Organizational Structure and Design - Orbegoso, AIra Coleen R.

Key Elements of Types of How to use
Organizational Organization
Organizational Organization Organization
Structure Design
Home Structures Design Design
Apr
15
MBA
Organizational Former temple on the Athenian

Acropolis, Greece, that was dedicated
FC 603
HUMAN BEHAVIOR Structure and to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
Design
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AIRA COLEEN R. ORBEGOSO

SLIDESMANIA
Profile Presentor
Structure Design
Background
Understanding Organizational
Apr
Structure
Fundamental forms of structure

15
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA
Profile Presentor
Background Organizational
Structure
Organizational
Organization
Design
Organization Organization
Apr
Organizational structures have evolved since the
1800s. In the Industrial Revolution, individuals were
organized to add parts to the manufacture of the 15
MBA
product moving down the assembly line. Frederick
Organizational
Taylor's scientific management theory optimized the Former temple on the Athenian
FC 603 were performed, so workers performed Acropolis, Greece, that was dedicated
way tasks
century BC.
only one task in the most efficient way. In the 20th
IN ORGANIZATION
Design
century, General Motors pioneered a revolutionary _ _ _ _ _ _ _ _ _
organizational design in which each major division
made its own cars. AIRA COLEEN R. ORBEGOSO
SLIDESMANIA
Profile Presentor Homepage

Organizational Structure Organizational
Structure
Organizational
Organization
Design
Organizational structure is the method by which work

flows through an organization. It allows groups to work
Apr
together within their individual functions to manage tasks.
Organizational structure aligns and relates parts of an

15
MBA
organization, so it can achieve its maximum performance.
The Importance
FC 603 of Aligning the Structure with The
HUMAN BEHAVIOR
Business Strategy
Structure and to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
Design
• Leadership _________
• Organization
• Jobs AIRA COLEEN R. ORBEGOSO
SLIDESMANIA
• People
Two fundamental forms of structure Organizational
Structure
Organizational
Organization
Design
Formal Organization is an officially defined set of relationships,

responsibilities, and connections that exist across an
Apr
organization. The traditional organizational chart, as illustrated
it is perhaps the most common way of depicting the formal
organization. The typical organization has a hierarchical form
with clearly
15
MBA defined roles and responsibilities.
Organizational
Informal Organization is sometimes referred to as the invisible Former temple on the Athenian
network
FC of603interpersonal relationships that shape how people Acropolis, Greece, that was dedicated
HUMAN BEHAVIOR Structure and
connect with one another to carry out their activities. The
to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
Design
informal organization is emergent, meaning that it is formed
through the common conversations and relationships that often _________
naturally occur as people interact with one another in their day-
to-day relationships. ItAIRA is COLEEN
usually R.complex,
ORBEGOSOimpossible to
SLIDESMANIA
Presentor
control,Profile
and has the potential to significantly influence an Homepage
organization’s success.
Structure Design
Apr
15
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA
Profile Presentor Back

Structure Design
Apr
15
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA

Structure Design
Specialization
Apr
Command-and-Control
Span of Control
15
MBA Centralization
Formalization
FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA
Profile Presentor
Key Elements of Organizational Structures Organizational
Structure
Organizational
Organization
Design
Specialization is the degree to which people are organized into subunits according
to their expertise is referred to as specialization.
Apr
Command-and-Control refers to the way in which people report to one another or
connect to coordinate their efforts in accomplishing the work of the organization.
Span of Control means the number of individuals who report to a manager.

15
MBA addresses the scope of the work that any one person in the
Another question
organization will be accountable for.

Centralization is how to manage the flows of resources and information in an Acropolis, Greece, that was dedicated
FC 603
organization. The degree to which decision-making authority is restricted to higher to the goddess Athena during the fifth
levels of management typically leads to a pyramid structure. Centralization is century BC.
IN ORGANIZATION
generally recommended when conflicting goals Design
and strategies among operating
units create a need for a uniform policy. _________
Formalization refers to the degree of definition in the roles that exist throughout
AIRA
an organization. A highly formalized COLEEN
system (e.g.,R. ORBEGOSO
the military) has a very defined
SLIDESMANIA
Profile
organization, Presentor
a tightly structured system, in which all the jobs, responsibilities, Homepage
and accountability structures are very clearly understood.
Structure Design
Understanding Organization Design

Apr
The Impact of Organization Design
15
What Triggers Organizational Design?
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA
Profile Presentor
Organization Design Organizational
Structure
Organizational
Organization
Design
It is the process of setting up organizational

Apr
structures to address the needs of an organization
and account for the complexity involved in 15
MBA
accomplishing business objectives.

FC 603
ItHUMAN
involves Structure
many different
BEHAVIOR aspects ofand
life at work, to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
including team formations, shift patterns, lines of
Design
reporting, decision-making procedures, _________
communication channels, and more.
SLIDESMANIA

The Impact of Organization Design Organizational
Structure
Organizational
Organization
Design
Organizational design involves implementing Apr

organizational structures and systems that align to
an organization's core strategies. Often organization
redesign
15
MBAhappens because a business is growing or
needs to downsize. However, it may also be because
of a change in leadership,Organizational
strategy, or due to changes Acropolis,
Former temple on the Athenian
Greece, that was dedicated
FC 603
inHUMAN
the organization's
BEHAVIOR Structure
wider environmentandin which it to the goddess Athena during the fifth
century BC.
operates.
IN ORGANIZATION
Design
_________

SLIDESMANIA

Structure
Organizational
Organization
Design
When organizational design is effective it can have several

benefits, including: Apr
- Increased efficiency.
- Faster and more effective decision making. 15

MBA
- Improved quality of goods and services.
- Higher profits. Organizational Former temple on the Athenian

FC 603
- HUMAN BEHAVIOR
Better customer relations. Structure and to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
- Safer working conditions. Design
_________
- A happier, healthier, and more motivated workforce.

SLIDESMANIA
- Greater preparedness for future challenges.

Structure
Organizational
Organization
Design
When organizational design is effective it can have several

However, if there are flaws in its design, an organization can
benefits, including:
suffer serious problems, including:
Apr
- Increased efficiency.
- Ineffective problem solving.
- Faster and more effective decision making. - Wasted time. 15
MBA
- Improved quality of goods and services. - Lack of coordination between different parts of the business.
- Higher profits. Organizational Former temple on the Athenian

- Inconsistent quality of work.
FC 603
- HUMAN BEHAVIOR
Better customer relations. Structure and to the goddess Athena during the fifth
- Failures of legal compliance.
century BC.
IN ORGANIZATION
- Safer working conditions. Design - Reputational damage.
_________
- Low morale, leading to high staff turnover.
- A happier, healthier, and more motivated workforce.
- Missed targets and poor performance.
SLIDESMANIA
- Greater preparedness for future challenges.

What Triggers Organizational Design? Organizational
Structure
Organizational
Organization
Design
1. Changes in the Environment

Changes here could refer to internal or external changes. Apr
Perhaps you've bought some new technology, or a rival has
entered your territory. Maybe an important piece of legislation
affecting your business has changed. 15
MBA
2. You've Launched a New Strategy

An organization might take the strategic decision to Acropolis, Greece, that was dedicated
FC 603
approach Structure and
its work in a different way for any number of reasons. to the goddess Athena during the fifth
HUMAN BEHAVIOR
century BC.
ItINmight also change the ways it measures success.
ORGANIZATION
Design
_________
3. Your Current Design Is Not Fit for Purpose
Change is often gradual, but at some point in time, a
SLIDESMANIA
"tippingProfile
point" is reachedPresentor
at which the organization recognizes
Homepage
a need to adapt to such changes.
Structure Design
Mechanistic and Organic

Apr
Divisional and Functional
Simple and Matrix

15
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA
Profile Presentor
Types of Organization Design Organizational
Structure
Organizational
Organization
Design
Mechanistic structures
they are highly formalized and centralized. Communication Apr
tends to follow formal channels, and employees are given
specific job descriptions delineating their roles and
responsibilities. Mechanistic organizations are often rigid and 15
resist change,
MBA making them unsuitable for being innovative and
taking quick action.
OrganicFCstructures
603
are flexible, decentralized structures with low levels of
century BC.
IN ORGANIZATION
formalization. Communication lines Design
are more fluid and flexible.
Employee job descriptions are broader, and employees are _________
asked to perform duties based on the specific needs of the
AIRA
organization at the time as COLEEN
well R. own
as their ORBEGOSO
expertise levels.
SLIDESMANIA

Structure
Organizational
Organization
Design
Mechanistic
- Functional structures
The functional structure divides work and employees by
Apr
specialization. It is a hierarchical, usually vertically integrated,
structure. It emphasizes standardization in organization and processes
for specialized employees in relatively narrow jobs. This traditional 15
MBA
type of organization forms departments such as production, sales,
research and development, accounting, HR, and marketing. Each
Organizational
department has a separate function and specializes in that area. Former temple on the Athenian
FC 603
- HUMAN BEHAVIOR
Divisional structures
Structure and to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
Design
Also, a vertical arrangement, a divisional structure most often
divides work and employees by output, although a divisional structure _________
could be divided by another variable such as market or region. For
example, a business that sells
AIRAmen's, women's
COLEEN and children's clothing
R. ORBEGOSO
SLIDESMANIA
through Profile
retail, e-commerce, and catalog sales in the Northeast,
Presentor Homepage
Southeast and Southwest could be using a divisional structure.
Structure Design
Apr
15
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA

Structure Design
Apr
15
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA

Structure
Organizational
Organization
Design
Organic.
- Simple/Flat structure Apr
This type of structure is common among small businesses.
There may only be two or three management levels, with people
working together as one, large team, and reporting to the same, 15
MBA
single person.
- Matrix structure Organizational Former temple on the Athenian

people typically have two or more lines of report. This Acropolis, Greece, that was dedicated
FC 603
Here,
type of organization may combine both functional and divisional
century BC.
IN ORGANIZATION
Design
lines of responsibility, allowing it to focus on divisional
performance, while also sharing specialized skills and resources. _________
However, matrix structures can become overly complex, effectively
having to uphold two different hierarchies,
AIRA COLEEN which may start to
R. ORBEGOSO
SLIDESMANIA
compete. This may even create

Profile Presentor tension and result in conflict, in Homepage
some cases.
Structure Design
Apr
15
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA

Structure Design
Apr
15
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA

This is where subtitle D.3 goes. Organizational
Organizational
Organization
Structure Design
Lorem ipsum dolor sit amet, consectetuer adipiscing elit.

Apr
Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et
magnis dis parturient montes, nascetur ridiculus mus.
Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et
magnis disMBA
parturient montes, nascetur ridiculus mus.
15
Donec quam felis, ultricies nec, pellentesque eu, pretium quis, sem. Nulla consequat
Organizational
massa quis enim. Donec pede justo, fringilla vel, aliquet nec, vulputate eget, arcu. In Former temple on the Athenian
FCrhoncus
enim justo, 603 ut, imperdiet a, venenatis vitae, justo. Nullam dictum felis eu
HUMAN
pede mollis BEHAVIOR Structure and
pretium. Integer tincidunt. Cras dapibus. Vivamus elementum semper
century BC.
IN Aenean
nisi. ORGANIZATION
vulputate eleifend tellus.
Design
Aenean leo ligula, porttitor eu, consequat vitae, eleifend ac, enim. Aliquam lorem _________
ante, dapibus in, viverra quis, feugiat a, tellus. Phasellus viverra nulla ut metus varius
laoreet. Quisque rutrum. Aenean imperdiet. Etiam ultricies nisi vel augue. Curabitur
SLIDESMANIA
ullamcorper ultricies nisi.

Profile Presentor THIS CAN BE A BUTTON
Structure Design
Consider the Impact

Apr
Create a Collaborative Plan of Action
15
Communicate and Provide Support
MBA

FC 603
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA
Profile Presentor
How to Use Organization Design? Organizational
Structure
Organizational
Organization
Design
Consider the Impact

Apr
First, you'll need to consider the impact that a change
in your organization's design will have by assessing it 15
againstMBA
several factors. These include:
- Strategy
FC 603
-HUMAN
Size BEHAVIOR Structure and to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
- Environment Design
- Controls _________
- Incentives
SLIDESMANIA

Structure
Organizational
Organization
Design
Apr
Create a Collaborative Plan of Action
15
MBA
Once you've considered these and any other relevant
factors, you'll likely have a suitable structure in mind.
So, the next step is to ensure that you've selected the Acropolis, Greece, that was dedicated
FC 603
most
HUMAN BEHAVIOR options,Structure
appropriate and to create and
an action plan to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
to help you put the new design inDesign
place.
_________

SLIDESMANIA

Structure
Organizational
Organization
Design
Apr
Communicate and Provide Support 15

MBA
Good Organization Design involves not only changing

the systems by which people work, but also supporting Acropolis, Greece, that was dedicated
FC 603
people
HUMANto Structure and
adapt successfully.
BEHAVIOR
century BC.
IN ORGANIZATION
Design
_________

SLIDESMANIA

Key Takeaways Organizational
Structure
Organizational
Organization
Design
● These elements of structure affect the degree to which the company is

Apr
effective and innovative as well as employee attitudes and behaviors at
work. 15
● TheMBA changing environment of organizations creates the need for newer
forms of organizing. They facilitate information flowFormer
andtemple
reduce response
Organizational on the Athenian
time to customers but have challenges, because each
FC 603 employee
Acropolis, Greece, thatreports to
was dedicated
HUMAN BEHAVIOR
multiple managers. Structure and to the goddess Athena during the fifth
century BC.
IN ORGANIZATION
● These organizations may take Design
the form of a modular organization, strategic
_________
alliance, or self-managing teams. Learning organizations institutionalize
experimentation and
AIRAbenchmarking.
COLEEN R. ORBEGOSO
SLIDESMANIA
Profile Presentor
Structure Design
References.
Understanding Organizational Structures
Apr
https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/understanding-or
ganizational-structures.aspx
15
MBA
Organizational Structures and Design (Principles of Management)
https://openstax.org/books/principles-management/pages/10-1-organizational-structures-and
-design Organizational Former temple on the Athenian
FC 603
century BC.
Organization Design
IN ORGANIZATION
Design
https://www.mindtools.com/aiydadc/organization-design
_________
Organizational Structure (Organizational Behavior)
SLIDESMANIA
https://courses.lumenlearning.com/suny-orgbehavior/chapter/14-2-organizational-structure/
Thank you!
Profile Presentor

Organizational Structure and Design - Orbegoso, AIra Coleen R.

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Key Elements of Types of How to use

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Fundamental forms of structure

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Profile Presentor Homepage

Organizational structure is the method by which work

Organizational structure aligns and relates parts of an

Formal Organization is an officially defined set of relationships,

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Profile Presentor Back

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Profile Presentor Back

AIRA COLEEN R. ORBEGOSO

Span of Control means the number of individuals who report to a manager.

Organizational Former temple on the Athenian

Understanding Organization Design

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

It is the process of setting up organizational

Organizational Former temple on the Athenian

Profile Presentor Homepage

Organizational design involves implementing Apr

AIRA COLEEN R. ORBEGOSO

Profile Presentor Homepage

When organizational design is effective it can have several

- Faster and more effective decision making. 15

- Higher profits. Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

- Greater preparedness for future challenges.

When organizational design is effective it can have several

- Higher profits. Organizational Former temple on the Athenian

- Greater preparedness for future challenges.

1. Changes in the Environment

2. You've Launched a New Strategy

Mechanistic and Organic

Simple and Matrix

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Profile Presentor Homepage

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Profile Presentor Back

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Profile Presentor Back

- Matrix structure Organizational Former temple on the Athenian

compete. This may even create

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Profile Presentor Back

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO

Profile Presentor Back

Lorem ipsum dolor sit amet, consectetuer adipiscing elit.

ullamcorper ultricies nisi.

Consider the Impact

Organizational Former temple on the Athenian

AIRA COLEEN R. ORBEGOSO