Framework of the organisation highlighting the hierarchy/reporting structure
ORG CHART – A diagram representing the connections between the various departments
Departmentalization: The basis on which jobs are grouped together i.e Function, Product, Territories and Process.
Work Specialization: The degree to which tasks are sub-divided into separate jobs in an org
Formalization: Set of standard rules and regulations is fixed within which the employees are operate
Bureaucracy: (MAX WEBER) An org structure with Highly Routine Operating tasks, Very Formalize Rules & Regulations, Centralize Authority, Narrow Span of control & Decision-making that follows chain of command.
Span of Control: The number of subordinates that a manager can efficiently direct & manage
Chain of Command/ Scalar Chain: Displays the line of authority from top to bottom & clarifies who reports to whom
Authority: The rights of a managerial position to give order & to expect the orders to be obeyed
Esprit de corps: harmony, cohesion among employees
Unity Of Command: A subordinate should have only one superior to whom he or she is directly reporting
Centralized: Decision-making is concentrated to a single position in the organisation
Matrix Structure: Cross-functional coordination, Dual Chain of Command
What Determines Organizational Structure?
- To what degree are tasks subdivided into separate jobs?
- On what basis will jobs be grouped together?
- To whom do individuals and groups report?
- How many individuals can a manager efficiently and effectively direct?
- Where does decision-making authority lie?
- To what degree will there be rules and regulations to direct employees and managers?
Key Design Questions and Answers for Designing the Proper Organization Structure