Lesson 2. Types of Organization Structure (MODULE 8) Flashcards
a system
made up of tasks to
be accomplished,
work movements
from one work level
to other work levels
in the system.
organization structure
three types of organizational structure
vertical structure, horizontal structure, network structure
It is a strict hierarchical structure
with power emanating from the top
to the bottom. With a chain of
command well defined, decisions
usually move from the top down
through layer by layer, and people at
the bottom have the least autonomy.
In the structure, each person is
supervised by the one directly above
him. Employees can clearly
monitor their roles and duties.
vertical structure
advantage of vertical structure
have clear lines of authority, quicker decision making, better designation of tasks to employees, clear path to career planning, motivated to work hard to achieve a higher level
disadvantage of vertical structure
- employees at the bottom may have a lots of limitations to share their constructive ideas or creative proposals
- because of multiple layers of powers, it will take more time to respond to a problem or implementing decisions
Refers to the departmentalization of an organization into smaller work units as tasks become
increasingly varied and numerous. Fits companies with few levels between upper management and staff-level employees.
horizontal structure
horizontal structure is also known as
flat organization
advantages of horizontal structure
gives employees more responsibility, fosters more open communication, and improves coordination and speed of implementing new ideas
disadvantages of horizontal structure
can produce employees with more generalized skills and knowledge, can be difficult to maintain once the company grows beyond startup status, and can create confusion since employees do not have a clear supervisor to report to
Deal directly with firms’ primary goods
and services; responsible for
manufacturing, selling, and providing
services to clients.
line department
Support activities of the line
departments by doing research,
attending to legal matters, performing
public relations duties, etc.
staff department
departmentalization can be done in three approaches
functional approach, divisional approach, matrix approach
where the subdivisions are formed based on specialized activities such as
marketing, production, financial management and human resource
management.
functional approach
where departments are formed based on management of their products,
customers, or geographic areas covered.
divisional approach
is a hybrid form of departmentalization where managers and staff
personnel report to the superiors, the functional manager and divisional
manager.
matrix approach
