The structure of an organization is the foundation of its success

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

One of the definitions says that the structure of an organization is a complex of internal stable links between elements that ensure the integrity of the system and its identity to itself. These two properties give rise to the organization's characteristic behavior and qualitative state at any given moment. To put it more clearly, the structure of an organization is the principles that underlie its production activities, management, and structure. It is the structure that determines the number and role of units, their relationship, the “Table of Ranks”, and interaction models.

The structure of an organization is a combination of factors

Determine the architectonics of an enterprise or any organization by top managers, taking into account the opinions of middle and lower management. The ideal structure is one that allows the enterprise to exist on the market for a long time. This is possible only when the configuration fully meets the general task, and the enterprise successfully interacts with the environment, takes into account external andinternal factors, allows rational use of raw materials and labor of people. The structure of the organization of the enterprise can be different. Usually the device is different:

• The complexity of the configuration and the degree of separation of the process into separate functions or departments.
• The degree of formalization, i.e. predetermined conditions for the execution of rules, procedures.
• The number of levels at which decisions are made. Some businesses may be centralized, while others may be less or completely decentralized.

For the successful functioning of an enterprise, it must be remembered that the structure of an organization is a combination of three most important factors:

• Relationships between all workers.
• The powers of employees, their functional responsibilities.
• Management practices and management policies.

The structure of the organization system: types and features

Organizational structures can only be of two types:

1. The formal structure of an organization is a system strictly defined by management. It implies the official unification and division of people into departments, workshops, groups, etc. It also officially establishes the rules of interaction, working relations, type of communication.

2. An informal organization is a structure that arises independently of management. Example: a group of friends from different departments of the enterprise.

Both types are always present in anyorganizations. However, if the first is subject to strict regulations, serves exclusively to achieve the set goals, then the second is usually not associated with such goals.

The subtleties of building the structure of an organization

The structure of the organization must necessarily take into account:

• Specialization of the enterprise, division of labor.
• Differentiation and integration.
• Cooperation.
• Number of units, connection between them.
• Hierarchy.
• Rights, duties, responsibility of each employee ("herringbone" or "matryoshka").

Ultimately, it is the right arrangement of an organization that determines its competitiveness.