Basic Organizational

Design
Designing
Organizational
Structure
 Chain of Command

“When you have a

problem at work, who
should you contact to
solve the problem?”
Advantages to a Chain of Command

• Increased efficiency
• Clear Direction
• Stability
• Accountability
• Structured responsibilty
• Outside understanding
 Parts of Chain of Command

1. Authority

2. Responsibility

3. Unity of Command
 Authority

Barnard contended that subordinates will accept orders only if the following conditions are satisfied:

1. They understand the order.

2. They feel the order is consistent with the organization’s purpose.

3. The order does not conflict with their personal beliefs.

4. They are able to perform the task as directed.

Line Authority
Line Versus Staff Authority
 Span of Control

“How many employees

can a manager
efficiently and
effectively manage?”
 Span-of-Control Types

We have 2 type span of control.

 Narrow span of control

 Wide span of control

Advantages and Disadvantages
Advantages and Disadvantages
 Centrelization and Decentralization

•“At what organizational level are

decisions made?”
Centrelization and Decentralization
 Formalization

refers to how
standardized an
organization’s jobs are
and the extent to
which employee
behavior is guided by
rules and procedures.
Formal and Informal
Mechanistic and Organic Structures
Organic
Organizations
Mechanistic
Organizations
Mechanistic and Organic Structures
THANK YOU