Role of the organization structure

May 12, 2006 at 11:09 am | Posted in Process Enabled Organization | 1 Comment

There are two types of organization structures. The formal, hierarchical structure is based on the concept of span of control. This is the visible structure as shown in the organization charts. There is a more subtle, dynamically changing structure, with a web of relationships, based on the concept of span of influence. Every member of the organization belongs to both these structures, giving a sort of matrix structure to the organization. Though the structure based on span of influence is not readily visible, yet it is powerful enough to affect the working of the organization. It is worthwhile being aware of, not only the formal structure, but also the informal one.Process-driven organizations tend to rely more heavily on the formal structure, placing heavy emphasis on the documentation and religiously following the set procedures.To become process-enabled, an organization needs to take care of not only formal structure but also the informal structure. We will discuss more on this later.


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  1. Well said .. More and more organizations are now turning to social communities even for their employees to collaborate. Information mashups and social media analytics can help view the informal structure / span of influence and can help organization increase productivity.

    One such solution I came across is Esprit ..looks great !

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