There are different types of organisational structure, but what is an organisational structure?
Organisational structure can be defined as the officially codified hierarchical arrangement of relationships between jobs within organisational units and relationships between units within an organisation. It includes relationships of superiority and subordination and addresses mutual authority (competencies), relationships and responsibilities.
In practice, we can encounter a variety of organisational structures, but all of them are based on four main types. There is the linear organizational structure, the functional organizational structure, the line-staff organizational structure and the matrix organizational structure. Let us now look at each of the main types of organisational structures in more depth and examine their advantages and disadvantages.
Linear organizational structure
The oldest type of corporate organisational structure, based on the consistent application of the principle of a single responsible manager.
Advantages:
Simplicity of organisational relationships
Clarity of authority and responsibility
Short chains of information links
Disadvantages:
The need for universal knowledge of management staff, which is very difficult to achieve in practice
Not suitable for larger and more complex businesses
Functional organisational structure
The basis of this structure is an arrangement where an employee has different supervisors for different areas of the organization.
Advantages:
Specialisation of functional heads
High expertise
Disadvantages:
High frequency and complexity of links between employees and departments
Violation of the principle of the single leader
Cross-competence
Absence of coordination centres
Coordination problem - an employee may receive conflicting instructions from different subordinates
Line-staff organizational structure
This type of organizational structure is currently the most common type. This structure is a combination of linear and functional structure and consists of two components:
Linear component:
It consists of line departments organised according to the principle of a single responsible manager.
Staff file:
It emerged as a response to the increasing complexity of management in the organisation. The so-called staffs are made up of experts specialised in different areas of management. The task of the staffs is to carry out activities that ensure and support the management activities of the line manager.
Advantages:
Support for teamwork
Close cooperation between managers and specialists
Diversification of responsibility
Disadvantages:
Inflexibility and low adaptability
Growing management complexity
Pressure to expand the number of specialists
The need for above-average expertise of line managers
Matrix organisational structure
It arises when the line-staff structure is supplemented by another complementary structure oriented to the solution of a specific project. In this type of organisational structure, 2 types of services are created:
Specialist functional units:
For example, research, production, purchasing, marketing
Target-oriented departments:
Research and development projects, production programmes
In the case of a matrix organisational structure, team members are subordinate to both the project leader and the project manager of the specific project.
Advantages:
Ability to build project teams operationally
Teamwork across departments
High flexibility suitable for short-term driving
Disadvantages:
Dual subordination relationships where it is not clear which supervisor is more importantOrganisationstructure in HR practice
Organisational structure in HR practice
The organisational structure is usually captured and officially codified in company directives and job descriptions. HR managers need to know the organisational structure securely and keep it up to date. The organizational structure is important for them to establish the relationships of authority, subordination, authority and responsibility of the people or positions in which people work. This is very important for people management, decision making and approval.
The traditional way that HR managers record organisational structure is by creating special charts in programs such as Microsoft Word or PowePoint. However, these charts are static and cost HR departments a lot of time to maintain.
However, there are software solutions that can create an organizational structure in graphical form automatically and without a single intervention of the HR manager. If creating and updating your organizational structure takes too much time, try Pinya HR software, which can create an organizational structure with a single click.
You can find out more about the development of the organisational structure here.
If you want to try the complete Pinya HR software, we have a demo for you. Ask to join the demo, it's free and no obligation, and try out the HR process automation, including the creation of an organizational structure.
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