Organization Structure.pdf

organizational structure

1. Organizational Structure
•Work Specialization
•Departmentalization
•Centralization & Decentralization
•CHAINof COMMAND
•SPANofCONTROL
•Formalization
Six Key Elements of Organization Structure
Muhammad Ejaz
Semester 3
Section A
Enterprise Management
Sir HafeezurRehman

2. Contents
•Chain of Command
–Three factors to understand Chain of Command
•Span of Control
•Organization Chart
•Advantages and Disadvantages of Span of Control
•Real Organization Chart
•Holacracy

3. Chain of Command
Flow (delegation and use) of
Authority
Responsibility
At every Level
•From Top to Bottom
Within
Organization
Why Chain of Command?
What would you do?
Who reports to whom?
To whom should you go if have
some issues/problems?

4. Threefactorshelptounderstandchainofcommand
Authority
The rights inherent in a managerial position
•Line Authority
•Staff Authority
Acceptance theory of authority
Responsibility
Managersuse their authorityto assign task
Subordinateis willingto feel obligation
Unity of Command
A personshould report to only onemanager

5. SpanofControl
“The number ofsubordinatesthat managerorsupervisorcan efficiently and
effectivelymanage / Control”
These numbers varies with the
Type ofwork
Complexity
Variableworkreduces it to 6
whereasroutine, fixed work
increases it to 20or more.
Types of control according to Structure
1.Narrow Span of Control (Tall)
2.Wide Span of Control (Flat)

6. Organizational Chart

7. AdvantagesofChain/SpanofCommand
Clearreportingrelationship exist
Unity of Command
Responsibilityand accountabilityare clearly assigned
Employees are not confusedabout whom to go to for resources, assistance,
and feedback
It assistantcustomersto whom they should contact
Office Politics
Time consuming for some decisions
Jobs are no longer rigidly defined employees empowerment
Position Power
Bureaucracy
High Compensation Costs
Limited Initiative
DisadvantagesofChain/SpanofCommand

9. HOLACRACY
A Complete System for Self Organization

10. In Traditional Companies
•Job descriptions
Each person has exactly one job. Job
descriptions are imprecise, rarely
updated, and often irrelevant.
•Delegated Authority
Managers loosely delegate
authority.Ultimately, their decision
always trump.
•Big Re-Orgs
The org structure is rarely revisited,
mandatedfrom the top.
•Office Politics
Implicitrules slow down changeand
favor people“in the know”.
With Holacracy
•Roles
Roles are defined aroundthe work,
not people, and are updated
regularly. People fillseveral roles.
•Distributed Authority
Authorityis truly distributedto
teamsand roles. Decisionsare
made locally.
•Rapid Iterations
The org structureis regularly
updatedvia small iterations. Every
team self-organizes.
•TransparentRules
Everyoneis boundby the same
rules, CEOincluded. Rulesare
visible to all.