5. Organizational
Structure • work roles and functions
that help shape and
support employee
behavior
• set of methods, dividing
the task to determined
duties and coordinates
them
( Neck, Houghton, and Murray, 2017, p.1241) (Monavarian, Asgari, & Ashna, 2007)
6. Organizational
Structure
Organizational Structure
framework in which the structure is organized into
separate divisions, each focusing on a different product
or service and functioning as an individual unit within
the company
Organizational Structure
type of structure is mainly used by organizations with
a wide range of products
Organizational Structure
Each structure has all the resources and functions to
reach the end product
10. Functional Organization
One of the most common type of
organizational structures, the
functional structure
departmentalizes an organization
based a common job functions.
14. Product Organization Structure
It is a framework in which the structure is
organized in separate divisions, each
focusing on a different product or service
and functioning as an individual unit within
the company
This type of structure is mainly used by
organizations with a wide range of products
Each structure has all the resources and
functions to reach the end product.
17. e. Matrix Organization
This structure is most
commonly used in
organizations to
distribute resources
and workers across
multiple operations
a workplace format in
which employees
report to more than
one manager rather
than just one manager
overseeing every
aspect of a project
It is an organization
with dual-reporting
relationships, as
opposed to a more
traditional reporting
structure.
1
2
3
24. • Point of Contact
• Opportunities of Advancement
• follows strict hierarchy
• Losing time
• Losing sense or responsibility
• Do not follow hierarchy (flat)
• Sense of responsibility.
• Quick problem resolve
• promote innovation/ creative problem solving
• Sacrifice efficiency
• No definitive decision
• No advancement opportunity
Hierarchical
Structures
Organic Structures
pertains to the context of work roles and functions that help shape and support employee behavior. ( Neck, Houghton, and Murray, 2017, p.1241)
is a set of methods, dividing the task to determined duties and coordinates them. (Monavarian, Asgari, & Ashna, 2007)
Focuses on individual products or services
Helps with motivation and level of productivity and better control
It is also flexible as a business unit and can be easily shut down if not performing to required standards.
Cooperation will run smoothly in teams.
It has particular product lines that are substantially different
It requires specialized expertise for production or distribution
Dis
Duplication functions and resources
Rivalries among divisions can become intense if taken so far.
Over-emphasizing divisional, rather than organizational goals
Losing central control over each separate division
This structure allows for the efficient allocation of specialists. Information is more easily exchanged, as the contact between the different departments is increased.
Increased communication efficiency
Improved employee motivation
Increased teamwork
Maximizes resource usage
Increased employee professional development
DISADVANTAGES
Authority confusion
Reduced employee effectiveness
Increased management overhead costs
ADVANTAGES
The activities of the individuals and the groups will become clear and predictable.
An orderly hierarchy in which people are related in a meaningful sequence will result into an organized process.
Individuals will be selected on the basis of ability to perform expected tasks. Simplification and specialization of job assignment is possible in more effective way.
Directional and operational goals and procedures will be determined clearly.
Available resources will be utilized in the most effective way.
Makes the treatment of the individual workers more democratic because patronage and favoritism are reduced.
Workers will receive essential support and direction.
DISADVANTAGES
Individual creativity and originality may be stifled by the rigid determination of duties and responsibilities.
Workers may become less willing to assume duties that are not formally a part of their original assignment.
They produce anxiety in individual workers by pressing too heavily for routine and conformity.
Inter-personal communication may be slowed or stopped as a result of strict adherence to formal lines of communication.
Organizations tend to fail to account for important differences in workers as human beings.
ADVANTAGES
The activities of the individuals and the groups will become clear and predictable.
An orderly hierarchy in which people are related in a meaningful sequence will result into an organized process.
Individuals will be selected on the basis of their ability to perform expected tasks. Simplification and specialization of job assignment is possible in more effective way.
will be determined clearly.
Available resources will be utilized in the most effective way.
Makes the treatment of the individual workers more democratic because patronage and favoritism are reduced.
Workers will receive essential support and direction.
Individual creativity and originality may be stifled by the rigid determination of duties and responsibilities.
Workers may become less willing to assume duties that are not formally a part of their original assignment.
They produce anxiety in individual workers by pressing too heavily for routine and conformity.
Inter-personal communication may be slowed or stopped as a result of strict adherence to formal lines of communication.
Organizations tend to fail to account for important differences in workers as human beings.
this is the most common type of organizational structure we see in major corporations today. As the name suggests, this organizational structure follows a strict hierarchy and chain of command.
Benefits of This Structure
One of the benefits of a hierarchical structure is those company roles are very clear. Every employee knows to whom they report and to whom they need to take problems. If a question needs to be advanced to the next level, there’s a defined structure detailing who has the expertise and authority to answer that question.
Hierarchical structures also provide defined opportunities for advancement in a company. A base-level employee who performs their job well may reasonably expect to be promoted to a lower-level manager. From there, they can work their way up through the organization, perhaps someday reaching the level of an executive officer.Drawbacks of This Structure
When many of us think of a typical corporate hierarchy, our minds go to miles of red tape, and for good reason. One of the drawbacks of a hierarchical structure is that it can be very inefficient. Rather than simply going to the proper person and asking the question they need to, an employee may have to advance their problem through the chain of command, losing valuable production time.
A hierarchical structure can also create some tricky power dynamics in a company that needs careful management. Poor managers may get carried away with their power and create a company culture that doesn’t follow your business ideals. Lower-level employees may also feel that they aren’t responsible for company success, viewing themselves as unimportant drones in a larger corporate machine.
What Are Organic Structures?
As you might guess from the name, organic structures aren’t as rigidly organized as hierarchical structures. Unlike a hierarchical structure, which has a pyramid-like organization, organic structures are flat. No one person has more power than another; instead, each different sector works together to create a successful business.
In an organic structure, no one person makes authoritative decisions for the entire company. Teams work together to come up with solutions and implement them. Rather than moving up in a hierarchy, employees shift horizontally to new positions as their role in the company changes.
Benefits of This Structure
Organizational structures are great for businesses that want to focus on building a strong company culture. Because no one person is in charge, every employee feels responsible for the company’s success and empowered to make bold suggestions or raise problems when they come up. Many organic structure companies adopt open floor plans for their offices as a physical way to represent the open communication that exists in these structures.
Organizational structures can also excel at solving problems quickly and in innovative ways. Because the structure is horizontal, not vertical, any employee can go directly to the person they need to get their answer from. They can also brainstorm ways to solve problems with the entire rest of the company, providing more perspectives and freedom to try bold new ideas.
Drawbacks of This Structure
Although organic structures do provide greater opportunities for creative problem solving, they can sometimes sacrifice efficiency to get this flexibility.
When you have one person in charge, making a decision can be a quick process, even if it does take a while to get the problem on the right person’s desk. But in an organic structure, the lack of authoritative leadership can create deadlocks where no one is able to make a definitive decision for the company.
Organic structures are also not a good fit for people looking for definite advancement opportunities. Because everyone in the company is on equal footing, you never get a promotion, and pay raises can be harder to negotiate.
If you go back to work for a hierarchical structure you may have a harder time getting a position beyond a base-level employee since you don’t technically have management experience.
this is the most common type of organizational structure we see in major corporations today. As the name suggests, this organizational structure follows a strict hierarchy and chain of command.
Benefits of This Structure
One of the benefits of a hierarchical structure is those company roles are very clear. Every employee knows to whom they report and to whom they need to take problems. If a question needs to be advanced to the next level, there’s a defined structure detailing who has the expertise and authority to answer that question.
Hierarchical structures also provide defined opportunities for advancement in a company. A base-level employee who performs their job well may reasonably expect to be promoted to a lower-level manager. From there, they can work their way up through the organization, perhaps someday reaching the level of an executive officer.Drawbacks of This Structure
When many of us think of a typical corporate hierarchy, our minds go to miles of red tape, and for good reason. One of the drawbacks of a hierarchical structure is that it can be very inefficient. Rather than simply going to the proper person and asking the question they need to, an employee may have to advance their problem through the chain of command, losing valuable production time.
A hierarchical structure can also create some tricky power dynamics in a company that needs careful management. Poor managers may get carried away with their power and create a company culture that doesn’t follow your business ideals. Lower-level employees may also feel that they aren’t responsible for company success, viewing themselves as unimportant drones in a larger corporate machine.
What Are Organic Structures?
As you might guess from the name, organic structures aren’t as rigidly organized as hierarchical structures. Unlike a hierarchical structure, which has a pyramid-like organization, organic structures are flat. No one person has more power than another; instead, each different sector works together to create a successful business.
In an organic structure, no one person makes authoritative decisions for the entire company. Teams work together to come up with solutions and implement them. Rather than moving up in a hierarchy, employees shift horizontally to new positions as their role in the company changes.
Benefits of This Structure
Organizational structures are great for businesses that want to focus on building a strong company culture. Because no one person is in charge, every employee feels responsible for the company’s success and empowered to make bold suggestions or raise problems when they come up. Many organic structure companies adopt open floor plans for their offices as a physical way to represent the open communication that exists in these structures.
Organizational structures can also excel at solving problems quickly and in innovative ways. Because the structure is horizontal, not vertical, any employee can go directly to the person they need to get their answer from. They can also brainstorm ways to solve problems with the entire rest of the company, providing more perspectives and freedom to try bold new ideas.
Drawbacks of This Structure
Although organic structures do provide greater opportunities for creative problem solving, they can sometimes sacrifice efficiency to get this flexibility.
When you have one person in charge, making a decision can be a quick process, even if it does take a while to get the problem on the right person’s desk. But in an organic structure, the lack of authoritative leadership can create deadlocks where no one is able to make a definitive decision for the company.
Organic structures are also not a good fit for people looking for definite advancement opportunities. Because everyone in the company is on equal footing, you never get a promotion, and pay raises can be harder to negotiate.
If you go back to work for a hierarchical structure you may have a harder time getting a position beyond a base-level employee since you don’t technically have management experience.