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Lesson 7 Organizational Structure

The document discusses different types of organizational structures. It describes functional structures which group people by skills and tasks. Divisional structures divide an organization along product lines, customers, or geographical regions. Specific divisional structures covered are product (focuses on different products), geographical (focuses on different regions), and customer structures (focuses on different customer groups). The document also discusses process structures (focuses on activities in the same process) and matrix structures which combine functional and divisional approaches.

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11 views18 pages

Lesson 7 Organizational Structure

The document discusses different types of organizational structures. It describes functional structures which group people by skills and tasks. Divisional structures divide an organization along product lines, customers, or geographical regions. Specific divisional structures covered are product (focuses on different products), geographical (focuses on different regions), and customer structures (focuses on different customer groups). The document also discusses process structures (focuses on activities in the same process) and matrix structures which combine functional and divisional approaches.

Uploaded by

Kice
Copyright
© © All Rights Reserved
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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THE NATURE OF

ORGANIZATIONS
AND
TYPES OF
ORGANIZATIONAL
STRUCTURES
OBJECTIVES:

• Analyze the nature of organizations and types of organization structures


ACTIVITY

• You plan to celebrate your 18th (for girls)/21st birthday (for boys) with a bang. Through your
savings and income from selling, you were able to come up with a budget of 50,000 to spend on
your birthday. As the celebrant, you want your birthday to run smoothly, so you made a checklist for
your dream party.
ACTIVITIES PERSON IN CHARGE BUDGET
Setting the date of the celebration

Booking a venue for the celebration

Order invitations or buy materials


for a custom-made invitation

Selection of party guest


Planning of menu
Selection of Master of ceremony

Entertainment
Sounds and lights
Caterer / Cook
Drinks
Games
18 roses/ wishes/candles (for girls
only)
Photographer/ Videographer
Theme / outfit / dress
TOTAL 50,000
THE ORGANIZATION STRUCTURE

• Organizational structure is a system used to define a hierarchy within an


organization.
• This means identifying the jobs, its function and who the person will be
reporting to.
• This formation or structure is created to establish how the organization
will operate and accomplish the objectives.
TYPES OF ORGANIZATIONAL
STRUCTURES
• Functional
• Divisional (Product, Geographical, Customer, Process)
• Matrix
FUNCTIONAL STRUCTURE

• In functional structure, people with the same skills and doing the same
work are grouped together into work units.
• These members are grouped into departments to classify them of what
they do and share technical knowledge, interests, and responsibilities.
DIVISIONAL STRUCTURE

• A divisional structure groups people who work on the same product or


process, customers, area.
• This type of structure is common in very large companies that has
different products and locations.
PRODUCT ORGANIZATIONAL STRUCTURE

• A framework in which a business is organized in separate divisions, each


focusing on a different product or service and functioning as an individual
unit within the company.
• Employees are assigned according to:
• Particular line of products or services they produce
• The customers they deal with
• The geographical are they serve
GEOGRAPHICAL ORGANIZATIONAL
STRUCTURE
• This is common in large multinational companies, but it may also suit
medium-sized businesses.
• Geographical structure suits businesses that have offices or units in
different regions or geographical areas.
CUSTOMER ORGANIZATIONAL
STRUCTURE
• This is done in an effort to ensure specific customer expectations are
met by a customized service approach.
• The advantage of this type of structure is that it specializes in the needs
of each customer group but can ignore the needs of different customer
types.
PROCESS ORGANIZATIONAL STRUCTURE

• The structure is based on activities that are part of the same process.
MATRIX STRUCTURE

• Matrix structure is also known as the hybrid structure


• Combines the two structures mentioned.

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