What Are the Different Types of Organizational Leadership?

Organization types are divided into: 1 \ by number of people; 2 \ by time; 3 \ by function; 4 \ by region; 5 \ by product; 6 \ by process; 7 \ by target market; 8 \ Divided by matrix organization; 9 \ Divided by division system. The new organizational model does not spontaneously emerge from the old organizational structure in the industrialized era, but must be designed by the company as a whole, and it must consider how to help professionals create value when applying the new principles. With these principles, companies can play a greater role for managers and professionals at a lower cost.

Organization type

Right!

Organization types are divided into: 1 \ by number of people; 2 \ by time; 3 \ by function; 4 \ by region; 5 \ by product; 6 \ by process; 7 \ by

Organization types are divided into: 1 \ by number of people; 2 \ by time; 3 \ by function; 4 \ by region; 5 \ by product; 6 \ by process; 7 \ by

I. Vertical architecture is outdated

The product of the industrial era of vertical architecture can no longer adapt to the current professional workflow. Professionals should cooperate at the horizontal level within the company, but in vertical organizations, they have to search for knowledge and collaboration objects in isolated "islands", otherwise they cannot cooperate.

Today, big companies rarely focus on improving the efficiency of professionals. In fact, due to the company's vertical architecture settings and ad hoc institutions and matrices, the work is more complicated and the efficiency is reduced.

To make matters worse, there is a "second-level management" axis that traverses the vertical structure in the matrix structure. In this way, a professional may have two top bosses (such as one for sales and the other for production). Therefore, professionals must first seek instructions before carrying out horizontal collaboration. Therefore, effective cooperation between professionals can often only be carried out if managers with subordinate relationships come forward to resolve structural conflicts. Otherwise, it takes a lot of time just to coordinate different tasks and find common solutions. Other ad hoc organizations, such as "joint ventures" within the enterprise, dual heads of departments, a staggering number of action teams or study groups, etc., will further complicate the work and waste more time in coordinating internal work.

Building a new organizational model

To improve the working efficiency of professionals, the organizational structure of large companies must be significantly adjusted, not only to retain the advantages of the traditional hierarchical system, but also to recognize the more important value of talents, so that these talented and innovative people actively cooperate with colleagues, Create value through intangible assets such as brands and the internet.

In order for them to work better, companies should adjust the vertical organizational structure so that professionals in different groups have their own clearly defined tasks, such as product line managers responsible for the company's profit and non-product line managers responsible for the company's long-term strategic planning To ensure that the division of responsibilities is clear. In addition, companies should establish new types of networks and markets to facilitate interaction and coordination among professionals and help them acquire the knowledge they need.

By implementing the following four interconnected principles, the company can not only implement a new organizational structure, but also reduce the complexity of interactions within the organization and improve the quality of internal collaborative work.

1. Optimize and streamline vertical structure and product line management structure, no longer adopt failure matrix and ad hoc structure. Limiting the functions of product line managers to creating short-term benefits;

2. Deploy non-product line teams and discover new opportunities for wealth creation. Use dynamic management processes to weigh short-term and long-term interests;

3. Establish a knowledge market, talent market and permanent network within the company to better create and communicate intangible assets;

4. Rely on performance indicators rather than supervision mechanisms to best utilize the role of professionals who are conscious of their work attitude.

To our knowledge, no company has yet been able to apply all four principles. Because of this, the company cannot fully realize the potential of its employees. If the company simplifies the vertical structure, but does not promote the coordination between conscious professionals, then even if the work efficiency may be improved, it will not be able to make up for the loss of work effectiveness.

Third, play the role of dynamic management

Dynamic management forces companies to make trade-offs from the highest management level when allocating resources, rather than voluntary allocation by non-production line managers with tight budgets. This change further simplifies the duties of production line managers.

The streamlined new vertical structure clearly defines personal responsibilities. Product line managers only need to focus on the company's near-term profit goals, while other professionals can focus on achieving the company's long-term value. The advantage of this is obvious: As a manager has said, you never let a hand-to-hand person do a long-term weapon development project.

Some work will take years to launch, such as launching new products, developing new businesses, and fundamentally redesigning the company's technology platform. These tasks require specialized professionals to complete. They "groped in the jungle", and through continuous failures, attempts and corrections, they made effective new suggestions. Offline managers must consider the fierce market competition every day, so it is difficult to have the time and resources to do the job.

However, this does not mean that the company will give up cost constraints when implementing this plan. Some companies always leave a fixed piece of the budget (for example, 2% to 4% of the total expenditure) and send some of the best employees to formulate the company's long-term strategic initiatives. Each important initiative has a senior manager responsible to ensure adequate resources to support it. When the measures can be implemented, that is, when the revenue and cost forecasts are clear enough to formally enter the budget, they can enter the company's product line architecture.

Of course, at the company-wide level, the balance between spending on strategic initiatives and the company's total budget must be considered in order to manage short-term and long-term profitability. Therefore, the company must take an effective and systematic approach and make trade-offs if necessary. The so-called "dynamic management" can play a role here: comprehensive and rigorous processes, decision-making procedures, rolling budgets, and work schedule management processes, will integrate the management of relevant measures into the overall management of the company's high-level enterprises, from the top Management related initiatives. Therefore, dynamic management forces companies to make trade-offs from the highest management level when allocating resources, instead of voluntary allocation by non-production line managers with tight budgets. This change further simplifies the duties of production line managers.

Fourth, develop an organizational framework based on the internal market and network

Knowledge market

The true value of knowledge management does not mainly come from the management of knowledge, but more from the creation and exchange of knowledge. To achieve the goal of knowledge management, the key is to realize that the most valuable knowledge is in the minds of the most valuable employees of professionals.

The effective exchange of knowledge at the company level is not so much a technical issue as an organizational issue. As we have previously suggested, to facilitate the exchange of knowledge, structural barriers to communication between professionals must be removed. Large companies often have many professionals who don't know each other, and companies must encourage strangers among themselves to work together for the common good. So, what is the best way to encourage strangers to exchange valuable information? It turns out that the key is to build a market within the company.

It is especially important that companies provide incentives and support to knowledge providers so that they can create high-quality "knowledge goods." The "buyer" must be able to obtain knowledge that is deeper, more useful, easier to find, and more absorbable than other channels.

The knowledge market is a relatively new concept, so it is still rare today. To build an effective knowledge market, companies must first invest heavily to create the conditions necessary for the market.

Talent Market

An equally effective approach is to build a talent market. Through this market, employees in a department or company's talent pool can switch positions, from short-term projects to long-term operational positions. Managers who need manpower can evaluate those seeking new positions.

The company needs to formulate detailed rules for the talent market, must explain the standardization duties of the post, verify the qualifications of each candidate, and specify how managers can obtain job applicants' performance evaluations and so on. In addition, pricing (that is, job compensation), talent exchange mechanisms, agreements and standards (that is, task deadlines, task redistribution mechanisms, and the process of communicating decisions to transferred employees) are also necessary.

The internet

Social networks are often made up of people with common interests, such as similar nature of work (both engineers), similar customers (both in the automotive industry), or the same workplace (both in China). These networks can reduce communication costs and increase the value of the network to all participants.

However, social networks are also not satisfactory. For example, the coverage is relatively limited, the operating efficiency needs to be improved, and it is too dependent on the goodwill of the participants to attract sufficient investment to provide effective services for the common interests of all members.

To solve these problems, we should increase investment in the network, making the network a formal mechanism in companies. One approach is to assign network "persons" to develop common capabilities (such as investing in knowledge creation). In addition, other methods can also be used: introduction of incentives for members; division of areas (members will be confused if there is more than one social network); establishment of network protocols and standards; establishment of shared infrastructure (such as those used to support network activities) Technology platform).

Fifth, use "common responsibility" to consider performance

In this new organizational model, the last one is to reduce part of the monitoring level, to achieve self-management of employees through performance measurement standards, agreements, standards, values, and results management systems.

Of course, even as employees become more conscious, relevant responsible leaders should still play a supervisory role. But companies need inspiring leadership, not "leaving in."