The company may use different organizational structures to improve communication, creativity and team effectiveness. Hierarchical structures favor bureaucracies in traditional institutions. The rules that govern interpersonal relationships in hierarchical organisations reduce autonomy and make it less effective for decision-making. For team efficiency and long-term success, modern companies use a more flattened structure (Anderson 2019). To promote teamwork and creativity, the Institution needs to adopt a divisional model.
A divisional structure may be explored by the institution to encourage group responsibility and effective communication. A divisional organogram allows personnel to be classified according to their responsibilities and tasks. A division is a group of individuals with the same skill set and responsibilities. They are responsible for carrying out their assigned mandates. It was previously mentioned that the incorporation a divisional structure would help reduce job uncertainty. This structure reduces the uncertainty of job assignments because each division has a director who is skilled in technical matters. The HR director has more knowledge in issues relating to employees, while the procurement director can deal with logistical and supply chain concerns. Divisional structures encourage specialization. People are assigned to their highest rank in order to promote specialistism. Each department is responsible for its own duties, so there would be no instances of duplication or overlap.
A divisional structure fosters interdependence and independence, which encourages creativity and productivity. Vertical, horizontal and diagonal contact is possible through the organogram of the division. The division encourages communication between members of the division. As an example, Finance division staff collaborate in achieving the division’s financial goals. The director provides guidance and empowers workers to perform their tasks efficiently, which increases intra-divisional cooperation (Anderson 2019, 2019). High levels of autonomy encourage innovation because leaders don’t rely heavily on regulations and rules but instead create an environment that enhances the skills of people.
It also makes it possible for workers to interact with their managers and the other executives of divisions. Divisional structures reduce the bureaucracy and delays in problem solving and decision making. It is much easier for employees to ask questions and get approvals from directors and managers in a divisional organization than it is in a hierarchical one. Management can offer feedback to staff without having to adhere with multiple processes that may skew information. Anderson, 2019, states that the divisional structure allows divisional interactions as well as communication. In order to ensure the achievement of strategic goals, an institution may assign days for divisional meetings. Staff can set short-term objectives or review their performance.
This team promotes diagonal communication to enable employees to achieve the corporate’s overall objectives. Diagonal communication is the contact between managers in different organizational hierarchies.