Organizational Structure

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Organization, Teamwork, & Communication

Importance of Organizational Structure

Structure Impacts:
•Decision making
•Costs & efficiencies
•Overall success and sustainability

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Organization, Teamwork, & Communication

Organizational Culture

A firm’s shared values, beliefs, traditions,

philosophies, rules, and role models for behavior.

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Organization, Teamwork & Communication

Organizational Culture –
satisfying the needs &
expectations of stakeholders

Ensures that organizational members:

•share values
•observe common rules
•share problem solving approaches

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Organization, Teamwork & Communication

Developing
Organizational Structure

Organizational Structure – The arrangement or

relationship of positions within an organization.

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Organization, Teamwork & Communication

Developing
Organizational Structure

Structure Develops –
•Managers assign work tasks to individuals & groups
•Coordination of diverse activities to attain objectives

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Organization, Teamwork & Communication

Organizational Chart

What the Organizational Chart Shows –

•Organizational structure
•Chain of command (lines of authority)
•Other relationships (staff, committees, etc.)
•Lines of communication
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Organizational Structure

The Evolution of a Clothing Store

Phases 1, 2, and 3

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Organization, Teamwork & Communication

Organizational Growth

What does organizational growth require?

•Structuring of resources (human, physical, financial)
•Hiring specialized talent & skills
•Formalized structure (as workforce & specialization grows)
•Assign work tasks to individuals & departments
•Assign responsibility for organizational objectives

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Assigning Tasks

Specialization
Managers divide the labor into small, specific
tasks and assign to employees to accomplish
individual tasks.

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Assigning Tasks

Why Specialize?
•Efficiency
•Ease of training
•Activities too numerous
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Assigning Tasks

Overspecialization

•Employees become bored

•Job dissatisfaction
•Poor quality work
•Increased injuries
•Increased employee turnover

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Organizational Structure –
Assigning Tasks

Departmentalization

Grouping of jobs into working units

(departments, units, groups, divisions)

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Assigning Tasks – Organizational Structure

Departmentalization is the grouping of jobs

into working units usually called departments,
units, groups, or divisions.
•Functional departmentalization
•Product departmentalization
•Geographical departmentalization
•Customer departmentalization
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Retailing & Wholesaling
Selling directly to the consumer

• Music stores
• Sporting-goods shops
• Dry cleaners
• Boutiques
• Drugstores
• Restaurants
• Hardware stores

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Assigning Responsibility

Responsibility

Obligation placed on employees to perform

assigned tasks and be held accountable for
proper execution.

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Assigning Responsibility

Accountability

Employees are answerable to a superior for work

outcomes.

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Centralization

Centralized organizations
•Authority is concentrated at the top level.
Decentralized organizations
•Decision-making authority is delegated as far
down the chain of command as possible.
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Span of Management

Span of Management – the number of

subordinates who report to a particular
manager.

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