School of Business

Department of Management and International Management

Introduction to Business Management

Chapter 11| Part 1

Fall 2020 - 2021

Course code - Chapter 11

Objective 11.1: Traditional Organizational
Structure
Key Takeaways:
Describe organizing as a management function and the difference between
formal and informal organization structures. (P270 to P272 )

a) What is organization structure?

b) Formal structures
c) Informal structures

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 Organizing as a Management Function

Organizing as a management function

◦ Organizing
◦ Arranges people and resources to work together to
accomplish a goal
◦ Organization structure
◦ The system of tasks, reporting relationships, and
communication linkages

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Figure 11.1 Organizing viewed in relationship
with the other management functions

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Organizing as a Management Function

An organization chart is a diagram describing

reporting relationships and the formal
arrangement of work positions within an
organization. It includes:

The division of Supervisory Communication Levels of

Major subunits
work relationships channels management

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Organizing as a Management Function

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 Organizing as a Management Function

Informal structures 
◦ The set of unofficial relationships between
organization members
◦ Social network analysis
◦ Identifies informal structures and social relationships in the
organization

Copyright ©2015 John Wiley & Sons, Inc.

 Organizing as a Management Function

Informal structures and social networks

◦ Potential advantages of informal structures:
◦ Allow people to make contacts with others who can help
them get things done
◦ Stimulate learning as people work and interact together
◦ Sources of emotional support and friendship that satisfy
members’ social needs
Organizing as a Management Function

Potential disadvantages of informal structures:

Diversion of
Presence of May carry May breed work efforts Feeling of
Susceptibility
“In and out inaccurate resistance to from alienation by
to rumor
groups” information change important outsiders
objectives

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 s;lsdka;dlk;dlk
Summary of Objective 11.1
• Organizing is the process of arranging people and resources to work
toward a common goal.
• Organizing decisions divide up the work that needs to be done, allocate
people and resources to do it, and coordinate results to achieve
productivity.
• Structure is the system of tasks, reporting relationships, and
communication that links people and positions within an organization.
• The formal structure, such as that shown on an organization chart,
describes how an organization is supposed to work.
• The informal structure of an organization consists of the unofficial
relationships that develop among members.
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