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2.2 Organizational Structure

This document discusses organizational structure and different types of structures. It describes: 1) Tall organizational structures have many hierarchy levels, narrow spans of control, centralized decision-making and long chains of command. They tend to be more autocratic. 2) Flat structures have less hierarchy, wider spans of control, decentralized decision-making and shorter chains of command. They tend to be more democratic with more delegation. 3) Other structures discussed include project-based/matrix structures and staff vs line managers. Flattening a tall structure can create a flatter, more innovative organization.

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79 views21 pages

2.2 Organizational Structure

This document discusses organizational structure and different types of structures. It describes: 1) Tall organizational structures have many hierarchy levels, narrow spans of control, centralized decision-making and long chains of command. They tend to be more autocratic. 2) Flat structures have less hierarchy, wider spans of control, decentralized decision-making and shorter chains of command. They tend to be more democratic with more delegation. 3) Other structures discussed include project-based/matrix structures and staff vs line managers. Flattening a tall structure can create a flatter, more innovative organization.

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Copyright
© © All Rights Reserved
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2.

2 ORGANIZATIONAL
STRUCTURE-PG.117
• https://www.youtube.com/watch?v=wO_-MtWejRM&t=9s
• https://www.youtube.com/watch?v=LCAAivdxVTU
•The most common form of representing an organizational structure is an
organized chart.

•Organizational chart: a diagram that outlines the formal rules, duties, and
responsibilities of people within an organization

•Terms that describe an organizational structure in an organization:


1. Levels of hierarchy: differentiate between line managers and shift managers.
2. Chain of command and span of control.
TERMS THAT ARE RELEVANT TO HOW THE ORGANIZATION IS STRUCTURED
THOUGH NOT NECESSARILY RELATED TO THE ORGANIZATIONAL CHART:
 
1. Delegation: when the manager gives authority to complete certain tasks but responsibility remains to be his or hers
as a manager (when I give authority and not responsibility)
2. Empowerment: It is the authority or power given to workers over their work and responsibilities. (Power over their
work (workers).
3. Consultation: It is when the manager consults employees about certain tasks or business decisions which motivates
the workers (Consulting the employees in decision making and certain tasks (how to conduct work) and this
motivates the employee.)
4. Centralization: decision making is centralized at the top. This is the case in more autocratically managed
organizations. (it is exactly opposite to decentralization: decision making is decentralized in democratically lead
organization)
5. Delaying: removing one or more managerial level from the organizational structure to flatten it.( tall becomes flat).
6. Bureaucracy: more autocratic. Organization that has many rules and regulations
7. Levels of hierarchy.
8. Chain of command
9. Span of control
 In a tall structure: there are several
levels of hierarchy, a long chain of
command and a narrow span of control.
Less freedom and communication of
ideas and opinions are present.
Managers lean towards a more
autocratic leadership style. Less
delegation, consultation and
empowerment. Centralized decision
making.
 Flat structure: less levels o hierarchy,
Innovation. short chain of command, more
communication of ideas which indicates
more freedom. The span of control is
High
wide and manages tend to lean towards
quality
a more democratic leadership style.
control like
More delegation, consultation and
medicine.
empowerment. Decentralized decision
making.
TYPES OF ORGANIZATIONAL CHARTS (P.120):
 
1. Tall organizational structure:
 
• This is a traditional organizational structure and is common in well established businesses

•Features:
a) Many levels of hierarchy
b) Narrow spans of control
c) Centralized decision making
d) Long chains of command
e) Autocratic leadership
f) Limited delegation, consultation, and empowerment
* Authority is delegated and not responsibility.
 
•This is a traditional organizational structure and is common in well established businesses

1. .
2. FLAT ORGANIZATIONAL STRUCTURE:
•A tall structure can be delayered to become flat. Removing managerial levels from the structure.

•This is the modification of the traditional structure and has become popular with modern businesses as it
supports innovation and creativity

•Features:
a) Less managerial levels
b) Wide span of control
c) Decentralized decision making
d) Shorter chains of command
e) Democratic leadership
f) More delegation, consultation and empowerment
3.

4.
5.
6.

7.
•Changes in organizational Structure:

•Some businesses took changes in environment into account


and adapted new organizational structures. Example:

1.Project based organization or matrix structure


2.Shamrock organization
•Project based organization or matrix structure:
 
•Advantages:
 
1.Modern
2.High flexibility
3.Employees work in team from different departments
4.Each team elects a leader
 
•Disadvantages:
1.Slower decision
2.conflicts
Pg.122
LINE AND STAFF MANAGERS:

Staff manager

Line manager
ACTIVITY:
• Fashion Trend is a leading company in the Netherlands. It targets middle aged women who are into the latest
fashion trends by producing trendy fashionable clothes. Their products have high quality and sizes to suit their
target market. The company is owned by Mrs Jansen, she has four departments: marketing, finance, production
& sales. Each manager has four employees to supervise, moreover, she recently recruited Mr Van Berg as the
HR manager and he directly reports to her. Her organizational structure is considered to be tall with an autocratic
leadership style that Mrs Jansen has adopted ever since her business started off in 1975. Recently, her son has
suggested a more democratic leadership style which entails flattening the organizational structure.
1. Draw the business’s current organizational structure.
2. Identify one line manager and one staff manager.
3. What is the span of control of the marketing manager.
4. How can the organizational structure be flattened .
5. Comment on the suitability of adopting a flatter organizational structure using the terminology we studied in
class.
PARTS 1,2, 3 & :

Staff manager

Line manager

3. Span of control of the marketing


4. The org.structure can be flattened by
manager is 4 subordinates.
delayering.

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