Introduction

Welcome to our presentation on organizational structure! Today, we will be discussing the

importance of understanding the organizational structure of any company. By doing so,
we can gain a better understanding of how the company operates and how decisions are
made.
Organizational structure refers to the way in which a company is organized, including its
hierarchy, functional departments, and communication channels. It provides a framework
for decision-making and helps to ensure that everyone within the organization is working
towards the same goals. Understanding the organizational structure is essential for any
company because it allows us to identify areas for improvement and make changes that
will ultimately lead to greater success.
Definition:
Organizational structure is the framework of the relations on jobs, systems,
operating process, people and groups making efforts to achieve the goals. It is a
method by which organizational activities are divided, organized and coordinated.

Goals/Objectives of Organization Structure:

● Efficiency
● Clarity of Roles
● Communication
● Flexibility
● Resource Optimization
● Coordination
● Growth & Expansion
● Decision-Making
● Employee Morale
● Customer Focus
Types of Organizational Structure :
There exist plenty of structure which can be formed but we will study only two of them as follows :

1. Functional Structure
2. Divisional Structure

1. Functional Structure: Under this type of Structure all the jobs related to some common function are
put under one department (Example : All the jobs related to sales are grouped under one single
department with the name of Sales Management).
Advantages:
● Easy Supervision-Due to similar job
● Specialization - Due to repetitions
● Increase Managerial efficiency

Disadvantages:
● Lack of Flexibility
● Departmental goal becomes
superior than organizational
goal
2. Divisional Structure:
When the organization starts producing products of different variety and fields then all
the activities related to a specific product are grouped under one department .

Advantages:
● Fast decision making
● Accountability can easily be
traced

Disadvantages:
● More resources are required
● Individual product focus
Let's take the example of a travel agency company to illustrate its organizational structure:

● Mr. Om opened his own travel agency

● To define role, responsibilities, duties etc. he
has divided the entire work of the agency
into three subheads based on the functions
namely operations, sales and
administration.
● Operations include travel counsellor,
reservation and ticketing and customer care.
● Sales include the Accounts executive.
● Administration includes Book Keeper,
Cashier and utility personnel.
● This division of work on the basis of
functions has resulted into an organisational
structure specifying the line of authority and
responsibility
● Organisation structure is the outcome of the organising process.
● It specifies the relationships between people, work and resources.
● The organisation of a firm is shown in an organisation chart.
● A proper organisation structure is essential to ensure a smooth flow of
communication and better control over the operations of a business
enterprise.

Conclusion :
In conclusion, understanding the organizational structure of any
company is crucial for its success. By knowing the different levels of
hierarchy and functional departments, you can better understand how
decisions are made and how each department contributes to the
overall goals of the organization.