ORGANIZATIONAL DESIGN OF PROJECTS

Teacher :
Luis Ferreira

Assignment # 9
Types of Organizational Structure Every Company Should Consider

Group # 3

Preparado Por:
Ceceña, Johana
Pereira, Mónica
Nuñez, Katherine
Vergara, Lourdes
Sam, Shon

December 3𝑟𝑑 , 2019

 9 Types of Organizational Structure Every Company Should Consider
Businesses require structure to grow and be profitable, otherwise you'd have people pulling
in all sorts of different directions. Planning the structure ensures there are enough human
resources with the right skills to accomplish the company's goals, and ensures that
responsibilities are clearly defined. Each person has a job description that outlines duties,
and each job occupies its own position on the company organization chart.

Organizational Structure
An organizational structure is a visual diagram of a company that describes what employees
do, whom they report to, and how decisions are made across the business. Organizational
structures can use functions, markets, products, geographies, or processes as their guide,
and cater to businesses of specific sizes and industries.

Chain of Command
Your chain of command is how tasks are delegated and work is approved. An org structure
allows you to define how many "rungs of the ladder" a particular department or business
line should have.

Span of Control
Your span of control can represent two things: who falls under a manager's, well,
management ... and which tasks fall under a department's responsibility.

Centralization
Centralization describes where decisions are ultimately made. Once you've established
your chain of command, you'll need to consider which people and departments have a say
in each decision.

Mechanistic vs. Organic Organizational Structures

Organizational structures fall on a spectrum, with "mechanistic" at one end and "organic"
at the other. Take a look at the diagram below. As you'll probably be able to tell, the
mechanistic structure represents the traditional, top-down approach to organizational
structure, whereas the organic structure represents a more collaborative, flexible approach.

Mechanistic Structure
Mechanistic structures, also called bureaucratic structures, are known for having narrow
spans of control, as well as high centralization, specialization, and formalization.

Organic Structure
Organic structures (also known as "flat" structures) are known for their wide spans of
control, decentralization, low specialization, and loose departmentalization.

Types of Organizational Structure

1. Functional Organizational Structure
2. Product-Based Divisional Structure
3. Market-Based Divisional Structure
4. Geographical Divisional Structure
5. Process-Based Structure
6. Matrix Structure
7. Circular Structure
8. Flat Structure
9. Network Structure

1. Functional Organizational Structure

One of the most common types of organizational structures, the functional structure
departmentalizes an organization based on common job functions.

2. Product-Based Divisional Structure

A divisional organizational structure is comprised of multiple, smaller functional structures
(i.e. each division within a divisional structure can have its own marketing team, its own
sales team, and so on). In this case -- a product-based divisional structure -- each division
within the organization is dedicated to a particular product line.
3. Market-Based Divisional Structure
Another variety of the divisional organizational structure is the market-based structure,
wherein the divisions of an organization are based around markets, industries, or customer
types.

4. Geographical Divisional Structure

The geographical organizational structure establishes its divisions based on -- you guessed
it -- geography. More specifically, the divisions of a geographical structure can include
territories, regions, or districts.

5. Process-Based Structure
Process-based organizational structures are designed around the end-to-end flow of
different processes, such as "Research & Development," "Customer Acquisition," and
"Order Fulfillment." Unlike a strictly functional structure, a process-based structure
considers not only the activities employees perform, but also how those different activities
interact with one another.

6. Matrix Structure
Unlike the other structures we've looked at so far, a matrix organizational structure doesn't
follow the traditional, hierarchical model. Instead, all employees (represented by the green
boxes) have dual reporting relationships. Typically, there is a functional reporting line
(shown in blue) as well as a product- based reporting line (shown in yellow).

7. Circular Structure
While it might appear drastically different from the other organizational structures
highlighted in this section, the circular structure still relies on hierarchy, with higher-level
employees occupying the inner rings of the circle and lower-level employees occupying the
outer rings.

8. Flat Structure
While a more traditional organizational structure might look more like a pyramid -- with
multiple tiers of supervisors, managers and directors between staff and leadership, the flat
structure limits the levels of management so all staff are only a few steps away from
leadership. It also might not always take the form or a pyramid, or any shape for that matter.
As we mentioned earlier, It's also a form of the "Organic Structure" we noted above.

9. Network Structure
A network structure is often created when one company works with another to share
resources -- or if your company has multiple locations with different functions and
leadership. You might also use this structure to explain your company workflows if much of
your staffing or services is outsourced to freelancers or multiple other businesses.

We think think that the best oranizational structure is functional structure Roles and tasks
do not change very much so there is little time spent learning, and accountability is clear.
Since the hierarchy is simple, employees know the one manager they are to answer to,
instead of multiple people. This streamlines communication and reduces confusion among
employees.
This is an example of an functional structure of TVN MEDIA:

CEO
Luis Mouynés

New
VP Business HR Sports Digital
VP Director de
VP and Strategy
Finance Content Operaciones Director Director
Commercia Managemer
Darinel l VP María Rolando Erika Juan C.
Muci Guerra Fernando
Espino Santiago Mitre Zúñiga Mónzon
Porcell

Operations Senior Engineering Mobile Production

Manager Manager Manager
Jorge Delgado Alejandro Arjona Miguel Carrera

Operations
Operations
Specialist
Supervisor
Shon Sam Chu
Juan Jose Garcia
Santos