Organizational Structure and Design: Human Behavior in Organization Organization System

Organizational Structure and
Design
Human behavior in organization
Organization system
Prepared by: Edward F. Dullas, RN

ORGANIZATIONAL STRUCTURE (ISEE-D)
• The organizational structure determines how information flows from level to level
within the company.
• An organizational structure is a system that outlines how certain activities are
directed in order to achieve the goals of an organization.
• Allows employees to work effectively and efficiently
• It is how job tasks are formally divided, grouped, and coordinated within an
organization.
BREAKING DOWN ORGANIZATIONAL STRUCTURE
• Defines a specific hierarchy.

• A successful organizational structure defines each employee's job and how it fits
within the overall system.
• This structuring provides a company with a visual representation of how it is shaped
and how it can best move forward in achieving its goals.
PURPOSE OF ORGANIZING
• Divides work to be done into specific jobs and departments
• Assigns tasks and responsibilities associated with individual jobs
• Establishes formal line of authority
• Allocates and deploys organizational sources
ORGANIZATIONAL DESIGN
• A process that involves decisions about six key elements: work

specialization, departmentalization, chain of command, span of
control, centralization and decentralization, and formalization.
• The process of developing or changing an organization’s
structure
1. WORK SPECIALIZATION
Adam Smith – First identified “division of labor.”
Henry Ford – Repetitive task
Today people use the concept and term it as “WORK SPECIALIZATION”
http://www.victorianweb.org/economics/smith.html
2. DEPARTMENTALIZATION
Grouped common tasks that must be coordinated
The five common forms of departmentalization

2.1Funtional Departmentalization
2.2 Product Departmentalization
2.3 Geographical Departmentalization
2.4 Process Departmentalization
2.5 Customer Departmentalization
2.1FUNTIONAL
DEPARTMENTALIZATION
Groups jobs by function performed
2.2 PRODUCT DEPARTMENTALIZATION
Departments are separated based on a type of product produced by the company.
2.3 GEOGRAPHICAL DEPARTMENTALIZATION
Groups jobs according to territory or geography.
2.4 PROCESS DEPARTMENTALIZATION
In process departmentalization, departments are separated based on their role in a
production process.
Best example of process departmentalization can be seen in a textile mill where we may
have a spinning department, weaving department, dyeing department, printing department,
etc. Here, inside a textile mill, all activities, which are directly or indirectly related with
spinning are grouped together to make a spinning department.
2.5 CUSTOMER DEPARTMENTALIZATION
Groups jobs on the basis of customers who have common needs or problems that can best
be met by having specialists for each
3. CHAIN OF COMMAND
This Photo by Unknown Author is licensed under CC BY-NC-ND

This Photo by Unknown Author is
licensed under CC BY-SA
Continuous line of Authority.
It helps employees answer questions such as “Who do I go to if I have a problem?” or “To whom am I responsible?”
CONCEPTS OF CHAIN OF COMMANDS
3.1 Authority
• Rights inherent in a managerial position to tell people what to do and to
expect them to do it.
• Facilitate decision making and coordination.
3.2 Responsibility
• Employees assume an obligation to perform any assigned duties.
• This obligation or expectation to perform is known as responsibility.
CONCEPTS OF CHAIN OF COMMANDS
3.3 Accountability
• Is the need to report and justify work to a manager’s superiors.
3.4 Unity of Command
• Preserve the concept of a continuous line of authority.
• Every employee should receive orders from only one superior.
3.5 Delegation
• The assignment of authority to another person to carry out specific duty.
• Allows one employee to make some of the decisions.
4. SPAN OF CONTROL
The number of employees a manager can efficiently and effectively
manage.
There are two types of Span of Control

SPAN OF CONTROL CONT.
• Wider spans of control are also possible due to
technology
• The trend in recent years has been toward larger
spans of control, which are consistent with managers’
efforts to reduce costs, speed up decision making,
increase flexibility, get closer to customers, and
empower employees.
• To ensure that performance does not suffer because of
these wider spans, organizations are investing heavily
in employee training.
5.CENTRALIZATION AND DECENTRALIZATION
Centralization
The degree to which decision making is concentrated at a single point in the organization.
Decentralization
The degree to which lower-level employees provide input or actually make decisions.
PROS AND CONS
6. FORMALIZATION
The degree to which jobs within the organization are standardized and the extent to
which employee behaviour is guided by rules and procedures.
• https://www.investopedia.com/terms/o/organizational-structure.asp
• https://www.chegg.com/homework-help/distinguish-narrow-wide-span-control-give-example-tasks-appr-chapte
r-8-problem-20rq-solution-9781305465114-exc
• https://kalyan-city.blogspot.com/2012/02/bases-methods-types-of.html?fbclid=IwAR0UnV1cExOQjkxJ6zLeA
L9yDuQt_1sSY041DLzPbUVeygJUnjh75W5g9uY#Product_departmentalization
• Pros and cons of Centralization and Decentralization https://www.google.com/search?
biw=1920&bih=925&tbm=isch&sa=1&ei=TQdPXNXpFciM0wLxw7pQ&q=centralization+and+decentralizati
on+pros+and+cons&oq=centralization+and+decentralization+pros+and+cons&gs_l=img.3...608935.610844..61
1088...0.0..0.232.2703.2-12....2..0....1..gws-wiz-
img.......0j0i8i30.mJTX0BwxCzA#imgrc=ALevT7_EqWG4XM:
• https://www.investopedia.com/terms/o/organizational-structure.asp
• http://www.rationalrevolution.net/articles/division_of_labor.htm
Thank you!

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Organizational Structure and

Prepared by: Edward F. Dullas, RN

• Defines a specific hierarchy.

• A process that involves decisions about six key elements: work

The five common forms of departmentalization

This Photo by Unknown Author is licensed under CC BY-NC-ND

There are two types of Span of Control

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