Organizational StructureDr. Amjad Idries

Structure should take care of:

• Tasks and reporting;

• Role and position;

• Accountability;

• Performance measures;

Structure should take care of:

• Procedures and rules;

• Communication;

• Control and coordination;

• Responsive for (market diversity) & (client needs)

Types of structures:

(1) Line: direct vertical relations (authority and communication, reporting)

(2) Staff: no additional level of hierarchy only advisory role (no authority)

(3) Functional: modified staff structure, line managers take orders from staff departments

discuss the role of: authority, responsibility, accountability

Line structure

Staff structure

Functional structure

Types of structures:

• Formal & informal: formal based on authority

and formal communication channels. Informal

is spontaneous based on power and informal

communications.

Matrix structures:

• Complex tasks, flexible, considerations for reporting relations with two superiors for projects management.

• Advantages: decrease overhead cost, more focusing on project, director focus on the services and manager on the staff

• Disadvantage: Dual reporting may cause conflicts, difficulty in contribution reporting, limited promotion

Matrix structure

Changing the organizational structure and strategic direction

Uniformity:

• Homogeneous,

• Standardization of things,

• Centralization of control,

• Cost saving,

• Ease of employment and interchangeability,

• Suitable for simple specialized systems

Diversity:

• Specialization,

• Decentralization,

• Uncertainty,

• Suitable for (in case of regional or product or customer or

goal diversity) variety,

• Increase the motivation and satisfaction,

• Lead to diversification,

• Better budget behavior

Centralization-Decentralization:

• Distribution of power (de-concentration): transfer authority and functions down,

• Delegation: transfer executive power to staff,• Devolution: transfer of management functions.

• Advantages of DC: cost consciousness and accountability increased,

• Disadvantage of DC: skills and capacity, politics, corruption, costly

Networks:

• Dominated or equal-partner networks, needs for networking, between different partners,

• Virtual organizations: (lack of physical structure, only communication, mobile work, boundary-less legality, flexible and responsive