Thestructureconsider on one side the differentiation (division oflworkaccording to the activities

to develop) and on the otherintegration(coordinationfrom the division of labor) in order to

reach theobjectivesestablished. The structure is the formal framework through which the
tasks are divided, grouped, and coordinated. It is visualized through theorganizational chart.
Thissamplethe formal relationships ofauthority, cannals ofcommunication, departments and
formal lines ofresponsibility. Eldesignorganizational implies developing or modifying the
structure of aorganization, haand what to keep in mind:
Specialization of work.
Departmentalization.
Chain of command.
Scope ofcontrol.
Centralization anddecentralizationin decision making.
Formalization.
Four cornerstones
Organizing is aprocesspermanent management. Thestrategythe environment can be modified
organizational can change and theeffectivenessyefficiencyofthe organizationthey are not always at
level that the managers wanted. Whether they constituted a new organization, which plays with
an existing organization or one that radically changes the pattern of relationships of a
organization, managers take four basic steps when they start making decisions
to organize.
1. Divide the entire workload into tasks that can be executed, in a mannerlogicy
yesfashion, porpersonalogroups. EThis is known as the division of labor.
2. Combine tasks logically and efficiently, the grouping of employees and tasks is
is commonly known as departmentalization.
3. specify who depends on whom in the organization. This linkage of the
departments create an organizational hierarchy.
4. Establish the mechanisms to integrate the activities of the departments and in a
everything consistent and to monitor the effectiveness of that integration. This process is known
co-coordination
We can conceive these four aspects of work to organize as 'four stones'.
angles of theconstruction.
Organizational designs
Simple structure: it is not an elaborate structure, it is low in complexity, with little
formalization and with centralized authority in oneperson. Eit is a flat organization,
generally with two or three vertical levels, control width, a flexible body of
employees and where almost everyone reports to aindividualon which the authority rests to
thedecision making, the workit does not have a written division and presents
littlebehaviorfnormalized.

It can be seen frequently in small ones.businesseswhere the owner is themanager. PI was at

As the organization grows, it becomes too complex to be managed by a single person.
the environment in which this structure generally operates is simple and dynamic; simple because
they have to be understood by a single person and dynamic because it is still searching for its
niche andmarketto adapt.
Bureaucratic structure: the organization grows, develops, and the simple structure ceases to be
useful. This growth makes thestructuresbecome more specialized and increase the
number of departments that brings an increase in hierarchical levels. The spirit of
thebureaucracyIt is to establish a path and stay on it, to ensure that everything goes well.
according to plan, it means there are no surprises.
When the size or another factor favors the bureaucratic structure, some of
these options: the functional structure where theinterestis based on the efficiency of the
division of labor. The functional structure is based on thedepartmentalizationforfunctions,
that is to say, it groups by similar or related specialties. The operational cores can
made up of unqualified individuals, known as 'mechanical bureaucracies' or with
rating, called 'professional bureaucracies'.
Mechanical bureaucracies: highly specialized, routine, simple, and repetitive tasks.
that require a minimum of skill and preparation.communicationsvery formalized and
theto be able toto make decisions is very formalized. (e.g.: the productions in
it would be,organizationsbig).

Professional bureaucracy: it has an operational core of specialists who perform a job

complex that requires professionals or people with adequate training. E.g.:
Universities or Hospitals. The divisional structure is made up of units.
semi-automatic systems coupled by a central administrative structure. The divisions are created
to cater to differentmarketsand they are given control of the necessary operational functions
for that. Each one is relatively free from direct control of the center and simulates being a
independent business although it is not.
Organization byproject: it is a more advanced structure than the previous one, since the
individuals are permanently assigned toprojects, once these are finished, the
employees move on to the next project. In each project, specialists in the subject are gathered,
each one contributes their knowledge, skills, and specialties to work as a team. They are
flexible structures, adaptable to changes in the environment and thetechnology; the capture of
decisions are quick; each project has a manager in charge, responsible for ensuring that its
the team lacks nothing, to guide it and to ensure that the objectives are achieved. E.g.:
consultants.
Holdings are characterized by being formed by business units or divisions.
decentralized and independent. Each of them has its ownproducts, clients,
competitors and profit goals. The difference with the divisional structure lies in that in
these divisions are semi-autonomous, whereas in the Holdings (groups), the units
they are autonomous, they do not have centralized control from the top nor an assignment oferesources,
It is worth saying that each one survives by itself in the market. E.g.:GroupExcel.
Innovative organizations: the types of organizations discussed so far are capable
to carry out innovations, but not of high complexity, for example, the simple structure
carry outinnovationsimple; bureaucracies try to perfect thesystemswhat do they have, no
they develop new ones; the divisional organization also does not carry out a highresearchwhy
his focus is on the final results; the Holdings are groups ofcompanieswhere
each one is interested in their results, therefore, there is not much concern about
the research.
In this type of organizations, experts from different areas come together to form teams of
project. These teams must be made up of individuals with different interests,
specialties, cultures, and talents. The more diverse the group, the better.
The characteristic of this type of structure is that it works with professionals who make up a
The work team and united seek a solution to the proposed problem.
Theorganizational designit is a process, where managers make decisions, where the
members of the organization implement this strategy. The organizational design makes
that managers direct their view in two ways; inward to their organization and outward
exterior of your organization.
The knowledge of organizational design has evolved. In the beginning, theprocessesdel
organizational design revolved aroundreturnthe internal functioning of an organization. The
four cornerstones for the design of the organization --The division of labor,
departmentalization, hierarchy, and coordination have a long tradition in
thehistoryfrom the exercise of theadministration.

Size reduction
Version of the restructuring of the organization and resulting in the reduction in size of the
organization and often produces a flatter organizational structure, a way
in which organizations become thinner and more flexible structures that can
respond more swiftly to the rhythm of global markets.
In recent years, managers in many American organizations have practiced a
type of organizational design process that gives enormous importance to the conditions
from the environment of their organizations. This type of decision-making is generally known as
restructuring name. Currently, restructuring often involves a
decrease of the organization or to be more descriptive a decrease in size.
The reduction in size has meant a greatcostfor the millions of people who have
lost hisemployment. DIn fact, some employees are suing corporations.
accusing them of classist acts due to age.
Generally, the reduction in size in Nicaragua has meant a great loss for the
Nicaraguan families because every day more families in Nicaragua are left without
employment due to downsizing, this implies because in the country the archangels
economic conditions of CADacompanyare decreasing due to the country's poor stability.

This causes several residents of thenationthey choose to abandon their and their families for
search for a better future in the marketlaborintinternational for them the Nicaraguans many
sometimes they are mistreated outside their country of origin.

How to minimize the pain of downsizing

A problem faced not only by large bureaucracies but by anyone
an organization that reduces its size is like being fair to employees whose
employment is not eliminated, as many organizations consider that the reduction
size is imperative for thecompetition, andit has become the challenge
ethical of recent years.

Types of organizational structures

Theorganizational structureit refers to the way in which they are divided, grouped and
coordinates the organization's activities regarding relations between the
managers and employees, between managers and managers and employees and employees. The
departments of an organization can be formally structured into three
basic forms: byfunction, forproduct/market, or in the form ofmatrix.
Functional organization
The organization by functions brings together, in a department, not all those who are dedicated to a
activity or several related to it that are called functions.
Functional organizational chart of a manufacturing company
It is likely that the functional organization is the most logical and basic form of
departmentalization. It is primarily used by small businesses that offer a line
limited product range, because it efficiently utilizes specialized products.
Organization by product market
The organization by product/market, often referred to as divisional organization,
brings together in a work unit all those who participate in
theproductionymarketingof products, to all those who are in a certain geographical area to
everyone who deals with a certain type ofclient.
Organizational chart by product/market ofa companymanufacturer

Product division

Matrix organization
The matrix structure sometimes called"system"available command" is a product
hybrid that aims to combine the benefits of design types, at the sametimethat
aims to avoid its inconveniences. An organization with a matrix structure consists of
two types of structure at the same time. Employees have two bosses; that is, they work with
two chains of command. The second is a horizontal arrangement that changes the personnel of
various divisions or functional departments to undertake a business project,
led by a project manager or group that is an expert in the field of organization
team coordinator.

Departmentalization
It is based on the grouping of activities or of thesetsof tasks that are similar or that
They have a logical relationship to be together. It can occur at any hierarchical level of
the company. It serves to assign and group different activities through specialization of
the departments. Departmentalization occurs in large organizations.
Characteristics of departmentalization: by grouping different activities to be able to
to coordinate them, it is necessary to consider the criteria or basic interdependencies. Such
interdependencies are:
Interdependence of the workflow: the relationships between certain tasks
fromoperationsThey must reflect the natural mutual dependencies in the workflow. No
it must be truncated or altered; there should be no room for differentiation, as such alteration
can causeconflicts.
2. Interdependence of processes: theproductionof a good orservicedemandthe
carrying out various processes (production,marketing, whatMarketing). The
interdependence of processes determines that all people involved in a task
in particular, regardless of the quantity and variety of thegoodsyservices, they must
stay together.
3. Interdependence ofscale: this corresponds to economies of scale. It turns out
It is essential to form large groups in order to function efficiently.
stimulates specialization by process.
4. Social interdependencies: this criterion corresponds to social relationships.
surrounding, not to the work done.
Once the criteria for departmentalization are established, it is necessary to analyze how
carry it out. Departmentalization is related to the degree of specialization. Thus, to
larger company, greater specialization and departmentalization.
Bases of departmentalization and its subdivisions
Departmentalization based on 'internal operations' is characterized by
group by functions or processes. Use the interdependencies of processes and scale. The
it is important that all specialists or experts are together, learn from each other and
be supervised by knowledgeable people on the subject. Departmentalization
functions have the function of thefinances, administration, marketing, production This type
Departmentalization can be applied in all types of companies.

Advantages Disadvantages

Strict control in the upper part of the The executives are specialists and that is why it cannot
organization. to have a comprehensive view of the company.

High specialization that achieves great efficiency Difficulty in having to coordinate departments
in thedevelopmentof the work. different but related.

Simplify thetrainingof the workers. Difficulty adapting to changes in the environment.

The departmentalization "by process" (automotive company) groups activities

around a process or a type of equipment. It brings together the individuals and resources necessary to
each task, as each one requires a specific type of skills and special needs.
 Advantages Disadvantages

Coordination may need to go to levels

Use of specialized technology.
superiors for their resolution.

Hinders the development of general managers

Use of personnel with specific skills.
due to specialization.

The 'results-based' departmentalization is characterized by maintaining all processes.

related to the product or service under the same roof. This type of departmentalization
allows executives to develop in different areas, and to think in terms ofsuccess,
because they are interested in their department achieving positive results. But it also has its
disadvantages, the loss of specialization, duplication ofcostsyexpensesin person and
installations. Departmentalization by "geographic zone" is attractive for companies in
large scale (multinationals) or for those that carry out activities in geographically
dispersed.

Advantages Disadvantages

Assignment of responsibility for Executives with skills and training are required.
theprofitabilityby area in lower levels. or experience.

Encourages participation in decision-making The lack of executives with skills limits the
decisions. growth ofthe company.

Improves coordination and communications in one, the staff and resources are doubled in some.
zone. areas:sales, accounting, commercial.

Cost savings oftransportand deadlines of Both theplanningas control becomes more

delivery. complex

The departmentalization 'by clients' is based on thetopologyof clients. The activities are
they group around them (clothing factory forchildren).

Advantages Disadvantages

It addresses the specific needs of clients. Duplication of personnel and resources.

The client feels that there is someone watching him, Special executives with special abilities are required.
that satisfies your needs. in the area of customers.

Difficulty in coordinating departments based on

They acquire skills in the area ofconsumer.
clients.
 Easy adaptation to changes in the environment.

The specialization
It arises as a consequence of the division of labor. Specialization describes the degree in
great in that the tasks of a company are divided into independent jobs. The
specialization makes individuals skilled at a task, allowing them to perform it
better and faster. Another important issue is the training of individuals, this has
importance in relation to the use of human and monetary resources and also
it presents the possibility of finding the right people in the market.
Theeconomyof specialization: the principle of specialization indicates that it should be
investigate the potential of the profits obtained from this. It may happen that specialization
it does not generate profitability when 'human dis-economies' appear (fatigue, misalignment,
boredom, etc.). To have a high horizontal specialization it is necessary to possessresources
humansand financials. As the company grows, the need for
specialization, up to the limit indicated by profitability.
Specializations the process by which an individual, a collective or an institution focuses
in a specific activity or in a restricted intellectual field instead of encompassing the
totality of possible activities or the totality ofknowledge.sales activities or
restricted areas are called specialties. Those who have achieved a specialization
denomination specialist. The opposite of specialization are the activities or
general knowledge.

Elements to consider when creating an organizational chart

Allowing in this way aperformancemore efficient according to the position of the
hierarchy in which one finds oneself. This article will show the three basic steps
to create a business organizational chart. The first thing we need to decide is what we are going to
to want to represent. Generally, there are three types of contents in an organizational chart.
Structural content prioritizes the types of structures within a company.
Generally, it is usually divided into departments or committees that carry out the same type of
work. This content is the most used of all.
Territorial content This type ofinformationcenter the graphic scheme in the location
geographical ofactionof the company. It can be divided by countries, cities, or for example into
autonomous communities, it will all depend on the extent of thevolumebusiness.
Content related to the products In this case, the organizational chart would address the type
of products that the company offers and the specific functions assigned to each one. This
the choice will depend on what product is being sold.
Choice of the scope we want to represent
Our organizational chart can be as specific as we want it to be, so that
On one hand, a chart can be created solely with the positions of highest hierarchy and the
relationships between them. Alternatively, we can specify in detail all
the positions in which our company is listed.
Choice of presentation
Generally theorganizational chartsthey are developed according to four types of
presentationsgraphs. Within the possibilities to represent the positions of a
company one of the most used modalities is the vertical. In it, priority is given to the
representation in levels of the company's positions. Another modality is the horizontal in the
that we can reduce the negative visual impact of the previous spatial arrangement by placing
the hierarchy from left to right. We can also make combinations of these two
styles. There is also the possibility of representing the organization of our company by
the middle of a circle. At its center point, we place the first order booth and around it
concentric circles the rest of the business jobs.