1. Traditional Organizational Structures
Unit 5: Organizing

2. What is Organizing?
Organizing - is the process of bringing people and resources together to work toward a goal
Organizing creates structures to divide up the work, arrange the resources, and coordinate activities
Organizing identifies who does what, who is in charge of whom, and how different parts of the business relate to and work with one another
Organizing is one of the four fundamental functions of a manager along with leading, planning, and controlling

3. What is Organizational Structure?
An Organizational Structure is a formal arrangement that shows how divisions, departments, functions, and people link together and interact
These organizational workflows are depicted on a diagram called an organizational chart
The organizational chart represents the way the organization is intended to function
By examining the organizational chart of a business, there are certain things you should be able to learn:
Work Responsibilities 
Supervisory Relationships  
Communication Channels 
Levels of Management  

4. The Traditional Organizational Structure
The traditional organizational structure is based on a hierarchy
The vertical hierarchy shows the chain of command
The horizontal element of the chart shows the different jobs or work specialization

5. Traditional Organizational Structures
Departmentalization - The first decision in creating an organizational structure is to decide how to group people and jobs into work units
Some common bases for grouping jobs together:
function
product
Customer
territory

6. Traditional Organizational Structures
The four traditional organizational structures commonly used throughout the 20th century are:
Functional
Divisional
Hybrid
Matrix
Many organizations today still use one of these traditional structures

7. Traditional Organizational Structures: Functional Structure
In a functional structure, people performing similar tasks are grouped together
Members of functional departments share skills, technical expertise, and responsibilities
This structure works best in businesses that produce only one product or service

8. Traditional Organizational Structures: Divisional Structure
In a divisional structure people, jobs, and activities are together based on:
product produced or service provided
process
customer or client served
geographic area

9. Traditional Organizational Structures: Hybrid Structure
A hybrid structure combines different types of divisional structure in the same organization
The larger the organization, the more likely it is that the organization will use a hybrid structure

10. Traditional Organizational Structures: Matrix Structure
The matrix structure combines the functional and divisional structures
The people in a matrix structure belong to two formal groups at the same time, a functional group and a project team
This distinction means they report to two supervisors
Matrix structures allow cross-functional teams to share expertise and information quickly to solve problems

11. Traditional Organizational Structures: Matrix Structure

12. Your Task Complete this chart (can be found in the S: drive)
Advantages
Disadvantages
Functional
Divisional
Matrix