Management and

Organizational
Structure
Lesson 2: Industrial Organization Management
 Introduction
Management is the process of planning, organizing, leading, and
controlling resources to achieve specific goals and objectives.

Organizational structure refers to the framework of roles,

responsibilities, and relationships within an organization.

Importance of understanding the concept as it provides insights into

effective leadership, teamwork, and organizational dynamics, which are
valuable skills for academic and future career success.
 Introduction
What is Management?
Management involves coordinating and overseeing the activities of individuals and
groups to achieve organizational goals effectively and efficiently.

Functions of management:
• Planning: Setting objectives and determining the best course of action to
achieve them.
• Organizing: Structuring resources and activities to implement the plan.
• Leading: Motivating and guiding individuals to accomplish tasks and goals.
• Controlling: Monitoring performance and adjusting as needed to ensure
objectives are met.
Theories of Management
● Classical Theories
● Modern Theories
 Classical Theories Modern Theories
• Scientific Management (Taylor) –
emphasizes efficiency and • Systems theory – views
standardization of work processes. organizations as
interconnected systems
• Administrative Management (Fayol) with inputs, processes, and
- focuses on principles of management outputs.
such as unity of command and division
of labor. • Contingency theory –
recognizes that
• Human Relations Theory (Mayo) – management practices
highlights the importance of social should be adapted to fit the
factors in employee motivation and unique circumstances of
productivity. each situation.
Organizational Structure
Organizational Structure
- refers to the framework of roles, responsibilities, and relationships within an organization.

Campus Director

TEAM 1 TEAM 2

Assistant Human Resource Bookeeper Assistant

Management
Types of Organizational
Structure
• Functional
• Divisional
• Matrix
• Flat
• Hierarchical
 Functional Organizational Structure
● This type of organizational structure
groups employees based on specialized
functions or departments within the
organization. Common functions might
include marketing, finance, human
resources, and operations. Each
department is responsible for its
specific tasks and contributes to the
overall goals of the organization.
Groups employees by specialized
functions or departments (e.g.,
marketing, finance).
 Divisional Organizational Structure
● In a divisional structure, the
organization is divided into
units based on products,
geographic regions, or
customer groups. Each
division operates as a
separate entity with its own
resources and functions,
allowing for more focused
attention on specific markets
or products.
 Matrix Organizational Structure
● A matrix structure combines
elements of both functional and
divisional structures. In this
setup, employees are organized
into teams that represent both
their functional expertise (e.g.,
marketing, finance) and their
specific division or project.
This allows for greater
flexibility and collaboration
across different parts of the
organization.
 Flat Organizational Structure
● A flat organizational structure has few levels of hierarchy between frontline employees and
top management. This promotes a more egalitarian workplace where decision-making is
decentralized and communication flows more freely. Flat structures are often found in small
to medium-sized organizations or startups, where agility and quick decision-making are
valued.
 Hierarchical Organizational Structure
● Also known as a traditional or
bureaucratic structure, hierarchical
structures feature a pyramid-shaped
hierarchy with clear lines of
authority and control. Each level of
the hierarchy has its own set of
responsibilities and reporting
relationships, with decisions
flowing from the top down. This
structure is common in large,
established organizations where
stability and order are prioritized.
 • Visual examples and explanations of
different organizational structures:
Display diagrams or charts illustrating
Examples: functional, divisional, matrix, flat, and
hierarchical structures.
• Real-world examples: Provide examples
of organizations that use each type of
structure (e.g., Google's flat organizational
structure, General Electric's divisional
structure).
 Key Elements of Organizational Structure
Work Specialization Chain of Command
The chain of command outlines the formal
Work specialization refers to authority relationships within an organization,
the degree to which tasks are specifying who reports to whom.
divided into separate jobs.
Span of Control
Formalization
Span of control refers to the Formalization refers to the extent to which rules,
number of employees a manager procedures, and policies govern organizational
supervises directly. activities.

Centralization vs. decentralization:

Centralization refers to the concentration of

decision-making authority at the top of the
organization, while decentralization involves
delegating decision-making authority to lower
levels.
 The Role of Leadership
Importance of leadership within organizational structure:
"Leadership plays a critical role in guiding and inspiring
employees, shaping organizational culture, and driving
performance.”

Different leadership styles:

● Autocratic: Centralized decision-making with limited
input from employees.
● Democratic: Involves employees in decision-making and
encourages collaboration.
● Laissez-faire: Hands-off approach where employees have
freedom to make decisions.

Impact of leadership on organizational culture and

performance: "Leadership style can influence employee
morale, motivation, and productivity, as well as
organizational innovation and adaptability."
 Activity #3: Organization and Management

Divide the class in a group compose of 3 – 5 members only.

Analyze a scenario of a well-known company and its
management and organizational structure: “Examine a real-
world example of how management and organizational
structure impact organizational success or challenges.”

Discuss how their structure contributes to their success or

challenges: “Identify key elements of the company's
organizational structure and discuss how these elements
contribute to its overall performance.”

Present the output on the next schedule!

Thank you