Organizational Structure 8 Definition Organization structure designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors Organization structure identifies the grouping together of individuals into departments and of departments into the total organization Organization structure includes the design of systems to ensure effective communication, coordination, and integration of effort across departments

Organizational Structure These 3 elements of structure pertain to both vertical and horizontal aspects of organizing. The first two elements are the structural framework, which is the vertical hierarchy. The 3rd element pertains to the pattern of interaction among employees.

Organizational Structure An ideal structure encourages employees to provide horizontal information and coordination where and when it is needed.

Organization Chart or Organogram It’s the visual representation of a whole set of underlying activities and processes in an organization. It isn’t possible to “see” the internal structure of an organization the way we might see its manufacturing tools, offices, or products. Organization chart can be quite useful in understanding how a company works. It shows the various parts of an organization, how they are interrelated, and how each position and department fits into the whole.

Information-Processing Perspective on Structure The organization should be designed to provide both vertical and horizontal information flow as necessary If the structure doesn’t fit the information requirements of the organization, people will have either too little information or will spend time processing information that is not vital to their tasks, thus reducing effectiveness There’s however inherent tension between vertical and horizontal mechanisms Whereas vertical linkages are designed primarily for CONTROL, horizontal linkages are designed for COORDINATION and COLLABORATION, which usually means reducing control

Vertical Information Linkages Vertical links are used to coordinate activities between the top and bottom of an organization and are designed primarily for control.

Vertical Information Linkages Following structural devices are used to create these vertical links Hierarchical Referral Rules and Plans (SOPs) Vertical Information System

Horizontal Information Linkages These links overcome barriers between departments and provides opportunities for coordination among employees to achieve unity of effort and organizational objectives.

Horizontal Information Linkages Devices include: Cross-functional information systems Direct contact Task forces/ Cross-functional teams Full-time integrator Teams