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Types of organization and organizational structure

Table of contents:

Anonim

Introduction

We often claim that anyone, if capable, can make an organizational system work. It is even claimed that it is even desirable that a certain vagueness prevail in an organization. In this way, teamwork will be imposed by the situation that all consciously and unconsciously will try to carry out the planned purpose.

Capable people like the willing will undoubtedly cooperate and work together more effectively if they know their part to play and know the relationship of their roles.

For an organizational function to exist and have meaning for individuals, it must consist of:

  • Verifiable objectives Clear ideas - duties Level of authority - requires unity of command Information-supplies

Therefore, we consider the organization as: Identification and classification of the required activities.

Organization:

It refers to the establishment and grouping of activities and necessary resources that interact with each other through horizontal and vertical coordination for the fulfillment of the objectives contemplated in the structure of the company.

What are the objectives of designing an organizational structure?

It should be designed to determine who will perform what tasks and who will be responsible for what results; to remove obstacles to performance that result from confusion and uncertainty regarding the assignment of activities and to build networks in terms of decision making and communication that respond to and support business objectives.

Types of organization:

Formal:

It is the intentional structure of functions in a formally organized company. It must be flexible and in this the individual efforts must be analyzed towards the organizational goals. Eg Rotary club, contry club, lions club, firefighters, private companies, banks, universities, family

Informal:

It is a network of personal and social relationships not established or required by a formal organization but which arises spontaneously from the association between people. Eg basket game, group of friends, study group, family reunions, Christmas party.

Definition of the organization structure and design, introduction (organizational structure):

Once our objectives as managers have been defined and established, we must develop an effective structure that facilitates their fulfillment. For this, we will understand the organization structure as the formal framework or the organization's communication and authority system.

Organizational design:

It occurs when managers develop or change the structure of an organization. It should allow us to achieve goals and objectives effectively and efficiently, as well as managers, we must decide how we want to coordinate activities vertically and horizontally in terms of human effort.

Adam Smith 1776, divide from work "the wealth of nations."

Structure design:

Complexity:

Simplification of the different departments and hierarchies. It refers to the amount of differentiation in an organization. The more the division of labor in a company, the more vertical levels there will be in the hierarchy and the more dispersed the units of the geographic organization are, the more difficult or complex the people and activities will be.

Formalization:

It is known as liking that an organization depends on rules and procedures to direct the behavior of employees.

Centralization:

It occurs when managers develop or change based on decision making. In other words, any aspect is highly centralized at the upper levels of management, the problems flowing to the top executives who decide what should be done, it is handled at the same time as decentralizing, it is sometimes the most convenient in terms of lower levels from management.

Vertical dimension of organizations:

Basics:

  • Unity of command Authority and responsibility Interval of control Centralization and decentralization

Unity of command:

Refers to who a worker reports to

A subordinate must have a single superior, to whom he / she is directly responsible, current organizations faithfully follow this principle when designing activities and work relationships.

Authority and responsibility: It is the type and quality of authority and responsibility that the members of the organization will have.

Authority:

  • Rights inherent in a managerial position to give orders and expect them to be obeyed. Glue that binds. The position determines the authority and ignores the personal characteristics of the individual manager. Upon release of authority (manager) the authority remains in the position.

Command unit point of view:

  • In love with the concept of order - obedience All powerful managers The theory of the acceptance of reality arises Authority comes from the willingness of subordinates to accept it (Chester Barnard)…. so if the subordinate did not accept there was no authority….

This theory stated:

  • That the order is understood That it is compatible with the purposes of the organization That it does not conflict with their personal beliefs That they are capable of performing the indicated tasks

(Only then will a person comply with the orders….)

Line authority:

  • It is what allows a manager to direct the work of a subordinate. Supervisor - subordinate authority relationship that extends from the top of an organization to the lowest levels following what is known as:

Chain of command: It refers to a position and describes managers whose function contributes directly to the achievement of organizational objectives, which would represent two ways of seeing the end of the line.

Staff authority:

  • Is in a position to offer advice or assistance to line managers Support, assist, recommend and generally reduce the workload of line managers May or may not be part of the company Control range Refers to how many subordinates can supervise a manager effectively and efficiently.

Classic point of view:

  • favored small groups (no more than 6) recognized contingency variables that could affect this number senior executives middle level supervisors (small areas) the I. Of C. Determines the number of levels that an organization has the larger the control interval, the more effective the organization design will be.

Contemporary point of view:

  • It recognizes that many factors intervene and influence the appropriate number of subordinates that a manager can manage effectively and efficiently. The current business trend considers reducing the number of managerial positions through organizational restructuring. Thus, the intervals of control are growing for the managers Eg General electric: in 20 years I managed 6 subordinates per manager….

Actual / e raised it up to 12 employees.

Conclusions

  • The more training and experience the subordinates have, the less direct supervision they will need. This makes it possible to work with wider control intervals. Other contingency variables that determine the appropriate number of intervals: Similarity of tasks Complexity of the same Physical proximity Standardized procedures

Centralization and decentralization:

One of the factors that characterizes the structure of an organization refers to the amount of centralization that is a function of how much authority for decision-making has been delegated to lower levels of management.

In fact, a structure is not totally centralized or decentralized since this regulates the effectiveness of how they should be managed. Every manager must decide the amount of centralization-decentralization that best suits him, likewise the above will allow him to put his goals and strategies into practice, remembering: the one that works well in one situation may not be better in another.

Therefore, we find that an aspect of ultimate importance refers to the delegation of activity.

It is giving employees substantial authority and voice to make their own decisions. What determines whether an organization should move towards more or less decentralization or not?

Centralization levels:

  • The stability of the environment Low-level managers do not want to be involved in decisions.

More decentralization:

  • The effective implementation of company strategies depends on managers having greater participation and flexibility in making decisions. Decisions are relatively minor.

Horizontal dimension of organizations:

The structure of an organization has a dimension that contemplates how work activities are organized at each specific level of the company.

Elements

  • Division of workDepartmentalizationFunctionalBy productBy customerGeographyBy process

Classic point of view:

  • division of labor in essence: individuals specialize in being part of an activity rather than the entire activity each worker performs the same standardized task: Taco Bell, McDonald, Burger King = classic food processes evidence: that complex tasks as well as Simple, would be performed by skilled and unskilled workers, some of whom would be below their abilities although better paid, which is an inefficient use of resources to pay qualified employees for doing simple jobs.

Contemporary point of view:

  • The classics considered the division of labor as an inexhaustible source to increase productivity. The good cannot go too far. This generates excessive division, in some cases: boredom, tension, low productivity, poor quality, absenteeism and high employee turnover. personal.

Diseconomy:

It occurs when the human disadvantages outweigh the economic advantages.

In some cases, productivity is increased by expanding the scope of work activities.

However…. the concept of the division of labor is alive and well.

It generates economy and its limitations are recognized…. nothing is absolute.

Basic principles:

Balance

The application of principles or techniques must be balanced according to their general effectiveness in obtaining the objectives of the company. This principle must be applicable to the entire organization, mainly towards instinctual areas.

Flexibility

The structure of an organization can more adequately fulfill its purposes if it has mechanisms that make it flexible, every company operates in a medium of permanent change, which forces us to introduce instruments and techniques that allow us to adapt and anticipate different changes. in this case it will be the fundamental obligation of an administrator.

Opportunity for leadership:

If the structure of this organization and the delegation of authority allow the administrator to design and maintain a suitable environment for work, the exercise of his leadership skills will be facilitated, that is, the administrator must be seen as a leader, which will help him to your primary task.

Types of organization and organizational structure