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ADMINISTRATION AND ORGANIZATIONAL STRUCTURE, NAME: SILVIA A. MONTEZUMA 1…
ADMINISTRATION AND ORGANIZATIONAL STRUCTURE
The organizational structure is the pattern of relationships between the components or parts of it and because it is an abstract concept it can be confused with organizational processes. Two parts can be differentiated: The formal and informal organizational structure.
One of the fundamental tools for any effort to establish an organizational structure is departmentalization.
Functional area: It is when they are organized according to the professional specialty profiles.
The Client: Organizations are structured according to the type of client, a very clear example is department stores.
The products: It is generally in companies that have a wide variety of products, these companies are organized according to the type of product, a very common example of this type of departmentalization is grocery stores, or large commercial supermarket chains.
Geographic location: It is according to the areas or territories where these companies carry out their operations.
The project: They have a matrix structure every time they generate projects they establish new modifications, an example of these are the construction companies that work by projects
Why is an organizational structure designed?
When a company carries out its organizational structure, it seeks to achieve the following:
Determine the different departments and areas of operation that make up the organization.
Create the hierarchical system between the different jobs and areas of responsibility.
Outline job profiles to define the tasks and responsibilities of each member of the organization.
Types of organizational structure
Linear
Above all, the linear structure is fundamentally based on levels of authority and a centralized decision system is managed. This is structured in a pyramidal way, the higher the hierarchy the positions decrease, but the number of responsibilities increases in each position.
2.
Horizontal
Whereas, in this structure there are few middle managers of authority, so the people who occupy the highest levels of authority come into direct contact with all frontline workers.
3.
Functional
In contrast, the functional system groups and orders people who occupy similar positions within the company. It is fundamentally based on the tasks that each boss and his work group have to carry out.
4. Divisional
On the other hand, the divisional system organizes workers by a specific type of product or service that is offered to the market. Each work group is responsible for the flow of tasks in that particular division.
Organizational structure consists of how work is divided and coordinated and how roles and responsibilities are assigned. It is about defining, at least, who will do the work, how, where, with what resources and who will report.
Importance of an organizational structure
The importance of an organizational structure lies mainly in the following points:
It provides an order to the company and allows it to follow a certain direction.
It allows differentiating tasks by areas or departments and assigning professionals (directors or managers) who will be responsible for each segment.
It allows workers to know where their area is located within the company and who their superiors are.
It is a vehicle to identify if it is necessary to hire more personnel for a particular area or task.
By delimiting responsibilities, it allows a manager to know what tasks correspond to another manager and thus not interfere with the work of the latter.
It allows you to identify the lines of communication that need to be established between the departments of the company, for example, financial planning and accounting.
This process of hierarchy and chain of command is undergoing changes according to the growth of the company, generally all companies are born without a defined structure, and as they grow they add members until the owner begins to divide the areas and who will be in charge about what.
Horizontal growth: they serve up to a certain limit where the collaborators require the support of others who in turn also depend on them to fulfill the plans.
Vertical growth: As the company grows and collaborators are added and more areas or departments begin to open up to a point where it does not have a correct division within the organization.
NAME: SILVIA A. MONTEZUMA 1-722-1225
