The Guide to Organisational Structures outlines the types of organisational structure that could be used in organisation design and their advantages and disadvantages.
It focuses specifically on the matrix structure and critical success factors and alternatives for this structure.
The guide should be used in the high-level design phase of organisation design when potential structures are being considered. The Guide to Organisational Structures will help you to consider and understand the implications of the structures you choose to include in your designs, assisting you to create design options that make sense for the organisation.
This guide is included as an appendix as part of the Organization Design Toolkit.
The Guide to Organizational Structures dives deep into various structural frameworks, including functional and process-based structures. It highlights key features, appropriateness, advantages, and limitations of each structure, providing a comprehensive understanding of their practical applications. The guide also explores matrix structures, detailing functional, geographic, and project matrices, and their role in addressing multiple business dimensions.
Functional structures are ideal for organizations with stable markets and well-understood customer requirements. They drive accountability and control by function, leveraging economies of scale and functional expertise. However, they can become rigid, leading to interdepartmental conflicts and limited communication between divisions.
Process-based structures focus on breaking value chains into distinct processes, promoting efficiency and reducing working capital. They support efficient process development and strong accountability by process. Yet, they may drive competition for resources and misalignment of processes across divisions. This guide is essential for executives seeking to optimize organizational design for operational excellence.
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Source: Best Practices in Organizational Structure PowerPoint Slides: Guide to Organizational Structures PowerPoint (PPTX) Presentation Slide Deck, Corporate Finance 101
This PPT slide outlines 7 critical success factors essential for effectively implementing matrix structures within organizations. It emphasizes the importance of clarity in processes and governance, highlighting the need for well-defined operating procedures that are understood across the organization. This clarity aids in establishing a clear chain of command, which is vital for decision-making and operational efficiency.
Roles and responsibilities are also a focal point. Clearly defined roles help prevent confusion and overlap, particularly in environments with multiple reporting lines. The slide suggests utilizing the RACI Tool from the Organisation Design Toolkit to delineate these roles effectively.
Organizational goals must align across different parts of the matrix. This alignment ensures that all segments work collectively towards overarching business performance objectives. The slide stresses that good information systems and access to technology are crucial for timely decision-making. Poor infrastructure can hinder this process, leading to delays and inefficiencies.
Communication and support are highlighted as critical elements. Managers sharing direct reports need to maintain formal liaisons to foster collaboration. A culture that promotes knowledge sharing and formal communication mechanisms is essential for success.
Lastly, the slide discusses the importance of reporting relationships and budget flows. Clear definitions in these areas help avoid bureaucratic hurdles and ensure that management roles are well understood. The right balance between budget management and operational roles is necessary to minimize distractions and enhance focus on strategic goals. Overall, these factors collectively contribute to the successful application of matrix structures in organizations.
Organizational Structure Organizational Design Project Management Consulting Frameworks Matrix Organization Decision Making Procurement Strategy Gap Analysis Core Competencies Business Model Innovation PowerPoint Diagrams Compilation Strategy Deployment & Execution Strategy Development
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