Organizational Structure

Posted By Travis Sokana

What is Organizational Structure?                                                                                   

Organizational structure formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company.

Organizational Structure

Every company, no mater how big or small, has some form of organizational structure. Without organizational structure companies simply wouldn't be able to function. There are many different types of organizational structures. Listed below are a few simple ones.

Product Based Structures – “activities are grouped together according to product, with each product being supported by its own functional teams of marketing, production, finance etc” (Collins).

Functional structures –“activities are grouped into departments by function – marketing, production, finance etc – which support all the firm's products” (Collins).

Tall Organizations – would have many levels of management and be a long chain of people from top to bottom. Tall organizations are similar to the military, as the organization grows the number of management levels increase thus creating a tall organizational structure.

Flat Organizations – which would be low levels of management where everyone can directly communicate with top management. Each manger covers a broad area or group. These are just a few examples of different organizational structures. Organizational structures can be anywhere in between simple and very complicated.

Some companies, like a mama and poppa shop or small business owners, can have an organizational structure as small as 1-20 people. Where as large companies can have countless number of people in their organizational structure. Starbucks is reported to have nearly 200,000 partners. Any size company can have an organizational chart. An organizational chart is a drawing that represents every job in the organization and the formal reporting relationships between those jobs. It is extremely helpful and useful especially for large companies. The structure helps a business or company operate smoothly by everyone following his or her tasks and jobs. It ensures the company reaches its end goals. Organizational structure and charts also help outsiders understand and comprehend how a business operates and goes about its business. Organizational structure is the backbone to every business, holding it together and keeping it operating efficiently. To this day companies are still trying new and innovative methods of organizational structure to try get the edge over its competitors because they know just how important a companies organizational structure is to its success.

Organizational Structures are usually implemented from the beginning of a company’s “life”. It can almost be viewed as the laws or guidelines each member of a company must follow. The structure helps everyone know his or her individual procedures but it also helps bind groups together to create a more beneficial working environment. Even though organizational structure should be developed from the beginning it does not mean it cant change and evolve. As a company grows or diminishes, your organizational structure must follow in order to keep things operating properly.

After reading and researching organizational structure I was curious to see exactly how it plays a role in my career. I have always understood the general concept that I was involved in a organizational structure, I just never knew exactly how important following it really was. Working as a lead bank teller at JPMorgan Chase Bank, I am near the bottom of the organizational structure but following my job duties is essential for the banks success. I realized no matter where you are in an organizational structure your still very important to the success of your company. In my situation many things I do are built upon at a higher level, so if I don’t set the proper “foundation” a lot of things can go wrong for people “above” me in our organizational structure. Knowing whom to report to helps keep everyone involved in his or her own responsibilities and not added responsibilities from co-workers reporting to the wrong managers or co-workers. Really thinking about it makes me realizes just how important a good organizational structure is. No matter what job I try to think of, I cannot see a situation where organizational structure isn’t the key to success. Although it may seem like a very simple and broad concept, it truly is essential for any organizations success.

Reference:

Colquitt, A. J., Lepine, A.,Wesson, J. M.. (2009). Organizational Structure, Organizational Behavior (p. 527).  Location: New York.

Encyclopedia of Management. Marilyn M. Helms, ed. 5thed. Detroit: Gale, 2006. 1004 pp.


organizational structure. (2006). In Collins Dictionary of Business. Retrieved from http://huaryu.kl.oakland.edu/login?