This document discusses different types of organizational structures. It describes centralization versus decentralization in decision making. The main organizational structures covered are the functional structure, which groups employees by specialty; the divisional structure, which groups them by product or market; the matrix structure, which combines functional and divisional; the line and staff structure, which combines a top-down line with support staff; and the project structure, which forms teams to complete specific projects.

2. ORGANIZATIONAL
STRUCTURE
AND DESIGN

3. WHY IS THIS IMPORTANT
Organizational structural design is
critical in assisting organization in
adapting to an ever-changing
business environment.

4. CENTRALIZATION &
DECENTRALIZATION
 The decision is taken by one superior personality
of the organization.
e.g. principal
In decentralization the decision is flows from
top to bottom .or lower staff
e.g. any employee can take the decision.

5. BASIC TYPES OF
ORGANIZATIONAL STRUCTURE
 The Functional Structure
 The Divisional Structure
 The Matrix Structure
 The Line & Staff Structure
 The Project Structure

6. THE FUNCTIONAL STRUCTURE
Functional structure – this kind of organizational
structure classifies people according to the
function they perform in the organization.

7. THE FUNCTIONAL STRUCTURE
 Grouping by similar work specialties

8. THE DIVISIONAL STRUCTURE
 A type of organizational configuration that groups together
those employees who are responsible for a particular product
type or market service according to work flow.
 The divisional structure of a business tends to increase
flexibility .

9. THE DIVISIONAL STRUCTURE

10. THE MATRIX STRUCTURE
 This is a structure, which has a combination of
function and product structures.
 This combines both the best of both worlds to
make an efficient organizational structure.
 Most complex organizational structure.

11. THE MATRIX STRUCTURE
 A Grid of Functional & Divisional for Two
Chains of Command

12. THE LINE AND STAFF
STRUCTURE
 Line and structure combines the line structure
where information and approvals come from top
to bottom, with staff departments for support
and specialization.
 Line and staff organizational structures are
more centralized.
 Managers of line and staff have authority over
their subordinates, but staff managers have no
authority over line managers and their
subordinates.

13. THE LINE AND STAFF
STRUCTURE

14. THE PROJECT STRUCTURE
 Organizational units to complete projects of a long
duration.
 Each project is vitally important to the organization.
 The size of the project team varies from one project
to another.
 The activities of a project team are coordinated by
the project manager who has the authority to obtain
advice and assistance of experts both inside and
outside the organization.
 The core concept of project organization is to gather
a team of specialist to work on and complete a
particular project.

15. THE PROJECT STRUCTURE
V ic e P r e s id e n t P r o je c t A
F in a n c e M a n u f a c tu r in g
V ic e P r e s id e n t P r o je c t B
F in a n c e M a n u f a c tu r in g
V ic e P r e s id e n t P r o je c t C
F in a n c e M a n u f a c tu r in g
P r e s id e n t

16. THANK YOU....!
BY….