Team Structure Design and Management Principles
New Options for Team Structure Design
Using computers as a central instrument for coordinating the activities of a virtual organization: a small central organization that outsources its major features for most business functions.
Without Borders Organization
An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams.
Why Differ from Mechanical Model Structures?
A mechanical model structure is characterized by extensive departmentalization, high formalization, a limited information network, and centralized decision-making.
Organizational Model
A flat structure that uses functional and cross-hierarchical teams, has low formalization, has a wide network of information, and is based on participatory decision-making.
Forces that Determine Structure
1. Strategy
The organization’s structure is a means to help management achieve its goals. Since the objectives are derived from the organization’s overall strategy, it is logical that strategy and structure have a close relationship. The structure should follow the strategy.
- Innovation Strategy: A process that emphasizes the introduction of new products or services.
- Cost Minimization Strategy: A process that emphasizes the use of strict cost controls, avoiding unnecessary costs or marketing innovation, and cutting prices.
- Imitation Strategy (Diversification): A process that seeks to move into new products or markets only when their viability has been proven.
2. Organization Size
Does size have to do with structure? An organization with a large number of employees does not fit in one building (Banco Estado, SERVIU, FONASA, etc.), so they are organized in a structure containing a high degree of specialization, departmentalization, the use of a large number of procedures and regulations, etc. However, a small organization in terms of the number of employees is probably more organic.
3. Technology
Technology is how an organization transforms its inputs into outputs. Every organization has at least one technology for converting financial, human, and physical resources into products or services.
4. Environment
Those institutions or forces outside the organization that potentially affect its performance (suppliers, customers, competitors, regulations, etc.), i.e., mergers of competing companies.
Management
The implementation of plans according to organizational structure, through the guidance of the social group’s efforts through motivation, communication, and monitoring, is the task of management.
Importance of Management
Management starts all the guidelines set during planning and organization. Through it, the most desirable forms of behavior are met in members of the organizational structure. Efficient management is decisive in morale and, hence, productivity. Its quality is reflected in the achievement of objectives, the implementation of methods of organization, and the effectiveness of control systems. Through it, the necessary communication for the organization to work is established.
Management Principles
Harmony of the Goal
Management will be efficient insofar as it is directed towards achieving the overall business objectives.
Impersonal Control
Refers to authority and its exercise as a need of the organization to obtain certain results.
Direct Supervision
Refers to the support and communication that leadership must provide to their subordinates.
In the Chain of Command
It posits the importance of respecting the information channels established by the formal organization.
Conflict Resolution
This indicates the need to resolve problems that arise during administration.
Conflict Management
Conflict is a problem or obstacle that comes before the attainment of organizational goals.
Stages of Management
- Decision Making
- Motivation
- Communication
- Integration
- Command
- Supervision
- Authority
- Leadership
- Delegation
Decision Making
- Define the problem: It is necessary to fully define what the problem to be solved is and not confuse it with the cause.
- Analyze the problem: Once you’ve determined the problem, it is necessary to evaluate its components separately.
- Evaluate the alternatives: Determine the greatest number of possible alternative solutions.
- Choose between alternatives: Having evaluated the alternatives, choose the most suitable to the needs.
- Implement the decision: Implement the decision chosen, so there must be a plan for the development of the same.
Integration
The administrator chooses and provides resources to implement the decisions previously established to implement the plans. It includes human and material resources; the latter are most important for execution.