Organizational Structure

Summary

In this video, Alex Lyon from Communication Coach explores three organizational structures: the classic hierarchy with a clear top-down structure, the team-based organization where cross-functional teams work together, and the matrix organization, which combines hierarchy with team collaboration. Lyon invites viewers to share their preferences and experiences with these structures in their professional settings, highlighting the importance of communication and leadership in each model.

Takeaways

• 📚 The video discusses three types of organizational structures: classic hierarchy, team-based organization, and matrix organization.
• 👤 The classic hierarchy features a top-level leader, such as a CEO, with various levels of management descending down to frontline employees.
• 🍽️ The script uses a restaurant example to illustrate the hierarchy, with positions like busser, server, and bartender to explain the concept.
• 🔠 The language of hierarchy often borrows from the military, with terms like 'frontline' and 'officers' to describe positions within an organization.
• 💬 The team-based organization emphasizes cross-functional teams with members from various departments, promoting a common language and cross-training.
• 🔄 In a team-based structure, individuals learn from one another, enhancing the team's ability to produce high-quality work.
• 🌐 The matrix organization combines elements of both hierarchy and team-based structures, creating a grid of responsibilities.
• 🔄 Employees in a matrix may report to multiple authorities, leading to a complex web of responsibilities and potential confusion.
• 🤔 The video invites viewers to consider which organizational structure they prefer and to share their thoughts in the comments section.
• 📈 The video suggests that the matrix structure might be the newest and least familiar to viewers, prompting them to reflect on its suitability for their professional environment.
• 🔗 The channel offers weekly videos on professional development topics, including communication, leadership, and other skills.

Q & A

What is the main topic of the video?

The main topic of the video is organizational structure, covering classic hierarchy, team-based organization, and matrix organization.

What does the presenter invite viewers to do in the video?

The presenter invites viewers to subscribe to the channel, comment on their favorite type of organizational structure, and share the names of different positions in their industry.

What is the classic hierarchy structure in an organization?

The classic hierarchy structure is a top-down approach with a CEO or top-level person at the top, followed by vice presidents, heads of units, directors, managers, supervisors, and employees at the bottom.

How does the presenter relate the classic hierarchy to the military?

The presenter relates the classic hierarchy to the military by pointing out that similar terms are used, such as 'frontline employees' and 'officers,' with the CEO being similar to a commanding officer.

What is a team-based organization?

A team-based organization is one where the company is structured into teams with cross-functional members, allowing for cross-training and the development of a common language and skills among team members.

What are the advantages of a team-based organization?

The advantages of a team-based organization include the ability to foster a common language and understanding among diverse team members, which can lead to high-quality work, services, and products.

What is the matrix style of organization?

The matrix style of organization combines elements of a team and a hierarchy, creating a grid where individuals may report to multiple authorities and have responsibilities across different teams.

How can the matrix organization be confusing for employees?

The matrix organization can be confusing because employees may feel like they have multiple bosses and responsibilities, as they report to both a hierarchical superior and lateral team members.

What is the presenter's final call to action for viewers?

The presenter's final call to action is for viewers to comment on which organizational structure they prefer and to subscribe to the channel for weekly videos on professional development topics.

What types of positions might be found in a restaurant hierarchy similar to an organizational structure?

In a restaurant hierarchy, positions might include busser, server or waitress, and bartender, with each level having a higher degree of responsibility and interaction with customers.

How does the presenter encourage interaction and engagement with the content?

The presenter encourages interaction and engagement by asking viewers to comment on their thoughts and preferences regarding the different organizational structures discussed in the video.

Outlines

00:00

🏢 Introduction to Organizational Structures

This paragraph introduces the topic of the video, which is organizational structure. Alex Lyon, the host, welcomes viewers and invites new subscribers. The video will discuss three types of organizational structures: the classic hierarchy, the team-based organization, and the matrix organization. The host encourages viewers to share their preferences in the comments section.

🔝 The Classic Hierarchy Structure

This paragraph delves into the classic hierarchy organizational structure, which is commonly understood as having a top-level executive, such as a CEO or president, at the top, followed by various levels of management and employees at the bottom. The host uses the analogy of a restaurant to explain how hierarchy feels in different industries and invites viewers to share the specific job titles in their respective fields. The military terminology used in professional settings to describe hierarchical positions is also highlighted.

🤝 The Team-Based Organizational Model

The team-based organizational model is introduced here, where the company is structured around teams rather than a strict hierarchical division of labor. The paragraph explains that in this model, individuals from various departments work together in cross-functional teams, leading to cross-training and the development of a common vocabulary. This approach is said to enhance the quality of work, services, and products, although it requires effort in terms of training and coordination.

🌐 The Matrix Organizational Structure

The final paragraph discusses the matrix organizational structure, which combines elements of both team-based and hierarchical systems. In a matrix organization, employees may report to multiple supervisors and have lateral responsibilities to team members from different departments. This structure can be initially confusing due to the multiple reporting lines, but it allows for collaboration across functional areas. Examples such as the overlap between Human Resources and recruiting teams are given to illustrate how the matrix structure operates.

Keywords

💡Organizational Structure

Organizational structure refers to the arrangement of tasks, people, and power within an organization. In the video, this concept is central as it discusses different models that can be adopted to manage a company. The video explores how these structures impact professional settings and communication, highlighting the importance of understanding where one fits within the organizational hierarchy.

💡Classic Hierarchy

The classic hierarchy is a traditional organizational structure where there is a clear chain of command, with authority flowing from the top down. The video uses this term to describe a system where positions like CEOs, vice presidents, and managers are arranged in a pyramid shape, with employees at the base. This structure is common and often associated with military-like ranks, as illustrated by the script's examples.

💡Team Based Organization

A team-based organization is a structure that emphasizes collaboration and cross-functional teamwork over a rigid hierarchy. The video explains that in this model, employees from various departments work together in teams, fostering a shared vocabulary and cross-training. This structure is designed to enhance cooperation and innovation, as seen in the script where engineers, software developers, and marketers might work together on the same team.

💡Matrix Organization

The matrix organization is a hybrid structure that combines elements of both hierarchy and team-based models. As described in the video, it creates a grid where individuals report to a hierarchical superior but also have lateral responsibilities to team members. This structure can lead to a situation where an employee has multiple 'bosses' and must balance competing demands, as exemplified by the script's mention of overlapping responsibilities between HR and recruiting teams.

💡CEO

CEO stands for Chief Executive Officer, typically the highest-ranking executive in an organization. The video uses this term to illustrate the top position in a classic hierarchy, where the CEO has overall responsibility and authority. The script suggests that understanding the role of a CEO is crucial for recognizing the power dynamics in an organizational structure.

💡Cross-Training

Cross-training in the context of the video refers to the process of employees learning skills and knowledge outside their immediate job functions. This is particularly relevant in team-based organizations, where the video suggests that software developers might learn about engineering or marketing to enhance team collaboration and product quality.

💡Frontline Employees

Frontline employees are those who interact directly with customers or the end product of the company's work. The video uses military terminology to describe these workers as being on the 'front lines,' emphasizing their critical role in the organization's operations. The script implies that understanding the position of frontline employees is key to appreciating the dynamics of a classic hierarchy.

💡Commanding Officer

In the video, the term 'commanding officer' is used as an analogy to describe top-level executives in a classic hierarchy, similar to how military ranks function. This comparison helps to illustrate the concept of authority and leadership within an organizational structure, as seen in the script's discussion of CEOs and COOs.

💡Professional Communication

Professional communication is the focus of the channel hosting the video, and it plays a significant role in all organizational structures. Effective communication is essential for clarity, collaboration, and leadership within any organization. The video implies that no matter the structure, good communication skills are vital for navigating the complexities of professional settings.

💡Leadership

Leadership is a key theme in the video, as it is integral to managing and navigating organizational structures. The script discusses how different structures may require different leadership styles, from the authoritative approach in a classic hierarchy to the more collaborative style in a team-based organization. Leadership is presented as a critical skill for success in any professional setting.

💡Comment Section

The comment section of the video is mentioned as a platform for viewers to engage with the content and share their thoughts on the different organizational structures. The video encourages interaction and discussion, which is a form of professional communication. It serves as an example of how digital platforms can facilitate the exchange of ideas and experiences related to organizational dynamics.

Highlights

Introduction to the topic of organizational structure in professional settings.

Invitation for viewers to subscribe to the Communication Coach channel for weekly videos on professional development.

Discussion on different types of organizational structures and an invitation for viewers to share their preferences.

Explanation of the classic hierarchy with a top-level executive and descending levels of management.

Use of military vocabulary in traditional organizational hierarchies, such as 'frontline employees' and 'officers'.

Request for viewers to comment on the positions and hierarchy in their respective industries.

Introduction of the team-based organization structure, emphasizing cross-functional teamwork.

Description of cross-training in team-based organizations and the development of a common language among team members.

Advantages of team-based organizations, including high-quality work and the potential for confusion due to multiple reporting lines.

Introduction to the matrix style of organization, combining elements of both team and hierarchy.

Explanation of the matrix organization's grid structure and the potential for overlapping responsibilities.

Example of how teams like HR and recruiting might overlap in a matrix organization.

Challenges of the matrix structure, such as having multiple bosses and the need to perform for various groups.

A call to action for viewers to comment on their favorite organizational structure and its suitability for their professional environment.

Closing remarks inviting viewers to subscribe for more professional development content and a sign-off for the next video.

Transcripts

In this video, we're going to talk about organizational structure. We'll cover the

classic hierarchy, the team based organization, and finally the matrix. So,

let's unpack the details.

Hello again friends. Alex Lyon here. If this is the first

time you have ever tuned in to this channel, Communication Coach, we put out

weekly videos on professional communication, leadership, and

communication skills more generally. So I invite you to subscribe if you've never

done that. In this video, we're going to talk about organizational structure.

There are different types of organizational structures that you might

experience in your professional settings and I invite you to comment on which one

you think is your favorite in that section below the video. I would love to

read those comments. So first let's talk about the classic hierarchy. Usually when

people talk about organizational structure, this is what they mean. This is

where you have a top level person in a top position, maybe the CEO or chairman

of the board or president of the organization, and then you have different

levels going down. So, under that, you're going to have your vice presidents most

likely. And then you're going to have heads of units and directors, and

managers, supervisors, and finally all the employees at the bottom of the pyramid.

In different organizations you'll have different names for these positions. In

fact if you're working in restaurants like I used to I was a busser and then

above me is the server like the waiter or waitress and it feels like above that

person is the bartender. Now that might be not really official but that's the

way it feels. You can sense that there is generally a hierarchy in most

organizations where you figure out where you fit in. I'm wondering if you could

comment in the section below this video, what are the names of those different

positions in your industry and the places that you work? I would love to

hear the different vocabulary that everybody uses out there. Typically in an

organizational hierarchy, we borrow our vocabulary from the military. You might

notice that we call the people at the bottom, the employees, the frontline

employees, frontline supervisor. Just like in a military campaign. You have people

on the front lines, all the way up to the top level where we literally call them

officers in a professional setting. The Chief Executive Officer. Chief

Operations Officer, just like you have a commanding officer in the military. So,

that's the classic organizational structure of the hierarchy. Next, let's

talk about a somewhat new one, the team based organization. This is

where the organization is organized in teams. So you're still gonna have people

in authority above all the teams but instead of this hierarchy and division

of labor, you have lots of different people from different areas of an

organization mixed together working as a team. So you're going to have engineers

working alongside software developers working alongside accountants and

marketers. You might have a team of just a handful of people you might have quite

a big team that feels like an organization unto itself. And in the team

based organization, you're going to have all these people getting cross-trained and

learning a common vocabulary. And over time, let's say I'm a software developer,

I'm going to learn a bit about engineering because I'm listening to that

engineering person. I'm going to learn a little bit about marketing because I'm

listening to that marketing person. So over time we start to speak a common

language that brings the team together and helps us do extremely high-quality

work, services, and products. So there are some advantages to a team based

organization. It also involves a lot of cross-training and takes some work but

that's the way team based organization works. Now finally we have the matrix

style of organization. This is where you really combine a team with a hierarchy

and you up with a kind of grid. So you still have people above you that are

ultimately in charge of you in the hierarchy but also you have people that

you are laterally responsible to that are, in a way, in some authority over you.

So let's say two teams overlap a little bit in what they do. You might have Human

Resources for example. We also might have a whole different recruiting team that

has recruiters and people that are going out there in the professional space

looking for new employees to hire. There's a lot of commonality and so even

though they might both might report to a boss above them they also have

responsibilities to each other. And it's not just recruiting and HR you have a

lots of different overlaps and people will work together in this matrix style

grid. So this can be a little confusing at first because you might feel like you

have lots of different bosses and you kind of do have lots of different bosses.

You have a lot of responsibilities and you have to perform for a lot of

different groups in the organization. So those are the three main styles of

organizational structure the most common one that we're familiar with is he

hierarchy, and then the team, and of course the matrix or the grid and that

tends to be I think the newest one that I've seen in

my experience. So again, I ask you to comment in that section below question

of the day. Which one of these is your favorite which one of these do you think

would work best for your professional setting. I look forward to reading those

comments and if you have not yet subscribed to this channel I invite you

to do so for weekly videos on professional development like

communication and leadership skills. So thanks. God bless and I will see you in

the next video.