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THE ORGANIZATION

Ahmad Johari Abbas


Organization and Structure Defined

Hierarchical Structures

Matrix Organization

Informal Organization

Organizational Changes
Organization

A group of people with relationship to each other (e.g.


family, club)

Collection of humans and material resources which are


gathered together for a stated aim (e.g. factory, firms)

Structure defining the division of work and interactions


between individuals, groups and resources.
Traditional View
Hierarchical structure
commands pass down to
the subordinate while
information flows upward
to the superiors. This
cannot go vice versa, at
least, ideally.

This can be flattened, in


which information can
flow horizontally,
however, the basic rule
still applies.
Organization Dynamics

Organizations need to be creative in order to survive. To


do this, the management has to create conditions where
the organization can learn and develop.
ORGANIZATION STRUCTURE

An organization structure is the way the organization


allocates its resources towards meeting its strategic aims.

There is no single structure that is best for every company


and for every period in its operation.
Groupings for common organizational structures.
Organization structures Groupings
Line Hierarchical
Staff
Project-based
Functional
Flexible
Matrix Matrix
Informal Informal
Organizations can either be operational and
representative:

Operational set up by a company to produce a unit of


output

Representative generally represents a separate sphere


of interest, although this interest does not necessarily
have to clash with that of the company.
HIERARCHICAL STRUCTURES

Most common

Essential for control of large organizations

Also known as bureaucratic structures


Characteristics of hierarchical structures:

A hierarchy of authority

Specialization of tasks

A system of rules which is tightly enforced throughout the


organization, to ensure conformity.

Impersonality in the application of rules


Authority can be of three types:

Legal or organization authority

Traditional authority

Personal authority
A concentric or "Hive" Hierarchy

member of staff

menior member of staff

Manager

Senior Manager

Director

Assistant Vice President

Vice President
President
An overlapping hierarchical organization

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