Organisation involves determining activities, arranging them into units, and assigning roles and responsibilities. It is important for attaining objectives, defining hierarchies and responsibilities, and minimizing friction. There are formal and informal structures. Formal structures include organization charts showing divisions of work, reporting relationships, and communication channels. Informal structures comprise unofficial working relationships. Common structures include functional (grouping similar tasks), divisional (grouping by product, geography, customers, or process), matrix (combining functional and divisional), team, network, and entrepreneurial. The choice of structure impacts organizational culture and ability to change directions.

1. Organisation

2. Organisation
• ”Organization is a structural relationship by which an enterprise is
bound together and the framework in which individual effort is
coordinated.”
Koontz and O’Donnell

3. Organising
• Process of determining the activities to be
performed,
• arranging these activities to administrative units as
well as
• assigning managerial authority and responsibilities to
people employed in the organization..

4. Importance of organizing
• Focus on, and facilitate the attaining of objectives..
• Arrangement of positions and jobs within the hierarchy..
• Define responsibilities and line of authority of
all levels..
• Creating relationships that will minimize
friction..

5. Organizingand organizationstructure
• Organizing
• The process of arranging people and other resources to work together to
accomplish a goal.
• Organization structure
• The system of tasks, workflows, reporting relationships, and
communication channels that link together diverse individuals and groups.
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6. Why Have a Structure?
• A clear structure makes it easier to see which part of the business
does what
• An organisational structure is the way in which a business is arranged
to carry out its activities

7. Management Structure and Design
• The choice of structure impacts the organisations culture – their ethos
and beliefs
• If businesses are looking to change their direction they often look at
restructuring

8. Organisational structure
• Includes:
• The routes through which communication pass through the
business
• Who has authority and power and responsibility within the
business
• The roles and titles of people within the business
• The people whom individual employees are accountable for
and those for whom they are responsible

9. Key terms
• Hierarchy – the number of layers of levels within an organisation
• Subordinate – a worker
• Span of control – the number of subordinates who directly report into
a manager
• Chain of command – the line of communication and authority from the
top to the bottom of the hierarchy

10. Formalstructures
• The structure of the organization in its official state.
• An organization chart is a diagram describing reporting
relationships and the formal arrangement of work
positions within an organization.
• An organization chart identifies the following aspects
of formal structure:
• The division of work.
• Supervisory relationships.
• Communication channels.
• Major subunits.
• Levels of management.
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11. Informalstructures 
• A “shadow” organization made up of the unofficial, but
often critical, working relationships between
organization members.
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12. Functionalstructures
• People with similar skills and performing similar tasks are
grouped together into formal work units.
• Members work in their functional areas of expertise.
• Are not limited to businesses.
• Work well for small organizations producing few products or
services.
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13. Functionalstructures in a business,branch
bank, and communityhospital.
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14. Divisionalstructures
• Group together people who work on the same product or
process, serve similar customers, and/or are located in the same
area or geographical region.
• Common in complex organizations.
• Avoid problems associated with functional structures.
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15. Divisionalstructuresbasedonproduct,geography,
customer,andprocess.
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16. Typesofdivisionalstructuresandhowtheygroup
job andactivities:
• Product structures focus on a single product or service.
• Geographical structures focus on the same location or
geographical region.
• Customer structures focus on the same customers or
clients.
• Process structures focus on the same processes.
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17. Matrix structure
• Combines functional and divisional structures to gain
advantages and minimize disadvantages of each.
• Used in:
• Manufacturing
• Service industries
• Professional fields
• Non-profit sector
• Multi-national corporations
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18. Matrixstructureinasmallmultiprojectbusiness
firm.
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19. Team structures
• Extensively use permanent and temporary teams to solve
problems, complete special projects, and accomplish day-to-day
tasks.
• Often use cross-functional teams.
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20. How a team structure usescross-functional
teams for improvedlateral relations.
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21. Networkstructures
• A central core that is linked through networks of relationships
with outside contractors and suppliers of essential services.
• Own only core components and use strategic alliances or
outsourcing to provide other components.
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22. A networkstructureforaWeb-basedretail
business.
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23. Spansof controlin “flat” versus“tall”
structures.
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24. Entrepreneurial Structure
• Often found where businesses operate in competitive markets and
especially where rapid decisions are needed
• Have a few core workers at the centre of the organisation and
peripheral workers surrounding them
• Depends on how good the core workers are at managing and making
decisions
• Can be difficult for larger organisations