What is an organizational structure?

[tanjimajuha20]

All companies , from SMEs to international superstructures and start-ups, operate around a structural organization . This varies from one to another depending on the size, the number of staff, the variety and type of activities carried out or the objectives sought. But none is an exception to the rule.


The organizational kenya phone data structure is the skeleton of a company . This means that it is the basic organization that defines all roles, responsibilities , communications, etc. It can be made up of sectors, groups, divisions , with or without hierarchy, and there is almost total freedom when it comes to determining its form. The main thing is to guarantee the efficiency of the company. Some forms are therefore more essential than others. It must be defined before the company can be launched on the market and its operation ensured. Furthermore, it is in no way definitive, and it can, or even must, be adapted in the event of a significant change in the company's ambitions. It will therefore be possible to move from a centralized structure to a decentralized one , from a hierarchical organization to a quasi-egalitarian horizontality... As long as we keep in mind the objectives of this structure, which must be efficiency, clarity and communication.

Types of Business Organization
While many forms of structures exist, the most widespread, and probably the most effective, are those organized according to domain , purpose or content .

Depending on the field
A divisional structure by business area divides the company into units (also called divisions), giving each one responsibility for a business area. Most of the time, each of these divisions will be able to operate with almost complete autonomy and will have its own funds and resources .

The company will give it general objectives to achieve, which will be important for its overall operation and aligned with its strategy. For example, a multinational can create divisions for markets on different continents or for different branches of its activities. For example, an electronics company can have a game console division, a smartphone division, a research and development division... This is a structure very suitable for very large companies . Each division is responsible for its profits and losses. For this reason, they operate in a decentralized mode, with decisions being made at each level independently of the others. They can even have their own marketing, research, HR department... As long as they follow the roadmap of the CEO or the board of directors. This type of structure allows for great specialization , as well as good responsiveness and flexibility in the face of market fluctuations. Very often, the best advances in a field are due to a division that has become an expert and whose research and development department has been efficient. On the other hand, the costs of such a structure can be high and decentralization can make coordination between divisions difficult, especially if they concern business areas or markets that have nothing to do with each other. Similarly, it is not uncommon to see conflicts of interest around the same resources or markets.

Depending on the purpose
A decision-making structure by objective brings together activities and resources around targeted objectives. This can be innovation , but also customer satisfaction , expansion or even economic growth . These are always divisions and departments, but which operate semi-autonomously, being responsible for their objectives. They generally have dedicated teams, trained in a specialty. An organizational structure by purpose improves the company's concentration towards its objective while maintaining good flexibility. It also makes it easier to empower stakeholders and managers, who are moving towards a tangible and measurable goal. The biggest drawback of this structure is the risk of creating silos. It will therefore be necessary to ensure that communication and management are optimized to avoid a separation from other divisions, at the risk of tarnishing synergy and slowing down the progress of the company as a whole.