Management Organisational Structure, Part 1
How do we explain to an employee or a stranger what our company looks like? What parts or divisions does it consist of, and how do these divisions communicate with each other and with the market? How many people are involved in which division and business process? Who manages whom, and who reports to whom?
And again, my favourite and most illustrative analogy is a business organisation (as a system) and the human body (as a system): both systems are complex, interconnected, and work harmoniously to achieve a single, common goal.
Without understanding the human body as a whole, there’s no point in trying to manage interactions at the cellular level.
Without a complete and clear understanding of how a business operates at the macro level, there’s no point in delving deeper and trying to build relationships between employees—the company’s micro level.
How can we, as doctors, explain the human body, its structure, and its functioning? What do we need to convey the necessary information to the listener? How much time do we need to convey all this information? How much information does the listener need?
When we talk about the human body, we must immediately describe it as a whole, in its entirety, in broad strokes—a person has a head, neck, body, arms, and legs.
The head is responsible for thinking and determining direction in life and space.
The neck connects the head to the body and allows a person to turn their head in different directions for instant spatial orientation. The head analyses data received from physical sensors (vision, touch, smell, hearing, etc.), and makes vital decisions: what to do at a given moment in life, taking into account previous experiences, and how to achieve future goals.
All the basic functions that support human life and the entire body system occur in the body. The extremities—arms and legs—are responsible for movement in space and help support the entire body system. Without a head and body, the body as a system cannot survive, but without limbs, survival is possible, but not as comfortably and effectively as with them.
How long did it take us, doctors, to figure all this out? How long do we need now to impart this knowledge to someone? How many presentations do we need to prepare to convey information about how everything is structured, connected, and functions to produce a single human product? For example, this person is a dentist, and the product of their life activity is a service for treating people who experience pain in the mouth and teeth, respectively.
A single, SINGLE ORG CHART of a company is another global ILLUSION of business!
The illusion lies in the fact that people try to “lay out” the entire structure of a company on a single org chart.
Is this realistic? NO, IT’S NOT REAL!
When we talk about a complete understanding of the structure and functioning of a company, it is, of course, absolutely impossible to demonstrate it all on a single org chart! It’s as unrealistic as if I, as a doctor, wanted to see a “human org chart” that would cover everything about a person! It’s simply impossible!
Therefore, when we talk about describing a business organisation, we must clearly distinguish between the organisational levels, then the company’s functional divisions, and only then develop org charts or “maps” for each level.
What am I talking about?
Obviously, an “org chart” or “organisational map” for a business founder will be very different from an “org chart” for a sterilisation nurse, a doctor, or a company supply chain manager. They will be very different because they are written for different levels of understanding of the business organisation, different levels of knowledge and perception of the company, and different employees who perform different functions within the company.
The detail and depth of such “org charts” will vary greatly.
Business Organisation Levels (6 levels):
- Business Owner Level
- Business Manager Level
- Division Manager Level
- Line Manager Level
- Specialist Level
- Intern Level
Each level has its own format for presenting information – from checklists and job descriptions, divisional charts, to the actual organisational structure of the company. Detailed elaboration of each level for a general and highly detailed understanding of the business organisation is a MEGA-IMPORTANT TASK FOR A MANAGER, as it is impossible to manage what you don’t know and don’t understand. Only with a clear understanding of “what you manage” can you manage it effectively!
