What Is Enterprise Architecture?

The organizational structure of an enterprise is the most basic structural basis for business process operation, department setting, and functional planning. Common organizational structures include centralized, decentralized, straight, and matrix.

Enterprise organization structure

There is no fixed pattern for the design of the organizational structure of an enterprise, and it varies according to the characteristics of the company's production technology and internal and external conditions. However, the ideas and rules of organizational structure reform can still be used for reference.

Definition of enterprise organization structure

The organization chart of an enterprise is a direct reflection of the organizational structure. It is the most common type of chart that shows the relationship between employees, titles, and groups. It vividly reflects the relationship between the various organizations and positions in the organization.

The organization chart of the enterprise is a top-down, automatically-added vertical-level organizational unit, and a list of icons displayed in the form of an icon list. It graphically shows the interrelationship between the organizational units and can be directly passed through the organizational chart. View the detailed information of the organizational unit, and also view the position and personnel information associated with the organizational structure.

Enterprise organizational structure role

The division of functions can be shown.

It is known whether its powers and responsibilities are appropriate.

You can see if the person's workload is too heavy.

It can be seen whether there are unrelated personnel undertaking several loose and unrelated tasks.

It can be seen whether there are situations in which talented people are not brought into play.

It can be seen whether there are important positions for those who are not qualified for this job.

Enterprise organization structure development method

First, determine the type of organizational structure of your business.

The organizational structure types are divided into: limited company system, subsidiary system, chain system, division system, and branch system.

What is a limited company:

A limited liability company, also known as a limited company, refers to an enterprise established by shareholders that meets the requirements of the law. Shareholders are liable to the company within the limits of their capital contribution, and the company is responsible for the company's debts with all its assets. According to China's "Company Law", the number of shareholders of a limited company is 2 or more and 50 or less.

A limited liability company is the most common form of organizational structure. As shown in Figure 1, it is a schematic diagram of the organizational structure of a limited liability company.

What is the branch system :

A branch company refers to a branch that is under the jurisdiction of the company in terms of business, capital, personnel, etc. and does not have legal personality. A branch company is a branch and has no legal or economic independence. It is only a subsidiary of the head office. The branch does not have its own name, articles of association, or its own property, and assumes legal liability for the debts of the branch with the assets of the head office.

A branch is a branch under the jurisdiction of the head office, which refers to an organization established by a company outside its residence to engage in activities in its own name. According to the "Company Law", a branch company does not have the status of an enterprise legal person, and its civil liability shall be borne by the head office. Although there is a company, but it is not a company in the true sense, without its own articles of association, the company name only needs to add the word "branch" after the company name.

Branches are easy to manage and can be applied to standardized management enterprises.

What is the subsidiary system:

A subsidiary is a company in which a certain amount of shares are controlled by another company or are actually controlled and controlled by another company in accordance with an agreement. The subsidiary has the status of an independent legal person, owns its own property, its own company name, articles of association and the board of directors, and conducts business independently and assumes responsibilities. However, major decisions or major personnel arrangements involving the interests of the company must still be determined by the parent company.

The strategy of the subsidiary is generally determined by the head office, and the operating strategy can be formulated by the subsidiary.

There may be two types of subsidiaries established by the enterprise: holding subsidiaries and wholly-owned subsidiaries.

What is the group company system:

A group company refers to an enterprise whose subordinates have established one or more subsidiaries. Figure 2 shows the organizational structure of a group company.

Division of decision-making power of group companies and molecular companies:

	Group Development Strategy	Business strategy	Implementation and specific decisions
Headquarters	Make / decision	guide
Strategic Business Unit	participate	Make / decision	guide
Branch and subsidiary		participate	Decision / execution

What is the division system :

The organizational structure of the business model company

The division system refers to an organization structure that combines related research and development, procurement, production, and sales departments into a relatively independent unit based on a certain product, region or customer. Each business unit has its own independent product or market, has strong autonomy in operation and management, and implements independent accounting, which is a decentralized management structure. The business department, which has the right to operate autonomously and implements independent management and independent accounting, is a profit center controlled by the company.

There are three divisions of the division: According to the product, for example, a lot of home appliance companies have adopted the division system, which is divided into air conditioning division, refrigerator division, washing machine division, television division, etc .; Divided according to region, such as South China Division, Central China Division, North China Division; according to customers, such as channel division (for agents), retail division (for individual users).

What is the chain system:

Chain system refers to a number of companies operating similar goods or services, forming a consortium in a certain form, specializing in division of labor under the overall plan, and implementing centralized management based on the division of labor, combining independent business activities into a whole. Scale operations to achieve economies of scale. The chain system is widely used in the service industry. Well-known brands such as McDonald's and KFC have adopted the chain system.

When an enterprise actually develops an organizational chart, there may be various types of combinations. Such as division system + limited company system, division system + branch / subsidiary system, etc.

Enterprise organization structure segmentation and integration method

The organizational structure chart is not a fixed format. The key is to consider whether it meets the needs of the company's development strategy. The function of the organizational structure is to divide related work in order to achieve strategic effects. Therefore, it is necessary to develop a specific personalized organizational structure according to the specific situation of the enterprise Illustration.

Enterprises should formulate a specific, overall, and individual organizational structure chart according to specific situations (such as the division of departments and division of personnel functions), and each department must also develop a departmental, specific, and subdivided organizational chart.

After the organization chart of a single, specific and subdivided small department is completed, they are combined to form the organizational chart of the entire department. The organization chart of the center, other departments) is combined to form the organizational chart of the entire enterprise.

The organizational chart of each industry will definitely not be the same, because different industry departments are divided, department staff functions, and required personnel are different.