© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 12 McGraw-Hill Types of Organizational Structures Several basic structures – line, line and staff, and matrix New structures horizontal and virtual Line Structure Authority moves top to bottom Simplest organization structure Advantage Disadvantage Exists in small organizations

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 13 McGraw-Hill Types of Organizational Structures Line and Staff Structures Staff functions Line functions Line and Staff Conflicts Staff specialists versus Line managers

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 14 McGraw-Hill Types of Organizational Structures Matrix Structure Project teams Temporary life Advantages Serious problem –violates unity of command

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 15 McGraw-Hill Types of Organizational Structures Horizontal Structure Pure form creates two groups Characteristics Advantages The Virtual Organization 3 common types Network of collaborators Technology plays a central role

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 16 McGraw-Hill Trends in Organization Structure Flat structure versus Tall structure –No clear conclusion Japanese have fewer managers and flatter structures Peters and Waterman – In Search of Excellence –Simple form and lean staff Today’s trend