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Presented by Joshna.  Definition  The ways in which an organization divides it tasks and then coordinates them.

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Presentation on theme: "Presented by Joshna.  Definition  The ways in which an organization divides it tasks and then coordinates them."— Presentation transcript:

1 presented by Joshna

2  Definition  The ways in which an organization divides it tasks and then coordinates them.

3 TALL STRUCTURE As an organization grows, the number of management levels increases and the structure grows taller.

4 Diagram: Tall Structure

5  There is a narrow span of control ie each manager has a small number of employees under their control.  There is a clear management structure.  There will be clear lines of responsibility and control.

6  The freedom and responsibility of employees (subordinates) is restricted.  Decision making is slow  Communication has to take place through many layers of management.  High management cost.

7  A flat organization structure has few levels of management between the executive level and the front-line employees.  The premise behind a flat organization structure is to empower employees by making them a larger part of the decision- making process.


9 Disadvantage Workers may have more than one manager/boss. May limit the growth of the organisation. Structure limited to small organisations such as partnerships, co-operatives and some private limited companies.

10  More/Greater communication between management and workers.  Better team sprit.  Easier decision making.  Fewer levels of management which includes benefits such as lower costs as managers are generally paid more than worker.

11  This type of organization is suitable when an organization undertakes specialized work for a particular period as one time operation.

12 the team members are reassigned.

13  Clear Line of Command  Quick Decision Making  Knowledge Sharing  Easier Supervision

14  This is where the work is divided into specific areas of specialization: jobs and activities are grouped together – also referred to as departmentation.  Departmentation can take place in different ways: based on a product or service, by types of customers, or by type of equipment used to produce the business products.


16  saves us money because of the economies of scale.  it helps in privacy of information.

17  The coordination between different department more difficult than other structures.  It also does not allow for flexibility because of the centralization.

18 D IVISIONAL STRUCTURE Divisional Structures A division is a collection of functions working together to produce a product. Divisions create smaller, manageable parts of a firm. A division has marketing, finance, and other function. Product structure: divisions created according to the type of product or service. Geographic structure: divisions based on the area of a country or world served. Market structure: divisions based on the types of customers served.


20  Increases strategic and operational control.  Quick response to environmental changes  Increased focus on products and markets

21 Matrix Sometimes an organization needs to run according to what projects they have to do. In these situations people usually work together in a team to achieve their projects goals.


23  Decentralised decision-making  Strong product coordination  Flexible use of human resources

24 D ISADVANTAGE High administrative costs Confusion over authority and responsibility (potential) Excessive focus on internal relations Overemphasis on group decision- making Slow response to change (possible)

25 Virtual Organization An organization uses information and communication technologies to Virtual organization can be thought of as a way in replace or augment some aspect of the organization. People who are virtually organized primarily interact by electronic means.


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