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Types of Organizational Structure: - Sandeep Kumar

The document discusses different types of organizational structures, including traditional, divisional, and matrix structures. Within traditional structures, it describes line, line and staff, and functional structures. It provides examples of how authority and departments are organized within each type of structure and discusses their advantages and disadvantages.

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43 views17 pages

Types of Organizational Structure: - Sandeep Kumar

The document discusses different types of organizational structures, including traditional, divisional, and matrix structures. Within traditional structures, it describes line, line and staff, and functional structures. It provides examples of how authority and departments are organized within each type of structure and discusses their advantages and disadvantages.

Uploaded by

sandy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Types of Organizational Structure

-Sandeep Kumar
What is Organizational Structure

• Plan
• Involves how a business organizes, categorizes,
and delegates tasks to achieve a specific goal
Importance of Organizational Structure

 Organizational Chart
 Chain of Command
 Distribution of Authority
 Departmentalization
 Span of Control
Types of Organizational Structure
Traditional Structure

Divisional Structure

Matrix Structure
Traditional Structure

Line Structure

Line and Staff Structure

Functional Structure
Line Structure

 Authority originates at the top and moves downward

 Common among small companies

Line Functions
Functions that contribute directly to company profits
Production managers, sales reps, and marketing managers
Example:
Production Managers
Hire and fire all of the assembly-line workers in their departments
Order all supplies for their department
CFO

Senior
Managers

Mid-level
Managers

Lower-level
Managers

Non-Management
Employees
Line and Staff Structure
 Mid-sized and large companies

 Other employees hired to help line managers perform activities they cannot

Staff Functions

Advise and support line functions

Staff departments include: legal, human resources, and public relations

Help line departments do their jobs

Authority is limited to making recommendations to line managers


Functional Structure

 Classifies people according to there function

 Grouped on the basis of common expertise

For Example : A division of ISP

Vice President
- Sales Department (sales function)
-Customer Service Department (customer service function)
- Engineering Department (engineering function)
- Accounting Department (accounting function)
- Administration Department (administration function)
Advantages of Functional Structure

 People can learn a lot from each other


 Problem solving becomes easier
 Skilled employees of the same group can find more skilled employees for the
company.
 Control in functional structure is increased because people will try to supervise
each other work.
 Team Work

Disadvantages of Functional Structure


 Skills and abilities of employees are narrowed.
 Communication problems can increase because the interaction between various
departments is decreased.
 Difficult to analyze which person is more efficient and which is not.
 Top management is always busy in finding the solutions of coordination
problems.
Divisional Structure
Based on different divisions in the organizations

 Product Structure

 Market Structure

 Geographic Structure
Matrix Structure
Combination of both function and product structure

FM and PM both are involved to complete the task

Advantages

 Better coordination on shared technologies across the organization (such as IT)


 Faster decentralized decisions
 Improved access to a diverse range of skills and perspectives
 Broader and more multiskilled people development
 Increased communication and coordination across the business
 There is a better balance between time, cost and performance
 Stress is distributed among the team
Thank You

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