Dubai, United Arab Emirates, March 16, 2021 /PRNewswire/ — In this article, Mitra Ferdows writes, “Organizational structures are essentially paradigms that disclose how businesses are managed and how information is disseminated and transported between different levels of hierarchy within the environment. It is a chart or layout that depicts the logistics organization of a business, how roles, power, authority and key collective responsibilities are assigned and governed. This designed structure largely depends on its objectives and the strategy it develops in the execution of these objectives. Additionally, an organizational chart – the visual delineation of this vertical structure – should be considered before building an organization’s infrastructure. Taking utmost care when creating the organizational structure, which determines reporting relationships and flow of authority to support good communication resulting in efficient work process flow, is unquestionably crucial for any organization.”
What are the two main organizational structures?
Mitra Ferdows in his article adds: Organizational structures, both theoretically and practically, have yet to be classified according to the size of the organization, the nature of the business, the objectives and the business strategy for the achieve, and the organization’s environment. Generally, organizational structures are divided into two main classifications in the business world based on chain of command, span of control, and centralization in terms of decision-making for the organization. These two structures are called mechanistic and organic structures.
Mechanist Vs. Organic Organizational Structure
These structures span a spectrum, with a mechanism that represents the conventional top-down approach on one side and an organic structure with a more collaborative flexible approach on the other.
Mechanistic organizational structures
Known for having narrow spans of control as well as high centralization, specialization and formalization, mechanistic structures also known as bureaucratic structures are quite stubborn in what specific departments are suited and authorized to undertake for the business. Mitra Ferdows added that indeed this model is more formal in a way that holds staff accountable for their work while on the other hand the creativity, ingenuity and agility the organization needs to follow random market changes will be snuffed out. Despite this, this model has distinct advantages, such as the chain of command, which means that as a company grows, it must ensure that each individual and each team has been informed of what is expects from them. The hierarchy would then work to the business advantage by supporting growth with more people and projects to track and possibly requiring policy-making bodies. In other words, mechanistic structures are best kept on hand for as long as needed.
Organic organizational structures
Mitra Ferdows in his article continues: Organic structures also known as flat structures, on the other side of the spectrum, are known for their large spans of control, low specialization, decentralization and departmentalization of losses. This model relies on taking on projects based on their importance and what the team is capable of rather than what is expected of them or what they are designed to do. This considerably formal structure that takes a somewhat ad hoc approach to business needs can sometimes make the chain of commands, whether long or short, difficult to decipher. The organic structure, however, for a company navigating a rapidly changing industry, empowering employees to try new things and grow as professionals, in the long run, will make the workforce of the most powerful organization.
What is the best organizational structure?
According to Mitra Ferdows, it would be futile to argue about the obvious advantages of any of the structures mentioned, since finding the most suitable model for a company depends on several factors such as the industry in which the company fits, the overall size of the business as well as the business. objectives whether in terms of finances or the services it would provide to customers. She adds: “Overall, given the flexibility, start-ups would benefit more from organic structures and conventional organizations with their roots in the ground would still need more precision to stick to one structure over another. “
More specific types of organizational structure
Mitra Ferdows further points out that with most structures falling on the more traditional (mechanistic) side of the spectrum, there are more specific types of these so-called models, namely functional, product-based, the market, the geographical divisions, the processes. -based, matrix, circular, flat and network. They are simply archetypes because, in practice, hybrid structures are implemented by organizations to adopt elements of more than one structure type.
She mentions in her article that “a well-structured organization achieves effective coordination, because the structure delineates formal communication channels and describes how the distinct actions of individuals relate to each other. An organizational structure defines how roles, power, authority and responsibilities are assigned and governed, and describes how information flows between different levels of hierarchy in an organization.”
The designs of the structure and the organization are highly dependent on its objectives and the strategy it adopts
About Mitra Ferdows:
Mitra Ferdows graduated in business law from Loyola Marymount University in United States and is one of the strongest voices supporting startups. It also invests in many startups that are usually based on risky ideas and whose business models are mostly disruptive, especially in the FinTech space.
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