Principles and features of organizational structure

Organizational structure as set of elements of an system with established connections between them, should be created according to several principles

Basic elements or organizational structure

Fig.1. Elements of the organizational structure

Elements of the system are: position, the cell, an organizational unit.

• Position - the smallest element in the organizational structure characterized by:
  • The name (referred to by the symbol for easy identification in the whole structure)
  • The tasks, powers and responsibilities,
  • A place in space
  • Equipment (in machinery, equipment, means of work and instructions)
  • Established relationships with other organizational positions
• Organizational cell - a team consisting of a human supervisor and subordinate team members, the purpose of implementing, harmonized with the objective of the organization
• Organizational unit - a collection of cells under the direction of a supervisor
• Organizational ties are the relationships that occur between elements of structure relevant to the objectives of the organization. Types of ties:
  • Hierarchical defined as the relationship of subordinate and supervisor. The essence of these ties are superior powers to determine the tasks to subordinates
  • Functional - exist between organizational units or individual employees. Express themselves in assisting and advising in the performance of tasks.
  • Technical - expressed through the mutual dependence of the members of the team, the result of the division of labour in the performance of a product or a common goal.
  • Information - determined the flow of information and involving the obligation of unilateral or mutual information.

Principles of construction of organizational structures

• The principle of expediency determines the need for a clear and explicit definition of objectives, both for the entire company, as well as for each of its sub-systems, including the individual positions.
• The principle of the division of general goal. In accordance with the principle of expediency main goal is divided into general objectives for the purposes of sub-to the point where they can be assigned to individual units. On the basis of this division is the grouping of individual positions in the cell and major organizational units, which are assigned a higher level of sub-goals. Related to this division of labor divides tasks and functions among different people or groups, with each one focusing on a specific activity or area. This allows for more efficiency and better quality of work, since each person has more expertise in the area they are working on. Examples of division of labor include assembly lines, where workers specialize in one specific job such as assembly or welding, and restaurants, where different staff members are responsible for different tasks such as cooking, serving, and cleaning.
• The principle of specialization: Organizational units should be grouped according to homogeneous tasks identified in the process of division of the overall objective. Grouping criteria can be: technological specialization (similar tasks), specialization in object (similar item of work). Specialization is a principle that divides tasks and functions among different people or groups, with each one focusing on a specific activity or area. This allows for more efficiency and better quality of work, since each person has more expertise in the area they are working on. Examples of specialization include hospitals, where different departments are responsible for different medical services, and manufacturing companies, where workers specialize in one specific job such as assembly or welding.
• The principle of the balance of tasks, allocation of powers and responsibilities specific tasks must be associated with the simultaneous granting of appropriate powers (competence). At the same time managers should apply for the position responsibility for the proper performance of duties, which corresponds to the assigned tasks and powers.
• The principle of one-man management. Efforts should be made to the hierarchical subordination of each job to a single manager. Hierarchy establishes a chain of command, with each position in the organization having authority over the positions below it. This allows for more efficient decision-making, since each person is only responsible for their own area and decisions can be made quickly by the person at the top of the hierarchy. Examples of hierarchy include the government, where the president is the highest authority, and large corporations, where the CEO is the ultimate decision-maker.
• The principle of determining the boundaries of supervision refers to the need to establish a reasonable size of the team, which can be managed by a single manager.
• It comes down to determining the optimal span of leadership and management coverage analysis for each executive position. The span of management depends on: the level of qualifications of the manager and the team, the nature of the tasks assigned to workers, the degree of organization of the system, the distribution team, the competence and the degree of independence of employees, the efficiency of the communication system
• (De-)Centralization: Centralization is a principle in which decision-making authority is concentrated at a single point within the organization. This means that only a small number of people are in charge of making decisions, and everyone else follows the instructions given by them. Examples of centralization include the military, where senior officers make all decisions, and large corporations, where the CEO and other top executives make key decisions.

Basic functions of the organizational structure

• It is a tool of management.
• Integrates system components in an integrated whole.
• Provides a relative inner balance, to prevent the destruction of the system.
• Provides spatial and temporal coordination of processes implemented in the system.
• Reduces the probabilistic nature of the system, which is a consequence of variability of its operation.
• Ties system with its environment, so exchange can be realized
• It plays an adaptive role due to the integration of the system components that control the environment and adapting them to the needs of the system.

Factors shaping organization structure

• External economic conditions of operation, features external to the organization management system, environmental conditions, demographic, political, legal, and others., The development of information technologies, the development of methods and tools for managers
• Internal: history and the creation of the organization, the size of the organization, the organization's objectives, applied technology, the social system, the company's strategy: mission, vision, strategic objectives

Advantages of Principles and features of organizational structure

The organizational structure provides a framework for the efficient operation of any organization. It is essential to define the roles and responsibilities of each employee, identify the authority of each team or department, and set up communication channels in order to ensure an effective and productive organization. Advantages of an organizational structure include:

• Efficient Hierarchy: It provides a clear chain of command, making it easier for employees to understand who makes decisions and how to reach the right person for any queries or concerns.
• Accountability: It creates individual accountability within the organization, making it easier to identify who is responsible for any issues that may arise.
• Consistency: The organizational structure helps to ensure process consistency, allowing employees to work in a unified manner and maintain quality standards.
• Flexibility: The organizational structure makes it easier to adjust processes and roles as needed. This helps organizations to stay agile and remain competitive in the market.
• Communication: The organizational structure helps to set up effective communication channels, allowing teams to collaborate more effectively and stay informed.
• Organization: It provides an overall structure that helps to organize the organization, ensuring that resources are used efficiently.

Limitations of Principles and features of organizational structure

Organizational structure should be created according to several principles, such as specialization, standardization, centralization, and decentralization. However, these principles should be applied with several limitations in mind:

• Specialization should be used in order to create an effective division of labor, but should not be taken to the extreme so as to diminish the employees' job satisfaction and productivity.
• Standardization should be used to create consistency, but should not be so rigid that it limits creativity and innovation.
• Centralization should be used to ensure control and accountability, but should not be so centralized that it prevents collaboration and communication between departments.
• Decentralization should be used to allow managers to make decisions within their own domain, but should not be so decentralized that it creates duplicated efforts and conflicting goals.

Other approaches related to Principles and features of organizational structure

Organizational structure is a system of elements with established connections between them, and its creation should be based on certain principles. Other approaches linked to organizational structure include:

• Theory of Bureaucracy: This approach focuses on the need for centralization, formalization and specialization of an organization for maximizing efficiency.
• Contingency Theory: This approach suggests that the most effective organizational structure is determined by the specific circumstances of the organization.
• Matrix Structure: This approach combines functional and divisional structures, and is used to increase the efficiency of complex organizations.
• Organic Structure: This approach is based on the idea of flexible and decentralized structures, which allow for quick adaptation to changes in the environment.

Overall, different approaches to organizational structure are based on various principles and take into account the specific needs of an organization in order to maximize efficiency and effectiveness.

Principles and features of organizational structure — recommended articles

Organizational dependence — Grouping of posts — Characteristics of bureaucracy — Departmentalization — Theory of management — Administrative management — Levels of management — Organizational structure — Specialization

References

• Miles, R. E., Snow, C. C., Meyer, A. D., & Coleman, H. J. (1978). Organizational strategy, structure, and process. Academy of management review, 3(3), 546-562.
• Pugh, D. S., & Hickson, D. J. (1976). Organizational structure in its context. London: Saxon House.
• Scott, W. R. (1995). Institutions and organizations (p. p-33). Thousand Oaks, CA: Sage.