Foundations of

organizational
structures
Presented by: Alberto M.
Abogado
Jayvee S. Jabelo
Emmanuel Delvo
 Organizat
• A social unit people,
ion
systematically
structured and manage
to meet a need or to
pursue collective goals
on a continuing basis.
 Organizational
• Structure:
It refers to the formal
pattern of how people
and jobs are grouped
in an organization.
Two Mechanisms of Organizational
Structure is the
1. Coordination/Coordinate:
process by which tasks and
departments are interrelated to
achieve the goals of the organization.
2.Control: refers to the regulation of
activities in ways that will enable
members to predict and stabilize
Basic Elements of Organizational
Structure
1. Work specialization
2.Departmentation
3. Pattern of authority
4.Span of control
5.Coordination of activities
Work Specialization
• This refers to the degree
to which tasks in the
organization are
subdivided into separate
jobs.
 Advantage of Work
• Total productivity tends to multiply
Specialization
geometrically.
• Simplified tasks can be learned in a
relatively short time and be completed
quickly; and
• The availability of a variety of jobs makes it
possible for people to choose, or be
 No Work
Specialization
With Work Specialization
 Departmentation
• This is a basic element of
organizational structure that refers to
the grouping of jobs under the
authority of a single manager,
according to some common, rational
basis, for the purpose of planning,
coordination, and control.
 Basis for grouping jobs
1.Knowledge and skills - positions may
be grouped according to the
specialized job. For example,
professors in universities are assigned
to specialized departments such as
social science, business, and
vocational. The advantage of this
 Basis for grouping jobs
2. Work process and function - positions are
grouped according to the process or activities
to be performed. Under this type of grouping,
separate departments are set up to handle
activities such as marketing, production,
human resource management, research and
development, and finance. The purpose of this
grouping is to achieve economies of scale by
 Basis for grouping jobs
3. Time - positions may also be grouped on the
basis of when the work is to be done. For
instance, when the organization performs the
same work 24 hours a day, as may occur in a
textile factory, members are grouped into the
6:00 AM to 2:00 PM shift, the 2:00 PM shift, the
2:00 PM to 10:00 PM shift, and the 10:00 PM to
 Basis for grouping jobs
4. Product - positions in the organization may
be grouped according to the good or service
that is being produced. An appliance
manufacturer may have separate departments
handling audio-visual equipment, air-
conditioners, and refrigerators.
 Basis for grouping jobs
5. Customer - groups may also be formed on
the basis of the need to deal with different
types of customers. A business firm, for
instance, may create a department that deals
with customers who pay cash, and another
department for customers who avail of credit
offered by the company.
Basis for grouping jobs
6. Location - positions may also be
grouped according to location. An
organization, for instance, may create
a Luzon division, a Visayas division,
and a Mindanao division.
 Advantages of
• Supervision is made easier.
•
Departmentation
The sharing of resources, such as
men, machines, and materials results
to maximum use of such resources.
• Common measures of performance is
established.
• Communication is encouraged.
 Sample of
Grouping jobs
 Pattern of Authority
• it is an element in designing
organizational structure refers
of the extent by which
organization members are
allowed to make decisions
without getting the approval of
advantages of decentralized
Authority
1.Efficiency - red tapes and bottleneck are
reduced.
2.Flexibility - managers can cope with situations
as they come.
3.Initiative - Managers are highly motivated by
the challenge.
4.Development - managers are provided with
opportunity for training.
Disadvantages of decentralized
Authority
1.Control - coordination overall activities is
more difficult.
2.Duplication - there is a great chance of efforts
duplicated between departments.
3.Centralized expertise -home office experts
may be overlooked or disregarded.
4.Competency - the organization may not be
able to produce competent managers at all
 Span of Control
• Another consideration in designing
the organizational structure is span
of control. This element refers to
the number of subordinates
reporting to a single supervisor.
• span of control may be narrow or
wide.
Narrow Span of
Control Wide Span of
• there is closer relationship
between manager and
Control
• Employees work with little
supervisor.
• There is high level of
subordinates;
delegation of authority.
• there is less delegation of
• controlling is lighter; and
authority; • There is less time for
• controlling activities are rewarding behavior.
more tight; and
• there is more time for
Narrow Span of Wide Span of
Control
Control
Common Organizational
1.Thedesigns
simple Structure
2.The bureaucracy
3.The matrix structure
 Common Organizational
designs
1.The simple Structure - is one that is
characterized by a low degree of
departmentalization, wide of spans of
control, authority centralized in a single
person, and little formalization. It has
little technical and support staff. It
achieves coordination through direct
The Simple Structure
 Advantage of The Simple
1.Simplicity
2.Flexible
Structure
3.modify
Disadvantage of The Simple
1.inability to serve a large organization
Structure
2.Low formalization and high
Centralization
3.Grows in size
 Common Organizational
1.The bureaucracy
-is a rational,
designs
systematic, and
precise form of
organization in
which rules,
regulations, and
techniques of
 Machine Bureaucracy
• this is moderately decentralized form of
organization that emphasizes the
technical staff and standardization of
work processes. It is best suited to large
organizations whose work is largely
performed by production, technical, and
support workers.
 Characteristics of Machine
1.The existence of rules and procedure controlling
Bureaucracy
organizational activities;
2.A high degree of differentiation among organizational
functions;
3.A high degree of job specialization;
4.An organization of offices determined by hierarchy, with
each unit reporting to a higher unit and no unit free-
floating;
5.A heavy emphasis on rules and norms to regulate
Professional Bureaucracy
• It is an organization
composed of a core of highly
trained professionals that
standardize skills for
coordination.
Advantages of Professional
1.The ability to perform standardized activities in a
Bureaucracy
highly efficient manner. this is a result of putting
specialities together in functional departments
resulting in economies of scale, minimum
duplication of personnel and equipment, and easier
communication between employees who speak a
common language.
2.Bureaucracy can operate nicely with less talented
middle and lower-level managers. the result is lower
Disadvantages of Professional
Bureaucracy
1.Specialization, which feature of
bureaucracy, creates sub-unit conflicts,
Functional unit goals override the overall
goals of the organization.
2.when cases arise that do not precisely fit
the rules, there is no room for
modification.
The Matrix Structure
• it is one that superimposes a
product or project-based design
on an existing function-based
design. It is really an attempt to
maximize the strengths and
minimize the weaknesses of
both departmentation by
Strengths of The Matrix Design
1.It allows demands from the environment to
be met simultaneously.
2.It provides flexibility.
3.It encourages resource efficiency.
4.It enhances skill development.
5.It increases motivation and commitment
among employees.
6.It aids top management in planning.
Weaknesses of The Matrix
1.It creates dual-authority
Design
confusion.
2.It spawns power struggle
3.It is time consuming.
4.It requires interpersonal skills
training.
5.It generates high
implementation cost.
Sample of The Matrix Design
New Organization Design
Options
1.Outsourcing Organization
2.Team structure
 Outsourcing
• It is Organization
known as Virtual
Organization, it is a arrangement
by which the organization have
work performed for it by groups
outside the organization.
Sample of Outsourcing
Organization
 Team Structure
• the organization with a team structure makes
use of teams as the central device to
coordinate work activities. The team structure
is horizontal rather than a vertical
organization. Under this structure,
departmental barriers are broken down and
decision making is decentralized to the level
of the work team. The team leaders of a small
 The organizational structure’s
relevance to human behavior
• Different types of organizational structures
place unique demands on people who work
within them. Not all people are suited to a
certain type of structure; some are better
suited to a simple structure, others are better
suited to a bureaucracy, This is important to
know because organizational structures can
only be effective if the people working within
 THANK
YOU!!!!!!