Group : 4

Submitted by
M. Ahmad (19)
Areeba Yasin (60)
Sarosh Nazir (27)
Saad Hussain (40)
Nimra Hassan (58)
Zeeshan Tahir (23)
M. Hashim (54)
Aaila Fatima (57)

Subject : Organizational Behavior

Topic Name : Foundation of Organization Structure
Section : Evening A
Semester : 7th
Submitted to : Mr. Ahmad Din Buzdar

Department of Business Administration,

Ghazi University, Dera Ghazi Khan
Identify seven elements of an organizational
structure
Organizational Structure :
An organizational structure defines how job tasks are formally divided, grouped and
coordinated.

Seven key elements should consider , when designing an organization structure.

1. Work Specialization
2. Departmentalization
3. Chain of Command
4. Span of Command
5. Centralization and Decentralization
6. Formalization
7. Boundary spanning
 Work Specialization

Work specialization or division of labor, describe the degree to which activities in the
organization are dividing into separate jobs and steps, each completed by separated
individuals. Individuals specialize in the part of the activity rather than completing entire
process themselves. Overall, specialization is a means of making the most efficient use of
employee's skills and even successfully improving them through repetition.

Departmentalization

Once job have been divided through work specialization, they must be grouped so common
tasks can be coordinated and complexity can be reduced. The bases by which jobs are
grouped is called departmentalization.

Functional Departmentalization
Product & Service Departmentalization
Geographical Departmentalization
Process Departmentalization
 Chain of Command

Chain of command is the unbroken line of authority that extend from the top of the
organization to the lowest echelon and clarifies who reports to whom.
While the chain of command was once a basic cornerstone in the design of the
organizations , it has for less importance today. But manager should still consider its
implications , particularly in industries that deals with potential life or death situations
when people need to rely quickly and suddenly on decision makers.

Span of Control

Span of control describes the number of levels or layers and managers in an organization.
All things being equals , the wider and larger the span. The fewer the levels and the more
employees at each level, the more efficient the organization.
 Centralization and Decentralization

Centralization refers to the degree to which decision making concentrated at a single

point in the organization. In centralization, top members makes all the decision and lower-
level managers merely carry out their directives.

Decentralization in which decision making is pushed down to the manager closets to

the action or to workgroups.

Formalization

Formalization refers to the degree to which jobs with in the organization are standardized.
If a job is highly formalized, the employees has minimal amount of the direction over what
to do and when , how to do it , resulting in consistent and uniform out put.

Boundary Spanning

Boundary spanning occurs when individuals from relationships with people outside their
formally assigned groups. Boundary spanning can be excellent tool for expatriates and
local workers to collaborate.
 The characteristics of Simple, Bureaucracy, Matrix
Structure

1. The Simple Structure

The simple structure has a lowest degree of departmentalization, wide spans of control,
authority centralized in a single person and little formalization. It usually has 2-3 vertical
levels , a loose body of employees and one individual with decision making authority.

2. The Bureaucracy

The bureaucracy is characterized by highly routine operating tasks achieved through

specialization , formalization rules and regulations, departmentalization, centralized
authority, narrow span of control and decision making that allow chain of command.

3. The Matrix Structure

The matrix structure combines functional and product departmentalization , and these
type of structures can be found in a multitude of organizations such as advertising
agencies, universities and entertainment companies.
 Identify the characteristics of virtual, team, circular
structure

1. The Virtual Structure

The virtual structure is highly centralized, with little or no departmentalization. This types
of structures open up boundaries between organization. The phototype of the virtual
structure is today’s filmmaking organizations.

2. The Team Structure

The team structure seeks to eliminate the chain of command and replace departments
with empowered teams. This structure remove most vertical and horizontal boundaries in
addition to breaking down most external barriers between the company and its customers
and supplies.
 3. The Circular Structure

Picture the concentric rings of an archery target. In the center is the CEO, followed by the
executives on the top management team and radiating outward in rings grouped by
functions are the direction and then specialists and workers. This is circular structure.
Describe the efforts of downsizing on organizational structure
and employees

The goal of some organizational structures, we have described is to improve agility by

creating a lean, focused and flexible organizations. Downsizing is a systematic efforts to
make an organization leaner by closing locations, reducing staff or selling of its business
units that do not add value.

Downsizing may also involve de0-layering or narrowing the span of control by reducing the
numbers of levels in hierarchy. Downsizing does not necessary mean physically shrinking
the size of your office, although that has been happening, too in the fallout of the COVID-19
pandemic.

Although, we frame it here as a strategic structuring decision, many firms do not have a
choice and implement downsizing measures because of outside forces.
 Contrast the reasons for using Mechanistic vs Organic
Structural Model

Mechanistic Model

One is mechanistic model , which is generally synonymous with the bureaucracy in that it
has highly standardized processes for work, high formalization and more managerial
hierarchy.

Organic Model

The other extreme is the organic model, which is flat, has fewer formal procedures for
making decision, has multiple decision makers and favors flexible practices.

Note: Whether the organization is more Organic or Mechanistic has implications for which
behaviors are most effective.
 Analyze the behavioral implications of different
Organizational Designs

1. Span of Control

It is probably safe to say that no evidence supports a relationship between span of control
and employee's satisfaction or performance. Although it is intuitively attractive that large
spans might lead to higher employees' performance because they provide more distant
supervision and opportunity for personal initiative, there is a lack of research to support
this notion.

2. Centralization

We also finds evidence linking centralization and job satisfaction. In generals , less
centralized organizations have greater amount of the autonomy. But again , one employee
may value freedom, another may find autonomous environments frustratingly
ambiguously.
3. Predictability vs Autonomy

We can draw one obvious insight: People do not select employers randomly. They are
attracted to , are selected by and with organizational that suit their personal
characteristics. Job candidates who prefer predictability are likely to seek out and take
employment in mechanistic structure and those who want autonomy are more likely to
end up in organic structure.

Thus, the effect of structure on employee behavior is undoubtedly reduced when the
selection process facilitates proper matching of individuals characteristics with
organizational characteristics.

4. National Culture

Research suggest that national culture influences the preference for structure.
Organizations that operate with people from high power distance culture such as Greece,
France and Latin America, often find their employees are much more accepting of
Mechanistic structure.
Implications for Managers
•Specialization can make operations more efficient, but remember that
excessive specialization can create dissatisfaction and reduced motivation.

• Avoid designing rigid hierarchies that overly limit employees' empower-

ment and autonomy.• Balance the advantages of remote work against the
potential pitfalls before adding flexible workplace options into the
organization's structure.

• Downsize your organization to realize major cost savings, and focus the
company around core competencies-but only if necessary, because
downsizing can have a significant negative impact on employee affect.

• Consider the scarcity, dynamism, and complexity of the environment, and

balance organic and mechanistic elements when designing an organiza-
tional structure.
Thank YOU
Any Question …?