What is Organizational Structure ?

Refers to the formal pattern of how people

and jobs are grouped in an organization.
It is often illustration by an organization chart,
specifying who report to whom.

Basic Element of Organization

Structure.
1. Work specialization
2. Departmentation
3. Patter of Authority
4. Span of control
5. Coordination of activities

Work Specification
this refers to the degree to which tasks in the
organization are subdivided into separate jobs.

Departmentation
this is a basic of organizational structure that
refers to the grouping of jobs under the authority of a
single manager, according to some common, rational
basis, for the purpose of planning, coordination, and
control.

The basis for grouping jobs includes

the following:
1. knowledge and skill
2. work process and function

3. Time
4. Product
5. Customer
6. Location

Pattern of Authority
As an element in designing organization structure
refers of the extent by which organization member are
allowed to make decisions without getting the approval of
another member.
Authority Patterns- may either be centralized when
decision making is concentration in the hands of higherlevel manager.
No single patter of authority is appropriate for all
organizations because environment of organization differ.

Span of Control
Another consideration in designing the
organization structure is span of control. The element
refers to the number of subordinates reporting to a
single supervisor.

Coordination
another basis element considered in
designing the organizational structure is
coordination. This term refers to the linking
of activities in the organization that serve to
achieve a common goal or objective.
COMMON ORGANIZATION DESIGNS
1. the simple structure
2. the bureaucracy
3. the matrix structure

The Simple Structure

is one that is characterized by a low
degree of departmentalization, wide spans
of control, authority centralized in a single
person, and little formation.
Is most appropriate for a small
business like the retail Store, Service Shop,
and small manufacturing firm.
The Bureaucracy
is a rational, systematic and precise
form of organization in which rules,
regulations, and techniques of control are
precisely defined.

TWO TYPES OF BUREAUCRACY

1. Machine Bureaucracy A moderately
decentralized form of organization that emphasizes
the technical staff and standardization of work
processes.
2. Professional Bureaucracy- it is an
organization composed of a core of highly trained
professionals that standardize skills for coordination.
The Matrix Structure
organizational design is one that superimposes
a product or project-based design on an existing
function-based design.
1. Strengths of the Matrix Design
2. Weaknesses of Matrix Design
NEW ORGANIZATION DESIGN OPTIONS
1. Outsourcing organization
2. Team Structure

Outsourcing Organization
The Outsourcing Organization, also know as virtual
organization, is an arrangement by which the organization
have work performed for it by group outside the
organization. Instead of doing all work necessary for
producing a product or service, the organization enters into
an agreement with another organization to perform some
specific activities.
Team Structure
Makes use of teams as the central device to
coordinate work activities.