An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities.
The organizational structure also determines how information flows between levels within the company. For example, in a centralized structure, decisions flow from the top down, while in a decentralized structure, decision-making power is distributed among various levels of the organization. Having an organizational structure in place allows companies to remain efficient and focused.
Businesses of all shapes and sizes use organizational structures heavily. They define a specific hierarchy within an organization. A successful organizational structure defines each employee's job and how it fits within the overall system. Put simply, the organizational structure lays out who does what so the company can meet its objectives.
This structuring provides a company with a visual representation of how it is shaped and how it can best move forward in achieving its goals. Organizational structures are normally illustrated in some sort of chart or diagram like a pyramid, where the most powerful members of the organization sit at the top, while those with the least amount of power are at the bottom.
Not having a formal structure in place may prove difficult for certain organizations. For instance, employees may have difficulty knowing to whom they should report. That can lead to uncertainty as to who is responsible for what in the organization Having a structure in place can help with efficency and provide clarity for everyone at every level. That also means each and every department can be more productive, as they are likely to be more focused on energy and time.
Four types of common organizational structures are implemented in the real world. The first and most common is a functional structure. This is also referred to as a bureaucratic organizational structure and breaks up a company based on the specialization of its workforce. Most small-to-medium-sized businesses implement a functional structure. Dividing the firm into departments consisting of marketing, sales, and operations is the act of using a bureaucratic organizational structure.
The second type is common among large companies with many business units. Called the divisional or multidivisional (M-Form) structure, a company that uses this method structures its leadership team based on the products, projects, or subsidiaries they operate. A good example of this structure is Johnson & Johnson. With thousands of products and lines of business, the company structures itself so each business unit operates as its own company with its own president.
Divisions may also be designated geographically in addition to specialization. For instance, a global corporation may have a North American Division and a European Division.
Similar to divisional or functional structures, team-based organizations segregate into close-knit teams of employees that serve particular goals and functions, but where each team is a unit that contains both leaders and workers.
Flat Structure
Flatarchy, also known as a horizontal structure, is relatively newer, and is used among many startups. As the name alludes, it flattens the hierarchy and chain of command and gives its employees a lot of autonomy. Companies that use this type of structure have a high speed of implementation.
Matrix Structure
Firms can also have a matrix structure. It is also the most confusing and the least used. This structure matrixes employees across different superiors, divisions, or departments. An employee working for a matrixed company, for example, may have duties in both sales and customer service.
Circular Structure
Circular structures are hierarchical, but they are said to be circular as it places higher-level employees and managers at the center of the organization with concentric rings expanding outward, which contain lower-level employees and staff. This way of organizing is intended to encourage open communication and collaboration among the different ranks.
Network Structure
The network structure organizes contractors and third-party vendors to carry out certain key functions. It features a relatively small headquarters with geographically-dispersed satellite offices, along with key functions outsourced to other firms and consultants.
The Organizational structure of Facebook:
Facebook’s org structure is heavily influenced by the company’s corporate vision and mission statement, which are translated into the features of the structure itself.
Unlike most large organizations, Facebook uses a matrix org structure. The key characteristics of the matrix structure help to facilitate the needs of tech-orientated companies like Facebook—creativity, innovation, and the scope to expand and diversify.
Facebook’s org structure can be broken down into three different divisions:
A corporate function-based division/teams
Geographic divisions
Product divisions
Facebook maintains a range of corporate divisions and teams that manage critical business functions throughout the org structure. This is based on the needs of the business as defined by its corporate vision and mission statement.
Due to Facebook’s matrix structure, however, many of the corporate function-based teams have crossovers with the company’s geographic and product divisions. For example, the corporate marketing team will work closely with the product divisions and their own product marketing executives.
The following are examples of some of Facebook’s corporate function-based teams:
C-level executives
Operations
Finance
Marketing
Legal
Human resources
The Organizational structure of Dewa:
Business functional areas(4 types):
1) IT department: Most companies, especially those in the digital realm, rely on the IT department to ensure that their network of computers functions properly and connects well. The IT department has three major areas of concern, which include governance of the company's technological systems, maintenance of the infrastructure and functionality of the systems overall. Beyond that, professionals within the IT department work internally on computer software and hardware in many ways that allow a business to be successful.
Each member of the IT department fulfills an important role for the company. Some are responsible for multiple areas of the IT department, especially in smaller companies. In other circumstances, there may only be one IT professional within a company. Whether the IT team includes two members or 20, there always seems to be a never-ending list of tasks to be done. Most employees don't realize that the IT team is responsible for much more than fixing computer problems and helping them log back into the computer when they forget a password.
2)Human Resources: Human resources is in charge of arranging interviews, coordinating hiring efforts, and onboarding new employees. They're also in charge of making sure all paperwork involved with hiring someone is filled out and making sure that everything from the first day to each subsequent day is navigated successfully.
1. Recruit candidates
HR needs to understand the organization’s needs and make sure those needs are met when recruiting for new positions. It’s not as simple as just throwing an ad up on Indeed: you’ll need to analyze the market, consult stakeholders, and manage budgets.
Then, once the role is advertised, more research needs to be done to make sure that the right candidates are being attracted and presented. Recruiting is a massive—and costly—undertaking; the right candidate can revitalize an entire organization, but the wrong candidate can upend operations.
Human resources is in charge of arranging interviews, coordinating hiring efforts, and onboarding new employees. They’re also in charge of making sure all paperwork involved with hiring someone is filled out and making sure that everything from the first day to each subsequent day is navigated successfully.
Payroll is its own beast. Every payday must have taxes calculated and hours collected. Expenses need to be reimbursed and raises and bonuses need to be added in as well. If you think it’s a chore doing taxes just once a year, imagine what it must be like to be in HR and make sure they’re properly deducted every pay period.
This responsibility may be why HR tends to get a bad rap. When navigated inappropriately, disciplinary actions can lead to the loss of a valuable employee and can even result in litigation or a poor reputation. But when handled appropriately, disciplinary action can result in the success of an employee.
For instance, if a company notices that a particular employee is routinely late and continues being late even after the employee has received several warnings, HR could step in and investigate the reason for the tardiness. It may be an opportunity to extend benefits such as counseling to the employee or offer additional resources to help the employee learn to be on time. Instead of taking on the cost of firing and then recruiting a replacement for that employee, it could be a learning opportunity that could enhance that employee’s career.
On the other hand, sometimes disciplinary action isn’t the best course to take and an employee should be let go. The best human resources departments know when an employee isn’t the right fit for a company and would be happier somewhere else. It’s up to HR to develop a strong enough relationship with managers and employees alike to identify the cohesiveness and health of a team.
Policies need to be updated (or at least examined) every year as the organization changes. It’s HR’s job to make official updates to policies and to suggest changes to policies when they no longer serve the company or the employees. Sometimes a policy should be updated as a reaction to an occurrence. HR should always be included in and consulted with regarding these decisions.
Maintaining HR records is mandated by law. These records help employers identify skill gaps to help with the hiring process and to analyze demographic data and comply with regulations. They also contain personal details and emergency contacts for each employee.
Staying competitive is of prime importance when trying to attract the best talent. A promising recruit may choose a different company with lesser pay if the benefits are more attractive. HR should routinely investigate similar companies to see if their benefits are competitive.
3)Customer service: A Customer Service Representative is the first person most customers communicate with when they have a problem. The Customer Service Representative must handle complaints, provide appropriate solutions for customers, and follow up to resolve any issues their customers experience.
A good Customer Service Representative must have excellent communication skills since they will be speaking directly with customers. Also, they must have a strong understanding of their company’s products and services to address customer questions. They should also have a pleasant attitude to de-escalate potentially hostile customers and need to work in a fast-paced environment.
Manage large amounts of incoming phone calls, Generate sales leads, Identify and assess customers’ needs to achieve satisfaction, Build sustainable relationships and trust with customer accounts through open and interactive communication, Provide accurate, valid and complete information by using the right methods/tools, Meet personal/customer service team sales targets and call handling quotas, Handle customer complaints, provide appropriate solutions and alternatives within the time limits; follow up to ensure resolution, Keep records of customer interactions, process customer accounts and file documents, Follow communication procedures, guidelines and policies, Take the extra mile to engage customers.
4)Administration: As an administrator, you will be responsible for helping the smooth running of the business by ensuring filing and documentation are kept up to date. Duties may include using specialist computer software and understanding the requirements of the business you are working in.
The job role of an administrator involves the following duties:
Preparing, organizing and storing information in paper and digital form
Dealing with queries on the phone and by email
Greeting visitors at reception
Managing diaries, scheduling meetings and booking rooms
Arranging travel and accommodation
Arranging post and deliveries
Taking minutes at meetings
Typing up letters and reports
Updating computer records using a database
Printing and photocopying
Ordering office supplies
Maintaining office systems
Liaising with suppliers and contractors
Liaising with staff in other departments, e.g. finance, HR
Working in an office.