ORGANIZATIONAL 
STRUCTURE 
AND DESIGN
WHY IS THIS IMPORTANT 
Organizational structural design is 
critical in assisting organization in 
adapting to an ever-changing 
business enviroment.
CENTRALISATION & 
DECENTRALIZATIOPN 
 The dicisioin is taken by one superior personality 
of the oraganizatio. 
e.g principal 
In decentralization the decision is flows from 
top to bottom .or lower staff 
e.g any employee can take the decision.
BASIC TYPES OF 
ORGANIZATIONAL STRUCTURE 
 The Functional Structure 
 The Divisional Structure 
 The Matrix Structure 
 The Line & Staff Structure 
 The Project Structure
THE FUNCTIONAL STRUCTURE 
Functional structure – this kind of organizational 
structure classifies people according to the 
function they perform in the organization.
THE FUNCTIONAL STRUCTURE 
 Grouping by similar work specialties
THE DIVISIONAL STRUCTURE 
 A type of organizational configuration that groups together 
those employees who are responsible for a particular product 
type or market service according to work flow. 
 The divisional structure of a business tends to 
increase flexibility, and it can also be broken down further 
into product, market and geographic structures.
THE DIVISIONAL STRUCTURE
THE MATRIX STRUCTURE 
 This is a structure, which has a combination of 
function and product structures. 
 This combines both the best of both worlds to 
make an efficient organizational structure. 
 Most complex organizational structure.
THE MATRIX STRUCTURE 
 A Grid of Functional & Divisional for Two 
Chains of Command
THE LINE AND STAFF 
STRUCTURE 
 Line and structure combines the line structure 
where information and approvals come from top 
to bottom, with staff departments for support 
and specialization. 
 Line and staff organizational structures are 
more centralized. 
 Managers of line and staff have authority over 
their subordinates, but staff managers have no 
authority over line managers and their 
subordinates.
THE LINE AND STAFF 
STRUCTURE
THE PROJECT STRUCTURE 
 Organizational units to complete projects of a long 
duration. 
 Each project is vitally important to the organization. 
 The size of the project team varies from one project 
to another. 
 The activities of a project team are coordinated by 
the project manager who has the authority to obtain 
advice and assistance of experts both inside and 
outside the organization. 
 The core concept of project organization is to gather 
a team of specialist to work on and complete a 
particular project.
THE PROJECT STRUCTURE 
V ic e P r e s id e n t P r o je c t A 
F in a n c e M a n u f a c tu r in g 
V ic e P r e s id e n t P r o je c t B 
F in a n c e M a n u f a c tu r in g 
V ic e P r e s id e n t P r o je c t C 
F in a n c e M a n u f a c tu r in g 
P r e s id e n t
THANK YOU….. 
BY….~

Organizational structure and design and types

  • 1.
  • 2.
    WHY IS THISIMPORTANT Organizational structural design is critical in assisting organization in adapting to an ever-changing business enviroment.
  • 3.
    CENTRALISATION & DECENTRALIZATIOPN  The dicisioin is taken by one superior personality of the oraganizatio. e.g principal In decentralization the decision is flows from top to bottom .or lower staff e.g any employee can take the decision.
  • 4.
    BASIC TYPES OF ORGANIZATIONAL STRUCTURE  The Functional Structure  The Divisional Structure  The Matrix Structure  The Line & Staff Structure  The Project Structure
  • 5.
    THE FUNCTIONAL STRUCTURE Functional structure – this kind of organizational structure classifies people according to the function they perform in the organization.
  • 6.
    THE FUNCTIONAL STRUCTURE  Grouping by similar work specialties
  • 7.
    THE DIVISIONAL STRUCTURE  A type of organizational configuration that groups together those employees who are responsible for a particular product type or market service according to work flow.  The divisional structure of a business tends to increase flexibility, and it can also be broken down further into product, market and geographic structures.
  • 8.
  • 9.
    THE MATRIX STRUCTURE  This is a structure, which has a combination of function and product structures.  This combines both the best of both worlds to make an efficient organizational structure.  Most complex organizational structure.
  • 10.
    THE MATRIX STRUCTURE  A Grid of Functional & Divisional for Two Chains of Command
  • 11.
    THE LINE ANDSTAFF STRUCTURE  Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization.  Line and staff organizational structures are more centralized.  Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates.
  • 12.
    THE LINE ANDSTAFF STRUCTURE
  • 13.
    THE PROJECT STRUCTURE  Organizational units to complete projects of a long duration.  Each project is vitally important to the organization.  The size of the project team varies from one project to another.  The activities of a project team are coordinated by the project manager who has the authority to obtain advice and assistance of experts both inside and outside the organization.  The core concept of project organization is to gather a team of specialist to work on and complete a particular project.
  • 14.
    THE PROJECT STRUCTURE V ic e P r e s id e n t P r o je c t A F in a n c e M a n u f a c tu r in g V ic e P r e s id e n t P r o je c t B F in a n c e M a n u f a c tu r in g V ic e P r e s id e n t P r o je c t C F in a n c e M a n u f a c tu r in g P r e s id e n t
  • 15.