The document discusses organizational structure and classical organizational theory. It defines organizational structure as the hierarchical arrangement of lines of authority and communication within an organization. Classical organizational theory deals with essential elements like division of labor, delegation, authority, and specialization. The document also describes concepts like scalar principle, span of control, line and staff functions, and criticisms of hierarchical structures.

1. ORGANIZATIONAL STRUCTURE
BY
ABIGAIL PUGAL-SOMERA

2.  Introduction
 Division of Labor
 Scalar Principle
 Authority, Responsibility and Accountability
 Span and Control
 Line and Staff Function
 Hierarchical or Horizontal
 Common Criticisms of Classical Organization Theory

3.  Organizational Structure
◦ The typically hierarchical arrangement of lines
of authority, communications, rights and duties of an
organization.
◦ determines how the roles, power and responsibilities are
assigned, controlled, and coordinated, and how
information flows between the different levels of
management
◦ depends on the organization's objectives and strategy
 Centralized vs Decentralized Structure
◦ Depending on organization’s objectives and strategies

4.  Classical Organization Theory
◦ "the study of organizations for the benefit of identifying
common themes for the purpose of solving problems,
maximizing efficiency and productivity, and meeting the
needs of stakeholders."[1] Organizational theory
contains three subtopics: classical perspective,
neoclassic perspective and environmental perspective.[2]
It complements the studies of organizational behavior
and human resource studies.
◦ Deals with essential elements in an institution:
 Division of Labor
 Delegation
 Authority
 Specialization
 Interdependence of Parts

5. • Primary vehicle for translating the organization’s strategy into
productive action
• Partly determines the power of people in organizations, and
affects perception of their roles.
 Can have a strong impact on job satisfaction.
 Construction vs Analysis
◦ Construction: Parts of a whole
◦ Analysis: Process of analysis

6.  Narrow specialization of tasks within a
production process so that each worker can
become a specialist in doing one thing, especially
on an assembly line.
 In traditional industries, division of labor is a
major motive force for economic-growth.
 In the era of mass customization (which requires
multiple skills and very short machine change-
over time), division of labor has become much
more flexible. Also called specialization of labor.

7.  The manner by which work is divided
◦ Scalar Process
 Provides a scale, or grading, of duties according to
level of authority and responsibility.
◦ Functionalization
 Work must be divided into different kinds of duties.

8.  Classical-management rule that subordinates at
every level should follow the chain of command,
and communicate with their seniors only through
the immediate or intermediate senior. According
to its proponent, the French management
pioneer Henri Fayol (1841-1925), a clear
understanding of this principle is necessary for
the proper management of any organization.
 Exists as long as there are at least two people in
a supervisor-subordinate relationship.

9. Head Head
1 Of Of
Department Department
2
Supervisors Supervisors
3 Employee Employee
Scalar Process Scalar and Functional
division

10.  Authority
◦ Power that is delegated formally. It includes a right to
command a situation, commit resources, give orders and
expect them to be obeyed, it is always accompanied by
an equal responsibility for one's actions or a failure to
act.
 Responsibility
◦ A duty or obligation to satisfactorily perform or
complete a task (assigned by someone, or created by
one's own promise or circumstances) that one must
fulfill, and which has a consequent penalty for failure.

11.  Accountability
◦ The obligation of an individual or organization to
account for its activities, accept responsibility for
them, and to disclose the results in a transparent
manner.
 Delegation
 Assignment of duties, authority and responsibility to
others

12.  Acceptance Theory of Authority
◦ Delegation gives authority to a lower manager;
however, the power of a manager to use that
authority depends on the willingness of employees
to accept it.
◦ Subordinate controls response to authority

13.  The number of subordinates that a manager
or supervisor can directly control. This
number varies with the type of work:
complex, variable work reduces it to six,
whereas routine, fixed work increases it to
twenty or more.

14.  Line Function
◦ Decision making areas of an organization
associated with its daily operations such as
purchasing, manufacturing, and selling.
 Staff Function
◦ Advisory, analysis, and support functions such as
accounting, planning, transportation provided to
production (line) employees.

15.  Hierarchical
◦ Common, pyramid-like organization where one
person is in charge of a functional area
(engineering, finance, marketing) with one or more
subordinates handling the sub-functions.
◦ In an hierarchical organization (whether business,
military, political, or religious) higher levels imply
greater superiority and domination than the lower
ones, and the chain of command extends straight
from the top to the bottom.

16.  Horizontal
◦ A decentralized power structure within an
association or business.
◦ A business that is structured as a flat or horizontal
organization where power is shared more broadly
tends to allow more staff more control over
business matters according to their expertise, and
it is often supportive of considerable collaboration
between employees.

17.  May lead to a work environment in which:
◦ Employees have minimal power over their jobs and
working conditions
◦ Subordination, passivity and dependence are
expected
◦ Work to a short term perspective
◦ Employees are lead to mediocrity
◦ Working conditions produce to psychological failure
as a result of the belief that they are lower class
employees performing menial tasks

18.  Organizational Behavior: Human Behavior at
Work 9th Edition by John W Newstrom and
Keith Davis
 Classical Organizational Theory powerpoint
presentation by Vincent Myers and Nina
Presuto
 http://www.businessdictionary.com
 http://www.wikipedia.com