The document discusses organizing structure in organizations. It explains the purpose of organization charts and how factors like strategy, growth, and changes affect an organization's structure. It defines different types of departmentalization and organizational structures including functional, matrix, horizontal, and virtual structures. It also discusses the use and types of committees like boards of directors.

1. Organizing Structure
By:
Tashara Hare

2. Objectives
• Explain the purpose of an organizing chart
• Describe factors and changes that affect an
organization’s structure
• Define a contingency approach
• Identify the different types of
departmentalization
• Describe the different types of organizational
structure including a virtual organization.
• Discuss the types and effective se of committees

3. 3 Stages of Organization Growth
•Craft or family Stage
•Entrepreneurial stage
•Professional management Stage

4. Craft or family stage
Absence of formal polices, objectives , and
structures

5. Entrepreneurial stage
The organization grows first at an increasing
and then decreasing rate .

6. Professional management stage
The entrepreneurial has been replaced by or
evolved into a professional manager who
performs the processes of planning,
organizing, staffing an motivating.

7. What is an organization chart?
An organization chat uses a series of boxes
connected with one or more lines to
graphically represent an organizations
structure

9. Chandlers study of organizational
strategy
Structure follows strategy and changes in
strategy ultimately leads to changes in the
organization’s structure

10. What are the 2 systems identified by
researchers Burns and Stalker?
• Mechanistic Systems which are organizational
systems characterized by rigid delineation of
functional duties , fixed authority and
responsibility, and a well developed
organizational hierarchy through which
information filters up and instructions flow
down.
• This is the type of organization that would be
seen in large health care facilities such as
hospitals

11. Cont’d
• Organic systems which are organizational
systems having less formal job descriptions,
greater emphasis on adaptability, more
participation, and less fixed authority.
• This type of organization usually occurs in
small health care setting such as private
practice offices.

12. Outsourcing Benefits:
• Reduces operating costs by utilizing others
who can do the job more efficiently.
• Accessing top talent and state of the art
technology without having to own it.
• Improving resource allocation by allowing
growth to take place more quickly.
• Fewer personnel headaches.

13. Contingency approach
Theorizes that different situations and
conditions require different
management approaches.

14. What are the advantages and
disadvantages of functional
departmentalization?
• Primary advantage is that it allows for
specialization within functions. It also provides
efficient use of equipment and resources,
potential economies of scale and ease of
coordination of the function itself.
• Disadvantages are that members of a
functional group develop more loyalty to the
functional group’s goal than to the
organization goals.

15. Matrix Structure

16. Advantages of matrix structure
• Because key people can be shared, the project cost is
minimized
• Conflicts are minimal, and those requiring hierarchical
referrals are more easily resolved
• There is a better balance between time, cost and performance
• Authority and responsibility are shared
• Stress is distributed among the team

17. Horizontal Structure characteristics:
• The hierarchy is flattened or reduced
supervision
• Customers, not stock appreciation or
profitability , drive performance.
• Team performance not just an individual, is
rewarded.
• Customer contact is maximized with
employees.

19. 3 types of virtual organizations :
• One type exists when a group of skilled
individuals form a company by
communicating via computer, phone, fax, and
video conference.
• Second type occurs when a group of
companies, each of which specialize in a
certain function such as manufacturing or
marketing partner together .

20. Cont’d
• Third type occurs when a one large company
outsources many of its operations by using
modern technology to transmit information to
its partner companies so that it can focus on
its speciality.

21. Board of directors
Board of directors are a carefully selected
committee that reviews major policy and
strategy decisions proposed by top
management.

22. What is the difference of inside and
outside board of directors?
• Inside board, a majority of the members hold
management positions in the organization.
• Outside board a majority of the members do not
hold or have not held a position with the
organization.