Professional Documents
Culture Documents
Structure
By Joshua Wallace
eHow Contributor
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1. Chain of Command
o An organizational structure involves a chain of command which determines and
defines: job positions, who makes the decisions, and who's accountable for
various duties.
Span of Control
Departmentalization
o Departments within an organization structure are sections of the structure divided
into functional divisions (such as the Sales Department) relevant to specific tasks.
Determining what activities, tasks, and talents are to be grouped to best achieve
an origination's objective is called the departmentalization process.
Distribution of Authority
o Distribution of authority determines if decision-making authority is concentrated
among a few high-level figures commonly seen in bureaucratic organizations or is
the authority shared and distributed throughout a variety of departments working
closet to the their corresponding tasks.
Organization Height
o Organization height defines how many departments, divisions, and layers there
are between the highest levels and the lowest levels of an organization.
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1. Distribution of Authority
o Determining how an organizational structure distributes tasks to accomplish a
main objective involves identifying if the structure will adopt a decentralized
strategy where significant potions of the decision-making process involves subordinates and the managerial staff across many levels of the structure or both or if
the structure will adopt a centralized strategy where the majority of decisionmaking is made from the top-down.
Span-of-Control
o Span-of-control portion of an organizational structure defines the amount of
employees an authority figure is responsible for. According to www.docstoc.com,
the span-of-control is expressed one of two ways: a wide span of control where
managers supervise many employees; a narrow span of control where managers
supervise few employees.
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Organizational Height
o Organizational height defines how many levels or layers from the decision makers
and down there are. Organizational height is expressed as tall organizations with
many levels or flat organizations with few levels.
Departmentalization
o It's critical for an organizational structure to determine, categorize, and organize
the variety of tasks to be accomplished when achieving a main goal and decide
how to separate specific tasks from others. This involves departmentalizing tasks,
resulting in the formation of departments and divisions within an organizational
structure.
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1. Identification
o Structure within an organization is a defined chain of command for each
department and within the entire company. It is also a clearly outlined set of
policies that dictate how the company does business.
History
o A company with effective structure from the very beginning can outline a growth
path and focus on following that path. Without structure, departments could begin
to make their own rules that run counter to the goals of the company. This can
stunt company growth and create marketplace confusion.
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Significance
o A strong organizational structure instills confidence in customers and vendors.
This can increase the customer's desire to do business and the vendor's ability to
negotiate pricing that better suits the company.
Potential
o Organizational structure means all employees know how to address company
issues and problems. This increases productivity and adds money to the company
bottom line.
Considerations
o Effective managers and executives can work to improve the company through
good organizational structure. Good structure means efficient communication, and
new ideas are implemented easier when there is good communication.
Hierarchical
Matrix
There is no accepted form for making organization charts other than putting the principal official,
department or function first, or at the head of the sheet, and the others below, in the order of their
rank. The titles of officials and sometimes their names are enclosed in boxes or circles. Lines are
generally drawn from one box or circle to another to show the relation of one official or
department to the others.[1]
History
Limitations
There are several limitations of organizational charts:
They only show "formal relationships" and tell nothing of the pattern of human (social)
relationships which develop. They also often do not show horizontal relationships.
They provide little information about the managerial style adopted (e.g. "autocratic",
"democratic" or an intermediate style)
In some cases, an organigraph may be more appropriate, particularly if one wants to show
non-linear, non-hierarchical relationships in an organization.
Examples