Types of Organizational Structure
Entrepreneurial Structure = It is appropriate for small owner-managed organisations.
Functional Structure = The simple structure develops into a functional structure were people are organised according to the type of work they do.
Divisional Structure = The divisional structure sees the organisation divided into semi-autonomous units, based on geography, product or market.
Matrix Structure = Matrix structures are often appropriate for organisations which pursue strategies involving lots of project work. Matrix type structures maintain co-ordination by co-working across functions. This usually means some form of dual authority that can be complex and confusing and may make control more difficult.
Centralization Vs Decentralization
Centralization:
In this structure the authority of decision and power is attached to the top management.
Because of that the conflict of decisions doesn’t take place between staff.
Decentralization :
There is the delegation of authority by the top management to the middle and lower levels of management in an organisation.
Harmon’s process-strategy matrix
According to Paul Harmon a process-strategy matrix is a matrix formed by an estimate of:
- the strategic importance of a process on the horizontal axis
- the process complexity and dynamics on the vertical axis.
This matrix can be used to determine how to manage individual processes.
Process Re-Designing
Proper execution of Business Process Re-designing can be a game-changer to any business. If properly handled, business process reengineering can perform miracles on a failing or stagnating company, increasing the profits and driving growth.
Business process reengineering is the act of recreating a core business process with the goal of improving product output, quality, or reducing costs.
Typically, it involves the analysis of company workflows, finding processes that are sub-par or inefficient, and figuring out ways to get rid of them or change them.
BPR means changing the processes fundamentally.
