SIX ELEMENTS OF

ORGANISATIONAL STRUCTURE
 CONTENT
INTRODUCTION
SIX ELEMENTS OF ORGANISATIONAL STRUCTURE
WORK SPECIALITATION
DEPARTMENTALIZATION
CHAIN OF COMMAND
SPAN OF CONTROL
CENTRALIZATION AND DECENTRALIZATION
FORMALIZATION
SUMMARY
 INTRODUCTION
An organization structure outlines how job tasks are formally
distributed ,grouped ,and coordinated .While planning the
organizational structure manager need to report six key elements.
ORGANISATIONAL STRUCTURE INVOLVES
DECISION ABOUT SIX KEY ELEMENTS
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
What Is Organizational Structure ?
An organization structure outlines how job tasks are
formally distributed ,grouped ,and coordinated .While
planning the organizational structure manager need to
report six key elements.
 WORK SPECIALIZATION

Work specialization define the amount of task are divided

into separate parts in an organization. The main aim of the
organizational design is distributing the several tasks into
various parts and every task is completed by different
individual effectively.
 DEPARTMENTALIZATION
After work are divided up through work specialization , they must be
collected so that common tasks can be coordinated . The basis on which
jobs are grouped together is called the departmentalization .

There are five common form of departmentalization.

Functional Departmentalization
Product Departmentalization
Geographical Departmentalization
Process Departmentalization
Customer Departmentalization
 CHAIN OF COMMAND
The chain of command is the constant line of authority that extends from upper
organizational levels to the lowest level and explains who reports to whom . we
cannot discuss the chain of command without discussing authority and unity of
command.
Authority refers to the rights essential in a managerial position to give orders and
expect them to be followed.
The principle of unity of command helps preserve the concepts of an unbroken line
of authority .it says a person should have one and only one superiors to whom he or
she is directly responsible.
 SPAN OF CONTROL
Span of control is important to a large degree because it
defines the number of levels and managers are in an
organization .it also helps in determining the numbers
of employee's managed by a manager efficiently and
effectively.
CENTRALIZATION AND DECENTRALIZATION
Centralization refers to the degree to which decision making is
concentrated at a single point in the organization . level managers are
not capable or experienced in decision making as upper level
managers.

Decentralization means power or authority to take decision is not in

limited hands .employee's can help the organization in solving the
problems by giving their ideas ,more people provide input into
decisions. Decentralized departments make it easier to address
customer concern as well.
 FORMALIZATION
Formalization refers to the unit to which jobs with in
the organization are standardized . In organizations that
are highly formalized , there are explicit job
descriptions , lots of organizational rules , and clearly
defined procedures covering work processes.
 SUMMARY
Organizational Structure, it states us how tasks related to jobs are
well coordinated and grouped.
There are 6 elements of Organizational Structure.
It helps in explaining that how the jobs are distributed into parts.
How specialized jobs are coordinated for common skill people.
Lower level employees are allowed to make decisions.
It helps in determining that how many employees and managers are
in an organization.
Jobs within the organization are standardized.
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