Common Organizational Structures
Team-Based Structure
The team structure is a newer, less hierarchical organizational structure in which individuals are grouped into teams.
Learning Objectives
Classify team-based structures within the larger context of the most common organizational structures
Key Takeaways
Key Points
- The team structure in large organizations is a newer type of organizational structure. A team should be a group of workers, with complementary skills and synergistic efforts, all working toward a common goal.
- An organization may have several teams that can change over time. Teams that include members from different functions are known as cross- functional teams.
- Although teams are characterized as less hierarchical, they typically still include a management structure (or management team).
- Critics argue that the use of the word "team" to describe modern organizational structures is a fad - that some teams are not really teams at all but merely groups of staff.
- One aspect of team-based structures likely to persist indefinitely is the integration of team cultures within a broader structure (such as a functional structure with interspersed teams).
Key Terms
- synergistic: Cooperative, working together, interacting, mutually stimulating.
- hierarchical: Classified or arranged according to various criteria into successive ranks or grades.
Overview of the Team-Based Structure
Organizations
can be structured in various ways, and the structure of an organization
determines how it operates and performs. The team structure in large
organizations is considered a newer type of organization that is less
hierarchical, less structured, and more fluid than traditional
structures (such as functional or divisional). A team is a group of
employees - ideally with complementary skills and synergistic efforts -
working toward a common goal. Teams are created by grouping employees in
a way that generates a variety of expertise and addresses a specific
operational component of an organization. These teams can change and
adapt to fulfill group and organizational objectives.
Some teams
endure over time, while others - such as project teams - are disbanded
at the project's end. Teams that include members from different
functions are known as cross-functional teams. Although teams are
described as less hierarchical, they typically still include a
management structure.
Critics argue that the use of the word
"team" to describe modern organizational structures is a fad; according
to them, some teams are not really teams at all but rather groups of
staff. That said, team-building is now a frequent practice of many
organizations and can include activities such as bonding exercises and
even overnight retreats to foster team cohesion. To the extent that
these exercises are meaningful to employees, they can be effective in
improving employee motivation and company productivity.
Integration with Other Structures
One
aspect of team-based structures that will likely persist indefinitely
is the integration of team cultures within a broader structure (e.g., a
functional structure with teams interspersed). Such integration allows
for the authority and organization of a more concrete structure while at
the same time capturing the cross-functional and projected-oriented
advantages of teams.
For example, imagine Proctor and Gamble
brings together a group of employees from finance, marketing, and
research and development - all representing different geographic
regions. This newly created team is tasked with the project of creating a
laundry detergent that is convenient, economic, and aligned with the
company's manufacturing capabilities. The project team might be
allocated a certain number of hours a month to devote to team
objectives; however, members of the team are still expected to work
within their respective functional departments.