be ineffective due to lack of authority to perform its functions or lack of intelligent support in the application of their recommendations. There may be friction with the departments of the linear organization.
It consists of combining the departmentalization by products with that of functions, it is distinguished from other types of organization because the principle of unity of command or of two heads is abandoned.
The matrix structure is sometimes called a multi-command system. An organization with a matrix structure has two types of structure simultaneously. Employees have, in fact, two bosses; that is, they work with two chains of command. A chain of command is one of functions or divisions, the type that is diagrammed vertically in the preceding graphs. The second is a horizontal arrangement that combines staff from various functional divisions or departments to form a project or business team, led by a project manager or group, who is an expert in the field of expertise assigned to the team.
Advantage:
- Coordinates the satisfaction of activities, both to improve the product and to satisfy the schedule and budget required by the department manager. Promotes interdepartmental communication about functions and products. Allows people to switch from one task to another whenever necessary. It favors an exchange of experience between specialists to achieve a better technical quality.
Disadvantages:
- There is confusion about who depends on whom, which can lead to flight of responsibilities and lack of delimitation of authority It gives rise to a struggle for power, both from the functional manager and the product manager It works through many meetings, which This is a waste of time Staff may feel that their immediate manager does not directly appreciate their experience and ability There may be resistance to change from staff.
Used by large organizations that have grown diversifying their products or their markets. Use departmentalization based on products, areas or customers. And these departments are called divisions because they have autonomy, they have the capacity to make decisions regarding their product, their market or their geographic area. When this decentralization exists, we always speak of division and not of department.
Each division performs all the necessary functions to properly serve its product, its market or its geographic areas. And the division director is a semi-general manager of the company.
The headquarters controls the performance of all divisions normally through normalization of results.
It also performs centralized support functions and is usually in charge of appointing and replacing the directors of each division.
Advantages and disadvantages:
It is often pointed out that it has the following advantages over linear organization:
- Improve capital allocation, spread risk, react strategically to change, and help prepare CEOs.
Now, these same four elements can be inconvenient when compared to independent organizations.
It can lead to divisions maximizing their goals and not those of the organization.
Also, as each division is measured by the results it achieves, there is a tendency to undervalue everything that is not quantifiable objectives.
The separation and autonomy of divisions can create conflicts and make it difficult to reallocate resources.
It is usually more expensive in the management field economically.
It consists of assigning the various administrative matters to a body of people who meet to discuss them and make a decision together.
Classification:
- Executive; Represents the shareholders of a company. Executive; He is appointed by the steering committee to execute the agreements they make. Surveillance; Trusted personnel who are in charge of inspecting the work of the company's employees. Consultative; Composed of specialists who, based on their knowledge, issue opinions on matters that are consulted.
Advantage:
- The solutions are more objective, since they represent the conjunction of several criteria. Responsibility is shared among all those who make up the committee, not falling on a single person. It allows ideas to be founded and criticized. specialized knowledge.
Disadvantages:
- Decisions are slow, as deliberations are late. Once the committee is constituted, it is difficult to dissolve it. Sometimes managers disengage from their responsibility and use the committee to take responsibility for their own actions.
Organization by work teams
By work team The constitution of the work team is the most delicate activity that a Project Director faces, and in which they must most demonstrate their capabilities. The team is created for a specific operation, and is composed for the most part by people over whom it has no hierarchical power, coming from various departments or specialties, and who must function as a harmonious whole and be able to achieve the expected results. which, by definition, are complex, unusual and risky.
Employees themselves assigned to a project can sometimes resist out of fear of change, believing that they will have to work more intensely on the project, or because of uncertainty about their position when they return to the unit of origin. This requires an effort on the part of the entire organization, which requires an open and dynamic mindset to accept the sense of transitory mobility that characterizes the Projects.
Advantage:
- Where people are privileged to the task and the results. Its leaders and members are more concerned and busy with interpersonal relationships than the other variables. The interest of the team is focused on the processes carried out in the task. the team members focus on obtaining results When the team, acting as such, and focusing on both people and tasks and results, and adapting the leadership style that is appropriate to them with the degree of maturity of the same (see evolution of the work teams), provoke synergy, which allows them to obtain: a) Different and superior results quantitatively and qualitatively (Results) b) Satisfaction and pride of its members (People) c) Superior quality of work (Processes)
Disadvantages:
- They are poor teams in terms of enriching productivity and improving results, if we look at their results they are comparable to those of a job done individually. The permanent review of these teams sometimes hinders the perception of the need to contemplate the results and take into account The privilege of results over people and tasks can sometimes make the team achieve high productivity standards, but by not taking into account how this productivity is achieved, quality is often sacrificed, so that its results are fleeting.
Virtual organization
The virtual organization refers to a structure that promotes the realization of temporary alliances between people, institutions and companies in order to perform specific tasks linked through the use of information society technologies, following schemes that reduce costs and facilitate access to the capacities and resources of the parties involved.
Competitive advantages of virtual systems.
- The growing relevance of the study of virtual systems focuses on their ability to allow rapid adaptation to the needs of the environment, providing greater flexibility to the value chain formed by the participating companies. From this point of view, the competitive advantages of the use and development of a virtual network can be included in two large groups:
- Streamlines response to changes in customer needs Improves organizational efficiency.
Disadvantages
- One of the main disadvantages of this type of organization is the possible loss of the Key Know-How. As more activities are outsourced, the gain of the added value is delivered to others. Need for large doses of self-discipline, the teleworker will have to guide their activity towards the effective provision of services, for which those who lack the power of self-organization or self-discipline will have a great competitive disadvantage Psychological or relational problems, since it can produce a feeling of isolation in the teleworker Difficulty in motivating workers remotely and make them participate in the objectives of the company which can lead to the latter losing part of its corporate strength In most countries, especially developing nations,there is no legal framework that regulates teleworking. Companies must place special emphasis on information security, both physically and at the network level. And finally, there is the possibility of losing control over the business, when a conflict with any of the companies that make up the network.
Organization by networks
It is a current organization model in a company, and its conversion into a model adapted to new technologies and with the ability to make the most of the advantages of a network organization, involves establishing “rules of the game” different from the current ones.
Therefore, the new organization must take into account a series of fundamental aspects:
- The client is the center of the business activity: the processes and establishments of activities and tasks will be designed with the client as the epicenter, an antagonistic element to the “Taylorian” organizations in which the process center was the product combines two different scenarios: the optimization of the result obtained and the creation of new activities that revitalize the organization and replace those that are no longer profitable.
The de-construction of the Model or service.
- Simple structures are established to achieve flexibility; this is achieved through the reduction of hierarchical levels. In such a way, the structure is flattened, eliminating middle managers, management is carried out by teams, and the vertical hierarchy is replaced.
For the horizontal coordination of the teams.
- Human resources become the absolute pillar of the company. They are the key to making a difference. The company is conceived as an organization that learns. Employees go from being "workers for and for the production of goods and services" to being "workers for and for the production of knowledge." Information and knowledge mechanisms are established that allow the organization to create an internal network of sharing and access to all possible sources of information. Likewise, information systems are integrated with business intelligence systems that allow an alignment of the information that flows in the company with the strategy to be followed. The question of control in the new organization is much more complex than in the era of industrial organization, where the hierarchy directly monitored the behavior and performance of the workers. In this way, the role of the Management works on other leadership qualities and competencies based on delegation, team management, network and contact management (whether their own or from the organization) and tolerance to change and uncertainty. complex in nature, the organization's borders are organic, they are continually modified, depending on how the networks in which the company is included evolve. This causes the need to create an external cooperation mechanism, so that the network company is a social structure linked to a territory, characterized by a high density of social interactions.
As a result of all this, what does a network company need?
A commitment from the Management, becoming aware of the need to change the business and formal mentality of the organization.
For companies to start operating under the principles of network organizations, managers must adopt new forms of direction and management of organizations. They must develop skills that allow them to face the challenges of leading self-organized organizations, Another lever for change is the introduction of new processes, organizational or service through Innovation. In this sense, innovation must be understood as a consequence of change and not vice versa; It emerges as a constant adaptive process to the environment in which an organization is located and as a need for it to be a mirror of its environment and market.
Likewise, the introduction of organizational models oriented towards innovation entails the creation of rotating and multidisciplinary teams that allow the organization greater flexibility and speed in adapting to new economic scenarios. It should be said that the manager must define the organizational structure through redundancy of functions.
The most important challenge that organizations that in the future want to adapt their business models to ICT will face is the correct management of generational change. According to the latest training trends report by Overlap, adults learn and acquire skills differently from each other depending on generational diversity.
It will therefore be necessary to understand the idiosyncrasies of each generation for a correct adaptation to the new organizational forms and new ways of understanding information management.
