Republic of the Philippines

Department of Education
Region X
DIVISION OF CAGAYAN DE ORO CITY
2 Raboca Drive, Suntingon, Bugo, Cagayan de Oro City
Tel. No. 8526088, bugonhs@gmail.com,

Selecting your Organization structure

Organizational structure is not overwhelming as it might seem. A book like "Reinventing
organizations" can give you a more in depth knowledge into the whole topic. 

But after that, it's really up to you to determine the type of organization you want, no book or
guide or even a blog post can do that for you. However, there are some factors to consider
when selecting the type of structure for your organization.

1. Strategy
Your organizational structure should support your business goals or otherwise it will work
against it. So if you're aiming for stability and efficiency, you might need tight control and high
degree of formalization, centralizing all the decision making process around you will give you
the degree of control needed in this case.

While if your goal is having more flexibility within the organization and fostering a culture of
innovation, you might need to go more for a horizontal structure where there is face-to-face
communication and everyone is a decision maker. In this case, you will have a loose control
and a very low degree of formalization.

2. Environment of the business

As the environment of the business has a major effect on how it operates, it will surly affect
the organizational structure in a way or another. For instance, a customer centric mentality
requires establishing a separate team that can handle customer care and clients' requests.

Also the political, economic, cultural and competitions control how organizations are formed to
some degree.

3. Organization Size
A startup structure is definitely different from an incorporation. And one mistake in the
structure of an organization can make disasters to the budget and the costs allocated to
teams. The size of the organization is not only the number of teams operating inside and
outside, it refers to the volume of the inputs and outputs to and from the system. Also the
assets of the organization and the physical capacity of the offices affects the structure of the
teams.
4.Technology
According to Joan Woodward experiment, the classifications of the technology in every
industry is different and affects the number of labor needed and hours of production. That's
why when planning for your organization structure, you need to take care of the level of
technology in which you are operating in as it affects your employees productivity.

According to the experiment conducted with over one hundred companies.

There are 3 different levels for technologies within organizations:

5. Culture
A culture of the organization is the set of values, behaviors, norms and assumptions that drive
the people inside and impacts the production and the company external relations with the
world. 

For instance, if your culture provides employees with freedom to allocate some of their
working time for innovation and side projects, your organizational structure has to allow that
by reducing the level of bureaucracy and supporting this with the regulations needed.