Organizational Structure and Layout

Moises Martinez

Office Procedures

Prof Ravinder Singh

October 18, 2023

1. What are the three common components found in all organizations?

Three common components found in all organizations are:

• Goals: Provide direction and focus. They are the strategic objectives used to
guide employees' efforts. The objectives should be the following: specific,
measurable, achievable, relevant, and fast.
• People: Are the main sources to do tasks and thus achieve objectives.
• Structure: It is the way in which the functions and responsibilities that each
member of a company must fulfill are distributed to achieve the proposed
objectives.

2. Typical structures today in business

• Functional. Group and organize people who occupy similar positions within the
company.
• Divisional. Organize collaborators by type of specific product or service offered
to the market, each of them being responsible for the flow of tasks.
• Matrix. In this system, the organization divides the work scheme both by each
area of functions and by the types of projects that are developed.
• Flat-decentralized management or Horizontal. In this structure, there are few
middle managers of authority, so the people who occupy the highest levels of
authority come into direct contact with all front-line workers.

3. Types of Organization Structure

Traditional Organizational Structure Elements: If a traditional organizational structure

were depicted with a chart, it would look like a pyramid. At the top of that pyramid are the CEO,
president, and senior management. In the middle of the pyramid are middle managers and
lower-level managers, and at the broad base are employees.

Contemporary Organizational Structure Elements: In a contemporary organizational

structure, the rigid top-down model of the traditional structure is removed in favor of teams that
work on projects together.

4. Classification of Authority

Line Authority: These are managers who can supervise employees or, in some cases,
other managers. They give direct orders, evaluate performances, reprimand mistakes, and
reward positive behaviors.

Staff Authority: Are seen as advisors. They don’t necessarily have direct control over
their subordinates but will help the managers beneath them to make decisions. For the most
part, he will simply offer advice or assistance as it is needed in between taking care of his day-
to-day tasks.

Functional Authority: Is often exercised by managers with staff authority as well.

Functional authority gives individuals the ability to make decisions regarding the way a
department will be run. They can create, manipulate, or change procedures to complete a
project.

5. Division of Work

Departments: Are usually prepared around related duties, features, or competencies.

Types: Common departments in organizations consist of Human Resources, Marketing,
Finance, Sales, Operations, Research and Development (R&D), Customer Service, and IT
(Information Technology).

Division: This is a bigger organizational unit that encompasses a couple of departments

and frequently operates semi-autonomously within an organization. Divisions are generally
responsible for a broader scope of work or a particular product line or market. Types:
Companies may have divisions based totally on product lines (e.G., Consumer Electronics
Division, Automotive Division) or geographic areas (e.G., European Division, Asia-Pacific
Division).

Section or Units: A smaller unit within a department or department. It may be prepared to

deal with a selected subset of duties or duties within the broader context of the branch or
division. Types: Units are regularly specific to the desires and shape of the company. For
instance, within a Human Resources department, there can be sections for Recruitment,
Benefits Administration, and Training.

Branch: Is refers to a bodily area or office of an enterprise that operates independently

or semi-independently, often in a one-of-a-kind geographical location. Branches can also have
their own management and workforce. Types: Branches are generally used in industries like
banking (bank branches), retail (shop branches), and franchising (franchise branches). They are
regularly named after the city or location in which they're placed.