Organizational Structures and Design: A Comprehensive Guide

Organizational Structures

Decentralized Organizations

Flat Structure: Highly flexible, with close proximity to the director.

Multi-Local: Products are adapted to the specific needs of each market.

Transnational: The same product is offered in every market.

Centralized Organizations

Tall Structure: Characterized by control and rigidity.

Matrix Structure

Designed to avoid duplication and promote knowledge and experience sharing.

Federal Organizational Model

Authority flows from the periphery to the center.

Other Key Concepts

Innovation: Can be fostered by various organizational structures.

Standardization Skills: Crucial for professional organizations.

Divisional Structure: Products are marketed within the company.

Departments: Enhance efficiency.

Improved Hierarchy: Leads to better organization, coordination, and reduced duplication.

Work Process Standardization: Ensures coordination by regulating employee behavior through established norms, procedures, and rules. However, it limits flexibility.

Output Standardization: Focuses on achieving specific goals, leading to natural coordination.

Skills Standardization: Involves defining specific profiles for employees.

Support Staff: Provides coordination, service, and advice.

Technostructure: Responsible for planning and control.

Classic Organizational Model: Bureaucratic, highly centralized, with multiple hierarchical levels.

Federal Organizational Model: Independent companies collaborate to form a larger organization.

Diversified vs. Federal Organizations: In diversified organizations, competences are distributed by corporate direction. In federal organizations, divisions determine the competences of the corporate direction.

Chain of Command and Span of Control

Chain of Command (Hierarchy of Authority): Essential for effective organizational function.

Wide Span of Control: Implies a larger number of subordinates reporting to a single manager.

Work Process Standardization

Achieves coordination by establishing norms, procedures, and rules to regulate employee behavior. However, it can limit flexibility and innovation.

Flat Structures

Advantages include lower structural costs and increased agility.

Principle of Unit of Command

This principle is violated in matrix structures, where employees may report to multiple managers.

Committees

Can be formed for specific tasks or projects.

Staff Bodies

Centralize support functions to enhance organizational efficiency.

Decentralization

The degree of decentralization is influenced by various factors, including organizational structure and decision-making authority.

Administrative Adhocratic Organizational Model

Characterized by flexibility, adaptability, and a focus on innovation.

Intra-Organizational Networks

Involve both evolutionary and high-tolerance characteristics.

Mechanical Bureaucracy

Characterized by a strong technostructure, high formalization, work process standardization, and centralized decision-making.

Skills Standardization

Common in professional bureaucracies, where specialized skills are highly valued.

Diversified Organization

Large business groups operating on a national or international level, with diversified operations.

Clover Organization

Characterized by outsourcing specific activities to external organizations.

Network Organizational Model

The strategic cell plays a crucial role in coordinating and directing the network.

Strategy Formulation

A critical process in organizational management, involving analysis, decision-making, and implementation.