How do you come to create an organizational structure for your business?

Organizational structure is the structure of an organization as a whole. It is the basic element of organizing resources, building processes, conducting business, and implementing management within an enterprise under the influence of multiple factors such as management requirements, control positioning, management mode, and business characteristics. Different industries, different scales will have different organizational structure, can not be concluded from one to another.

Reproduced below is a description of the characteristics of different organizational structures. For reference.

Pyramid structure

Linear system The linear system is one of the earliest and simplest forms of organization. It is characterized by the vertical leadership of administrative units at all levels of the enterprise from top to bottom, with subordinate departments accepting instructions from only one superior, and the persons in charge at all levels being responsible for all issues of the units to which they belong. The factory does not set up another functional organization (can set up functional personnel to assist the person in charge of the work), all management functions basically by the executive in charge of the implementation of their own. The advantages of the linear system of organizational structure is: the structure is relatively simple, clear responsibility, order unity. The disadvantage is that it requires the executive in charge to be versed in a wide range of knowledge and skills and to deal with all kinds of business personally. This is more complex in the business, the enterprise scale is relatively large, all management functions are concentrated in the highest supervisor alone, obviously is difficult to handle. Therefore, the linear system is only suitable for smaller enterprises with simpler production technology, and is not suitable for enterprises with more complex production technology and business management.　Functional structure Functional system organizational structure, is the administrative units at all levels in addition to the person in charge of the head, but also the corresponding establishment of a number of functional institutions. For example, in the factory director below the establishment of functional organizations and personnel to assist the factory director to engage in functional management. This structure requires that the head of administration delegate the corresponding management duties and powers to the relevant functional bodies, and that the functional bodies are authorized to issue orders to the lower-level administrative units within the scope of their own operations. As a result, the lower-level administrative heads must accept the leadership of the higher-level functional bodies in addition to the command of the higher-level administrative heads.　Functional system has the advantage of being able to adapt to the modern industrial enterprise production technology is more complex, management work is more delicate characteristics; can give full play to the role of professional management of the functional institutions, reduce the workload of the linear leadership. But the shortcomings are also very obvious: it impedes the necessary centralized leadership and unity of command, the formation of multiple leaders; not conducive to the establishment and improvement of all levels of administrative officers and functional sections of the accountability system, in the middle of the management tend to appear in the merit of everyone to grab, there has been the phenomenon of everyone pushed; In addition, in the higher administrative leadership and functional bodies of the guidance and orders contradictory, the lower level will be at a loss, affecting the normal conduct of work, the normal conduct of work. It is easy to cause slack discipline and chaotic production and management order. Because of the obvious shortcomings of this form of organizational structure, modern enterprises generally do not use the functional system.　Linear-functional system Linear-functional system, also known as production area system, or linear staff system. It is established on the basis of the linear system and the functional system, taking the advantages of these two forms to make up for the shortcomings. At present, the vast majority of our enterprises use this form of organizational structure. This form of organizational structure is the enterprise management institutions and personnel are divided into two categories, one is the linear leadership institutions and personnel, according to the principle of unity of command at all levels of the organization to exercise the right to command; the other is the functional institutions and personnel, according to the principle of specialization, engaged in the organization of the various functions of the management work. The linear leadership bodies and personnel have a certain degree of decision-making power and command authority over their subordinates within their own areas of responsibility, and are fully responsible for the work of their own departments. Functional organizations and personnel, on the other hand, are the staff of the line commanders and cannot give orders to the direct departments, but can only provide operational guidance.　The advantages of the linear-functional system are: not only to ensure the centralization and unity of the enterprise management system, but also at all levels of the administrative head of the leadership, give full play to the role of the professional management bodies. The disadvantages are: the collaboration and cooperation between the functional departments is poor, many of the work of the functional departments should be directly to the upper leadership report for instructions to deal with, which on the one hand increased the workload of the upper leadership; on the other hand, it also results in the low efficiency of the work. In order to overcome these shortcomings, we can set up various comprehensive committees or establish various conference systems to coordinate the work of various aspects, play a role in communication, and help the senior leadership to make suggestions.　Business unit system Business unit system was firstly proposed by President Sloan of General Motors in 1924, so it has the name of "Sloan model", also called "federal decentralization", which is a kind of decentralized management system under a high degree of centralization (layer). It applies to large-scale, diverse, technologically complex large enterprises, is a large foreign joint companies used by a form of organization, in recent years, some of China's large enterprise groups or companies have introduced this form of organizational structure. Division system is a form of hierarchical management, hierarchical accounting, self-financing, that is, a company by region or by product category into a number of divisions, from product design, raw material purchases, cost accounting, product manufacturing, until the product sales, are responsible for divisions and affiliated factories, the implementation of separate accounting, independent operation, the company headquarters only retains the personnel to make decisions, budgetary control and supervision of the power, and through profit The company headquarters only retains the personnel decision-making, budget control and supervision power, and through the profit and other indicators of the division for control. Some divisions are only responsible for directing and organizing production, not responsible for purchasing and sales, the implementation of production and supply and marketing separation, but this division is being replaced by the product division. Still other divisions are organized by region.　Simulated Decentralization This is a form of structure that falls between the linear-functional and divisional systems.　Many large enterprises, such as steel and chemical companies with continuous production, are difficult to break down into several independent divisions because of the limitations of product variety or production process. And because of the large size of the enterprise, so that senior managers feel that the use of other organizational forms are not easy to manage, then the emergence of a simulation of decentralized organizational structure. The so-called simulation, that is, to simulate the independent operation of the business unit system, separate accounting, rather than a real business unit, is actually a "production unit". These production units have their own functional institutions, enjoy as much autonomy as possible, with a "simulation" of the profit and loss responsibility, the purpose is to mobilize their production and operation enthusiasm, to improve the production and management of the enterprise. It should be pointed out that the production units due to the continuity of production, it is difficult to separate them completely, in the case of continuous production of petrochemicals, for example, the "products" produced by unit A directly become the raw materials of unit B, which does not need to stop and transit. Therefore, the economic accounting between them can only be based on internal prices, not market prices, that is to say, these production units do not have their own independent external market, which is also the difference with the division.　The advantage of the simulated decentralization system, besides mobilizing the enthusiasm of each production unit, is that it solves the problem that the enterprise is too large and not easy to manage. The top management divides part of the power to the production units and reduces its own administrative affairs, thus focusing its energy on strategic issues. The disadvantages are that it is not easy to clarify tasks for the simulated production units, which causes difficulties in assessment; the leaders of the production units are not easy to understand the whole picture of the enterprise, and there are obvious defects in information communication and decision-making power.　Matrix system In terms of organizational structure, a structure that has both a vertical leadership system by function and a horizontal leadership relationship by product (project) is called a matrix organizational structure.　Matrix system of organization is to improve the linear functional system of poor horizontal links, lack of flexibility and the formation of a form of organization. It is characterized by the establishment of cross-functional departments around a specialized task on the specialized agencies, such as the formation of a specialized product (project) team to engage in new product development work, in research, design, testing, manufacturing of various different stages, by the relevant departments to send people to participate in an attempt to achieve the integration of the block, in order to coordinate the activities of the relevant departments to ensure that the task is completed. This form of organizational structure is fixed, but the staff is variable, who needs, who will come, the task can be left after completion. The project team and the person in charge are also organized and appointed on a temporary basis. Once the task is completed, the team is disbanded and the personnel return to their original units. Therefore, this organizational structure is very suitable for horizontal collaboration and research projects.　The advantages of the matrix structure are: mobile, flexible, can be organized or disbanded with the development and end of the project; because this structure is organized according to the project, the tasks are clear, the purpose is clear, and people with expertise in various areas are prepared. Therefore, in the new working group, they can communicate and integrate, and can link their work with the overall work, and contribute to overcome the difficulties and solve the problems. As the personnel drawn from various aspects have a sense of trust and honor, it makes them increase their sense of responsibility, stimulates their work enthusiasm, and facilitates the realization of the project; it also strengthens the cooperation and exchange of information between different departments, and overcomes the linear functional structure in which the The phenomenon that each department is disconnected from each other.　The shortcomings of the matrix structure is: the responsibility of the person in charge of the project is greater than the power, because the personnel to participate in the project are from different departments, affiliation is still in the original unit, just for the "war" to come, so the person in charge of the project is difficult for them to manage, there are not enough incentives and means of punishment, this personnel on the double management of the innate defects of the matrix structure; due to the project personnel from various functional departments, when the task is completed, still have to go back to the original unit, and then the project will be completed. After the completion of the task, they still have to go back to their original units, which makes them prone to temporary concepts and has a certain impact on their work.　The matrix structure is suitable for some major research projects. Enterprises can be used to complete a wide range of temporary, complex major engineering projects or management reform tasks. Especially suitable for development and experimentation-based units, such as scientific research, especially applied research units.

Flat structure

Based on Peter Sage's five disciplines, an effective organization that can recognize the environment, adapt to the environment, and then be able to act on the environment is formed through a lot of individual learning, especially team learning. It can also be said that through the cultivation of the learning atmosphere that pervades the entire organization, giving full play to the creative thinking ability of the staff to establish a kind of organic, highly flexible, flat, in line with human nature, sustainable development of the organization. Learning organization for the flattening of the cone-shaped organizational structure, the pyramid-style angles and hierarchies are gone, the boundaries of managers and managers become no longer clear, the power stratification and the weakening of hierarchical differences, so that individuals or departments to a certain extent there is a relatively free space to effectively solve the problem of communication within the enterprise, and thus the learning organization so that the enterprise in the face of changes in the market, is no longer mechanical and rigid, but "moving". Instead, it "moves". However, with the integration of the global economy and the trend of social division of labor, the flat organization will encounter more and more problems, in the continuous analysis of the problem, the problem solving process, the learning organization, "learning" the nature of the human requirements will be more and more high.

Intelligent structure

Also known as the C management model. Theoretical value of "C Management Model": Many experts and scholars who read "C Management Model" for the first time believe that the C Management Model is based on the traditional Chinese culture of Taoism, Confucianism, and Law, and integrates the modern Western business management with the wisdom of China's nationalism and traditional Chinese medicine, and its theories combined with the human body functions, and puts forward the "unity of man and nature", Its theory combines the functions of human body and puts forward the business concept and management philosophy of "the unity of heaven and man" and "the law of nature". The political value of "C Management Model": Since 2009, the global financial turmoil continues to spread, a large number of European and American enterprises have been plunged into bankruptcy and closure of the crisis, at the same time, the domestic enterprises are also more and more feel the global economic recession brought about by the stock of the cold. In this round of international economic crisis, some of our once familiar, worship of the world's leading enterprises, such as giants in the overnight collapse, in the violent shock, many domestic experts, scholars and business community have to the Western modern enterprise management model for a profound reflection. c management model research topics, will trigger the capitalism of the completely free market economy of the reflection of the existing enterprise management model, and will be the first time in the future. Management mode of reflection, and will refocus the world on the Chinese characteristics of the socialist market economy model of more thinking, which is exactly where the value of the C mode model.