Organizational Functions, Structures, and Communication Strategies
Organizational Functions
Steering an organization requires developing relevant planning. It is very difficult for a company to run efficiently without elaborate planning determined in advance. The company organizes tasks performed by each department, with different levels (e.g., managers, employees). Stages of organizational functions involve considering several aspects and determining organizational levels. The functions and objectives must be clear and concrete. Each person should know whom to obey. Effective means of communication must exist in all departments. Internal-vertical communication can be ascending (bottom-up, from employees to management, to inform managers about problems) or descending (top-down, from managers to employees, to inform employees about objectives). Horizontal internal communication occurs among people in different departments (e.g., production and commercial managers), essential for the company to operate as a whole.
Major Schools of Management Thought
Classical School
The primary representative was Taylor, whose ideas form the basis of Taylorism. This school advocated for a dedicated technical office to manage worker tasks and performance-based wages to motivate employees to work faster and better. Initially, Taylorism was well-received by both entrepreneurs and workers due to mutual benefits. However, over time, it began to fail due to worker discontent and fatigue from monotonous work. Fayol emphasized the unity of command, where everyone depends on a single top authority. For Fayol, the most important role was administrative, believing all departments depended on the company’s organizational functions. Unlike Taylor, who focused solely on production, Fayol considered the entire company’s organization.
School of Human Relations
Criticism of Taylorism led to attempts to address its weaknesses, aiming to make work more human. Mayo demonstrated the importance of the human factor through experiments in a factory. Initially, workers showed increased performance with background music, but performance remained high even after the music was removed. Mayo concluded that the increase was due to improved relationships between workers and managers.
The Formal Organization
Organizations are structured by departments or organizational structures. The division of labor involves assigning tasks to workers based on their training. Departments can be divided by:
- Functions: Workers are organized based on their specialization and work capacity.
- Geographical areas: Workers are organized to serve clients better based on product destination.
- Product: Used in manufacturing companies where a group of workers focuses on a final product.
- Processes: Work is organized along the production chain.
Communication within the company involves different types of relationships:
- Linear Relationships: One person commands, and the other obeys.
- Staff Relationships: Specialists provide counseling.
- Functional Relationships: Specialists have authority and responsibility over their specialty.
Models of Organizational Structure
a) Linear or Hierarchical Model: Based on the principle that all members have a higher authority who gives orders. Advantages include ease of understanding and communication, but drawbacks include a lack of specialization among managers.
b) Functional Model: Characterized by specialists dedicated to specific tasks. Advantages include specialized expertise, but disadvantages include employees potentially receiving orders from multiple bosses.
c) Line-Staff Model: Attempts to solve the problem of multiple bosses by allowing specialists to advise various departments. However, decisions can be slow.
d) Committee Model: Decisions are shared, offering multiple perspectives but potentially leading to slow decision-making or decisions based on compromise or friendship.
e) Matrix Model: Common in industrial enterprises, offering a flexible organization but requiring coordination among all project participants.
Flowcharts
Organizational Verticals: Highlight the hierarchy of command.
Organizational Horizontals: Show the same elements, but place control units on the left.
Organizational Radials: Less common, used to create a visual impact and highlight higher management levels.
Classification According to Purpose
Organization of Information: Shows only major units.
Flowchart Analysis: Details the entire structure.
Classification by Extension
General Organizational Charts: Reflect all departments.
Detailed Organizational Charts: Focus on a particular department.
Classification by Content
Structural and Business Relationships: Show organizational relationships.
Personal: Represent only roles and positions.
Functional: Illustrate how units are composed.