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Organizational Structure

This document discusses organizational structures and their common elements. It describes different types of organizational structures including functional, product, customer, geography, and matrix structures. It also discusses team-based, network, and modular organizations. Additionally, it covers how the external and internal environment can impact organizational structure and the growth cycle of a company from creativity to collaboration. Organizational structures aim to unify employees towards common goals, maximize resources through specialization and coordination, and determine reporting lines through a hierarchy of authority. Common structures group employees by expertise, product lines, customers, location, or a hybrid approach.

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40 views

Organizational Structure

This document discusses organizational structures and their common elements. It describes different types of organizational structures including functional, product, customer, geography, and matrix structures. It also discusses team-based, network, and modular organizations. Additionally, it covers how the external and internal environment can impact organizational structure and the growth cycle of a company from creativity to collaboration. Organizational structures aim to unify employees towards common goals, maximize resources through specialization and coordination, and determine reporting lines through a hierarchy of authority. Common structures group employees by expertise, product lines, customers, location, or a hybrid approach.

Uploaded by

Play Dine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ORGANIZING STRUCTURES

Module 6: Organizational Structures


ESC 21
Lapeña, Don Kim S.

COMMON ELEMENTS - “bosses”


Common Purpose. Unifies employees and helps - Combines the localization benefits of the
them understand organization’s direction geography structure with those of the
functional structure.
Coordinated Effort. Maximizes resources with - Advantage: Provides both flexibility and
the common purpose in mind- managers need to more balanced decision making
leverage employee skills and experiences - Disadvantage: Complexity which can lead
to confusion
Specialization and the Division of Labor
- Division of Labor – describes the degree to
which a task is divided into separate job or
departments in order to improve efficiency.

Hierarchy of Authority. Determines formal,


position-based reporting lines and expresses who
reports to whom
- CEO, business sales, office staff, customer
service
- In tall orientations (20 layers) – span of
control is narrow. Team-based Structures, Networks, and
- In flex structures – example, 2 layers – Modular Organizations
span of control is wide.
Team-based Structure
Centralization and Decentralization. Degree to - Focused on a few objectives and usually
that decision making is concentrated to the top of disbanded at project's end
the organization (key decisions made by executive - PAASCU visit
team)
Team
Formalization. Extent to which jobs within an - Made up of people with complementary
organization are standardized skills who are working toward a common
purpose- created by grouping employees
COMMON ORGANIZATIONAL STRUCTURES in a way that generates a variety of
Departmentalization expertise
- Time bounded activity
Functional Structure
- Groups employees based on their Network Structure
expertise (e.g., operations and finance in - Little bureaucracy and features
XU) decentralized decision making- holacracy
- Generally used to allow for a higher degree which attempts to achieve control and
of specialization coordination by distributing power

Product Structure Modular Organizations


- Groups employees based on product lines - Business that has areas that can be easily
(e.g., aviation and transportation, HONDA, separated from company without
Asia Bravery, and Tanduay) jeopardizing it
- Generally used in organizations with
multiple products EXTERNAL AND INTERNAL ENVIRONMENT
External
Customer Structure - Greater external forces, greater complexity
- Groups employees based on which of external environment requires use of
customers they do their work for (e.g., high-level skills
outpatient and urgent care)
- Generally used in organizations that have Internal
products or services unique to specific - Skill variety: degree to which job requires
market segments use of high-level skills
- * Greater external forces, greater * Skill
Geography Structure variety: degree to which job complexity of
- Groups employees based on their physical external environment requires use of high-
location level skills
- Generally used in large organizations that - Task identity: degree to which person is in
span multiple regions charge of completing work
- Ex: McDonalds - Task significance: degree to which
person has freedom to perform their tasks
Matrix Organization - Feedback: degree to which people learn
- A hybrid set-up how effective they are being 3
- Organized by two dimensions (e.g.,
product and geography)
- Each employee will have two 3
ORGANIZING STRUCTURES
Module 6: Organizational Structures
ESC 21
Lapeña, Don Kim S.

GROWTH CYCLE
Creativity. Marked by early growth of company
due to emphasis on product creation

Direction. Installs functional organizational


structure with formal communication
- Top management’s control of full operation
diminishes the middle-level managers

Delegation. Marked by application of


decentralized organizational Structure
- Delegate some parts to other people but
the company is relatively small

Coordination. Merging of local units’ info product


groups and establish formal planning procedures

Collaboration. Takes collaboration with key


leaders, managers, and employees to create
better structure

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