Designing Organizational Structure

August 1, 2015

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The organizational structure is how they are divided and grouped formalmente coordinate the tasks in jobs. Managers need to focus on six key elements when designing the structure of your organization: specialization of labour, departamentalizacion, chain of command, the span of control, centralization and descentralizacion and the formalization extension. Specialization of labour: degree in which the tasks in the Organization are subdivided into separate jobs. Departmentalization: Base according which the posts are grouped. Chain of command: line of continuous authority which extends from the top of the Organization to the level lower and that defines who divide who. Control section: number of subordinates that a boss can be addressed effectively and efficiently. Centralization and decentralization: centralization degree in which decision-making is focus on a single point in the organization.

Decentralization of decision-making is delegated or lower level employees. Formalization: Degree in which jobs within an organization are standardized. The most common organizational designs simple structure: structure characterized by a low grade of departmentalization, large sections of control, authority centralized in a single person and little formalization. The simple structure is a flat organization; usually has only two or three vertical levels, a body of employees and an individual in whom the authority for decision-making is centralized. The simple structure is most widely used in small businesses in which the administrator and the owner are the same person. The strong point of simple structure is its simplicity. It is fast, flexible, inexpensive to maintain and the allocation of responsibilities is clear. An important weak point would be difficult to keep it when the Organization ceases to be small.

Bureaucracy: Structure with highly routine operations that are achieved through specialization, rules and regulations very formalized, toreas that they are grouped in functional departments, centralized authority, short stretches of control and decision-making following the chain of command. Matrix structure: structure that creates double lines of authority; I combine the functional departmentalization with the product. New design team structure options: use of computers eat central device to coordinate work activities. The main features of the structure of equipment is the departmental barriers are broken and is decentralized decision-making at the level of the virtual organization work team: central, small, organization that contract externally its main functions of business. Women’s organization: organization characterized by a treatment humanist of individuals, not opportunism, the definition of racing through service to others, commitment to employee growth, the creation of a community that cares and the participation of the power. Finally the forces that influence the selected design and who have been identified as causes or determinantes of the structure of an organization are: strategy, size, technology and the ambiente. Original author and source of the article