Relationship between organizational structure and process management

relationship between organizational structure and process management

Understanding how organizational design, structure and charts are related is a product or service to market, or manage a project through its entire lifecycle. Can we use our understanding of processes to improve organization design? we get a clear connection between process work and organization structure. head of administration, facilities managers reporting to a head of facilities and print. Keywords: Business Process Management (BPM); organization; exact mechanisms of the relationship between culture and BPM have to date been . surface level, are visible structures and processes in an organization.

These terms have come about because the shop floor workers often wear blue uniforms whereas the executives and the engineers often wear white shirts. Having said that, it must be noted that this is not always the case and since the terms have been in use throughout the history of organizational behavior, they are used for convenience.

Manufacturing organizations also need hierarchies since they operate on a command and control mode meaning that the decisions are made at the top and percolate to the bottom instead of the knowledge organizations or the services sector wherein the employees often are more autonomous in addition to their being creative and innovative.

How to link process and organisation structure?

Turning to the relationship between organizational structure and culture, we find that in manufacturing organizations, the employees address each other with honorifics rather than on an informal or first name basis as is the case with the services sector. This creates a culture that is more formal and governed by rules and regulations covering all aspects of organizational culture.

Indeed, it is very common for manufacturing organizations to have separate canteens and lunch areas for the workers and the engineers and the executives. One rarely finds a manufacturing organization that has workers and executives mingling with each other except for business purposes.

How to link process and organisation structure? |

Fortunately there is a way of resolving this conflict. Go with the customer segment structure, but make exceptions for steps in the process where the performance improvement lower costs, for example, from economies of scale or higher quality from higher skills is significant. So put all the sales people into one function, if and only if, doing so makes sales much more effective or much lower cost. If we try to link these ideas to processes, we get a clear connection between process work and organization structure.

relationship between organizational structure and process management

The implication is that the organization should be structured so that all of the people working on a process report to one person, subject to exceptions for steps in the process where significant performance improvements can be achieved by having a different reporting relationship. So lets take a simple process and apply this rule. Because I work in a business school, I will take the example of the process of developing and delivering a teaching session on organization design to a class of students.

The process involves the following major steps - define the session objectives by course director - design the session by course director and session lecturer - develop the materials by lecturer - produce the materials by administrator - print materials by print technician - provide a class room ready for the session by facilities manager and administrator - deliver the session by lecturer - follow up and provide after class support by lecturer and administrator So there are five people involved in this process — course director, lecturer, administrator, print technician and facilities manager The rule states that all these people should form one team reporting to the course director, unless there are significant performance gains from a different reporting relationship.

As it turns out, there are significant performance gains from having different reporting relationships for all steps in the process. Hence, unless the course director is directing enough courses to keep a lecturer, an administrator, a print technician and a facilities manager fully occupied, these people are going to be working in other teams for a good portion of their time.

Relationship Between Organizational Structure, Design & Change

Companies must rethink how these cross-functional network of teams can be mapped without building fences. There must be a balance between structure and agility. Hierarchical Organizations Hierarchical organizations are typical of larger organizations where there is a distinct chain of vertical command.

One or more people may at the higher management levels with their direct reports having dozens, even hundreds, of employees reporting to them. There is generally a president or chief executive officer, followed by vice presidents, directors and managers of different functional areas. In a hierarchy, there is definite structure, ranks and even bureaucracy.

Roles, responsibilities and management levels are clear with little to no cross-team collaboration.

relationship between organizational structure and process management

Hierarchies can have many layers of management or be flatter, with only a few layers of reporting. Organizational Charts Org charts present a visual representation of the organizational structure. It is more difficult to depict cross-team collaboration, multiple and dynamic job roles, a lack of executive management, and other undefined models so prevalent in innovative, progressive companies.

Modern org chart software can bring order to the abstract. The software is purposely built to help organizations illustrate their structure, as well as communicate their design philosophy.

relationship between organizational structure and process management

Technology enables impressive functionality that older org chart tools can not match, making the org chart a valuable asset and resource to any organization. A portion of the Deloitte report focuses on how to reimagine HR and the employee experience in the digital world.

relationship between organizational structure and process management

Afterall, HR often bears the brunt of managing the org chart and all of its constant updates. By bringing together design thinking and mobile technology, companies can now develop their own custom apps to make work easier, more productive, and more enjoyable.

The Relationship between Organizational Design, Organizational Structure, and Organizational Charts

In74 percent of executives said digital HR is a top priority. What is digital HR? By removing the barrier between HR systems and employees, companies can be more transparent and employees more self-sufficient. Even better, this sharing of information reflects the new design philosophy and organizational structure the company espouses.

  • Relationship Between Organizational Structure, Design & Change

HR no longer owns the information. Employees take ownership by performing many typically HR-driven functions themselves from their mobile device using these customized apps like org chart software. This new digital capability helps employees form the teams they need to best execute a project because they have better access to the required resources.

Finding specific skill sets no longer requires multiple emails and questions. These profiles are critical in finding the needed resources, but also in understanding the mix of talent under the corporate roof. Resource gaps are easily identified and because the employee profiles include detailed experience, it is easy to determine if the skill set exists internally or headcount needs to be added.

Leveraging the full potential of every employee not only helps the company achieve greater human capital ROI, but it establishes growth opportunities the younger workforce so desires. Cross-team collaboration means a variety of skills can be utilized instead of pigeonholing each employee into a specific job function. Employees have room to grow, to work with new people, to learn from each other, and to be more fulfilled at work.

It brings employees together, giving them a platform to share personal and professional details that foster growth in career paths and relationships.

relationship between organizational structure and process management

Having the entire employee base with all of their skills presented in a single, accessible resource helps promote productivity, efficiency, and collaboration.