What Are the Effects of Organizational Structure?

Organizational structure is the most basic structural basis for an enterprise's process operation, department setting, and functional planning. Common organizational structure forms include centralization, decentralization, linear, and matrix. ^[1]

Organization

Organizational structure is the most basic structural basis for an enterprise's process operation, department setting, and functional planning. Common forms of organizational structure include

Organizational structure refers to the overall structure of an organization. It is in enterprise management requirements, control positioning,

The essence of the organizational structure is the arrangement of division of labor and collaboration in order to achieve the strategic goals of the enterprise. The design of the organizational structure is affected by factors such as internal and external environments, development strategies, life cycles, technical characteristics, and the quality of the organization's personnel. Environment, different periods, different missions have different organizational structure models. Therefore, as long as the strategic objectives of the enterprise can be achieved, the external competitiveness of the enterprise can be increased, and the operation efficiency of the enterprise can be improved, it is an appropriate organizational structure.

The design of the organizational structure is not arbitrary, and should be based on the necessary theoretical foundation. Here, the main starting point of the design of the organizational structure is the contingent theory of the organization. Kast & Rosenzweig (1985) discussed the contingency theory of organization-organization is composed of sub-systems, and is divided by identifiable boundaries and its environmental system. The contingency view not only explores and understands the relationship between the organization and the environment, but also analyzes the interrelationships within and among the systems to obtain the relationship model or composition of the changing factors. It emphasizes the changing characteristics of the organization, and tries to study how the organization manages under changing conditions and special circumstances. The ultimate goal of various contingency views is to propose the organizational structure design and management activities that are most suitable for specific situations.

The core problem of contingency theory is to search for "what is matching", that is, what is the "contingency variable" of organizational structure design, and how to intervene in organizational structure design. ^[4]

When optimizing the organizational structure of an enterprise, we usually divide it into three parts. Through the optimization of the organizational structure of the enterprise, the scientific and systematic management thinking mode of the enterprise is finally achieved.

First, the premise of the stability transition or existence of the organization should be stable : the current operation and production management activities should be stabilized; the organization structure should have a certain period of stability; the old organization can be smoothly transitioned to the new organization; personnel The adjustment of positions can smoothly and smoothly transition to new departments and positions; the personnel who are not adapted to the original positions can leave smoothly, and will not have a negative impact on the company due to the departure of individual personnel, and will not be taken away by individual departures Personnel, causing employees to change their minds without confidence in the company. Whether stability is available depends on whether the establishment of the department's optimization and adjustment has achieved the "three suits":

Adaptation: Whether it meets the needs of enterprise development and the basic requirements of management science. Whether the scale of the company and the market share of the company's products have an inherent need for adjustment. The general performance indicators are: Although the scale of the company has increased, and the number of employees has increased, the efficiency of the company has not increased at the same pace. Internal coordination and pushes often occur Internal coordination often requires superior leadership to coordinate. The original departments and positions could not meet the needs of the development and survival of the enterprise. The department managers and post personnel obviously felt that they did not know why they were doing it, who they were, and turned a blind eye to numbness, passiveness, or active disorder.

Timely: Whether it is time for the company to achieve better results without adjustment; whether adjustment or optimization is made at the right time; whether it is carried out with an appropriate amount of advance (relative to the management level of the enterprise, the mentality of the personnel, the quality of the personnel, etc.); Whether it will disrupt the original normal operation and production order of the enterprise for a long time due to the adjustment of the organization; whether it can help the enterprise set a new starting line in future development; whether it can promote the rapid improvement of business performance and management standards; Half step, one step or two steps "and so on.

Appropriate talents: whether there are suitable personnel or institutions to optimize and adjust; whether the talents that can be used by the company can be widely found; whether the role of existing talents can be maximized; whether the potential of existing talents is tapped. Whether it can introduce urgently needed talents, etc. In short, whether it can use human resources to the maximum and reasonable.

Second, the division of labor must be clear, which is conducive to assessment and coordination. Based on the existing foundation to improve uncoordinated organizational relationships, to prevent and avoid possible frictional relationships in the future, the performance of the optimization should be clear department functions, rights and responsibilities in place, can be evaluated and assessed, management links between departments, working procedures Coordination, the company's management system can be effectively implemented.

Third, the setting of departments and posts should be combined with training talents and providing good development space. When optimizing and adjusting departments and positions, we must not only consider existing personnel, but also comprehensively consider personnel; we must not set up a human resources department or position in order to take care of human relationships; at the same time, we must comprehensively consider the current personnel's character and corporate development needs Ability and potential, etc., on the premise of guaranteeing conduct and low-risk training value, consciously combining departments, positions and talent training, the concept of "the enterprise is a personal development platform" through specific employees in the department or Post employment is reflected.

First of all, we need to measure the current situation of the company's organizational structure. You can look at where each department of your company is located? What functions we lack, this is the starting point for us to consider the macro organization structure, which is the source of the company's strategy, macro processes and organization structure. Many companies need human resources to participate in change.

Any organizational structure should reflect the reporting relationship, and each box should be a

In the sense of management, the organizational structure is essentially a power-responsibility relationship structure. A modern and sound organization generally includes the following relationship subsystems:

Decision subsystem

The organization's leadership system and decision-making bodies at all levels and their decision makers form a decision-making subsystem. Decision-making bodies and decision makers at all levels are

Entrepreneurs need further expansion after achieving entrepreneurial success. Therefore, they must reform the traditional organizational structure and re-establish an organizational structure and management system that suits their own business development. In organizational structure and

The first is the organizational structure to undertake corporate strategy.

Different corporate strategies, different models and functions of the organizational structure, to some extent, the organizational structure of objective management;

The second is the principle of simplicity and efficiency.

Don't set up many departments, there will be more departments, there will naturally be more managers, there will be more managers, and there will be many things without them. Of course, we must also consider the reality and special circumstances of the enterprise.

Third, the organizational structure responds well to market and customer needs.

When designing the organizational structure, we must consider how to respond to the needs of the market and customers faster. The division of work within the organization is clear. At the same time, the communication and coordination of information are transmitted smoothly and in a timely manner. Try to avoid multiple departments contacting the same customer at the same time.

Fourth, the organizational structure considers the requirements of management units and internal control.

For example, listed companies must have a sound corporate governance structure, central enterprises must consider the requirements of the Guidelines for Comprehensive Risk Management of Central Enterprises, and banks must consider the Guidelines for Internal Control of Commercial Banks. ^[1]