1. ORGANIZING
A process of arranging an organization’s structure and coordinating its managerial practices and use of resources to achieve its goals.
An organizational structure is a pattern of
relationships through which people under the
direction of a given manager pursue common goals.

2. ORGANIZING cont... Organizational Structures show among other things:
Positions in the organization
Divisions of work activities
Level of specialization
Reporting relationships within an organization
Link between different functions

3. ORGANIZING cont... Organizational structures are determined by
Strategy
People
Environment
Size

4. Types of organizational structures
Flat structure
This is a structure with less formalisation and has its authority centralized in a single person.

5. flat structure cont…
General Manager
Employee

6. flat structure cont… Merits
Enhances production since anyone can do anything
It makes decision making faster since only one person makes decisions.
It promotes interpersonal skills and reduces conflicts since there are no departments
Promotes employee loyalty to the company owner.
It reduces boredom and monotony since employees vary their duties.

7. flat structure cont… Demerits Poor decisions are made
Discourages innovation
Accountability and responsibility is difficult
Poor quality products and services
It discourages career development since anyone can do anything
Equipment can easily be damaged

8. Functional structure
This groups people by common function

9. Functional structure cont...
General Manager
Accounting Manager
Credit controller
Projects Officer
Production Manager
Artisan A
Artisan B

10. Functional structure cont...
Merits
Enhances career development and training within departments
Makes supervision easier
Efficiency in the use of specialised resources

11. Functional structure cont...
Demerits
Brings conflicts among departments
Employees can be loyal to their own departments.
Promotes boredom and monotony since employees will be doing routine duties.

12. Divisional structure
Brings together all the functions involved in a certain type of product or service.
Each division resembles a separate business unit and may be self contained.

13. DIVISIONAL STRUCTURE cont...
Managing
Director
GM Div A
Production Manager
Procurement
Manager
GM Div B
Marketing
Finance

14. BASIS OF DIVISION Customer based
Division is based on the type of customers or
Markets being serviced.
Merit: high customer satisfaction
Demerit: increased costs through duplication.

15. Basis of division Geographical based
Divisions are based on physical location.
Merits
It lowers costs of operation since costs are for a specific unit.
Decentralisation of authority, which attracts quality decisions.
Knowledge of local social patterns may help in decision making.
It enhances commitment by members.
Demerit
Lack of control of the organization as a whole.

16. Basis of division Production process
Division is according to the type of process being done, where each process require different skills and specialized equipment
merit
high specialization in the use of machines and people.

17. Matrix structure
An organization employs or sets aside from within specialist functions when new services or goods are being developed.
Some employees are allocated to assist the projects manager.

18. Matrix structure cont... Projects Manager CEO G.M Div A Finance
Marketing Manager
Div B
Production
Procurement Manager
Projects Manager

19. Matrix structure cont... Merits
It enhances flexibility as teams can be created, refined and dissolved as needed.
Employees can learn new skills from projects members.
It motivates employees as they will be identified with end products

20. Matrix structure cont... Demerits It is costly to implement
Encourages power struggles
Leads to more discussions than actions
It demands good interpersonal skills
Creates employee confusion..