Author: Flavio San Martin · Date of publication: 24/05/24 Reading time: 4 minutes
An organizational structure effective and the alignment of employees with the goals of the business are critical to the success of a company. The organizational structure not only defines how to manage and coordinate the activities, but also facilitates communication and decision making. On the other hand, align the people with the goals and values of the business ensures a greater commitment and motivation, which is critical for optimum performance. This article explores the importance of both elements and how they influence the success of a company. Below, some key aspects to keep in mind:
1. Definition and Types of Organizational Structures
The organizational structures are systems that establish how they are divided, grouped, and coordinate tasks within an organization. There are several types of organizational structures, each with its own advantages and disadvantages. Below, some of the more well-known with their main advantages and disadvantages:
Functional Structure: It divides the company into departments based on specialized functions such as logistics, systems, human resources, sales, marketing, production and finance. Advantages: operational efficiency and specialization. Disadvantages: possible isolation of departments.
Divisional Structure: Organizes the company into divisions semi-autonomous based on products, markets or regions. Advantages: focus on results and adaptability. Disadvantages: duplication of resources and possible internal competition.
Matrix Structure: Combines features of the structures are functional, divisional, assigning employees to multidisciplinary teams. Advantages: flexibility and better use of resources. Disadvantages: complexity and potential confusion of authority.
Structure in Network: Focused on collaboration and partnership with other companies. Advantages: innovation and access to external resources. Disadvantages: dependence on external partners and potential lack of control.
Structure Flat or Horizontal: Reduces levels of the hierarchy to facilitate communication and decision making. Advantages: agility, and better communication. Disadvantages: possible lack of clarity in roles and responsibilities, and work overload by number of reports.
The choice of an organizational structure depends on a careful assessment of the internal and external factors affecting the company. The size of the company can be a determining factor: a small business will work best with a flat structure, while large companies tend to opt for divisional structures or matrix to better manage the complexity and diversity of operations.
If the company is in a phase of expansiona divisional structure may be more suitable to manage different products or regions. For companies that seek to continuous innovation, a matrix structure or network can foster collaboration and the exchange of ideas.
The industry in which the company operates can have a significant influence. For example, a manufacturing company might opt for a functional structure to maximize the efficiency of production, as a technology company might prefer a more flexible and collaborative.
Companies with a wide range of productscan take advantage of a divisional structure, allowing a more specialized and autonomous of each product line. Companies that offer personalized services may require a more flexible and adaptive, as the matrix.
The availability and use of advanced technology can facilitate the implementation of network structures, where collaboration and remote communication are essential. There is No single solution; the key is to align the organizational structure with the strategy, operating model, culture and the environment specific to the company to optimize performance and achieve business goals.
2. Importance of an Organizational Structure Adequate
Organizational structure, well-designed, provides numerous benefits. Facilitates clear communication, which is essential to avoid misunderstandings and to ensure that all members of the organization are aligned. It also optimizes the processes and use of resources, increasing operational efficiency. A suitable structure facilitates the decision making, providing a clear framework for the delegation of responsibilities. In addition, it promotes the coordination and collaboration, which are essential for the working team and the success of interface projects.
3. The Alignment of People with the Business
Align the employees with the goals of the business means that employees understand and share the goals and values of the company. This is vital to promote a high level of commitment and motivation. A strong alignment helps to create an organizational culture consistent and solid. Effective strategies to achieve this alignment include clear communication of the vision and mission of the company, the training and professional development continuous, the participation of employees in decision making, and recognition and rewards for achievements, and behaviors aligned with the objectives of the company.
4. The Clear Access to the Information
This fourth and last factor is key because, behind the definitions and good intentions, you have to ensure that the people in the organization to understand and internalize what is expected of them within the company and have the clarity of its role in the structure and operating model of the same. The employee must know with whom you interact, what their “inputs” and who, and what are their outputs and to who, and what is the impact of their work in the various processes in which it participates, knowing what indicators and targets may be affected, making it more aware of the importance of their work in the organization.
Today is the technology that allows us to build these models operating in a live environment and totally digital, in which each partner, in automatic way, he knows exactly what his role in the company according to its position, facilitating communication, coordination and monitoring of the performance itself and the organization.
Conclusion
In conclusion, both the organizational structures of well-defined as the alignment of people with the business goals are essential to the success of the business. An organizational structure that effectively facilitates the communication, efficiency, and decision making, while aligning the employees with the goals and values of the company improves the commitment, motivation and performance.
It is vital that business leaders to evaluate and adjust constantly its structures and practices, supported by the right technology for a real implementation and deployment, which allows them to consistency, alignment, and sustainability, and ensure the long-term success.
What about you, you're clearly the best organizational structure for your company and the employees know clearly the role of your position in the company?
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