Tensor structure

The tensor structure is an example of multidimensional structure. Combines functional, object-oriented and regional criteria. Sometimes regional criterion is replaced by object-oriented organizational units that help managers in carrying out their functions. An important problem in the case of this structure is the separation between the powers and responsibilities of the managers of separate dimensions of activity. This structure allows to overcome the coordination problems that occur in one-dimensional structures, managers can also use a combination of structures to benefits of each type of activity.

Advantages and disadvantages

The most important advantages and disadvantages of this structure are identical to the matrix structure of the organization, however, the functioning of the tensor structure is associated with higher costs. Communication network is much more complex. However, it is flexible and innovative solution, which creates the conditions for a comprehensive solving of complex problems.

Advantages

• multidimensional coordination,
• teamwork of equal managers
• simple way of communicating (without intermediaries),
• a fairly low degree of formalization and standardization of organizational behavior,
• short - and long-term flexibility,
• stimulation of innovative ideas,
• problem focused specialization of managers.

Disadvantages

• greater demand for qualified personnel and high demands for proper behaviour,
• problematic division of competences of managers and increased possibility of conflict,
• lack of uniformity of management,
• the need for too many compromises in the management and the related loss of time,
• high cost of implementation and operation.

See also:

• Linear structure
• Organization types
• Principles and features of organizational structure

Examples of Tensor structure

• Financial Institution: A financial institution may use a tensor structure to organize its operations. The structure may include departments for accounting, marketing, customer service, asset management, and other areas. Each department has its own goals and objectives, but works together to achieve the overall goals of the institution.
• Healthcare Organization: Healthcare organizations use tensor structures in order to coordinate the various departments and provide quality care to their patients. This structure may include departments for patient care, administrative support, finance, IT, and other areas. Each department works together to ensure patient care is optimized and that the organization is operating efficiently.
• Manufacturing Company: A manufacturing company might use a tensor structure in order to coordinate different departments and ensure production goals are met. This structure can include departments for product design, engineering, production, quality control, and other areas. Each department works together to ensure the company is producing quality products on time.
• Retail Store: A retail store may use a tensor structure to coordinate the different departments and ensure customer satisfaction. This structure may include departments for sales, marketing, customer service, inventory management, and other areas. Each department works together to ensure the store is able to meet customer demands and maximize profits.

Other approaches related to Tensor structure

One of the related approaches to the Tensor Structure is the Matrix Structure. This approach combines functional and project-based organizational criteria and helps in coordinating activities on multiple projects. Other related approaches include:

• The Holonic Structure which combines the hierarchical and network principles and helps in managing the complexity of large organizations.
• The Modular Structure which helps in breaking down the organization into smaller, independent units which can be easily managed and coordinated.
• The Market-based Structure which helps in aligning the organization with external customer demands and changes in the environment.

In summary, the Tensor Structure is one of the approaches used for organizing and managing business activities, but there are various other related approaches as well which help in coordinating activities on multiple projects and managing the complexity of large organizations.

Tensor structure — recommended articles

Functional structure — Grouping of posts — Specialization — Strategic business unit — Functional dependence — Departmentalization — Divisional structure — Transformational outsourcing — Group technology

References

• Child, J. (1972). Organizational structure, environment and performance: The role of strategic choice. sociology, 6(1), 1-22.