The document discusses organizational structure and its key elements. It defines organizational structure as how job tasks are divided, grouped, and coordinated. The six main elements of structure are work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. Common structures include simple, bureaucratic, and matrix structures. Newer designs incorporate teams, networks, and virtual organizations with fluid, flexible connections. Organizational structure depends on factors like strategy, size, technology, and environment.

1. Organizational Structure

2. Organizational Structure
The way in which job tasks are formally divided,
grouped and coordinated.
Six Elements of Organizational Structure
1. Work Specialization
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralization and Decentralization
6. Formalization

3. 1. Work specialization
The degree to which tasks in an organization are
subdivided to separate jobs.
2. Departmentalization
The basis by which jobs in an organizations are
grouped together.

4. 3. Chain of command
The unbroken line of authority that extends from the top of the
organization to the lowest echelon and clarifies who reports to
whom.
 Authority: The rights inherent in a managerial position to give
orders and to expect the orders to be obeyed.
 Unity of command
The idea that a subordinate have only one supervisor to whom he
or she is directly responsible.

5. 4. Span of control
The number of subordinates a manager can
efficiently and effectively direct.
5. Centralization
The degree to which decision making is
concentrated at a single point in an organization

6. Decentralization
The more the lower level personnel provide input or actually
given the discretion to make decisions, the more decentralization
there is .
6. Formalization
The degree to which jobs within an organizations are
standardized.

7. Common organizational designs
1. Simple structure
A structure characterized by a low degree of departmentalization,
wide span of control authority centralized in a single person and little
formalization

8. 2. Bureaucracy
A structure with highly routine operating tasks
achieved through specialization, very formalized rules
and regulations, tasks are grouped into functional
departments, centralized authority, narrow span of
control and decision making that follows the chain of
command.

9. 3. The matrix structure
A structure that combines two forms authority and
combines functional and product departmentalization.
 Functional departmentalization.
Specialists are working together, which minimizes
the number necessary while allowing the pooling
and sharing of specialized recourses across
products.

10.  Disadvantage: difficulty of coordinating the tasks of diverse
functional specialists so that their activities are completed on time
and within budget.
 Product Departmentalization
Facilitates coordination among specialists to achieve on time
completion and to meet budget target, it provides clear responsibility
for all activities, but with duplication of activities and costs.

11.  The matrix structure breaks the unity of command.
 Employee has two bosses i.e. functional department
managers and product managers.
 Therefore the matrix has dual chain of command.

12.  Matrix Structure for a college of Business Administration.

13. New Designs Options
Team Structure
 Management uses team teams as its central coordination
device, it results in horizontal organization and team
structure.
 The primary characteristics of the team structure are that
it breaks down departmental barriers and decentralizes
decision making to the level of work team.
 Team structure also requires employees to be generalists
as well as specialists.

14. Pizza Structure
 Hierarchy is abolished
 Functions have not supposed to have separate goals
 People work in self directed work teams
 All managers are members of at least one such level.

15. Network Structure
 Linking of numerous separate organizations to optimize
their interaction to accomplish a common over all goal.
 There can be intranetworking, a joint venture to build
complex, technical systems such as a space shuttle.
 Interorganizational networking, like a network of
construction companies to build a larger structure.
Networking requires synergy and high level of
collaboration

16. Spaghetti organization
 IT system that led to the virtual elimination of paper,
reconfigured office spaces, and shift in the business
from focusing on technology to serving and users

17. Fishnet Organization
 Flexible
 Form and reform varied patterns f connection
 Middle manager may be at one time be at the apex, at
another time in the middle.
 Rearranges itself quickly while retaining its inherent
strength.
 Allows any structure to be woven together
electronically and altered as needed.

18. The Empowered Organization
 Participating in decision making
 Involving
 empowering

19. Virtual Organization (network and modular
organization)
 Small core organization that out sources major function
business.
 Centralized
 Little or no departmentalization

20.  Virtual organization figure

21. Boundaryless organization
 Eliminate chain of control
 Limitless span of control replace departments with
empowered teams.

22. Why do structures differ
Mechanistic model
 Characterized by extensive departmentalization, high
formalization, a limited information network and
centralization.
 Organic model
A structure that is flat, uses cross hierarchical and cross
functional teams, has low formalization, possess a
comprehensive information and relies on participative
decision making.

23. Innovation Strategy
A strategy that emphasizes the introduction of major
new products and services.
Cost minimization strategy
A strategy that emphasizes tight costs control,
avoidance of unnecessary innovation or marketing
expenses and price cutting

24. Imitation Strategy
A strategy that seeks to move into new products or new
markets only after their viability has already been
proven.

25. Organizational size
Organization’s size affects structure.
Large organizations have employees, tend to have more
specializations, more departmentalization's, more
vertical levels, and more rules and regulations.
The impact of size becomes less important as an
organization expands.

26.  Organization 2000 employees adding 500 no
impact.
 Organization 300 employees adding 500 major
shift.

27. Technology
 The way in which an organization transfers its inputs
into outputs.
Environment
institutions or forces outside an organization that
potentially affect the organization's performance.