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Lesson 7B Organization Structure

The document discusses organization structure, which is the formal system used to define reporting relationships and communication within a company. It identifies key elements of an organization's structure like tasks, reporting lines, and linkages. There are traditional types of structures including functional (grouping by skills), divisional (grouping by product, location, customer), and matrix (combining functional and divisional). The document also discusses informal structures that exist outside the formal reporting system through unofficial relationships between employees.

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Christine Logdat
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Download as PPT, PDF, TXT or read online on Scribd
39 views

Lesson 7B Organization Structure

The document discusses organization structure, which is the formal system used to define reporting relationships and communication within a company. It identifies key elements of an organization's structure like tasks, reporting lines, and linkages. There are traditional types of structures including functional (grouping by skills), divisional (grouping by product, location, customer), and matrix (combining functional and divisional). The document also discusses informal structures that exist outside the formal reporting system through unofficial relationships between employees.

Uploaded by

Christine Logdat
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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ORGANIZING FUNCTION

• ORGANIZATION
STRUCTURE
 the way in which the various parts of an
organization are formally arranged.
 a system of tasks, reporting relationships,
and communicating linkages.
 a system used to define a hierarchy within
an organization. It identifies each job, its
function and where it reports to within the
organization.
 is a visual diagram of a company that
describes what employees do, whom they
report to, and how decisions are made
across the business.
 defines how activities such as task
allocation, coordination, and supervision
are directed toward the achievement of
organizational aims.
BASIC TYPES OF ORGANIZATION STRUCTURE
A. FORMAL STRUCTURE – is the official structure of the
organization
In a formal structure, the management and divisions within a
company are typically written and explained so all employees
understand how things work. This documentation may take
the form of an organizational chart that visually depicts how
each level of management works to prevent
misunderstandings.
ORGANIZATION CHART – a diagram that shows reporting
relationships and the formal arrangement of work positions
within an organization. It identifies the various positions and
job titles as well as the lines of authority and communication
between them
BASICS OF
ORGANIZATION’S
FORMAL
STRUCTURE
B. INFORMAL STRUCTURES – this is a “shadow” organization
made up of the unofficial, but often critical, working
relationships between organization members.

If the informal structure could be drawn, it would show


who talks to and interacts regularly with whom regardless of their
formal titles and relationships. The lines of the informal structure
would cut across levels and move from side to side.
Traditional Organization Structures
1. Functional structures – employees are
grouped according to the function they
provide. People with similar skills and
performing similar tasks are grouped together
into formal work units. Members of
functional departments share technical
expertise, interests, and responsibilities.

Organizational Structure Types


Traditional Organization Structures
2. Divisional structures – it groups together
people who work on the same product or
process, serve similar customers, and/or
located in the same area of geographical
region.
a. Product structure - groups together people and jobs
focused on a single product or service.
b. Geographical structure – groups together people
and jobs performed in the same location.
c. Customer structure – groups together people and
jobs that serve the same customers or clients
d. Process structure - groups jobs and activities that
are part of the same processes.
Traditional Organization Structures
3. Matrix structures – it combines that
functional and divisional structures to
emphasize project or program teams.
Team structure –uses permanent and temporary cross-
functional teams to improve lateral relations.
a.Cross-functional team – brings together members from
different functional departments
b.Project teams – are convened for a particular task or
project and disband once it is completed.
Network structure – use IT to link with networks of
outside suppliers and service contractors. If operates with a
central core that is through “networks” of relationships
with outside contractors and suppliers of essential services
Boundaryless organization – eliminates internal
boundaries among subsystems and external boundaries
with the external environment.
Traditional Organization Structures

4. Horizontal/Flat Structure
This is an organizational chart type mostly
adopted by small companies and start-ups
in their early stage. It’s almost impossible
to use this model for larger companies with
many projects and employees

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