1. Organizational Structure
Unit 2.2
Organizational Structure

2. By the end of the chapter You should be able to…
Define the following terminology-
Delegation; span of Control; Levels of Hierarchy; Chain of Command; Bureaucracy; Centralization; Decentralization; De-layering
Describe the following types of organization charts:
Flat/horizontal; Tall/vertical; Hierarchical; By Product; By Function; by Region
Explain changes in organizational structures
Describe how cultural differences and technologies impact communication in an organization

3. Structure within an organization
All organizations, whether large or small need to have a sense of organization
A structure in an organization sets out roles and responsibilities
Also sets out who employees are supervised by or report to

4. Administrative Executive
CEO
Production Executive
Assistant
Marketing Executive
Finance Executive
HR Executive
Administrative Executive
Assistant 1

5. Organizational Charts
Outlines formal roles, responsibilities and reporting lines – sets out the chain of command –
Terminology
Levels of Hierarchy
How many levels of responsibility
Chain of Command
Formal route by which a decision travels
Span of Control
How many workers are directly under the authority of a manager
Delegation
Possibility that the product might fail due to lack of knowledge of client

6. Terms Relevant to Organizational Structure
Delegation
When a manager gives authority for someone to accomplish a task; manager still responsible
Centralization
Decisions are made by upper management
Decentralization
Opposite of centralization – Decision-making delegated to middle managers; likely to be more democratic
Bureaucracy
Rules and procedures. An organization that is “bureaucratic” has many rules and procedures. Delegation usually doesn’t happen.
De-layering
Occurs when a business reduces the levels of hierarchy; removing layers of management – typically reduces costs

7. Types of organizational Chart
Tall Structure – traditional organizational form
Many levels;
narrow spans of control;
centralized decision-making;
long chains of command
autocratic leadership;
limited delegation

8. Types of organizational Charts – cont’d
Flat - Modification of traditional structure
Few levels of hierarchy
Wider span of control
Decentralized decision-making
Shorter chains of command
Democratic leadership
Increased delegation

9. Types of Organizational Structure
Line
Oldest and simplest form; Quicker decisions, lack of specialization
Line and Staff
More complex; allows for experts at different levels;
Matrix –
Project teams; no consistent structure; match skills with projects
Team
Permanent work teams; self-directed; leader facilitates

10. What is an Adaptive Organization
An organizations that adjusts to change
Decision-making is centralized
Team-oriented
Focuses on customer needs

11. When is changed needed? A merger is anticipated New competitors
New technology
Rapid growth or decline in business
Change in legal issues
New product or service pending
Customer dissatisfaction
Costs are increasing
Morale is decreasing

12. Types of organizational Charts – cont’d
Organizational structure by hierarchy
Figure 2.2.2
Organizational Structure by Function
Figure 2.2.3
Organizational Structure by Product
Figure 2.2.4
Organizational Structure by Region
Figure 2.2.5

13. Changes in Organizational Structure
Project-based organization
Allows a business to be more flexible & responsive to market demands
Project managers run teams of employees
Very common in construction or IT –
Shamrock Organizations - by Charles Handy
Allows flexibility & to be responsive in workforce planning
Businesses trim workforces to retain a multi-skilled core
Core Managers
Contractual fringe
Flexible workforce – part-time, temporary, seasonal

14. Communication Can be formal or informal Forms of communication
Verbal –
Interviews; meetings; presentations
Visual
Presentations; video; signs & symbols
Written
Reports; letters; press releases;