Chapter 4:

Lesson 2:
TYPES OF ORGANIZATION STRUCTURE

Reporters:
CARYLLE JANE FALGUERA
REYSHEL MAE BACULANTA
ORGANIZATION STRUCTURE
 Is a system made up of tasks to be accomplished, work movements from one work level to
other work level in the system, reporting relationship, and communication passageway that
unite the work of different individual persons and groups.

THREE TYPES OF ORGANIZATION STRUCTURE INCLUDE :

A. Vertical structure
B. Horizontal structure
C. Network structure

-According to Bateman and Snell(2008),a vertical structure clears out issues

related to authority rights, responsibilities, and reporting relationship.
-authority rights refer to the legitimate rights of individuals, appointed in
position like President ,vice President, manager, and the like, to give orders
to their subordinates, who in turn ,report to them what they have done.
ORGANIZATIONAL CHART WITH VERTICAL
STRUCTURE
ORGANIZATION CHART WITH
HORIZONTAL STRUCTURE
In corporations, the owners are the stakeholders and they elect
a board of directions to manage the organization’s activities.
 The Board has a chairman who act as the leader,while the members act as
the corporations authority figures, responsible for making major decisions
affecting their organizations, subject to the corporation’s constitution and
by-law provisions.
 Besides the chairman of the board, a chief executive officer (CEO) is
appointed to occupy the top post in the organization pyramid and is
personally accountable to the members of the board and other owners for
the organizational performance.
 Below TOP-LEVEL MANAGERS are the middle –level managers I’m charge of
departments who, as erlier mentioned, report them.
 Under middle-level managers are tge lower-level managers which include
office managers, sale managers, and supervisors who directly report to the
former.
HORIZONTAL STRUCTURE
 Refers to the departmentalization of an organization into smaller work units
as tasks become increasingly varied and numerous.

TYPES OF DEPARTMENT:
1.LINE DEPARTMENT-deal directly with the firm’s primary goods
and services; responsible for manufacturing, selling, and
profiding services to client.
2.STAFF DEPARTMENT- support the activities of the line
departmens by doing research, attending to legal matters,
performing public relations duties, etc.
Meanwhile,departmentalization may be done using three
approaches:
FUNCTIONAL APPROACH
-where the subdivision are formed based on specialized activities such
as marketing, production, financial management, and human resources
management.

DIVISIONAL APPROACH
-where departments are formed based on management of their
Products,customers, or geographic areas covered.
MATRIX APPROACH
-is a hybrid form of departmentalization where maagers and staff
personnel report to the superiors, the functional managers, and the
divisional manager.
NETWORK STRUCTURE
 Is a collection of independent, usually single function
organizations/companies that work together in order to produce a product or
services.
 Such network organizations are each capable of doing their own specialized
work activities independently, like producing, distributing, designing, etc.,
but are capable of working effectively at the same time with other network
members.

ORGANIZATIONAL CHART WITH DIVISIONAL STRUCTURE

 Oftentheir communication is by electronic means where
sharing of information is speedy.
 Thisresults to their ability to respond at once to their
customers’ demands.
 Organizationalstructure are needed to keep employees
needed, to build a learning organization and to manage
global structural problems.
Thank you and godblessed
😊