What Is The Organizational Structure Of An Enterprise

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What Is The Organizational Structure Of An Enterprise
What Is The Organizational Structure Of An Enterprise

Video: What Is The Organizational Structure Of An Enterprise

Video: What Is The Organizational Structure Of An Enterprise
Video: What is organizational structure? 2024, May
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All modern enterprises basically have a different organizational structure that covers all areas of activity. It is the skeleton of any company, so you need to figure out what the organizational structure of an enterprise is.

What is the organizational structure of an enterprise
What is the organizational structure of an enterprise

Definition

They started talking about the organizational structure of the enterprise as such at the beginning of the 20th century, when there was a rapid qualitative leap in production, which required a revision of management approaches. The organizational structure of an enterprise in general is a set of rules, connections, attitudes and subordination of all levels of enterprise management, from top managers to performers. The organizational structure of the enterprise existed even before the beginning of the 20th century, otherwise large enterprises and industries would not have arisen, however, from a theoretical point of view, they began to think about it precisely in this era. Currently, there are many types of organizational structures, but the most basic are hierarchical, divisional and organic.

Hierarchical organizational structure

This is the most classic and canonical type of organizational structure possible in an enterprise. As the name implies, this structure is based on a clear hierarchy between management levels, there is a clear distribution of responsibilities and authorities and, accordingly, a clear division of labor, in relation to which the personnel policy of the enterprise is being conducted. This organizational structure is characterized by such disadvantages as poor coordination of interaction between related departments, developed bureaucracy and an impersonal attitude towards personnel. This type of organizational structure is typical of large manufacturing corporations and enterprises in Russia and the CIS countries.

The largest theorist and practitioner of creating organizational structures is Henry Ford, whose management style was adopted by many manufacturing firms of that era.

Divisional organizational structure

Due to the emergence of diversified enterprises and the expansion of the fields of activity of international corporations, by the end of the 20th century, there was an urgent need to create new types of organizational structures. One of them was the divisional organizational structure, which is characterized by the division of the areas of activity of the enterprise into subdivisions / divisions, headed by responsible managers. The division may include several thousand workers acting in a single direction. Also, divisions can be divided on a territorial basis, this is especially true for international transport companies. Such an organizational structure also has disadvantages, the biggest of which are a too branchy management system, duplication of functional responsibilities between divisions, as well as the burden of divisions to form hierarchical organizational structures within themselves.

The existing organizational structures are often mixed. Within the framework of a hierarchical structure, project departments can exist, and vice versa - an organic structure can have elements of a hierarchical one.

Organic organizational structure

This type of organizational structure arose due to the need for a quick response of the enterprise to changing market conditions, in which competition is extremely tight. There are several types of organic organizational structures: project, matrix and team. Each of these types is characterized by such features as the formation of responsible groups (project or team) on a professional basis, the division of powers within them and the responsibility of each for the final result. An organic organizational structure is typical of large IT companies, when they carry out many projects. Here professional growth and well-coordinated teamwork are encouraged, where all the work on the project can move out because of one link.

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