Approaches to Organizational

Structure
Organizational Structure
• Organizational structure refers to the framework that defines how activities,
tasks, and responsibilities are organized, coordinated, and controlled within
an organization.
• It establishes the hierarchy of authority, communication channels, and
workflow patterns, outlining the relationships between different roles and
units.
• In essence, organizational structure provides clarity on how an organization
operates and distributes authority to achieve its objectives effectively.
 Effective Coordination

Importance of Organizational
Clear Communication
Structure

Efficient Resource Allocation

Decision-Making

Adaptability and Growth

Employee Engagement and

Satisfaction
Functional
Structure:
The functional structure is a type of
organizational arrangement where
employees are grouped based on
their specialized functions or roles
within the company.
Divisional Structure

The divisional structure is an

organizational arrangement
where departments or units
are organized based on
product lines, geographic
regions, or customer
segments.
Matrix Structure

The matrix structure is an organizational

arrangement that combines functional and
divisional structures, where employees
report to both functional managers and
project managers simultaneously.
Matrix Structure

Dual Reporting Relationships: Employees

1 report to both a functional manager and a
project manager.

Two Characteristics

Cross-Functional Teams: Project teams consist of

2 members from different functional areas working together

on specific projects or initiatives.
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Flat Structure

A flat structure is an organizational

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arrangement with few hierarchical
levels and a wide span of control,
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where employees have more autonomy
other types of visual aid—hand-drawn or
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whiteboards,

or overhead projections. Ease of use also

encourages those who otherwise would not
have used visual aids, or would not have
given a presentation at all.
Characteristics:

• Few Hierarchical Levels: Flat structures have

minimal layers of management, with fewer levels of
hierarchy between frontline employees and top
management.
• Wide Span of Control: Managers in flat structures
oversee a larger number of subordinates, resulting
in more direct supervision and communication
channels.
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Hierarchical HERE
Structure

A hierarchical structure is an organizational

arrangement characterized by multiple
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levels of authoritySand a clear chain of

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command, where decisions flow from top
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of management.
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Characteristics

• Multiple Levels of Authority: Hierarchical

structures typically consist of several hierarchical
levels, including top management, middle
management, and frontline employees.
• Clear Chain of Command: Decisions and directives
flow down through the organizational hierarchy,
with each level of management overseeing the
activities of subordinates.
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Network Structure

A network structure is an organizational

arrangement characterized by
interconnected and interdependent units
or entities, often involving strategic
partnerships, alliances, or collaborations
with external parties.
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Characteristics

• Interconnected Units: Entities within the network

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structure are connected throughYouformal
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informal relationships,
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communication and collaboration.

• Interdependence: Organizations in the network
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structure
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expertise, and
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objectives.
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Team-Based HERE
Structure

A team-based structure is an
organizational arrangement where
work is organized around teams or
groups rather than traditional Keywords

functional departments.
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Characteristics

• Cross-Functional Teams: Teams in a team-based

structure consist
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of members from diverse Keywords
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backgrounds and skill sets, bringing together
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complementary perspectives and capabilities.
• Shared Goals: Teams in the team-based structure
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work
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towards shared
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fostering a sense of collective

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accountability.
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Structure

A virtual structure is an organizational

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arrangement characterized by remote

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work, distributed teams, and digital
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collaboration tools, enabling employees
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Characteristics

• Remote Work: Employees in virtual structures have the

flexibility to work from home, co-working spaces,
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remote locations using digital communication and
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• Digital Connectivity: Virtual structures rely on technology
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platforms such as video conferencing, messaging apps, and
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cloud-based software to facilitate communication and
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collaboration among team members.
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organizational structure is critical for
achieving strategic objectives, fostering innovation,
maintaining competitive advantage, and sustaining
long-term success. It requires careful consideration of
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the organization's
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goals, culture, size,
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industry
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dynamics,
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organizations must periodically review and adapt their
structures
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THANK YOU !!