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Organizing (2)

PhD, Eng., Katarzyna Piórkowska

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Grouping Jobs into Functions

FUNCTION: people working together with
similar skills, tools or techniques to
perform their jobs.

FUNCTIONAL STRUCTURE consists of
departments such as marketing,
production, finance, and etc.

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PROS:

workers can learn from others doing

similar tasks,

easy for managers to monitor and

evaluate workers.

CONS:

hard for one department to communicate

with others,

managers can become preoccupied with

their department and forget the
company.

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Grouping Jobs into Products

PRODUCT STRUCTURE consists of
departments such as product A, product B,
and etc.

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PROS:

increases accountability for product

performance,

activities related to a specific product

are under the direction of a single
manager.

CONS:

hard for one department to communicate

with others,

managers can become preoccupied with

their department and forget the
company.

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Grouping Jobs into Regions

REGION STRUCTURE consists of
departments such as Asia, Europe, and etc.

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PROS:

employees are close to customers,
a regional manager has flexibility needed

to choose the products that best meets
regional customers.

CONS:

hard for one department to communicate

with others,

managers can become preoccupied with

their department and forget the
company.

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Grouping Jobs into Markets

MARKET STRUCTURE consists of
departments based on customers’ problems
and needs.

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PROS:

workers can learn from others doing

similar tasks,

easy for managers to monitor and

evaluate workers.

CONS:

hard for one department to communicate

with others,

managers can become preoccupied with

their department and forget the
company.

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Grouping Jobs into Processes

PROCESS STRUCTURE: units are organized
around common skills needed to complete a
particular process (testing, payment).

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PROS:

offers are basis for homogeneous

categorization of activities.

CONS:

hard for one department to communicate

with others,

managers can become preoccupied with

their department and forget the
company.

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Types of organization design

FLAT STRUCTURE

TALL STRUCTURE

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Types of organization design

TALL STRUCTURES...

...have many levels of authority relative to
the organization’s size

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Types of organization design

FLAT STRUCTURES...

...have few levels of authority but a wide
span of control

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Types of organization design

SIMPLE STRUCTURE

FUNCTIONAL STRUCTURE

DIVISIONAL STRUCTURE

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SIMPLE STRUCTURE

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FUNCTIONAL STRUCTURE

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DIVISIONAL STRUCTURE

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Contingency variables affecting
structure

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A MECHANISTIC STRUCTURE:

extensive departmentalization,

high formalization,

a limited information network.

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AN ORGANIC STRUCTURE:

flat,

uses cross-hierarchical and cross-

functional teams,

low formalization,

participative decision making.

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Coordinating functions

AUTHORITY

HIERARCHY OF AUTHORITY

SPAN OF CONTROL

LINE AUTHORITY

STAFF AUTHORITY

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Integrating mechanisms

DIRECT CONTACT

LIAISON ROLES

TASK FORCES

CROSS-FUNCTIONAL TEAMS

MATRIX STRUCTURE

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MATRIX STRUCTURES...

...managers group people by
function/product/market etc. and
product/market/function etc. teams
simultaneously

…results in a complex network of reporting
relationships

…very flexible and can respond rapidly to
changes

…each employee has two bosses what can
cause problems

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HYBRID STRUCTURES...

...the ability to break a large organization
into many smaller ones

…it makes it much easier to manage

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ORGANIZATIONAL STRUCTURES TYPES

1. A SPAN OF CONTROL AND NUMBER OF

LEVELS OF AUTHORITY (flat and tall
structures)

2. DOMINANT ORGANIZATIONAL BONDS

(line structures, functional structures,
ordnance structures, technical
structures)

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ORGANIZATIONAL STRUCTURES TYPES

3. DOMINANT CRITERIA OF SEPARATING

BASIC ORGANIZATIONAL PATTERN
(functional structures, object structures,
geographic structures)

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Thank You !!!