Christel Ann K.

Dillera
MAHA
DEFINITON OF ORGANIZATIONAL STRUCUTRE AND ORGANIZATIONAL CHART
Organization refers to a collection of people, who are involved in pursuing
defined objectives. 
Organizational structure according to Ahmady G. et al article as the framework of
the relations on jobs, systems, operating process, people and groups making
efforts to achieve the goals. Another author cited that organizational structure
refer to the models of internal relations of organization, power and relations and
reporting, formal communication channels, responsibility and decision-making
delegation is clarified.
Organizational chart on the other hand according to Investopedia.com as a
diagram that displays a reporting or relationship hierarchy.
Other sources stated that organizational structure and an organizational chart can
often appear similar, but there is a difference, and that is, Organizational
structure is designed around the function a business performs example would be
marketing, finance etc, while organizational chart is built around people and
titles.
IMPORTANCE OF ORGANIZATIONAL STRUCTURE AND CHART
1. Clear cut authority relationships: Organizational structure helps in giving
authority and responsibility among employees in an organization. It helps in
identifying roles for each employee and his accountability to the
organization. It also correlates relationships of one organizational member
to the other members.
EXAMPLE: Patient is febrile. The nurse is not responsible in making decision
as what medication to give, hence the nurse should inform his supervising
doctor about the state of the patient and medication should be given.
2. Better communication: It provides the patterns of communication and
coordination in an organization. Organizational structure helps in grouping
activities and people and so it facilitates communication between people
centered as their job activities.
EXAMPLE:  Hospital administration that are not medically related
sometimes doesn't understand the nuances of needs in the medical
services side. Through communication, each side will both be heard
3. Location of Decision Centers: It identifies person responsible for decision
making in the organization.
4. It helps to coordinate activities of the component parts in order to facilitate
the realization of the goals of the organization.
5. Provides a clear view of the organizational structure.
EXAMPLE: Policies are needed to be change by the board of directors, through
the org char/structure, it will assist the board of directors to identify the lines of
authority 
MODELS OF ORGANIZATONAL STRUCTURE
1.Hierarchical org structure
The pyramid-shaped organizational chart we referred to earlier is known as a
hierarchical org chart. It’s the most common type of organizational structure—
the chain of command goes from the top (e.g., the CEO or manager) down
(e.g., entry-level and low-level employees), and each employee has a
supervisor.
Pros
Better defines levels of authority and responsibility
Shows who each person reports to or who to talk to about specific projects
Motivates employees with clear career paths and chances for promotion
Gives each employee a specialty
Creates camaraderie between employees within the same department
Cons
Can slow down innovation or important changes due to increased bureaucracy
Can cause employees to act in interest of the department instead of the company
as a whole
Can make lower-level employees feel like they have less ownership and can’t
express their ideas for the company
2. Functional org structure/ Bureaucratic
 Similar to a hierarchical organizational structure, a functional org structure
starts with positions with the highest levels of responsibility at the top and
goes down from there. Primarily, though, employees are organized
according to their specific skills and their corresponding function in the
company. Each separate department is managed independently.
Example: Companies divide their organization into various departments
such as finance, marketing and human resources. Each of these
departments then has a manager who oversees it. This manager is then
supervised by an administrator or executive who oversees multiple
departments.
Pros
Allows employees to focus on their role
Encourages specialization
Help teams and departments feel self-determined
Is easily scalable in any sized company
Cons
Can create silos within an organization
Hampers interdepartmental communication
Obscures processes and strategies for different markets or products in a company
3. Horizontal or flat org structure
Horizontal or flat organizational structure fits companies with few levels
between upper management and staff-level employees. Many start-up
businesses use a horizontal org structure before they grow large enough to
build out different departments, but some organizations maintain this
structure since it encourages less supervision and more involvement from
all employees.
Pros
Gives employees more responsibility
Fosters more open communication
Improves coordination and speed of implementing new ideas
Cons
Can create confusion since employees do not have a clear supervisor to report to
Can produce employees with more generalized skills and knowledge
Can be difficult to maintain once the company grows beyond start-up status
4. Divisional org structure
In divisional organizational structures, a company’s divisions have control
over their own resources, essentially operating like their own company
within the larger organization. Each division can have its own marketing
team, sales team, IT team, etc. This structure works well for large
companies as it empowers the various divisions to make decisions without
everyone having to report to just a few executives.
Example: A hospital with BRANCH A for pediatric patients only, BRANCH B
for adults patient only. While each branch has its own function, they all
work toward the same goal of making a sale
Divisional Structure can be the following:
Market-based divisional org structure
Divisions are separated by market, industry, or customer type. A Hopsital can be a
pediatric hospital and others can be for geriatric.
Product-based divisional org structure
Divisions are separated by product line. For example, the sales rep has a product
line cardio protective drug and there are other teams for respi drug but both
belong to once company ex. Sanofi.
Geographic divisional org structure
Divisions are separated by region, territories, or districts, offering more effective
localization and logistics. Companies might establish satellite offices across the
country or the globe in order to stay close to their customers, example of which is
DDH, they have a hospital within the city and they have an extension hospital in
Toril.
Pros
Helps large companies stay flexible
Allows for a quicker response to industry changes or customer needs
Promotes independence, autonomy, and a customized approach
Cons
Can easily lead to duplicate resources
Can mean muddled or insufficient communication between the headquarters and
its divisions
Can result in a company competing with itself

5. Matrix org structure

A matrix organizational chart looks like a grid, and it shows cross-functional
teams that form for special projects.
Example: a doctor can be a medical director on his hospital but she is also a
visiting consultant to another hospital
Pros
Allows supervisors to easily choose individuals by the needs of a project
Gives a more dynamic view of the organization
Encourages employees to use their skills in various capacities aside from their
original roles
Cons
Presents a conflict between department managers and project managers
Can change more frequently than other organizational chart types

ORGANIZATIONAL CHART EXAMPLES

GOVERNMENT (DRMC)
PRIVATE (MDMRC)
REFERENCES:
1. Ahmady, G. , Mehrpour, M. , & Nikooravesh, A. (2016). Organizational Structure.
Procedia - Social and Behavioral Sciences, 230 . doi: 10.1016/j.sbspro.2016.09.057
2. https://smallbusiness.chron.com/models-organizational-structure-3821.html
3. https://organizationalphysics.com/2015/02/09/organizational-design-the-
difference-between-organizational-structure-and-an-org-chart/
#:~:text=Organizational%20structure%20is%20designed%20around,built
%20around%20people%20and%20titles.&text=An%20org%20chart%20shows
%20each,HR%20stuff%20like%20job%20requirements
4.
https://www.businessmanagementideas.com/organisational-structure/organisatio
nal-structure-meaning-and-importance/3483