2. CONCEPT OF ORGANISATIONAL STRUCTURE:
In the words of F. Kast and S. Rosenweig,
“Structure is the established pattern of relationship
among the components or parts of an organization.”
Organisation structure refers to the pattern of
relationships among individuals and departments in an
organization. Organisation structure is the framework
through which the organization operates.
4. as a hierarchical org chart. It’s the most common type
of organizational structure—the chain of command
goes from the top (e.g., the CEO or manager) down
(e.g., entry-level and low-level employees), and each
employee has a supervisor.
Pros
• Better defines levels of authority and responsibility
• Shows who each person reports to or who to talk to
about specific projects
• Gives each employee a specialty
5. Cons
• Can slow down innovation or important changes due
to increased bureaucracy
• Can cause employees to act in interest of the
department instead of the company as a whole
2. Functional org structure
A functional org structure starts with positions
with the highest levels of responsibility at the top and
goes down from there. Primarily, though, employees
are organized according to their specific skills and their
corresponding function in the company. Each separate
6. department is managed independently.
Pros
• Allows employees to focus on their role
• Encourages specialization
• Help teams and departments feel self-determined
Cons
• Can create silos within an organization
• Hampers interdepartmental communication
7. 3. Horizontal or flat org structure
A horizontal or flat organizational structure fits
companies with few levels between upper
management and staff-level employees. Many start-up
businesses use a horizontal org structure before they
grow large enough to build out different departments,
Pros
• Gives employees more responsibility
• Fosters more open communication
8. Cons
• Can create confusion since employees do not have a
clear supervisor to report to
• Can be difficult to maintain once the company grows
beyond start-up status
4.Divisional org structure
In divisional organizational structures, a
company’s divisions have control over their own
resources, essentially operating like their own
company within the larger organization. Each division
can have its own marketing team, sales team, IT team,
9. etc. This structure works well for large companies as it
empowers the various divisions to make decisions
without everyone having to report to just a few
executives.
Depending on organization’s focus, there are a
few variations to consider.
i) Market-based divisional org structure
Divisions are separated by market, industry,
or customer type.
ii)Product-based divisional org structure
Divisions are separated by product line.
10. iii)Geographic divisional org structure
Divisions are separated by region,
territories, or districts, offering more effective
localization and logistics.
Pros
• Helps large companies stay flexible
• Allows for a quicker response
Cons
• Can easily lead to duplicate resources
• Can result in a company competing with itself
11. 5.Matrix org structure
A matrix organizational chart looks like a grid,
and it shows cross-functional teams that form for
special projects.
Pros
• Allows supervisors to easily choose individuals by
the needs of a project
• Encourages employees to use their skills in various
capacities aside from their original roles
Cons
• Presents a conflict between department managers
and project managers
12. 6.Team-based org structure
A team organizational structure is meant to
disrupt the traditional hierarchy, focusing more on
problem-solving, cooperation, and giving employees
more control.
Pros
• Increases productivity, performance, and
transparency by breaking down silo mentality
• Promotes a growth mindset
• Changes the traditional career models by getting
people to move laterally
13. Cons
• Goes against many companies’ natural inclination of
a purely hierarchical structure
7.Network org structure
These days, few businesses have all their
services under one roof, and juggling the multitudes of
vendors, subcontractors, freelancers, offsite locations,
and satellite offices can get confusing. A network
organizational structure makes sense of the spread of
resources.
14. Pros
• Visualizes the complex web of onsite and offsite
relationships in companies
• Allows companies to be more flexible and agile
Cons
• Can quickly become overly complex when dealing
with lots of offsite processes
15. Organizational issues and ways to overcome
them :
Organizational issues can be challenged for some
companies to overcome as they try to improve and
manage their daily operations. The first step to
resolving organizational issues is to acknowledge that
there is a problem and identify the source. It takes
time to determine where issues are coming from and
create the appropriate solutions for each problem, but
this is a necessary step for any organization that wants
to grow and thrive in a healthy manner.
16. Why is it important to resolve organizational issues?
Identifying and resolving organizational issue is
highly beneficial to both the organization and its
employees. The quicker you can resolve organizational
issues, the sooner you can create a healthier
workspace and focus your energy and resources on
other business matters. Having good organizational
practices promotes a sense of accomplishment and
achievement within the company. Organizational
improvements can also serve as motivation for an
organization to keep pushing for new solutions or
make proactive changes to avoid the same issues in
the future.
17. Common organizational issues (with causes and
solutions)
Some organizational issues are more common
than others, but they can all be challenging to
overcome. There are ways to solve these issues with
dedication and commitment to making positive
outcomes. The following are 7 organizational issues,
along with potential causes and solutions:
1. Turnover
High turnover refers to an organizational issues
where employees leave their companies frequently
and at high volumes. To compensate, an organization
has to regularly hire new people to fill those roles.
18. This can take up company resources and cause delays
in company workflows. Some reasons for high
turnover rates may include:
• Employees are discontent with management and
their leadership officials.
• They feel dissatisfied with their work and do not find
it fulfilling.
• Staff members are underpaid and want more
compensation for their work.
• Employees don’t believe their employer hears their
voices, ideas and concerns.
• Team members don’t see a path for growth within
the company.
19. To overcome this challenge, it may help
organizations if they reach out to their employees and
receive feedback from them. Its beneficial for
managers to listen to their employees concerns and
seriously consider where they can change or improve.
Taking actionable steps to meet the concerns of your
team members can help increase employee retention
rates and improve productivity.
2. Productivity
Productivity refers to the volume of work
employees complete successfully and according to
schedule. Having high productivity means a company
20. is meeting their production quotas, business
operations are on track and the business is fulfilling all
orders on time. An organization may suffer from
productivity losses because:
• Teams are understaffed.
• Employees lose interest in the work or get
distracted.
• Sudden structural and procedure changes can be
jarring.
• Stress inducers like unrealistic deadlines and poor
leadership can make working challenging.
To combat this organizational issue, managers
may benefit from hiring on additional staff or provide
21. employees with breaks so they can relieve stress.
Slowly ease your team members into upcoming
changes so they can prepare accordingly and set
deadlines that are realistic and achievable.
3. Process management
Managers use process management to ensure
that their team is following the best processes for
completing their work in an efficient and timely
manner. The managers has to set the rules and
guidelines and decide what practices to maintain and
identify which ones don’t add value. Poor process
management can occur because:
22. • Managers establish processes that are convoluted
and complicated.
• Company leadership isn’t flexible and ignores
feedback from employees.
• Managers lack an in-depth understanding of their
team’s work and what they need to accomplish it.
To overcome process management problems, a
manager should work closely with their team,
understand their needs and take steps to implement
processes that allow them to do their work simply and
efficiently.
23. 4. Roles specification
Role specification means hiring the most
qualified person for a job and assigning work to the
most appropriate employee. A lack of quality role
specification can disrupt workflows, reduce efficiency
and decrease communication between team
members, Role specification issues can occur because:
• Managers may show biased behavior towards or
against particular individuals.
• A hiring manager doesn’t take the time to interview
a candidate thoroughly.
• Leadership may not understand their team’s
capabilities and particular strengths.
24. • Nepotism can sometimes leads to unqualified new
hire.
To overcome this organizational challenge. It’s
important that managers learn about the skills and
interests of their team members so they can assign
work to the most qualified member or train members
on how to succeed. It’s also essential that managers
conduct a thorough hiring process for new candidates
to hire people that suit company openings. They may
enlist the help of recruiters who are more adept at
finding qualified candidates for specific roles.
25. 5. Customer satisfaction and relationships
One of the most important aspects of a
successful organization is its relationship with its
customers. Satisfied customers contribute to increased
revenue and consistent purchases as a source of
income. Customers may become unsatisfied with an
organization due to poor customer service or poor
quality of a company or service.
A solution to customer satisfaction as an
organizational issue could be to retrain employees on
how to provide the best customer service and engage
with consumers through surveys, social media and
market studies.
26. 6. Innovation
Innovation is how companies develop new ideas
and expand their products and services. An
organization that is innovative opens itself up to new
opportunities, integrates updated technology tools
and becomes an industry leader. Organizations
experience low innovation and grow stagnant because:
• They have a company culture that stifles employee
creativity.
• The company uses outdated business practices that
don’t facilitate innovation.
You can encourage innovation in your
organization by listening to the ideas of your team
27. members and creating a culture where they feel
comfortable being able to openly and freely express
their ideas. It’s also helpful to thoroughly analyze
current business practices and make necessary
changes so new ideas and innovations can easily
integrate into the company’s processes.
7. Teamwork
Teamwork involves employees working together
to achieve a common goal. Effective teamwork
increases productivity, revenue and makes everyone’s
job easier to complete. Teamwork within an
organization can falter when:
28. • Team members have conflicting personality traits.
• Some individuals contribute more to projects than
others.
• Managers show favoritism towards specific people.
• The organization has poor communication channels.
To resolve this organizational issue, try
facilitating team meetings so everyone can share their
concerns and craft solutions. Avoid showing favoritism
so everyone feels valued and encouraged when they
speak up about their ideas. You can also conduct
individual meetings with each team member to assess
the best way to improve the team based on each
person’s feedback. If there are conflicting
29. personalities, it’s important to have the involved
parties discuss their issues civilly so they can
determine a way to work together peacefully.
