organizational structure

Typical ranking of organization permissions, communications, rights and responsibilities. The organization structure determines the role, the allocation of authority and responsibility, management and coordination, and the flow of information between various management layers.

The structure depends on the organization's goals and strategies. In a unified structure, the top management takes up the majority of decision-making power and strictly manages departments. In the distributed structure, decision-making authority is assigned, and independence is different depending on department and department.

Companies that sell a variety of products like Proctor & Gamble can organize their groups based on their products and organize their structure by classifying them by geographic region.

Organizational structure and organizational design are two elements for managing organizational functions. Organization structure refers to the hierarchical framework of its role and position based on the department's strategy and expresses its authority and responsibility relationship and the order of communication. Organizational design is necessary to link the organizational structure and business strategy. A powerful organizational structure based on effective organizational design is important to better manage and control company activities and resources.

Functional organizational structure is a structure consisting of activities such as coordination, supervision and task assignment. Depending on the structure of the organization, how the organization operates and how it operates is determined. The term organizational structure represents how people within an organization are grouped and reported to whom. The traditional way to organize people is by function. Common functions within an organization include production, marketing, personnel, and accounting. This special organization can improve operational efficiency and employees become experts in their field of expertise. However, the most common problem of functional organizational structure is that internal communication becomes very strict, the organization is slow and lacks flexibility. Hence, horizontal communication between functions becomes very important, not only information propagates vertically but also horizontally in the organization.

Each type of organizational structure is defined to meet the needs of various operational entities. Types of organizational structure include division of labor, function, geography, and matrix. The segment structure applies to organizations with different departments, but the geographical structure provides a hierarchy to organizations operating in multiple places, either nationally or internationally. The functional organizational structure is based on the responsibilities of each job. The matrix structure with more than two supervisor reports per job is the most complicated but may be necessary for large organizations with many locations and functional areas.