Common Organization Structures
Managements need to seriously consider how they wish to structure the organization. Some of the critical factors that need to be considered are: - The size of the organization - Nature of the business - The objectives and the business strategy to achieve them - The organization environment
Organizational Structure
An organization is a social unit of individuals that is designed and managed to achieve collective goals. As such organizations are open systems that are greatly affected by the environment they operate in. Every organization has its own typical management structure that defines and governs the relationships between the various employees, the tasks that they perform, and the roles, responsibilities and authority provided to carry out different tasks. An organization that is well structured achieves effective coordination, as the structure delineates formal communication channels, and describes how separate actions of Individuals are linked together. Organizational structure defines the manner…
Management – The P-O-L-C Framework
The primary challenge faced by organizations and managers today is to creatively solve business problems. The principles of management are guidelines using which managers can tackle business challenges. The principles of management have been categorized into the four major functions of planning, organizing, leading, and controlling popularly known as the P-O-L-C framework. The P-O-L-C Framework Planning Defining Organization Vision & Mission Setting Goals & Objectives Strategizing Plan of Action to Achieve Goals Organizing Formulate Organizational Structure Resource Allocation Job Design Leading Leadership & Direction Motivation Coordination & Communication Controlling Process & Standards Review & Evaluation Corrective Action
Span of Control
Span of control (also referred to as Span of Management) refers to the number of employees who report to one manager. It is the number of direct reporters that a manager has and whose results he is accountable for. Span of control is critical in understanding organizational design and the group dynamics operating within an organization. Span of control may change from one department to another within the same organization. The span may be wide or narrow. A wide span of control exists when a manager has a large number of employees reporting to him. Such a structure provides more autonomy. A narrow span of control exists when the number of direct reportees that a manager has is small. Narrow spans allow managers to have more time with direct reports, and they tend to spark professional growth and advancement.
Delegation
Another important concept closely related to authority is delegation. It is the practice of turning over work-related tasks and/or authority to employees or subordinates. Without delegation, managers do all the work themselves and underutilize their workers. The ability to delegate is crucial to managerial success. Authority is said to be delegated when discretion is vested in a subordinate by a superior. Delegation is the downward transfer of authority from a manager to a subordinate. Superiors or managers cannot delegate authority they do not have, however, high they may be in the organizational hierarchy. Delegation as a process involves establishment of expected outcomes, task assignment, delegation of authority for accomplishing these tasks, and exaction of responsibility for their accomplishment. Delegation leads to empowerment, as employees have the freedom to contribute ideas and do their jobs in the best possible ways.
Chain of Command
The chain of command is an important concept to build a robust organization structure. It is the unbroken line of authority that ultimately links each individual with the top organizational position through a managerial position at each successive layer in between. It is an effective business tool to maintain order and assign accountability even in the most casual working environments. A chain of command is established so that everyone knows whom they should report to and what responsibilities are expected at their level. A chain of command enforces responsibility and accountability. It is based on the two principles of Unity of command and Scalar Principle. Unity of command states that an employee should have one and only one manager or supervisor or reporting authority to whom he is directly accountable to. This is done to ensure that the employee does not receive conflicting demands or priorities from several supervisors at once, placing him in a confused situation. However, there are exceptions to the chain of command under special circumstances for specific tasks if required. But for the most part organizations to a large extent should…
Authority
Authority is the legitimate power assigned to a manager to make decisions, issue orders, and allocate resources on behalf of the organization to achieve organizational objectives. Authority is within the framework of the organization structure and is an essential part of the manager’s job role. Authority follows a top-down hierarchy. Roles or positions at the top of the hierarchy are vested with more formal authority than are positions at the bottom. The extent and level of authority is defined by the job role of the manager. Subordinates Comply with the manager’s authority as it is a formal and legitimate right to issue orders.
Work Specialization
Also called division of labor, work specialization is the degree to which organizational tasks are divided into separate jobs. Each employee is trained to perform specific tasks related to their specialized function. Specialization is extensive, for example running a particular machine in a factory assembly line. The groups are structured based on similar skills. Activities or jobs tend to be small, but workers can perform them efficiently as they are specialized in it. In spite of the obvious benefits of specialization, many organizations are moving away from this principle as too much specialization isolates employees and narrows down their skills to perform routine tasks. Also it makes the organization people dependent. Hence organizations are creating and expanding job processes to reduce dependency on particular skills in employees and are facilitating job rotation among them.
Importance of Organizing
A comprehensive approach to organizing helps the management in many ways. Organizing aligns the various resources towards a common mission. Efficient Administration It brings together various departments by grouping similar and related jobs under a single specialization. This establishes coordination between different departments, which leads to unification of effort and harmony in work. It governs the working of the various departments by defining activities and their authority relationships in the organizational structure. It creates the mechanism for management to direct and control the various activities in the enterprise. Resource Optimization Organizing ensures effective role-job-fit for every employee in the organization. It helps in avoiding confusion and delays, as well as duplication of work and overlapping of effort.…
Importance of Organizing
Organizations are systems created to achieve common goals through people-to-people and people-to-work relationships. They are essentially social entities that are goal- directed, deliberately structured for coordinated activity systems, and is linked to the external environment. Organizations are made up of people and their relationships with one another. Managers deliberately structure and coordinate organizational resources to achieve the organization’s purpose. Each organization has its own external and internal environments that define the nature of the relationships according to its specific needs. Organizing is the function that managers undertake to design, structure, and arrange the components of an organization’s internal environment to facilitate attainment of organizational goals. Organizing creates the framework needed to reach a company's objectives and goals. Organizing is the process of defining and grouping activities, and establishing authority relationships among them to attain organizational objectives.
