WHAT IS ORGANIZATIONAL STRUCTURE

Organizational structure
refers to the formal
pattern of how people
and jobs are grouped in
an organization. It is
often illustrated by an
organizational chart,
specifying who reports to
whom.
BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

1
• Work specialization

2
• Departmentation

3
• Pattern of authority

4
• Span of control

5
• Coordination of activities
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

1
• Work specialization

This refers to the degree to which tasks

in the organization are subdivided into
separate jobs.

A
D 1. Total productivity tends to multiply geometrically;
V
A
2. Simplified Task can be learned in a relatively short time
N S
and can be completed quickly; and
T
A 3. The availability of a variety of jobs makes it possible for
G people to choose, Or be assigned to position they enjoy and
E for which they are well suited
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

2
• Departmentation

This is a basic element of

organizational structure that
refers to the grouping of
jobs under the authority of a
single manager, according to
some common, rational
basis, for the purpose of
planning, coordination, and
control.
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

2
• Departmentation

The basis for grouping jobs includes the

following:
1. Knowledge and skills
2. Work process and
function
3. Time

4. Product

5. Customer

6. Location
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

2
• Departmentation

A 1. Supervision is made easier

D
V 2. The sharing of resources, such as men, machines,
A and materials results to maximum use of such
N resources
T
A 3. Common measures of performance is established
G
E
S 4. Communication is encouraged
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

3
• Pattern of authority

The pattern of authority as an element in

designing organizational structure refers
of the extent by which organization
members are allowed to make decisions
without getting the approval of another
member.

Authority pattern may either centralized or

decentralized.
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

3
• Pattern of authority

CENTRALIZED
When decision making is concentrated in the hands of
higher – are level manager.

DECENTRALIZED
When decision making authority is granted to middle
and lower manger position.
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

3
• Pattern of authority

Decentralized
authority:
D
A 1. Efficiency I 1. Control
D S
V A
A 2. Flexibility D 2. Duplication
N V
S
T A
3. Centralized
A 3. Initiative N
Expertise
G T
E A
S 4. Development G 4. Competency
E
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

4
• Span of control

Another consideration
consigning organizational
structures span of control. This
element refers to the number
of subordinate reporting to a
single supervisor.

The span of control may either

be narrow or wide.
 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

4
• Span of control

It is narrow when there are few

subordinates reporting to a
supervisor.
Narrow span of control is
characterized by:
1. There is a closure relationship between manager
and subordinate.

2. There is less delegation of authority;

3. Controlling activities are more tight; and

4. There is more time for rewarding behavior.

 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

4
• Span of control

It is wide when there are many

subordinates reporting to a
supervisor.
Wide span of control is
characterized by:
1. Employees work with little supervision

2. There is a high level of delegation of authority

3. Controlling is lighter

4. There is less time for rewarding behavior

 BASIC ELEMENTS OF ORGANIZATIONAL
STRUCTURE

5
• Coordination of activities
It is the term refers to the
linking of activities in the
organization that serve to
achieve common goal or
objectives.
 COMMON ORGANIZATIONAL DESIGNS

There are common organizational designs which consists

of the following:

1 • The simple structure

2 • The bureaucracy

3
• The matrix structure
 COMMON ORGANIZATIONAL DESIGNS

1 • The simple structure

Is the one that is characterized by a low

degree of departmentalization, wide span
of control, authority centralized in a single
person and little formalization.

It is appropriate for small businesses like

retail store, service shop and small
manufacturing firm.
 COMMON ORGANIZATIONAL DESIGNS

2 • The bureaucracy

It is rational, systematic and precise

form of organization in which rules,
regulations and techniques of
control and precisely defined.
 COMMON ORGANIZATIONAL DESIGNS

2 • The bureaucracy

Bureaucracy consists of two This is a moderately

types: decentralized form of
organization that emphasizes
the technical staff and
1. Machine standardization of work
Bureaucracy processes. It is best suited to
large organizations whose
work is largely performed by
production, technical, and
support workers.
 COMMON ORGANIZATIONAL DESIGNS

2 • The bureaucracy

Bureaucracy consists of two

types:

1. Machine
Bureaucracy

It is an organization
composed of a core of highly
2. Professional
Bureaucracy trained professionals that
standardizes skills for
coordination.
 COMMON ORGANIZATIONAL DESIGNS

3 • The matrix structure

One that superimposes a product or

project-based design on an existing
function-based design. It is really an
attempt to maximize strengths and
minimize weaknesses of both
departmentation by function and by
product.
 COMMON ORGANIZATIONAL DESIGNS

3 • The matrix structure

1. It allows demands from the environment to be met

simultaneously
S
2. It provides flexibility
T
R
E 3. It encourages resource efficiency
N
G 4. It enhance skill development
T
H 5. It increases motivation and commitment among
S employees

6. It aids top management in planning

 COMMON ORGANIZATIONAL DESIGNS

3 • The matrix structure

1. It creates dual-authority
W
E
A 2. It spawns power struggle
K
N
3. It is time consuming
E
S
S 4. It requires interpersonal skills
E training
S
5. It generates high implementation
cost
 NEW ORGANIZATION DESIGNS OPTIONS

Apart from the basic organizational design, some

organizations are using new designs. These are:
• Outsourcing
1
organization
Also known as virtual
organization is an agreement by
which the organization have
work for it by groups outside the
organization

It is very useful because it can

reduce the companies needed
for employees, equipment and
materials
 NEW ORGANIZATION DESIGNS OPTIONS

Apart from the basic organizational design, some

organizations are using new designs. These are:
• Outsourcing
1
organization

2 • Team structure
Is a horizontal rather than vertical organization.
Under this structures, Departmental barriers are
broken down and decision making is decentralized
to the level of work team.
A requirement of the team structure is the team
member must be generalist as well as specialist.
 THE ORGANIZATIONAL STRUCTURE’S
RELEVANCE TO HUMAN BEHAVIOR

Different types of organizational structure

place unique demands on people who
work within them. Not all people are
suited to a certain type of structure; some
are better suited to a simple structure,
other are better suited to a bureaucracy,
and still others are most productive in a
matrix structure. This is important to
know because organizational structures
can only be effective if the people
working within them are well-matched
with the structure.