This document discusses different types of organizational structures and how they impact information flow, efficiency, and focus. It describes traditional departmental structures organized by function with advantages of grouping similar skills but disadvantages of lack of communication between departments. Matrix and divisional structures are presented as alternatives that can improve communication but also create complexity. Flat and virtual/boundaryless structures are also briefly covered. Organizational charts are highlighted as a way to visualize reporting relationships and how organizational structure determines decision-making flow within a company.

1. ORGANISING STRUCTURE
Departmentation
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PART :03 ESSENTIAL OF MANAGEMENT 2019
CHAPTER :08

2. © Copy Rights George Bernard
01:00 | •IDENTIFYING THE BASIC PATTERN OF
TRADITIONAL DEPARTMENT & THEIR ADVANTAGE &
DISADVANTAGE
Learning Objective
02:00 | • ANALYSE MATRIX ORGANIZATION
03:00 | •EXPLAIN STRATEGIC BUSINESS UNITS
04:00 | •EXAMINE ORGANIZATION STRUCTURE FOR GLOBAL
ENTERPRISES
05:00 | •APPRECIATE VIRTUAL & BOUNDARY LESS
ORGANISATIONS & DIFFERENCE BETWEEN THEM
06:00 | •RECOGNISE THAT THERE IS NO SINGLE BEST
PATTERN OF DEPARTMENTATION
ORGANISING-STRUCTURE :DEPARTMENTATION

3. The organisational structure also determines how
information flows between levels within the company.
For example, in a centralised structure, decisions flow from the top
down, while in a decentralised structure, decision-making power is
distributed among various levels of the organization.
Having an organisational structure in place allows
companies to remain efficient and focused.
ORG CHART IN MANUFACTURING SECTOR
What Is an Organisational Structure?
An organisational structure is a system that outlines how certain activities
are directed in order to achieve the goals of an organization. These
activities can include rules, roles, and responsibilities.
Share holder
Production
Planning
Technical
Production
QA Manger
Maintenance
Investment
Research
Planning
Engineering
Marketing
Promotional/
Media
Brand/
Advertisement
Public Relation
Trade Marketing
Market Analysis
Technical
Product Design
Development
Tech –Audit
Tech – Services
Customer
Services
Human Resources
Training Group
Recruiting Team
Office Support
Compensation
Board Legal Department
Director

4. Traditional business structure. C-Suite at the top, followed by
other senior management, middle managers etc…
Structure is divided into l departments like IT, marketing,
finance, human resources, and operations based on everyone's
functional role in the organization.
In such an organisational structure, employees with similar
skillsets and specialisation are grouped together.
However, they often suffer from lack of visibility and
communication with other departments.
FUNCTIONAL TOP-DOWN MATRIX ORG CHART
STRUCTURE
Organisational charts are a good way to visualise reporting relationships
and team roles in businesses, nonprofit organisations, educational
institutions and governments.
A matrix organisational chart reflects a company
where employees are divided into teams by
projects or product lead by a project or product
manager, but also report to a functional manager.
A matrix organisational structure can help
facilities better, more open communication and
create a flexible, dynamic work environment that
can easily shift resources where they're needed,
but it can also create confusion and frustration
with dueling priorities and supervisors.
1 2

5. DIVISIONAL
ORGANISATIONAL
FLAT ORG
STRUCTURE
Organisational charts are a good way to visualise reporting relationships
and team roles in businesses, nonprofit organisations, educational
institutions and governments.
A divisional organisational chart reflects a company organised
along a product line or specific geography.
For example, in a car company the divisions may represent
SUVs, sedans, and electric cars. Each division than has it own
functional structure like IT and marketing.
A company will use a divisional set up like this when one
division is sufficiently independent from another, however this
kind of structure can also add some accounting and other
overhead.
3 4
A flat organization structure will show few
or no levels of management between
executives and all other employees.
This type of structure empowers self-
management and greater decision making
ability for every employee.
It's most often employed by smaller
businesses, but it's not unheard of it even at
larger companies.

6. TO SHOW
MANAGEMENT
STRUCTURE
H e l p e f f e c t i v e l y
m a n a g e g o a l s ,
develop strategy, and
improve interaction
between individuals or
entire departments.
OTHER
ORGANISATIONAL
STRUCTURE
Corporate structure of a
real estate company.
AS A PLANNING
TOOL
For example during a
planning meeting,
committee -decided to
move the Office Manager
position. -reporting to
the Dir of Ops- to Dir of
Tech
AN EMPLOYEE
REFERENCE
Once an employee
finds their position on
the chart, they can see
immediately who their
supervisor is, who their
co-workers are, and
how they fit into the
organization.
Organisational Chart Uses
AN EMPLOYEE
DIRECTORY
An organization chart
makes it possible to
find the name of the
person responsible for
a particular function.
For example, it you
want to know the name
of the VP of sales'
assistant you can
immediately find it
from the org chart.

7. EMPLOYEES ON FLEX -
TIME PROGRAMME
EMPLOYEE -SATELLITE
OFFICE , SAME
COUNTRY
EMPLOYEES -SATELLITE
OFFICE ,DIFFERENT
COUNTRY
Knowledge management technologies assisting virtual organisations comprise:
1.Collaborative technologies 2.Extensible markup language (XML) 3.Intranets and extranets
Personal devices 4.Wireless technologies 5.Virtual reality (VR) 6.Portals
INDEPENDENT
CONTRACTOR
TELECOMMUTERS
VENDORS
Virtual Organization
A virtual organization is a network of independent firms that join together, often temporarily, to produce a service or
product. . Virtual organisations do not represent a firm's attribute but can be considered as a different organisational form.

8. boundaryless organization
This term was coined by former General Electric chairman Jack Welch because he
wanted to eliminate vertical and horizontal boundaries within the company and break
down external barriers between the company and its customers and suppliers.[1]

9. For your attention
THANK YOU