Company Organizational Structure

Company Organizational Structure Definition of organizational structure The organizational structure of a company is an arrangement or level that contains the division of roles and duties of each individual in a company based on their position. These levels are also known as hierarchies. The company structure is usually depicted in the form of a chart or hierarchical line, with the chart at the top indicating a higher position. The chart also shows the components that make up the company. Types of Company Organizational Structure The company's organizational structure has several types that are tailored to the characteristics of the hierarchy within the company. Namely functional structures, divisional structures, matrix structures, committee structures, and work team structures. 1. Functional Structure Functional structure is a structure in which the division of labor is carried out based on management tasks, such as finance, creation, marketing, and human resources (HR). This structure is the most commonly used in corporate organizations. In a functional structure, employees with similar skills and tasks are grouped into one work unit. Functional structures are usually used by companies or organizations that are oriented towards creating a type of product or service that is not too wide in scope. 2. Divisional Structure A divisional structure is one in which groupings are based on the similarity of products, services, markets, and geographic locations. This structure is usually used in companies or organizations with a medium to large scale with a larger operating budget. Companies that use a divisional organizational structure divide their organization into smaller divisions. The biggest challenge is in the allocation of resources and distribution of company costs to each division. 3. Matrix Structure The matrix organizational structure is a combination of the functional structure and the divisional structure. Both are combined with the aim of covering their respective shortcomings. The matrix structure is usually used by large-scale companies such as multinational companies. This structure has the advantage of ease of decision making. However, the matrix organizational structure also opens up the possibility of leadership dualism due to the complexity of the structure. In addition, there may be more than one unit that has almost the same job desc, which often causes friction. 4. Committee Structure A committee structure is one in which certain tasks are done collectively by several people, including leadership tasks. This group is also known as a committee, hence the name committee structure. This structure excels in terms of decision-making through deliberation between shareholders and the board. However, it also has drawbacks in terms of operational costs, as well as the possibility of officers getting away with it when problems occur within the company. 5. Work Team Structure A work team structure is an organizational structure that is temporary and created at any time to cope with a sudden and unexpected project. This structure is fairly specialized because it usually only lasts for a certain period of time. This structure consists of workers or employees who are considered professional and able to solve the problems faced by the company. Functions and Benefits of Company Organizational Structure 1. Explain the Responsibilities of Members of the Organization or Company Each member of the company or organization has their own responsibilities and leaders who give them tasks and authority. The organizational structure of this company makes it clear to whom the member is responsible and what his responsibilities are. 2. Explaining the Position of Members of an Organization or Company The position in question is that each member has a different role from one another. The organizational structure allows members to know where they stand in a company or organization. 3. Clarify the Division of Duties of Each Position Members have positions whose levels vary from one position to another. The company's organizational structure clarifies the authority and duties of each position, and shows the flow of information delivery in an organization or company. 4. Explaining Job Descriptions or Tasks Job descriptions are needed so that members in an organization or company understand what they have to do and under whose supervision. This allows members to work more effectively and efficiently. 5. Explain the Relationship Path in the Job Between one member and another has a relationship that is explained in the company's organizational structure. This function allows members to understand the extent of their authority so that they do not exceed the duties and responsibilities of other members, and understand when they should collaborate. Examples of Positions in the Company's Organizational Structure Here are some examples of positions commonly found in company organizational structures : 1. Board of Commissioners The board of commissioners of a company oversees the directors and is responsible to the General Meeting of Shareholders (GMS). In addition, they are responsible for overseeing the actions of directors in making decisions so as not to harm the company. 2. President Director This position is the top in a company. The managing director is responsible for all company activities, including: overseeing the running of the company's organization, making policies related to the company, and making short-term and long-term plans for the company. 3. Operational Managers Operational managers represent the board of directors in their respective business areas and coordinate and supervise the company units in their areas. They are responsible for managing the company's resources and developing management and technology. 4. Marketing Manager Still at the manager level, there are marketing managers who are responsible for planning the company's promotions and marketing strategies. They are also responsible for coordinating the work of members under them related to marketing. 5. Administration and Finance The administration and finance department is responsible for compiling the company's administrative matters, supervising the administration and administration, and recording all financial transactions in the company's journal and ledger. 6. Business Division This division is responsible for making reports on marketing plans and all costs associated with them. They are also responsible for organizing, storing, and maintaining company documents related to marketing. 7. Site Manager Site managers are managers who are responsible for the field. They have the task of being an implementing unit that goes directly to the field to oversee the course of the project, as well as being accountable for the implementation of the project.