Untitled Quiz

Organizing

• Organizational structure defines how tasks are divided, resources allocated, and departments are coordinated.
• Example: Apple uses a functional structure with separate departments for design, engineering, and marketing.
• An organizational structure is a framework determining roles, responsibilities, and tasks. It outlines hierarchy, reporting relationships, and communication channels.
• Clarifying roles and responsibilities promotes efficient coordination and control.
• Communication and collaboration are facilitated through the structure.
• Resource allocation and utilization are improved through specialisation.
• The structure supports accountability and performance evaluation by setting clear expectations and enabling assessment of individual and departmental performance.

Types of Organizational Structure

1. Line Organisation

• Simplest and oldest form, also known as scalar or military organisation.
• Clear and direct chain of command, authority flows vertically.
• Each employee reports to a single supervisor.
• Decision-making is centralised at the top of the hierarchy.
• Suitable for small organisations with a straightforward hierarchy.
• Communication is direct, and delays in decision-making can occur.
• No staff specialists, all persons on the same level are independent.

2. Functional Organisation

• Departments grouped based on specialized functions or tasks.
• Example: Separate marketing, finance, operations, and human resources departments.
• Functional manager has expertise in their particular area.
• Structure allows for efficient utilization of specialised skills.
• Clear career paths within each function.
• Departments can become inwardly focused, limiting communication and collaboration.
• Coordination across functions can be challenging.

3. Line and Staff Organisation

• Line positions focus on core operations, staff positions provide specialised support and guidance.
• Staff roles (HR, legal) provide expertise and advice to line management.
• Structure balances operational responsibilities with specialized support.
• Specialists are advisory, without power to command subordinates.
• Clarifying roles and coordination between lines and staff is important.
• Potential confusion and expense for small firms.

4. Project Organisation

• Temporary structure assembled for a specific project or initiative.
• Led by a project manager with authority over team members and resources.
• Focused approach to project management, with team members working together.
• Facilitates effective coordination, communication, and collaboration.
• Team is disbanded once project is completed.
• Useful for complex, time-limited projects requiring cross-functional collaboration.

5. Matrix Organisation

• Hybrid structure combining elements of functional and project structures.
• Employees report to two managers: functional and project.
• Functional manager oversees functional responsibilities.
• Project manager manages involvement in specific projects.
• Allows flexible resource allocation.
• Can be complex to manage due to multiple reporting relationships.
• Conflict can arise from competing priorities.

6. Committee Organisation

• Distributes decision-making and authority across committees or groups.
• Committees formed to address specific areas or functions within the organisation.
• Individuals from different departments and levels come together.
• Decisions made collectively through discussions and consensus.
• Diverse perspectives and expertise are considered.
• Limited scope, can't handle a large number of problems.
• Decision-making can be time-consuming.

7. Departmentation

• Grouping of activities into specialized units/departments.
• Enables specialisation, efficiency, and resource allocation.
• Streamlines organization functioning and goal achievement.