WHY IS THIS IMPORTANT
Organizational structural design is critical in assisting organization in adapting to an ever-changing business environment.
CENTRALIZATION & DECENTRALIZATION
The decision is taken by one superior personality of the organization.
e.g. principal In decentralization the decision is flows from top to bottom .or lower staff e.g. any employee can take the decision.
BASIC TYPES OF ORGANIZATIONAL STRUCTURE
The Functional Structure The Divisional Structure The Matrix Structure The Line & Staff Structure The Project Structure
THE FUNCTIONAL STRUCTURE
Functional structure – this kind of organizational structure classifies people according to the function they perform in the organization.
THE DIVISIONAL STRUCTURE
A type of organizational configuration that groups together those employees who are responsible for a particular product type or market service according to work flow.
The divisional structure of a business tends to increase flexibility .
THE MATRIX STRUCTURE
This is a structure, which has a combination of function and product structures.
This combines both the best of both worlds to make an efficient organizational structure. Most complex organizational structure.
THE LINE AND STAFF STRUCTURE
Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization.
Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates.
THE PROJECT STRUCTURE
Organizational units to complete projects of a long duration.
Each project is vitally important to the organization.
The size of the project team varies from one project to another.
The activities of a project team are coordinated by the project manager who has the authority to obtain advice and assistance of experts both inside and outside the organization.
The core concept of project organization is to gather a team of specialist to work on and complete a particular project.
THE PROJECT STRUCTURE
F in an ce M a nu fa c tu ring
V ice P re s id en t P ro je c t A
F in an ce M a nu fa c tu ring
V ice P re s id en t P ro je c t B
F in an ce M a nu fa c tu ring
V ice P re s id en t P ro je c t C
P re sid e n t
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