What Is Organizational Architecture?
The term Organizational Architecture refers to the structure and form by which a business operates. All types of businesses, from marketing firms to corporate restaurant chains, operate under this concept. Schools offering Nonprofit Management & Leadership degrees can also be found in these popular choices.
Organizational Architecture as a Metaphor
The architecture of a home or an office building helps to form the manner in which we conduct ourselves. Organizational Architecture applies principles of conventional architecture to the area of business management. Organizational Architecture ensures that all components of a business function cohesively to achieve its goals. These components can include:
Models of Organizational Architecture
A number of authors and business theorists have written and published their philosophies on Organizational Architecture. The results are a variety of different models that can be applied to a business structuring. Bethel University in St. Paul, Minnesota, teaches a 3-part model, which includes assignment of decision rights, compensation systems and performance evaluation. Another model is the Tricord Model, which also uses three main points, including strategy, systems and culture. This model illustrates that these three components all contribute to a company's identity. Another model is the 5-point Star Model. This model includes some of the points as the previous two with specific additions in the following areas:
- Human Resource Management
- Business Processes
Command of an Organizational Architecture Program
Upon implementation of an Organizational Architecture plan, management professionals must carefully monitor its processes. This requires extremely strong communication skills, motivational skills and firm understanding of the business' goals. Clear direction is imperative when a company changes its modes of operation.
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