Organizational Structure

Communication in Organizations
Prof. Dr. Jrgen Beneke
SoSe 2003
Laura Hofman Miquel
Hanna Barst
Jrg Petzold

To organizational effectiveness and quality of

working life contribute:

1. Individual factors
2. group factors
3. process factors
4. management factors
5. structural factors

Organizational Structure

Interest of social scientists

peoples attitude and behaviour are shaped

by the structure of the company

by the personalities that they possess

The demands of the job can dictate their

behaviour and even change their
personalities.
Organizational Structure

The intention of organization

structure is :
1. to divide up organizational activities and
allocate them to subunits
2. to co-ordinate and control these activities so
that they achieve the aims of the
organization.

Organizational Structure

 Organization structure refers to the formal

system of task and reporting relationships
that controls, co-ordinates and motivates
employees so that they work together to
achieve organizational goals.
Organization structure is more than boxes
on a chart; it is a pattern of interactions and coordination that links the technology, tasks and
human components of the organization to
ensure that the organization accomplishes its
purpose. (Robert Duncan)
[Buchanan, 2000, p. 447 ff.]

Organizational Structure

Top management

Chief executive
Senior executives

Middle
Management
Supervisory
management

department

or division heads

Superintendents
General foremen
First-line supervisors
workers
[Buchanan, 2000, p. 449]

Organizational Structure

Five main aspects of

organization structure

Specialization
Hierarchy
Grouping
Integration
Control

Organizational Structure

Specialization

Job definition is determining the task

requirements of each job in the
organization.
It is the first decision in the process
of organizing.

[Buchanan, 2000, p. 450]

Organizational Structure

Flat organization structure

Level

1
2

Organizational Structure

Tall organization
structure

Level
1
2
3
4
5

Organizational Structure

Span of control

Span of control is the number of

subordinates who report directly to a
single manager or supervisor and for
whose work that person is responsible.

[Buchanan, 2000, p. 454]

Organizational Structure

Departmentalization

Departmentalization refers to the process

of grouping together employees who
share a common supervisor and
resources, who are jointly responsible for
performance, and who tend to identify and
collaborate with each other.
[Buchanan, 2000, p. 464]

Organizational Structure

Integration

Integration is the required level to which

units in an organization are linked
together, and their respective degree of
independence. Integrative mechanisms
include rules and procedures and direct
managerial control.
[Buchanan, 2000, p. 517]

Organizational Structure

Centralization

Centralization refers to the concentration

of authority and responsibility for
decision-making in the hands of managers
at the top of an organizations hierarchy.

[Buchanan, 2000, p. 475]

Organizational Structure

Decentralization

Decentralization refers to authority and

responsibility for decision making being
dispersed more widely downwards and
given to the operating units, branches and
lower-level managers.

[Buchanan, 2000, p. 475]

Organizational Structure

Line Structure
Functional: grouping according to function
Divisional: grouping according to products
Geographic: grouping according to
geographic market
Hybrid: functional and divisional grouping

Organizational Structure

Line
President
Vice
President

President
R&D

Vice
President

President
Mfg

President
Acct
Assistent

Organizational Structure

Functional Line
President

Marketing

Mfg

Organizational Structure

Acct

Divisional Line
President

Cars

Trucks

Organizational Structure

Busses

Geographic Line
CEO

Europe

Asia

Organizational Structure

USA

Functional vs. Divisional

Functional emphasis vs. product emphasis
Economy of scale vs. ability to react to changes
in the market
Innovation vs. Integration and standardization

Organizational Structure

Line And Staff Structure (I)

Modification of the line structure
Specialists support line managers
Staff departments performs tasks through line
structure (= functional power)
Staff departments do not possess disciplinary
power

Organizational Structure

Line And Staff Structure (II)

President

Marketing

Market
Research

Mfg

Legal
Office

Computing

Organizational Structure

Acct

Matrix
simultaneous functional and divisional
structure
Two-boss-employees
coordination of matrix bosses needed
highly flexible

Organizational Structure

Matrix Structure
President

Director of
Product
Operations

Design
Vice President

Manufacturing
Vice President

Marketing
Vice President

Product
Manger A
Product
Manger B
Product
Manger C
[Draft, 1998,p.225]

Organizational Structure

Advantages
Sharing of human resources across products
Meets both demands of enviroment:
innovation and product quality
Opportunity for functional and product skill
development

Organizational Structure

Disadvantages
Dual authority can be frustrating and confusing
for employee
Employees need interpersonal skills and training
Time-consuming coordination needed
Dual pressure for power balance needed

Organizational Structure

Example: University
President
VP
Finace &
Administration

VP
Research &
Lecturing

VP
Student Matters

VP
Planning

Language
Department

Economics
Department

English

Marketing

French

Accounting

Prof. A

Prof. C

Prof. B

Prof. D

Director
Undergraduate
Programme

Director
Masters
Programme

Organizational Structure

Organigraphs (I)
Developed by Mintzberg and van der Heyden
Organization chart does not provide sufficient
information
Add sets, Chains, hubs and web to
organization charts

Organizational Structure

Organigraphs (II)
Set

Chain

Hub

Web

[Buchanan, 2000, p. 468]

Organizational Structure

5. Formal and informal

organization structure
Formal organization
refers to the collection of work groups that have
been consciously designed by senior
management to maximize efficiency and
achieve organizational goals.

[Buchanan, 2000, p. 462]

Organizational Structure

formal organization

public relations
job evaluation
safety

Organizational Structure

Informal organization
refers to the network of relationships that
spontaneously establish themselves between
members of the organization on the basis of their
common interests and friendships.

[Buchanan, 2000, p. 462]

Organizational Structure

informal organization

Organizational Structure

[Buchanan, 2000, p. 463]

The formal and informal organization

Formal
organization
A

Informal
organization

structure

(a) origin

planned

spontaneous

(b) rational

rational

emotional

(c) characteristics

stable

dynamic

B position terminology

job

role

C goals

profitability or
service to society

member satisfaction

D charting

organizational
chart

sociogram

Organizational Structure

6. Organization structures by
Mintzberg
major contribution to two topics in the field of
organization behaviour:
1. different forms that an organizations
structure can take
2. range of roles performed by managers

Organizational Structure

Forms of organization structure

1.
2.
3.
4.
5.

strategic apex
middle line
operating core
technostructure
support staff

ways in which these parts could be co-ordinated

five parts and five co-ordinating mechanisms to
describe five different ideal types of organization
structure
Organizational Structure

1. strategic apex
contains those individuals who direct the
organization
senior management

Organizational Structure

2. Operating core
those who receive inputs and transform them
into the products or services
Functional core employees
the heart of every organization

Organizational Structure

3. Middle line
middle managers and supervisors
between the strategic apex at the top and the
operating core at the bottom

Organizational Structure

4. Technostructure
Technical support staff
analysts and technical advisers

5. Staff support
individuals who provide administrative and
clerical support for the different levels
Organizational Structure

Literatur

Banner, David; Gagn, Elaine (1995): Designing effective

organizations. Traditional & transformational views. London et al : Sage
Publications.
Bleicher, Knut (1991): Organisation : Strategien - Strukture - Kulturen.
Wiesbaden : Gabler.
Buchanan, David; Huczynski, Andrzej (2000): Organizational
Behaviour. An introductory text. London : Prentice Hall.
Draft, Richard (1998): Organization theory and design. Cincinatti :
South-Western College Publishing.
Theis, Anna Maria (1994): Organisationskommunikation. Theoretische
Grundlagen und empirische Forschungen. Opladen: Westdeutscher
Verlag.

Organizational Structure