An organizational structure (and in turn Organizational Structuring Qatar) is an outline or summary of any and all parts of the organization. It defines a specific hierarchy within an organization. The idea is to arrange them in the system in a way which allows an organization to achieve the objectives and to be successful. It shall be aligned with the values, vision and mission as well as the strategy.
An organizational structure (and in turn Organizational Structuring Qatar) reflects the roles and responsibilities of the people or in other words the human resources in the organization.
The most suitable organizational structure depend on internal and external factors such as the shape, size, stage, strategy, industry, culture of an organization.
An organizational structure is typically centralized or decentralized. Whereas, the military is an organization with a high level of centralization with very clear roles and responsibilities. More recently, there has been a rise in decentralized organizations. This is the case with many start-ups and scale-ups. It allows the organization to remain agile and adaptable.
The traditional forms of organizational structures (and in turn Organizational Structuring Qatar) are classified into four categories which are outlined or summarized in the following paragraphs.
A functional structure is a vertical structure and the most common form of organizational structures. It segregates the activities of an organization in line with the specialization of the people or in other words the human resources. A majority of the organizations and especially small businesses as well as small and medium enterprises in traditional lines are organized in a functional structure. The departments typically include general management, sales, operations, engineering, marketing and support with accounting and controlling. The decision-making occurs on the higher levels of an organization. A key advantage are the economies of scale (based on the synergies). A functional structure requires a specific management system in order to mitigate the risk of less cross-functional coordination and communication.
The divisional structure is also referred to as multidivisional structure. It Is a vertical type and typical for large organizations. A divisional or multidivisional structure is based on products, programs and projects as well as affiliates and subsidiaries. Further, it can be divided by market or region. A divisional or multidivisional structure is more flexible and focuses on the divisions’ core competencies. On the other hand, it may result in a loss of efficiency due to the duplication of activities by divisions. The divisions have their own functions such as procurement or research and development when they could or should work with each other.
A matrix structure is the combination of a functional structure and the divisional or multi-divisional structure. In a matrix structure, the subordinate reports to two superiors, who are responsible for the performance. Typically, a superior is responsible for a function such as sales, operations, engineering, marketing or support and the other is responsible for a product or service, program, project, market or region. A matrix structure combines the advantages of functional and divisional partnership. However, the governance and control may be more complicated in practice. It requires a high-level of collaboration and cooperation between the superiors to avoid any confusion in the chain of command. Subordinates tend to spend more time in meetings to coordinate with others. The disadvantages multiply in multidimensional structures with more than two superiors per subordinate.
The reforms in organizational structures result in alternatives such as hollow, modular, virtual, learning and others. The organizational and operational parts are more flexible. The departments and divisions are replaced by teams. The hierarchy is flat and status or rank are minimal. Everyone engages or involves in the decision-making. It utilizes the talents of team members and facilitates a fast response to changes in the external environment of an organization. On the other hand, the direction may not be clear at the times. The advantages of a strong leadership cannot by used.
There are many other considerations to develop and implement the most suitable organizational structure and to enhance efficiency and effectiveness.
These include the alignment of structure and strategy or in other words the consideration of leadership, processes, policies and procedures, operations, roles and responsibilities, expertise and experience, skills and others.
The key elements of organizational structures are job design, departmentation, delegation, span of control or the ratio of subordinates per superior and chain of command or line of authority.
The dimensions of an organizational structure include specialization, standardization, formalization, centralization or decentralization and configuration (in terms of chain of command and span of control).
The stages or phases include formation, expansion and transition with consolidation and diversification. Each of stage or phase may require an adjusted or amended organizational structure.
The other factors are related to the history of an organization, ownership and location.
An organizational structure (and in turn Organizational Structuring Qatar) is a key element in the development and implementation of your business or project. In many cases, the organizational structures are an important part of feasibility studies or business plans.
We have been part of the preparation and provision of papers, reports or studies including pre-feasibility studies, feasibility studies and business plans for manufacturers (such as plastic factories, pre-fabrication factories, pipes plants and others), real estates, agricultural businesses or projects, education institutions, medical centers and others in the State of Qatar.
We create added value and emphasize the applicability of our feasibility studies or business plans during the implementation of a business or project (apart from the sourcing of financing or funding).
Our recommendations depend on the requirements of a client or customer and the complexity of a business or project. In a majority of our cases, we propose or suggest to take it step-by-step and to assess your possibilities and to evaluate the potential of the business or project.
We recommend to consider directly and indirectly related activities such as business model development, feasibility studies and business plans, resource planning, operational structuring or policies and procedures and the best practices in the country.
It would be our pleasure to learn more about your business or project and to discuss the most suitable approach for you!
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