Organization Structure

Define organizational structure

• Formal system of relationships within the organization

• Determines minimal line of authority

• Horizontal dimension shows who has the authority to make decisions

• vertical dimension divides work into major jobs or tasks

Types of organizational structure

• Functional

• Divisional

• Flat

• Matrix

Functional Organizational Structure

• provides those with similar abilities the ability to easily communicate and work on projects together.

• groups together people who do similar tasks based on their area of specialty, e.g., all the accountants in finance.

• This structure allows for much more autonomy among groups within the organization.

• Reporting to multiple managers may add confusion and conflict between managers over what should be reported. And if priorities are not clearly defined, employees, too, may get confused about their roles.

What is included under divisional organizational strcture:

• Teams may be unaware of what is happening in other areas of a company.

• by working across functions, employees can broaden their skills and knowledge, leading to professional growth within the company.

• This type of structure offers greater flexibility to a large company with many divisions.

• Employees may find it confusing to report to multiple bosses; therefore, clear communication on priorities at all levels is required.

Match the following

• the larger the organisation, the more formalised its behaviour, the more complex its structure, and

• Size

• The older the organization, the more formalized its behavior

• Age

• the more dynamic (active) the environment, the more organic the structure; more complex environment

• Environment

•  the more regulated the technical system, the more bureaucratic the structure; the more advanced the

• Power

• the greater the external control of the organization, the more centralized and formalized its struct

• Technical Systems

Match the following

• §describes the way in which organizations, including the military, religious institutions, company

• departmentalization

• allows all levels of to give input on goals and objectives

• Centralization

• §The optimal span will depend on a number of factors, including the size of the workforce, how the c

• decentralization

• §It refers to how the organisational structure groups the company's functions, offices and teams.

• chain of command

• typical in larger corporate organizations, as well as at companies in more conservative industries.

• span of control

Match the following

• §In any business, employees at all levels typically are given a description of their duties and the

• Degree of formalization

• includes spreading rumors and grapevine

• Work specialization

• Includes formal methods of communication and level of authority to be followed

• Formal Reporting

• §It is the element that determines the company’s procedures, rules and guidelines

• Informal Reporting

All Employees are responsible for:

• undevelop their own performance to meet expectations and achieve objectives

• actively contribute in all aspects of performance management

• provide false feedback to managers

• Break the rules of the company

List the importance of organization structure