Company

Structure

Team 11
TABLE OF CONTENTS
01 02 03
Functional Flattening
Hierachy
Structure Hierarchy
Base of company Further delegation of Alternative route for
structure responsibility smaller companies

04 05 06
Matrix
Teams Others
Management
Another alternative
Basis of a company Miscellanous
company structure
 Important
KEYTERMS
Essential terms required to
better understand today’s
presentation on Company
Structure
Organizational structure: The levels of management and division of responsibilities within an
organization.

Hierarchy: The levels of management in any organization, from the highest to the lowest. A level of
hierarchy refers to managers/ supervisors, other employees who are given a similar level of responsibility
in an organization.

Chain of Command: The structure in an organization which allows instructions to be passed down from
senior management to lower levels of management.

Span of Control: The number of subordinates working directly under a manager.

Delegation: Giving a subordinate the authority to perform a particular task.

Decentralization: Taking decision away from the centre of an organization- way from the Head Office.
Directors: Senior managers who lead a particular department or division of a business.

Line managers: People who have responsibility for people below them in the hierarchy of an organization.

Supervisors: Junior managers who have direct control over the employees below them in the
organizational structure.

Staff managers: Specialists who provide support, information and assistance to line managers.

Delegation: Giving a subordinate the authority to perform a particular task.

.
01
Company
HIERARCHY
HIERARCHY

Definition

Advantage

Disadvantage
Definition

A hierarchical structure
includes one person (single
owner) or a group of people
at the top (stockholders), and
an increasing number of
people below them at each
successive level.
HIERARCHY

Definition

Advantage

Disadvantage
 Advantage Disadvantage
 Clearly defined career path and promotion  It can be costly
path
 Department rivalry
 Encourage specialisation
 Slower decision-making
 Delegation of authority
 Poor communication (between teams)
 Efficient communication and leadership
CASE STUDY
02
 UNDERSTANDING THE CASE STUDY

Team A Team B Team C

Employees: Mustafa, Same size as team A Same size as team A
Hammed, Asif Having a supervisor Having a supervisor
Supervisor: Aziz

NOTE: All the supervisors were under the athourity of Mohammed

a. Draw the organization chart
 Mohammed

Sup A Sup C

Sup B
a. Draw the organization chart
b. What is the span of control of supervisors
c. What would be advantages and disadvantages of removing the
supervisors altogether?
 Advantage Disadvantage
 Faster decision-making (only one boss)  Hard to keep track working process
of all employees (only one boss)
 Reduce hiring cost  Lack of positive rivarly between
teams
CASE STUDY
01
 ANALYSIS

1
Yuan is the owner of
01 three flower shops

02 2
Yuan employs an
accountant
03
3
Yuan employs managers
for the shops
04
4
Yuan employs a
transport manager
 Yuan

Mana A Accountant Transport mana Mana B

What is the span of control of shop manager A?

Answer: 4
How many levels of hierarchy are there in this
business?

Answer: 3
If shop A expands and 4 more staffs are employed, the manager’s span of control will
increase
-> Explain 1 advantage and 1 disadvantage

Answer:
- Advantage: lower pressures at
work
-Disadvantage: higher personnel
costs
How do you think the organisal structure of
Yuan’s business might CHANGE if it
continues to GROW?
 FUCTIONAL
ORGANISATION
02 FUNCTIONAL
STRUCTURE
DEFINITION
Functional structure is a common type
of business structure that organizes a
company into different departments
based on areas of expertise.
ADVANTAGES
1
Encourage
specialisation

2
Easier measure and
development

3
Efficient communication
and leadership
DISADVANTAGES

SLOW DECISION-
MAKING
People at lower position have to
pass on responsibility to their boss.
DEPARTMENT RIVALRY
Departments have their own
goals. Finally, they act in their own
interests.
 03
FLATTENING
HIERARCHIES
 DEFINITION
Flattening or delayering of
organisational structures refers
to the elimination of layers in a
firm's organisational hierarchy
and the broadening of manager's
span of control.
 PROS AND CONS

Pros Cons
● Faster decision-making ● Lack of specialization

● Improved employee engagement ● Power struggles

● Greater agility ● Increased workload

SMALL BUSINESS BIG BUSINESS
OWNERS MANAGERS

Delegating decision
Favor holding
making and
authority
responsibilities
 04
MATRIX
MANAGEMEN
T
 About matrices
Traditional organisations were structured
vertically, so if you work in human resources,
you report to a human resources director, who
reports up to a chief executive or general
manager.
 An organisational structure where people have
DEFINITION more than one boss and more than one formal
Matrix management reporting line.
 Advantage Disadvantage
 Meets the needs of global or  More meetings and communications
regional customers needed

 Improve capability to run the global  Slower processing

original projects and systems
 Resource shortages
 To increase access to resources,
skills and technologies
05
TEAMS
TEAMS

Definition

Advantage

Disadvantage
 Definition

A wholly autonomous, temporary

group of employees that is
entirely responsible for one
specific project, and are split up
as soon as it successfully
completed.
TEAMS

Definition

Advantage

Disadvantage
 ADVANTAGES DISADVANTAGES

 Better grasp of workflow without  Lack of decisiveness

distractions from other projects → Requires a strong leader

 Utilises specialised workers’

abilities

 No conflict between departments

OPTIMIZE
PROFITS
Responsibility of owners or departments
BUT WHAT IF NO SOLUTION IS FOUND?
 READ 1 The ‘Wikinomics’ principle
COLLABORATE
With people outside
corporate structure

COOPERATE

PAY FOR IDEAS

Businesses
‘OUTSOURCING’
DISADVANTAGES OF THIS TREND?
 GÊM ĐÊ
CÁC ĐỒNG
CHÍ ƠII
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