ORGANIZATION STRUCTURE

Question Have you ever been in a situation at home or work where there were too many people in charge of completing a task? What suggestions would you make to simplify the process?

Understanding how organizational structures work Can you describe a graphic organizer you have used in school or the classroom? What are the benefits of using them? Why is it important for businesses to have organization charts?

What You’ll Learn How to read an organizational chart The four main types of organizational structures The difference between staff and line functions The benefits of adopting a matrix or team structure

Why is this important? “Without an appropriate organizational structure, a business will not succeed”

What is an Organization Structure? A way to organize employees into some kind of structure to meet goals Minimizes confusion Coordinates activities by clearly identifying which individuals are responsible for which tasks

Types of Organizational Structures? Line Structure Line and Staff Structure Matrix Structure Team Structure Organizational Chart: A visual representation of a business’s organizational structure

What would your families org structure look like?

Non-management Employees Line Structure CFO Senior Managers Mid-level Managers Lower-level Managers Non-management Employees Top down authority Common among small companies Line Functions Functions that contribute directly to company profits Production managers, sales reps, and marketing managers

Non-management Employees Line Structure CFO Senior Managers Mid-level Managers Lower-level Managers Non-management Employees Line Managers Collect and analyze all information needed to carry out their responsibilities Example: Production Managers Hire and fire all of the assembly-line workers in their departments Order all supplies for their department

Line and Staff Structure President Vice President, Sales Vice President, Marketing Advertising Sales Personnel Fabrication Assembly Mid-sized and large companies Other employees hired to help line managers perform activities they cannot Staff Functions Advise and support line functions Staff departments include: legal, human resources, and public relations Help line departments do their jobs Authority is limited to making recommendations to line managers

Matrix Structure Allows employees from different departments to come together temporarily to work on special project teams Provides flexibility to respond quickly to a customer need by creating a team of people who devote all of their time to a project then return to their departments or join a new project team I.E. – Boeing – assigns employees to project teams when it creates to design a new aircraft

Matrix Structure Corporate Level Division A Division B Production Engineering Planners and analysts Personnel Finance Project Manager Production Group Engineering Group Personnel Group Accounting Group

Team Structure Brings together people with different skills in order to meet a particular objective Belief is that the company will meet customer needs more effectively than traditional structures Senior managers need not approve decisions by lower-level managers Teams have the authority to make final decisions Employee preferred due to its focus on completing a project rather than a task

Flat vs. Tall Structures Flat structure: Small number of levels and broad span of management at each level Tall Structure: Has many levels with small spans of management

FLAT TALL 1 2 3 4 5 6 7 1 2 3 4 Span of Management 8:1 (Four Levels) Span of Management 5:1 (Seven Levels)

Extension Activity!!! Design an organizational chart that illustrates the organizational structure of Weber High School You can interview school staff for information You can navigate the Weber High website to understand departmental structures and how to structure your organizational chart (Line, Line and Staff, Matrix, and/or Team) Use Microsoft Word or something else to build out your organization chart