- a group of people who work together in a structured way to achieve a common goal.
- could be anything from a small club or association to a large corporation or government agency.
organization
Characteristics of an Organization:
- Purpose
- Structure
- Culture
- Resources
A clear and defined goal or mission.
purpose
hierarchical or network-based arrangement of roles and responsibilities
structure
shared values, beliefs, and norms that guide behavior
culture
assests, such as people, money, and equipment, used to achieve goals
resources
Seven Types of Organizational Structure
- FUNCTIONAL STRUCTURE
- DIVISIONAL STRUCTURE
- MATRIX STRUCTURE
- TEAM-BASED STRUCTURE
- NETWORK STRUCTURE
- HIERARCHICAL STRUCTURE
- FLAT ORGANIZATION STRUCTURE
groups employees into different
departments by work specialization. Each department has a designated leader highly experienced in the job functions of each employee supervised by them.
functional structure
company is divided into different business units that have complete control of their budget, resources, and strategy – essentially acting as an independent company. Each division can have its own dedicated marketing, sales, product, and IT teams
divisional structure
Walmart could separate its its internal business units by department and have separate entities that own children’s toys, clothing, electronics, food and beverage, etc.
MARKET-BASED DIVISIONAL ORG STRUCTURE
Consider Salesforce. It packages it Sales Cloud product to verticals based on sector, like Education Cloud, Nonprofit Cloud, Health Cloud, etc.
INDUSTRY-BASED DIVISIONAL ORG STRUCTURE
Enterprise companies often have a multi-product offering and divide its organization up by product line. For example, Google has entire organizations that focus only on AdSense, YouTube, YouTube TV, Google Search, Google Maps, and so forth.
PRODUCT-BASED DIVISIONAL ORG STRUCTURE
Business units are divided up by geographical regions, enabling companies to localize their efforts based on the needs, values, characteristics, and demographics of each area. This can be divided into regions (like north, west, south, midwest, etc.), a country’s states or provinces, by country, or by continent.
TERRITORY-BASED DIVISIONAL ORG STRUCTURE
- team members report to several managers at once.
- Organizations that need to balance the benefits of functional and divisional structures, like project-based companies, consulting firms, or companies involved in complex projects requiring cross-functional collaboration.
MATRIX STRUCTURE
- Creates small teams focusing on delivering one product or service – often via Scrum or tiger teams. These teams can solve problems and make decisions without bringing in third parties.
TEAM-BASED STRUCTURE
goes far beyond your internal company structure. It’s the act of joining the efforts of two or more organizations to deliver one product or service. Typically, a network organization outsources independent contractors or vendors to complete the work.
NETWORK STRUCTURE
most common type of
organizational structure. This pyramid shaped structure follows a direct chain of command from the top (the CEO) and flows down the org chart through individual teams and entry-level employees
HIERARCHIAL STRUCTURE
- Due to its simple nature, also called a “flatarchy” or a horizontal structure, is typically used by small businesses and startups.
FLAT ORGANIZATION STRUCTURE
set of interrelated components that work together to achieve a common goal. It is a complex arrangement of parts that interact to form a whole.
SYSTEM
CHARACTERISTICS OF ORGANIZATIONAL SYSTEM
Primary Task
Hierarchy of Systems
Open Systems
Equilibrium
Self Regulation
FUNCTIONS OF ORGANIZATIONAL SYSTEM
input
transformation
output
empowerment by formal job classification of an individual to make comments and act on behalf of the organization
authority
TYPES AND ROLES OF AUTHORITY
- LINE
- STAFF
- FUNCTIONAL
All authority is delegated from
owners of organization to the
board of directors to the CEO
DELEGATION ROUTES
