Professional Documents
Culture Documents
Organizational Structure
Organizational Structure
Organizational Structure
Organizational Structure
Way in which the company is organized and the consideration of its internal workings in
an attempt to find an efficient operational practice
Provides accountability (who is answerable for a specific job) and responsibility (who is
in charge of whom)
Necessary for: stability, consistency, continuity, unity, efficiency, etc.
Organizational chart
Shows different functional departments, chain of command, span of control, and
channels of communication
Ways to structure a business:
By function: production process (e.g. editing, printing, sales, etc)
By product or activity: organizing according to the different products made
By area: geographical or regional state
Role of Organizational Chart
Visual representation of business – see main line of communication
Shows promotion prospects
Shows immediate superior for clear communication
Shows employees their role in the business
Shows who to pass info to given a problem
Span of control
Refers to the number of people who are directly accountable to a manager
Affects whether an organization is wide/narrow or flat/tall
Factors:
Manager’s experience, competence, traits
Nature of management styles (amount of control needed)
Skills and dynamics of subordinates (better team, less people)
Nature of work
Type of production method used