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Organizational Structure and Charts Explained

The document discusses organizational structure and how it defines responsibilities and relationships within a company. An organizational structure shows the hierarchy and chain of command through management levels and divisions of labor between departments specializing in tasks like production, sales, marketing, and finance. It ensures everyone understands their own and others' roles and responsibilities. Organizational charts visually map out this structure, showing reporting lines and the levels of authority at different positions. Most businesses organize into functional departments according to employee skills and jobs to facilitate communication and interdependence between units.

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3K views4 pages

Organizational Structure and Charts Explained

The document discusses organizational structure and how it defines responsibilities and relationships within a company. An organizational structure shows the hierarchy and chain of command through management levels and divisions of labor between departments specializing in tasks like production, sales, marketing, and finance. It ensures everyone understands their own and others' roles and responsibilities. Organizational charts visually map out this structure, showing reporting lines and the levels of authority at different positions. Most businesses organize into functional departments according to employee skills and jobs to facilitate communication and interdependence between units.

Uploaded by

adamluthfaris
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Organization and Management Overview
  • Organizational Chart Example
  • Main Product Groups
  • Key Functions
  • Major Region

➢ Organizational structure: The level of management and division of

responsibilities within a company.

➢ Organizational structures show the chain of command in a company.

➢ Most businesses are organized into divisions or departments that specialize in


performing particular tasks such as production, sales, marketing and finance.

➢ Every private sector or public sector organization needs a clear organizational


structure so all managers and employees not only know exactly what their own
roles and responsibilities are but also are aware of the roles and responsibilities
of everyone else in the organization they work with.

➢ An organizational structure therefore sets out:

o Who specialize in which tasks.


o Who is in charge of whom.
o Who is responsible for making different decisions.
o How decisions and other information are communicated.

➢ Organizational chart shows a clear structure of the business and make it easy
to see which part of the company does what.

➢ Lines and arrows are used to show relationships between different managers
and other employees.

➢ Positions towards the top of an organizational chart have more authority and
responsibility than those below.

➢ Organizational chart show:

o The hierarchy of different layer of management within an organization.


o The chain of command of each manager in terms of how many other
layers of management that person has authority or control over.
o The span of control each manager has in terms of the number of
employees and job roles he or she is responsible for.
o The delegation of tasks and responsibilities from senior managers to
more junior managers and other employees in their chains of command.
➢ Example of organizational chart:
o

Most businesses are organized into functional divisions or departments:

➢ A department is a subdivision of an organization that specializes in performing a


major function such as production, sales, marketing, finance or human resources
management.

➢ Grouping together employees into departments according to their skills they


have and jobs they do makes it easier for them to communicate with each other
about their work.

➢ Departments within an organization are functionally interdependent. This means


each one relies on the work of the other departments to help fulfil its
objectives.

➢ Sales department rely on the work of the marketing and production


departments. All departments need human resources and finance to operate
effectively.
➢ Key functions:

o Departments may specialize in particular tasks.

o Common structure for many medium-sized to large organizations.

➢ Main product groups:

o A multi-product organization may create departments for each of its


main product groups.

➢ Main customer groups:


o Department can be organized for different categories of customer.
o Example: Bank have departments for personal banking, small businesses
and corporate banking.
➢ Major region:

o Departments can be organized according to the region in which work is


carried out or by main markets.

o Multinational organizations are often organized in this way.

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