Organization

Structuring &
Design Matrix
Reporter: NORHAYA K SUMALUYAN
Group 2 ​
 Steps in Making the Organizational Structure

1. Create a plan for 2. Develop a chain of

departmentalization. Organize the
departments, roles and positions command 3. Determine the span
within your business. of control

4.Outline each 5. formalize the

department’s work structure with visuals
specialization
“
Organizational structure (OS) is the systematic arrangement of human resources
in an organization so as to achieve common business objectives. It outlines the
roles and responsibilities of every member of the organization so that work and
information flow seamlessly, ensuring the smooth functioning of an
organization.

”
wallstreet Mojo

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 IMPORTANCE OF ORGANIZATIONAL STRUCTURE

• For the company’s success and profit

• Defines heirarchy and allows the firm to lay out pay structure for the
employees.
• Defines authority , responsibility, and relationships that facilitates better
understanding of objectives and policies
• It lays down both channels of authority and communication
• It coordinates activities of the components parts towards the realization of
the company’s objectives

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 TYPES OF ORGANIZATIONAL STRUCTURE

• Functional/Role-Based Structure: This structure is one of the most common organizational structures. In this
structure, organizations are divided into specialized groups with specific roles and duties .

• Product- or Market-Based Structure: Along with the functional structure, the product- or market-based structure is
also one of the most common types of organizational structures. In this structure, the organization is divided into
groups by products or markets .

• Geographical Structure: This type of organizational structure is used by companies that operate in different regions
or countries. The organization is divided into groups based on geographic location .

• Hierarchical Structure: In a hierarchical organizational structure, employees are grouped and assigned a
supervisor .

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 TYPES OF ORGANIZATIONAL STRUCTURE
• Matrix Structure: This type of organizational structure combines aspects of both
functional and product-based structures. In this structure, employees are grouped by
function and product .

• Flat Structure: In a flat organizational structure, there are few or no levels of middle
management between the executives and the staff .

• Circular Structure: A circular organization chart looks like concentric circles with
company leadership in the center circle. Instead of information flowing down to the
next “level,” information flows out to the next ring of management .

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 Features of Good Organizational Structure

1. Clear line of authority 4.Proper span of control 9. Management ratio

5.Simple and flexible
2.Adequate delegation of 6. Work Design 10.Unity of command and
authority 7.Departmentalization Direction

8.Hierarchy
3.Lesser managerial levels 11.Application of ultimate
authority

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