Organizational Structure: Functions, Types, and How to Create One

![Organizational structure.jpg](https://clockster-blog.storage.yandexcloud.net/Organizational_structure_39fc8c5d38.jpg) Each individual or employee in a job has distinct responsibilities and tasks based on their own position. A chart that outlines the organization is what an organizational structure is. The company structure's purpose, as the name indicates, is to establish a more structured and clear organization so that job descriptions, work processes, and SOPs can function properly. Has your business, on the other hand, put this into action? If not, let's check out the Clockster review to understand more. ## What is an Organizational Structure? The previous section has provided some insight into the concept of a company's structure. However, the company’s structure is a framework that portrays the hierarchical degree or status of a person's position inside the business. The chart is meant to facilitate the operation of the company in achieving their goal. Employees might also learn about their responsibilities through this framework. As a result, confusion in job allocation may be addressed. ## The Function of Organizational Structure The organizational structure is used as the foundation for the business to carry out all activities. This chart also makes it easier to identify responsibilities and positions inside an organization or business. If further information is provided, the business structure's role will be as followed: ### Define the Role and Position of Organizational Members The company structure's fundamental goal is to define the role and place of each employee working in the company. There, the jobs or duties of each employee as well as your division/team are established. ### Understanding the Flow of Organizational Responsibilities Furthermore, once roles and responsibilities are clearly defined, the allocation of responsibility for duties becomes more explicit. The purpose of a connecting line in a company structure is to highlight who you must collaborate with and report duties to. ### Completing Tasks Effectively and Efficiently A clearly outlined flow will assist the business or organization in completing the program successfully and efficiently because there will be no need to waste time re-identifying particular tasks. ### Creates Good Internal Communication Internal communication between workers will increase as a result of clear job flow. They will recognize who they need to communicate with about job A, job B, and etc. ### Developing Company’s Organization Finally, the organizational structure's purpose is to help the organization grow. From communication clarity to job execution efficiency then, companies may observe what they have accomplished so far and this could be utilized to strengthen the organization's or company's future development. ### See also: <u>[What is HR Planning, Methods, Objectives, and Benefits](https://clockster.com/en/blog/human-resource-planning/)</u> ## Types of Organizational Structure Depending on the company's fields or the organization itself, there are plenty of types of organizational structure. These are the many forms of company structures that are frequently applied, if classified in general terms. ### Hierarchical Structure This form of hierarchical business structure is typically modeled by the placement of a corporate leader, such as the CEO, at the top of the chart. The levels are arranged in descending order. There are two types of patterns in the organizational hierarchy that define relationships: vertical and horizontal. Vertical lines represent higher or lower positions, while horizontal lines represent parallel positions. ### Functional Structure The most frequent structural type is functional. The distinguishing feature is the categorization of employees throughout the organization's many departments. As a result, everyone understands where they fit into the team. ### Circular Structure A third form of company structure, the circular structure, arose in the middle of corporate modernization. Rather than using vertical and horizontal lines to represent hierarchies and functions, the structure uses many levels of circles to represent a person's job and status. The more significant a person's position is, the higher they are in the circle. ### Matrix Structure The next type of company’s structure is a matrix structure that is used to describe the role of each individual in the group. What differs from the other types is the presence of a dotted line that represents an indirect relationship to the division manager. ## How to Create a Company Organizational Structure Now that you understand the meaning and types of organizational structure, it's time to learn how to build one. This charting may be done by anyone, but it is normally done by the company's human resources department. What are the steps involved? Simply follow the steps underneath to build the structure. 1. Prepare personal information and data that will be entered. 2. As needed, modify the company's work area and corporate structure. 3. Begin by designing a chart of the desired type. 4. Determine each individual's position based on their position. 5. Begin entering the precise data into the chart. A business's growth requires the implementation of a corporate structure. Furthermore, employees may observe how and with whom they communicate. Corporate’s structures such as those described previously could also help with the management of human resources. So those are the reviews on the definition, purpose, and kind of business’s structure. Don't forget to check out <u>[Clockster's blog](https://clockster.com/en/blog/)</u> for more information on any relevant topics. ### See also: <u>[What is Shift Work and What are the Common Types?](https://clockster.com/en/blog/shift-work/)</u>