MSV: 2206090083

ORGANIZATIONAL STRUCTURE
The formal arrangement of jobs
within an organization

Advantage
More efficient
employee

The degree to which tasks in the

The number of employees who can
Disadvantage organization are divided into
be effectively and efficiently
Boredom, fatigue, stress, separate jobs with each step
poor quality, increase supervised by a manager.
completed by a different person.
absenteeism, reduce
performance, increase
Work
turnover Span of control
specialization

Centralization: Decision making

is concentrated at single point
Functional in the organizations

Product The degree to which decision-making

Decentralization: Decision
is concentrated at a single point in the
How jobs are grouped together Centralization and making is pushed down to the
Process so work gets done in a
Departmentalization 6 KEY ELEMENTS decentralization
organizations or pushed down to the
managers who are closest to
managers who are closest to the
coordinated and integrated way. the action.
action.
Customer

Employee Empowerment:
Increasing the decision-making
Geographical
authority (power) of employees

Chain of
Formalization
command

The degree to which jobs within the

organization are standardized and the
The continuous line of authority that extends extent to which employee behavior is
from upper levels of an organization to the guided by rules and procedures
lowest levels of an organization and clarifies
who reports to who

Unity of
Authority Responsibility command