What is organizational architecture

Organizational architecture is one of the foundations that support employee engagement . They can damage relationships between teams, weaken trust in company management in a company.

It is the model that represents the life cycle of a company and helps in the analysis and management process of the organization.

In this sense, it is graphically represented by the organization chart , where we can visualize the different positions and sectors organized according to the profile and characteristics of the business.

The way the organizational architecture is defined directly influences the company’s day-to-day activities, from factors such as the choice of the management model to the guidelines to be followed by managers in relation to their teams.

Types of organizational architecture

The organizational structure can be organized in different ways, according to what makes the most sense for the company.

Below, we list the most used types on the market today.

1-Linear

The linear format is the oldest and easiest to understand .

It is based on the logic of the military chain of command, in which there is a very well-defined hierarchy between sectors and positions and values ​​the centralization of decisions.

Thus, it is quite common to find this type of structure in very old companies, or small ones, which are still in their infancy.

This type makes controlling stocks easier, but it requires some bureaucracy, which can slow things down and make things more skewed.

2-Functional

In the organizational structure of the functional type, the hierarchy is given by the functions . Thus, the greater the specialization of a position, the higher it is on the company’s organizational chart.

It is a model that can cause some confusion at the beginning, since the leaderships are not very well defined as in the linear model.

In this format, the same person may have to respond to more than one manager, and managers do not have full control over everything that happens in the positions below them in the structure.

3-Line-staff

The line-staff organizational architecture type combines the benefits of linear and functional types .

Basically, the linear structure is maintained, with its lines of command more defined, and specialized support sectors are created, with positions of consultants.

In general, the advisory sectors are located in the upper parts of the structure, providing assistance to senior management in matters that are more strategic for the business.

In companies with more advanced strategies, it is common to find the HR sector in this position, showing the valorization of human capital .

4-matrix

The matrix organizational structure is used in companies that work with different project fronts.

In this model, the linear structure is maintained and, parallel to it, the project structures are created , which use the same people as the linear structure, but to meet the specific needs of the project.

In this format, the employee continues to respond normally to the manager of the sector in which he is allocated, but also becomes responsible for a project front and needs to report to the manager of that project.

Thus, a marketer who is allocated to project X, for example, will report to both the marketing manager and the person responsible for project X.

Classifications by departmentalization

Another way of looking at organizational architecture is from the perspective of departments, as explained below.

1-Territorial

In territorial organizational architecture, the main organizational factor of the structure is geographic .

For companies with operations in multiple locations, this is a format that contributes to the business growth strategy , as each location has its own structure.

In this format, regional directors are placed just below the presidency.

2-By customers

In the organizational structure by customers, the focus is on the target audience .

In a department store, you can have different structures to serve men, women and children.

This impacts the strategic management of these audiences, better directing actions.

3-By processes

The organizational architecture model by processes is more used in industries, where each stage of the production process (preparation, assembly, finishing, dispatch, etc.) can be complex enough to have an entire structure involved .

This type of approach helps to better define details such as the management tools to be used, types of positions needed and the like.

4-By projects

In the structure by projects, the organization is set up for each undertaking initiated .

It is a model very present in construction companies, where each project has almost an entire company involved.

How to structure the organizational architecture

The structure of a company is born with it, in a natural way . However, it does not always develop according to the needs of the business, so it may need to be revised.

To structure the organizational architecture in a company, it is important to pay attention to the following steps:

• understand the current scenario of the company;
• identify the necessary changes;
• prepare processes and people for changes;
• implement changes piecemeal;
• track the effects of changes and make adjustments as necessary;
• periodically evaluate the effectiveness of the adopted model.

The use of management tools and methodologies, such as the golden circle , are very useful in this process.

Since they help to identify what really matters for the company’s development and, thus, direct actions with greater precision.

Another very important issue to be considered is the organizational culture , which needs to be aligned with the defined structure so that one can support the other.