Principles of Corporate Organizational Structure in the Future
Organizational form is one big challenge for a leader. Will their organizations be lean but productive, or labor-intensive with many people, or traditional organizations with multiple functions. Company Organization Structure defines how activities such as Task Allocation, Coordination and Supervision are directed to organizational goals. Organization itself is divided into 3 structural forms namely: Functional, Divisional and Matrix . As a business organization leader, you are required to see market development and alignment of existing organizational structures. As well as technological, economic and business developments, you will be asked toable to build a better future corporate organizational structure for growth.
1. Functional Organizational Structure
Functional structures are formed so that every part of the organization is grouped according to its purpose. In this type of organization, for example, there are marketing departments, sales departments and production departments . Organizational Structure Functional company type works very well for small business. Each department can rely on the talents and knowledge of the workers and support it on its own. However, one drawback to the Functional Structure is coordination and communication between departments. Communication can be limited by organizational boundaries because it has multiple departments working separately.
2. Divisional Organizational Structure
Division Structures are typically used in large companies operating in large geographic areas or have separate small organizations within group groups to cover different types of products or market areas. For example, a division-run Automotive Company – there are small machine divisions, compressor divisions, spare parts divisions and other divisions for each geographic area that address specific needs. The benefits of such a structure are that needs can be met more quickly and more specifically; However, communication is hampered because employees in different divisions do not work together. The structure of the division is expensive because of its size and scope. Small businesses can use division structures on a smaller scale, have different offices in different cities, for example,
3. Organizational Structure Matrix
The third major type of organizational structure, called the Matrix Structure, is a mixture of Division and Functional structures. Usually used in large multinational companies, matrix structures allow the benefits of functional structures and divisions to reside within an organization. Dapak of this can create a power struggle because most areas of the company will have double management – functional managers and product or division managers work at the same level and cover several common managerial areas.
Organizations must be built Efficiently, Flexibly, Innovatively and Cares in achieving sustainable competitive advantage. The organizational structure of the company will also be a reflection for each individual how they view the organization and its environment. At present there is often Organizational Lag which poses the greatest threat to business leaders. The world has changed over the last 25 years and is a colossal statement. You must have experienced a variety of distractions – internet smartphone tablet, app, cloud self-driving car drone virtual reality, and many other lists are continuing.
Not only is the world changing, but the rate of change itself tends to increase: innovation shifts from concept to everyday life with increasing speed. As a result, people and communities often struggle to adapt, trying to adjust social structures and norms to match technological advances, such as social media, modern parenting, excessive email inbox, or tech-backed political landscape. In the early 1970s, Alvin Toffler described this dramatic change as disturbing enough and resulted in a Future Shock on others since the change in speed and impact.
What is most surprising, however, is the impact associated with the people within the organization, and on the organization itself. Speed and Dexterity is clearly a factor of business success in the 21st century, but most organizations are struggling to follow – or survive – new Technologies, Business Model Shifts, and Global Competition.
Of course, the organization’s “Transformation” initiative is all a racket today. But more often than not, many businesses focus on reorganizing the organization’s chairs rather than actually changing the Organizational Model. Even when the Strategic Movement that was sufficiently clear for the people, to everyone in harmony and move forward together in the landscape shifting ( shifting ) remains a significant task.
As a result of all this, one of the biggest threats to business success in the future is something called Organizational Lagging – Inability to adapt in a major step, with a rapidly growing external environment to stay competitive. This is basically the concept of Future Shock that is expanded into the organization. And when organizations move too slowly, they become susceptible to distractions – just think of Kodak, Blockbuster, Blackberry and others.
The causes and symptoms of Organizational Lag are very painful and are getting worse each day, including:
The average worker receives 122 emails that are abundant every day
Managers spend more than two full days in meetings each week
80% of Struggle leaders for project execution requiring cross-functional alignment
95% of employees do not understand their Business Business Strategy
70% of all Organizational Change attempts failed
Traditional organizational models, especially those based on rigid management structures and existing hierarchies of information and communication boundaries, will only exacerbate this problem. It is clear that the whole concept of “organization” is mature enough to be reinventioned . A fundamental change in How people communicate, coordinate, and collaborate needed to avoid dropping the organization and continue to innovate on products (Product), Service (Service), process (Process), Customer Experience ( Customer Experience ), Business Model and the Organization itself.
Regardless of the type of industry, companies that embrace and redesign their organizations around the following six principles will improve their ability to determine the future well before it is disturbed by changes:
Ability for teams, working groups, departments, business units, and the whole organization to form and re -form all the right Internal and External players to reach Goals, Processes and Sizes (Metrics) no matter small or large scale .
Modular Best Practices
Proliferate Work Tools, templates and Processes that can be accessed and configured quickly to start any project or initiative. Employees today need easy to Eat work modulation without having to drain their brains thinking how to do it.
Business Process Transparency, Units (Metrics), and Relevant Business Status and Workflow. Everything must be interdependent, by raising what is important at the right time.
Always-on Insight (Active Insights)
Qualitative and Quantitative Data, Analysis, and Intelligence to support rapid decision-making and alignment around “single sources”. There is no such thing as Absolute Truth, and this is why business leaders need to look at every situation and condition from different points of view.
Balance Communication is pushed out through traditional tools like e-Mail and other Information. This information is naturally incorporated into daily work. And do not feel the need extra effort to access and respond. Communication and Information need to be harmonized and balanced.
Anytime External Guidance
Access to Knowledge and Guide the most relevant global expert to improve the effectiveness of a particular Strategy, Process, or Task. Organizations need to facilitate external guidance that has a much wider and deeper view for the development of the organization.
While this principle is typically ideal, business leaders, technology providers, and researchers can explore other solutions. The solution is diseputaran success factor above for the future. As Einstein puts it, “there is no problem that can be overcome with the same level of consciousness that is underlying” . Traditional hierarchical organizations represent the consciousness of the past century. The business leader must stop rearranging the passenger seat. Future winners will adopt a new organizational model that combines Social Networking, Business Strategy, and Technology in a way that truly transforms work. The shape of the organizational structure of the company of the future will struggle with the changes very quickly and very competitive