What is Organization?

The question “what is organization?” has a variety of answers. Whether you are talking about a company, an institution, or an association, an organization is a group of people with a particular purpose. Organizations vary in structure and purpose, but a few common types exist. Here are some examples of organizational structure.

Hierarchical

A hierarchical organization is a management structure that places people in hierarchical positions. In this structure, those at the top are more powerful and command greater rewards than those in lower positions. This is because individuals on the lower levels report to those at the top. Typically, a hierarchy is structured as a pyramid or tree diagram.

While hierarchical organizations are a common type of management structure, they were not necessarily created this way. This structure was introduced in the last century. It is an effective way to direct and coordinate thousands of people spread across thousands of miles while remaining efficient and profitable. In 1900, the average citizen would have thought it was a wacky idea.

In the world of global competition, the traditional Hierarchical organization relies on rigid lines of command to deliver products and services. Because of this, it is critical to find methods for better resource management. Today, information technology allows top managers more direct control and reallocate resources.

Functional

A functional organization is a form of organizational structure that uses specialization based on role and function. The purpose of functional organizations is to create efficiency by avoiding duplication of tasks. This type of organization has many advantages over traditional hierarchical organizational structures. This style of organization can be used in any business. It is a popular choice in small and medium-sized companies and can be used in various industries.

Functions are divided into subordinate units. They have department heads who are experts in the areas of work they are responsible for. Communication flows through these department heads and up to top management. The functional manager holds power to allocate resources and ensure uniformity and quality. The functional manager is responsible for project management and will receive orders from several specialists.

Functional organizations often have unhealthy competition among departments. They may not see each other as essential and may not prioritize requests from other departments. This can lead to a lack of commitment and inefficiency. It may also lead to late project completion.

Matrix

The Matrix of the organization is a structure that integrates knowledge, information, and resources from various systems within an organization. The structure varies in terms of its structure and the types of data it contains. For example, it can include knowledge of specific processes and technologies. This structure can also include knowledge of a company’s people and procedures.

Flat

A flat organization creates fewer layers of management and more responsibility for individual employees. This structure can promote greater creativity but produce toxic office politics, bullying, and preferential treatment. Some people can abuse power without titles, seniority, access to information, or positions. This behavior can detract from innovation, productivity, and the company’s brand.

Although flat organizational structures are often easier to maintain, they can also have significant drawbacks. Because employees do not report to a single manager can quickly become confused and disenchanted. They may also find it challenging to take responsibility for decisions that have far-reaching consequences. As a result, this type of structure may not be appropriate for all large and complex organizations.

A flat organization typically comprises one or two top managers and several managers with equal authority. This is in contrast to a hierarchical organizational structure, which has multiple layers of management. A line manager, for example, may report to a senior-level manager, who reports to a director or chairperson. The director then reports to a chairperson or managing director.