Written by Hamid Atharinejad
In principle, structure regulates the roles of individuals in determining the level of their authority and responsibilities. In fact, structure defines the way coordination, supervision, and decision-making are carried out at different levels.
Broadly defined, structure can be considered as:
1- A mechanical or hierarchical structure in which vertical communication is dominant. This type of structure is essential for the initial formation of the organization and for establishing a primary order of communication.
2- A major weakness of mechanical structures is the slow decision-making process along the hierarchy. If the organizational culture accepts the existing order within the mechanical structure, to increase the speed of internal communications, it is possible to move toward a dynamic structure in which some areas of responsibility and decision-making can be defined through horizontal communications. It should be noted that the change in communication processes between units must be done in a way that preserves the domain of responsibility within the hierarchy, and minor decisions should not be made without the knowledge of managers at different levels. To standardize this type of communication, administrative automation systems can be used, along with a well-studied legal process, to regulate access and communication between different units.
3- Depending on the type of organizational activity in delivering diverse products or services, a matrix structure can be used. In this type of structure, in addition to the organization following the duties of existing departments based on their functions, horizontal teams consisting of members from different units or departments can be formed to facilitate communication and collaboration on any type of product or service. The distribution of authority and responsibility for each team must necessarily be aligned with the decision-making authority of the department managers, and the flow of information will undoubtedly be faster through the use of automation systems.
4- In my opinion, outside the executive pyramid of the organizational structure and between the authority of the board of directors and the CEO, the existence of units such as strategic management, risk management, and internal controls can play a very decisive role in determining the temporary and permanent policies of the organization and overseeing their implementation. These units are certainly formed with the participation of managers from various executive units as well as representatives of the board of directors to ensure that decisions are made in consultation with all parts of the organization.
5- Finally, a learning structure is one that, based on the cultural maturity of the organization, has the capability for organizational components to creatively and innovatively develop new methods to improve organizational productivity, adapting appropriately to internal and external changes with sufficient knowledge.
This article briefly aims to outline the process of organizational structure formation, and naturally, each organization will have its own specific conditions based on its needs.