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-level
management.
Companies require few layers of management
resulting in a flat organisational structure with broad
span of control.
SPAN OF CONTROL
refers to the number of subordinates who report
directly 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