Organisation Structure

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

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