Unit 2.2

1. Unit 2.2 Organizational Structure

2. By the end of the chapterYou should be able to… • Define the following terminology- • Delegation; span of Control; Levels of Hierarchy; Chain of Command; Bureaucracy; Centralization; Decentralization; De-layering • Describe the following types of organization charts: • Flat/horizontal; Tall/vertical; Hierarchical; By Product; By Function; by Region • Explain changes in organizational structures • Describe how cultural differences and technologies impact communication in an organization

3. Structure within an organization • All organizations, whether large or small need to have a sense of organization • A structure in an organization sets out roles and responsibilities • Also sets out who employees are supervised by or report to

5. Organizational Charts Outlines formal roles, responsibilities and reporting lines – sets out the chain of command –

6. Terms Relevant to Organizational Structure

7. Types of organizational Chart • Tall Structure – traditional organizational form • Many levels; • narrow spans of control; • centralized decision-making; • long chains of command • autocratic leadership; • limited delegation

8. Types of organizational Charts – cont’d • Flat - Modification of traditional structure • Few levels of hierarchy • Wider span of control • Decentralized decision-making • Shorter chains of command • Democratic leadership • Increased delegation

9. Types of Organizational Structure • Line • Oldest and simplest form; Quicker decisions, lack of specialization • Line and Staff • More complex; allows for experts at different levels; • Matrix – • Project teams; no consistent structure; match skills with projects • Team • Permanent work teams; self-directed; leader facilitates

10. What is an Adaptive Organization • An organizations that adjusts to change • Decision-making is centralized • Team-oriented • Focuses on customer needs

11. When is changed needed? • A merger is anticipated • New competitors • New technology • Rapid growth or decline in business • Change in legal issues • New product or service pending • Customer dissatisfaction • Costs are increasing • Morale is decreasing

12. Types of organizational Charts – cont’d • Organizational structure by hierarchy • Figure 2.2.2 • Organizational Structure by Function • Figure 2.2.3 • Organizational Structure by Product • Figure 2.2.4 • Organizational Structure by Region • Figure 2.2.5

13. Changes in Organizational Structure • Project-based organization • Allows a business to be more flexible & responsive to market demands • Project managers run teams of employees • Very common in construction or IT – • Shamrock Organizations - by Charles Handy • Allows flexibility & to be responsive in workforce planning • Businesses trim workforcesto retain a multi-skilled core • Core Managers • Contractual fringe • Flexible workforce – part-time, temporary, seasonal

14. Communication • Can be formal or informal • Forms of communication • Verbal – • Interviews; meetings; presentations • Visual • Presentations; video; signs & symbols • Written • Reports; letters; press releases;