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Adapting *

CHAPTER
Organizations
to Todays
Markets 8
Nickels
* McHugh
* McHugh

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Understanding Business, 8e 2008 The McGraw-Hill Companies, Inc., All Rights
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* Organisational Structure
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Six types of organizational structure
Centralization
Decentralization
Limitless Organization (GE,GOOGLE)
Limited Organization
Matrix Structure
Bureaucracy( Bureaucratic structure)
Tall organization
Flat Organization
Virtual organization
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Organizational Structure of Management
An organizational structure lays the
foundation for how a company operates. It is
a set of policies and rules that determines:
How an organization controls and delegates
tasks and responsibilities
How decisions are made and implemented
throughout every part of an organization
How information flows within an organization
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1. Work specialization(Division of Labour..
(Henford Ford)
2. Departmentalization(Manufacuturing
plant,Hospitals)
3. Chain of command(Authority)
4. Span of control
5. Centralization and decentralization(Decision
Making)
6. Formalization

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For example, the Beaver Scouts is a youth organization that meets for
outdoor activities, such as hiking and camping. When the Beaver
Scouts of Colony #33 go camping, the lodge leader constructs a list of
tasks that must be performed during the trip. Tasks are divided up
among the members of the colony and written down on a chore chart,
so every scout knows what job they are responsible for each day.
Without this formal structure, the scouts would waste a lot of time trying
to decide who should do what, and many tasks would likely go undon e

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* Limitless Organisation
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* Centralization
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* Decentralization
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* Organizational
* Structures
Tall Organizations

Flat Organizations

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* Flat organisation
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The difference between tall and flat
organizational structures is the layers of
management. In a flat organizational
structure. There may be just one top
manager who is an owner or CEO of the
company, overseeing a handful of other
employees, all with equal levels of authority.

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* Tall organisation
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In a tall organizational structure, by contrast,
there are multiple layers of authority
between the CEO and low-level employees.
For example, an entry-level employee may
report to a supervisor, who reports to a
manager, who reports to a director, who
reports to a vice president, who, finally,
reports to top management.

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* Bearucratic Structure
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TWO key elements
Hierarchical
Laws

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Departmentalization
involves dividing an organization into different
departments, which perform tasks according
to the departments' specializations in the
organization

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Bonundryless organization

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* Matrix Organizations
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The identifying feature of a matrix organization is some managers report
to two bosses . In more then departments.

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