ORGANISATIONAL STRUCTURE

Falkné dr. Bánó Klára

BGF Külkereskedelmi Főiskolai Kar

Falkne.dr.BanoKlara@kkfk.bgf.hu

falk.cs@t-online.hu

ORGANIZATIONAL STRUCTURE Definitions

’The specification of the jobs to be done within a business and how those jobs relate to one another.’

(Griffin and Ebert)

‘Structure is a means for attaining the objectives and goals of an organization.’ /Drucker/

ORGANIZATIONAL STRUCTURE Definitions

’Structure is the pattern of relationships among positions in the organization and among members of the organization. The purpose of structure is the division of work among members of the organization, and the coordination of their activities so they are directed towards achieving the goals and objectives of the organization.’ /Mullins/

An organizational chart

THE BUILDING BLOCKS OF ORGANIZATIONAL STRUCTURE

JOB SPECIALIZATION – the use of individuals

with specialized skills to perform specialized tasks

within a business

DEPARTMENTALIZATION – the grouping of

jobs into logical units

a./ Customer departmentalization – according to the type of customer likely to buy a given product

THE BUILDING BLOCKS OF ORGANIZATIONAL STRUCTURE

b./ Product departmentalization – according to the specific goods produced

c./ Geographic departmentalization – according to the area of the country or world supplied

d./ Functional departmentalization – according to the group’s functions or activities

e./ Process departmentalization – according to the production process used to make a specific type of goods

Most organisations use multiple bases of departmentalization

Division of work by major purpose or function

Division of work by product or service

Division of work by location

• RESPONSIBILITY – a duty to accomplish assigned tasks

• AUTHORITY – the power to make decisions necessary to accomplish certain tasks

• DELEGATION – the assignment of a task, responsibility and/or authority by a manager to a subordinate

• ACCOUNTABILITY – the liability of a

subordinate in the event of non-performance of a

task

CENTRALISED ORGANISATION

an organisational structure in which most

decision-making authority is retained by

upper-level management.

Companies require multiple layers of

management resulting in a tall organisational

structure with narrow span of control.

DECENTRALISED ORGANISATION

an organisational structure in which a great deal of decision-making authority is delegated to lower-

levelmanagement.Companies require few layers of managementresulting in a flat organisational structure with broadspan of control.

SPAN OF CONTROLrefers to the number of subordinates who reportdirectly to a given manager or supervisor.

Flat organization structure

Tall organization structure

How span of control and scalar chain affect org. structure

Flat and tall organization structures

In this organisation line authority is shown with solid lines, staff authority with dotted lines

Formal organisational relationships

Outline of matrix organisation structure; solid lines-line authority, broken lines-project authority

A matrix org. uses line and staff managers in teams

Alternative organization structures