UNIT 2.

2 Organizational structure
 BASED ON THE
CHART, WHO
WOULD BE YOUR
POINT OF
REFERENCE (OR
 
THE PERSON YOU
APPROACH FOR
ASSISTANCE) IF
YOU WERE
1).ANNE
2).STEVE
3).MAY
 Know and
understand important terminology to
facilitate understanding of different
types of organizational structure LEARNIN
G
OBJECTIV
Analyze and apply different types
ES
of organizational chart
WHAT IS AN
ORGANISATION
AL STRUCTURE

The internal, formal

framework of a business that
shows the way in which
management is organised and
linked together and how
authority is passed through the
organisation.
THE TRADITIONAL
This structure has different layers of organisation
HIERERACHICAL with fewer and fewer people on each higher level. It
is often presented as a pyramid
STRUCTURE
WHAT DOES
IT TELL US?
Think about three things that this
organizational structure tells you about the
business.
THE ORGANIZATIONAL
STRUCTURE INDICATES
Who has overall responsibility for decision-making

Formal relationships between people and departments

How accountability and responsibility are passed (chain of command)

down

Number of subordinates reporting to each (span of control)

manager

Formal channels of communication - vertical and horizontal

The identity of the supervisor or manager to whom each worker is answerable and should report.
SPAN OF CONTROL
The number of subordinates reporting directly to a manager.

Wide span of control: manager is directly responsible for many subordinates.

Narrow span of control: manager has direct responsibility for a few subordinates.

The wider the span of control, the fewer the levels of hierarchy.

The route through which authority is passed down an organisation
– from the chief executive and the board of directors. 

The taller the organisational structure, the longer will be the

chain of command - potentially slowing down communication. 

CHAIN OF COMMAND
TYPES OF
ORGANIZATIONAL
STRUCTURE:
TALL (VERTICAL)
STRUCTURE
ONE WITH MANY LEVELS
OF HIERARCHY AND,
USUALLY, NARROW SPANS
OF CONTROL AND THIS
CREATES THREE MAIN
PROBLEMS:
1. COMMUNICATION 
2. SPANS OF CONTROL ARE
LIKELY TO BE NARROW
3. THERE IS LIKELY TO BE
A GREATER SENSE OF
REMOTENESS,
AMONG THOSE ON LOWER
LEVELS, FROM THE
DECISION-MAKING POWER
AT THE TOP.
TYPES OF ORGANIZATIONAL STRUCTURE:
FLAT STRUCTURE
ONE WITH FEW LEVELS OF HIERARCHY AND, USUALLY, WIDER SPANS OF CONTROL.

- ENCOURAGES MANAGERS TO DELEGATE MORE EXTENSIVELY.

- SHORT CHAIN OF COMMAND.

- POTENTIALLY BETTER COMMUNICATION BETWEEN TOP AND BOTTOM LEVELS.
 ACTIVITY
You are hired to create an organizational chart for Beetroot Fizz, a local soda company that focuses on the
producing healthy drinks. The company has a total of 20 employees.
-Elizabeth is the head and founder of Beetroot Fizz
-The company has 4 departments: Marketing, Operations, HR and Finance
-Lydia is the head of marketing and has 3 employees (Jane, Kate and Mary)
-Mary is leads the advertising team and has two employees working under her, Darcy and Bennet
-Theo is the head of the operations department which has 3 Employees Joe, Beth and Amy
-Megan is the head of the HR department which has 2 Employees Bailee and Megan
-The head of Finance is Eren which has 3 employees Annie, Armin and Jean
-The finance department has 2 interns Zoe and Jessie
Construct an organizational chart and classify whether it is a tall or flat structure,identify
the span of control of the heads of departments