Business Organizational Structures

Composed of self-contained units or divisions; builds on product departmentalization

• Departmentalization

• Divisional Structure

• Simple Structure

• Centralization

Systematic grouping of individuals which have been brought together to accomplish a common goal.

• Simple Structure

• Departmentalization

• Work Specialization

• Organization

Occurs when a job is broken down into a number of steps which are each completed by a different individual.

• Organization

• Work Specialization

• Simple Structure

• Departmentalization

Organization that combines the elements of functional and product-based departmentalization creating a dual chain of command.

• Matrix

• Dual Control

• Chain of Command

• Centralization

The principle in which an employee should have only one supervisor to whom he or she is responsible.

• Dual Control

• Matrix

• Chain of Command

• Centralization

Produce an organization’s goods and services.

• Operative Employees

• Top Management

• Middle Management

• Assembly Line Workers

Non-elaborate structure that has little formalization and centralized authority.

• Centralization

• Decentralization

• Functional Structure

• Simple Structure

The grouping of individuals into departments based on work functions.

• Centralization

• Decentralization

• Departmentalization

• Specialization

Occurs when only a select few people at the top of an organization make the decisions.

• Centralizaiton

• Decentralization

• Departmentalization

• Functionalization

Organizations that have developed a capacity to continuously adapt and change because members take an active role in identifying and resolving work-place issues.

• Organization

• Matrix

• Functional

• Learning