The document discusses the importance of organizational structure and its determinants, including formal and informal groups, levels of management, and different types of organizational designs. It emphasizes that effective organizational skills are critical for managers to enhance efficiency and meet company objectives. The document also details various structures such as flat, tall, functional, divisional, hybrid, and matrix designs, highlighting their strengths and weaknesses in achieving organizational goals.

2. Organizing Defined
Reasons for Organizing
The Organizational Structure and
its Determinants
The Formal Organization
Informal Groups
Levels of Management and
Supervision
Basic Elements of Organizational
Structure
Basic Organizational Designs

3. The manager needs to acquire various skills in
management, including those for organizing
business activities. In this highly competitive
environment, the unskilled manager may not be
able to bring his unit, or his company, as the
case may be, to success.
The benefits of superior organizing skills are
too important for the manager to ignore.

6. The Organizational
Structure and its
Determinants
The structure means by which the
organization will attain its objectives
and goals. Apart from the
organization's goals and objectives, the
structure must be one that considers, its
resources, and its environment, both
internal and external.
Strategy or plans for achieving the
company's objectives;
01
technology that will be used in
carrying out the strategies;
02
people employed at all levels and
their functions; and
03
size of the organization.
04
The determinants of an organization structure are:

7. Gerente General
The Formal Organization
The formal organization, as described by Nelson
and Quick "is the part of the system that has
legitimacy and official recognition." What is
depicted in the organization chart is the formal
organization.
It is the planned structure representing the intended
configuration of positions, job duties, and lines of
authority among the component parts of the
organization.
The formal group is a part of the organizational
structure.

8. - is a diagram of the organization's official
positions and formal lines of authority.
ORGANIZATION CHART
- provides written descriptions of authority
relationships, details the functions of major
organizational units, and describes job
procedures.
ORGANIZATION MANUAL
POLICY MANUAL
- describes personnel activities and
company policies.

9. Informal Groups
When members of an
organization spontaneously
form a group with
friendship as a principal
reason for belonging. This
group is referred to as an
informal group. It is not
part of the formal
organization and it does
not have a formal
performance purpose.
FRIENDSHIP

10. FRIENDSHIP
COMMON
INTEREST
PROXIMITY
NEED
SATISFACTION
COLLECTIVE
POWER
GROUP GOALS
AN INFORMAL
GROUP
Propels people to form or join

11. The management and
supervision may be done
through levels of hierarchy,
which may be flat or tall.
Levels of Management
and Supervision

12. 1. Flat Structure
The flat structure has few levels of management. This
characteristic provides it with the following advantages:
a. communication is generally faster and less
distorted;
b. decisions can be made quickly; and
c. supervisor's salary are eliminated
Flat structure, however, have the following distinct
disadvantages:
a. they require managers with experience in the
various tasks;
b. a manager may have little time for all subordinates;
c. when manager is out, the group is without a leader;
and
d. managers may have little time to anticipate
problems.

13. MANAGER
Utility Driver Sales Clerk
Documents
Clerks
Mechanics
Parts
Clerks
Cashier
Collector/
CI
FLAT STRUCTURE

15. GENERAL
MANAGER
AREA MANAGER AREA MANAGER
BRANCH MANAGER BRANCH MANAGER
C&C MANAGER SALES MANAGER
SALES MANAGER
DOCUMENTS
MANAGER
TALL STRUCTURE

16. BASIC ELEMENTS OF
ORGANIZATIONAL
STRUCTURE

17. Organizational
Structure
Refers to the formal arrangement of roles, responsibilities,
communication systems, and authority within an
organization. It defines how activities such as task
allocation, coordination, and supervision are directed
toward achieving the organization’s goals.

18. 1.) Work Specialization
2.) Departmentation
3.)Pattern of Authority
4.)Span of control
5.)Coordination of activities
Basic Elements of
Organizational Structure

19. The degree to which tasks are divided in the
organization is referred to as work specialization.
A decision must be made regarding this element
and it should be reflected in the organizational
structure.
Work Specialization
Why specialization? Specialization promotes
efficiency.

20. -refers to the grouping of job based on criteria that
managers believe help in the coordination and control of
activities. A decision must also be made on whether the
organization would be departmentalized or not.
Departmentation advantages to the organization. They are the following:
1. SUPERVI SI ON I S MADE EASI ER
2. COMMUNI CATI ON I S ENCOURAGE
3. COMMON MEASURES OF PERFORMANCE ARE
ESTABLI SHED
4. THE SHARI NG OF RESOURCES, SUCH AS MEN, MACHI NE
AND MATERI ALS RESULT I N MAXI MUM USE OF SUCH
RESOURCES.
DEPARTMENTATION

21. Authority patterns may ne centralized or decentralized.
Centralized - when decision making is concentrated in the
hands of higher-level managers.
Decentralized - when decision making authority is granted to
middle and lower management positions.
PATTERN OF AUTHORITY
Is an element in designing organizational
structure refers to the extent by which
organization members are allowed to make
decisions without getting the approval of
another member.

22. 1.
2.
3.
4.
1.
2.
3.
4.

23. Span of Control
-it is nother consideration in designing the
organizational structure. It refers to the number
of subordinates reporting to a single supervisor.
The span of control may either be narror or wide.
Narrow- when thereare few subordinates reporting to
a supervisor.
Wide- when there are many subordinates reporting to
a supervisor.

24. 1.
2.
3.
4.
1.
2.
3.
4.

25. Coordination
Another basic element considered in designing
the organizational structure is coordination. This
term refers to the linking of activities in the
organization that serve to achieve a commor
goal or objectiv.

26. DESIGNS
BUSINESS ORGANIZATIONAL
There are four basic organizational designs. These
are the following:

27. FUNTIONAL
DESIGN
An organization may be designed
basically according to function. In
organizations with functional design,
employees are grouped together in
separate departments on the basis of
common tasks, skills, or activities.

28. PRESIDENT
FINANCE
PRODUCTION
HUMAN RESOURCES
AUDIT
SALES
LEGAL

29. Strengths
efficient use of resources;
1.
in-depth skill development;
2.
clear career paths;
3.
unity of direction; and
4.
enhanced coordination within
functions.
5.
Weaknesses
slow decision making;
1.
less innovation;
2.
unclear performance responsibility;
3.
limited management training;
4.
and poor coordination across
functions.
5.
Strengths & Weaknesses of Functional Design

30. DIVISION
DESIGN
The organization with divisional
design is that type where all
activities needed to produce a
good or service are grouped
together into independent units.

31. PRESIDENT
AUDIT
SALES
LEGAL
FINANCE
PRODUCTION
HUMAN RESOURCES
DIVISION
A
DIVISION
B
DIVISION
C
AUDIT
SALES
LEGAL
FINANCE
PRODUCTION
HUMAN RESOURCES
AUDIT
SALES
LEGAL
FINANCE
PRODUCTION
HUMAN RESOURCES

32. Strengths
adaptation to unstable environment;
1.
high customer satisfaction;
2.
high task coordination;
3.
clear performance responsibility; and
4.
general management training.
5.
Weaknesses
inefficient use of resources;
1.
low in-depth training for personnel;
2.
focus is on division objectives; and
3.
loss of control.
4.
Strengths & Weaknesses of Divisional Design

33. The hybrid design, also called
the matrix structure, is a
combination of divisional units
and functional departments.
HYBRID
DESIGN

35. Strengths
simultaneous coordination;
1.
integration of goals with
objectives;
2.
and efficient and highly
adaptable.
3.
Weaknesses
slow responses to exceptional
situations;
1.
conflict between headquarters and
divisions; and
2.
administrative overhead
3.
Strengths & Weaknesses of Hybrid Design

36. An organization with a matrix design is one
that implements functional and divisional
structures simultaneously in each
department. The employee is supervised by
the functional manager in his work as a
specialist. The divisional manager
integrates the activities of the specialists.
MATRIX
DESIGN

37. The following conditions favor the use of
matrix design:
1. environmental pressures exist for a dual
focus, such as innovation and quality;
2. large quantities of information must be
processed; and
3. efficiency is needed in the use of
resources.
MATRIX
DESIGN

39. Strengths
allows demands from the environment to be met
simultaneously;
1.
provides flexibility;
2.
encourages resource efficiency;
3.
enhances skill development;
4.
increases motivation and commitment among
employees; and
5.
aids top management in planning.
6.
Weaknesses
creates confusion;
1.
power struggles within the
group are potential
problems; and
2.
places stress on
individuals.
3.
Strengths & Weaknesses of Matrix Design

40. Thank you for
listening!