Organizational structures can come in different forms. There are hierarchical, self-managing, and functional structures. Depending on the task, a team may be organized in any of these ways. For instance, department store managers may meet monthly to discuss progress in cutting costs. These teams are generally held accountable for meeting departmental goals and objectives.
Functional structure
Using a functional structure to organize teams in a business environment has its advantages and disadvantages. The main advantage of this method is that it creates highly skilled specialists in specific areas. This system also enables companies to maintain low costs and increase efficiencies by grouping people with similar backgrounds into one department.
A functional structure is the most appropriate for small companies because it provides predictability and stability. However, it can become less rigid as teams expand. In contrast, a divisional structure is best for companies with many employees who are performing several different functions. In this type of organizational structure, employees report to two managers rather than one manager.
Cross-functional structure
Whether you want to create a cross-functional team or work with one in an existing environment, the most important thing is to define roles for team members and the overall goals of the team. This will help prevent duplication of efforts and ensure accountability. It is also important for team members to know that their tasks may affect the work of other team members.
The leader of the team should be able to guide discussions and hold team members accountable. He or she must also be able to influence and persuade others.
Hierarchical structure
An organizational structure is a way to organize people in a business environment. This type of structure can help teams stay focused on a common goal. It can also motivate employees to be more efficient and perform at a higher level. However, a hierarchy can also hinder the flow of information. This can slow down the decision-making process, and lead to a company losing market share.
One of the main problems with the hierarchical structure is its rigidity. Today’s marketplace demands that companies adapt quickly to the needs of customers. But this doesn’t mean that companies should be inflexible in organizational matters. Employees must be able to respond quickly to customer demands, even if the Moez Kassam Anson Funds company’s position or salaries remain the same.
Self-managing structure
Many large companies use the self-managing structure of teams to foster creativity and productivity. Zappos, for example, adopted a holacracy structure in 2012 and attributes its success to increased creative freedom. At the time, Zappos’ leadership team had struggled with a culture that was unsupportive and prone to bringing in “rock star” candidates who expected to be given large responsibility without any support.
Teams in self-managing environments need guidance from their leaders. The team may have a leader who is separate from the organization but serves as a bridge between the team and the organization. This leader empowers the team and advocates on its behalf. These leaders often struggle with finding the right balance of leadership styles. They may find that managers expect them to be more hands-on while team members may resist perceived interference.