The document discusses the concept of organizational structure, which defines the framework for how activities are organized and supervised within an organization. It outlines key elements including work specialization, departmentalization, chain of command, and various structure types such as functional, divisional, and flat organizations. Additionally, it highlights the objectives, importance, and advantages of having a well-defined organizational structure, as well as the limitations it may encounter.

1. ORGANIZATIONAL
STRUCTURE
BY
AKSHATA, JYOTHI, PAVAN, MANOJ, SHANMUKHA
MP BIRLA INSTITUTE OF
MANAGEMENT

2. Agenda
Introduction types
importance Elements
Objectives
advantage

3. Introduction
3
• Organizational structure refers to the
framework that outlines how activities are
organized, coordinated, and supervised to
achieve organizational goals.
• It defines the hierarchy, roles, responsibilities,
and relationships within an organization.
• And job tasks are formally divided, grouped
and coordinated.

4. Elements of Organizational
Structure
• Work specialization.
• Departmentation.
• Chain of command.
• Span of control.
• Centralization/Decentralization.
• Formalization

5. 1.Work specializations
5
• It define how responsibilities are split between
employees based on the job description.
• It’s used to split projects into smaller work activities
and assign tasks to individual employees.
• The most common results of improper specialization
are low efficiency and burnout.
2.Departmentalizati
on
• Departmentalization is a grouping of jobs according to
some logical arrangement
• It refers to the formal structure of the organization,
composed of various departments and managerial
positions and their relationships with each other.

6. 3.Chain of command
6
• The chain of command of a company describes the
business' hierarchy and can affect workplace culture
and the efficiency of work production. An
organizational chart can visually portray each
employee's place in the company hierarchy, and the
company may have a strict or flexible chain of
command.
4.Span of control
• it accounts for the number of people and a leader
supervises and the tasks they handle.
• it can depend on a variety of factors including:
• Workplace size
• Manager abilities
• Company goals
• Company structure
• Leadership style

7. 5.Centralization and decentralization
7
• Centralization and decentralization refer to the senior
levels of employees who can influence company
decisions. Each company rests somewhere on a scale
of centralization
6.Formalization of
elements
• specifies the relationships and roles within a company.
Larger companies often have a more distinct
formalization of primary roles than smaller companies.
This is because employees may fill multiple roles in a
smaller company.

9. Common organizational
structure pyramid

10. Types
• Functional structure
• Divisional structure
• Matrix structure
• Team structure
• Network structure
• Hierarchical structure
• Flat organization structure

11. Functional structure
Presentation Title 11
• A functional structure groups employees into different
departments by work specialization.
• Each department has a designated leader highly experienced
in the job functions of each employee supervised by them

12. Divisional structure
Presentation Title 12
• A divisional structure organizes employees around a common
product or geographical location.
• Divisional organizations have teams focused on a specific
market or product line.

13. Matrix structure
Presentation Title 13
• Having multiple supervisors allows for company-wide
interaction and faster project delivery.
• For instance, when answering to functional managers and
project managers, employees have a chance to collect
experience outside their team.

14. Team structure
Presentation Title 14
• A team-based organizational structure creates small teams
that focus on delivering one product or service.
• These teams are capable of solving problems and making
decisions without bringing in third parties.

15. Network structure
Presentation Title 15
• It’s an act of joining the efforts of two or more organizations
with the goal of delivering one product or service. Typically, a
network organization outsources independent contractors or
vendors to complete the work.

16. Hierarchical structure
Presentation Title 16
• It’s the most common organizational structure type that follows
a direct chain of command.
• A chain of command, in this case, goes from senior
management to general employees through a range of
executives on the departmental and team level.
• The highest-level executive has the highest power over the
decision-making process.

17. Flat organization structure
Presentation Title 17
• In a flat organizational structure, there are few middle
managers between employees and top managers. The
structure requires less supervision, increases employee
involvement, and boosts trust in the workplace.

18. Objectives of organizational structure
18
• To remain adaptable to organizational changes
• To incorporate new aspects
• To ensure collaborations with the components
• To promote flexibility
• To supply required information
• Determinants of organizational structure
• Environment
• Strategy
• Size of organisation
• Organisational lifecycle
• Technology
• Organizational culture

19. Importance
Presentation Title 19
• Handling contingencies
• Competitive advantage
• Meaning diversity
• Efficiency and innovation
• Provides clarity
• Higher growth opportunity
• Motivates employees

20. Advantages
• Decision making
• communication
• Self development
• Efficiency
• Clarity
• Accountability
• Efficient communication
• Enhance employee skills
• Minimized cost
• Speed operations
• specialization

21. Limitations
• Rigidity
• Communication barriers
• Slow decision-making
• Lack of innovation
• Employee dissatisfaction
• Difficulty in collaboration
• Resistance to change
• Limited scalability

22. Thank you