Organizational Structures and their function.pdf

This presentation discusses the different organizational structures that tailors an organization. It shows how an organization is divided based on functionality and responsibility.

1. Organizational
Structures and their
Purposes
An organizational structure is a framework that defines how tasks are divided,
resources are allocated, and authority is distributed within a company. It
outlines the reporting relationships between employees and sets the overall
direction of the organization.
by MICHAEL DENIEGA

2. What is an organizational
structure?
Hierarchy
A hierarchical structure defines
the chain of command within an
organization, clarifying who
reports to whom.
Communication
It outlines the pathways for
communication, ensuring that
information flows effectively
throughout the company.
Decision-Making
It determines who has the authority to make decisions and how those
decisions are made.

3. The importance of organizational structure
1
Efficiency
A well-defined structure promotes efficiency by ensuring
clear roles and responsibilities.
2
Accountability
It establishes clear lines of accountability, making it easier
to track progress and identify areas for improvement.
3
Coordination
It facilitates coordination and teamwork by defining how
different departments and teams interact.
4
Adaptability
It allows organizations to adapt to changing market
conditions and technological advancements.

4. Common organizational
structures
Functional
Groups employees by their
specialized skills and expertise.
Divisional
Organizes employees based on
product lines, geographic regions, or
customer segments.
Matrix
Combines functional and divisional
structures to create a more flexible
and adaptable organization.
Hierarchical
A traditional structure with multiple
levels of management, where power
is concentrated at the top.

5. Functional structure
Advantages
Specialization and expertise
Efficiency in resource allocation
Clear lines of authority
Disadvantages
Silos and lack of collaboration
Slow decision-making
Limited flexibility

6. Divisional structure
1
Product-based
Organizes around specific product lines or services.
2
Geographic
Divides the organization by geographical regions.
3
Customer-based
Focuses on specific customer segments or markets.

7. Matrix structure
1
Flexibility
Allows for collaboration and resource sharing across different projects.
2
Dual reporting
Employees report to both functional and project managers.
3
Adaptability
Enables organizations to adapt to changing demands and priorities.

8. Hierarchical structure
Clear chain of
command
Defined roles and
responsibilities
Efficient
communication
Centralized decision-
making
Bureaucracy and
slow decision-
making
Limited employee
autonomy

9. Flat structure
1
Decentralized decision-
making
Empowers employees and
encourages innovation.
2
Improved
communication
Facilitates faster decision-
making and quicker response
times.
3
Increased flexibility
Adapts to changing market conditions and customer needs.

10. Choosing the right
organizational structure
The best organizational structure depends on factors like the company's size,
industry, culture, and strategic goals. Consider these factors carefully to
determine the most suitable structure for your organization.