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Lecture Six Organizational Structure. Fundamental of Organizing. Organizing is the process of establishing orderly uses for all resources within the management system. Basic Types of Organizational Structure. The Simple structure The Functional Structure The Divisional Structure

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Lecture Six Organizational Structure

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Lecture six organizational structure

Lecture SixOrganizational Structure

Fundamental of organizing

Fundamental of Organizing

  • Organizing is the process of establishing orderly uses for all resources within the management system.

Basic types of organizational structure

Basic Types of Organizational Structure

  • The Simple structure

  • The Functional Structure

  • The Divisional Structure

  • The Conglomerate Structure

  • The Hybrid Structure

  • The Matrix Structure

  • The Team-Based Structure

  • The Network Structure

The functional structure

The Functional Structure

  • Grouping by similar work specialties

The divisional structure

The Divisional Structure

  • Grouping by similarity of purpose

The conglomerate structure

The Conglomerate Structure

  • Grouping by industry

The hybrid structure

The Hybrid Structure

  • Functional & Divisional Used within the Same Organization

The matrix structure

The Matrix Structure

  • A Grid of Functional & Divisional for Two Chains of Command

Types of the matrix structure

Types ofThe Matrix Structure

  • Weak/Functional Matrix

  • Balanced/Functional Matrix

  • Strong/Project Matrix

The team based structure

The Team-Based Structure

  • Eliminating Functional Barriers to Solve Problems

The network structure

The Network Structure

  • Connecting a Central Core to Outside Firms by Computer Connections

Network structure mysql

Network Structure: MySQL

  • Software maker

  • 320 workers

  • Located in 25 countries

  • 70% of workers work from home

Network structure h m

Network Structure:H&M

  • Not owning any factories

  • A network of 700 suppliers

  • More than two-thirds of them are in Asian countries

Group discussion

Group Discussion

  • Many people like the social interaction that comes with working in a physical office with other people. Others, however, welcome the opportunity to do task-oriented work in a home office. Which would you favor, why?

Factors in creating the best structure

Factors in Creating the Best Structure

  • The Environment

  • Size

  • Technology

  • Life Cycle

The environment mechanistic vs organic


Centralized hierarchy of authority

Many rules and procedures

Specialized tasks

Formalized communication

Few teams or tasks forces

Narrow span of control, taller structure


Decentralized hierarchy of authority

Few rules and procedures

Shared tasks

Informal communication

Many teams and task forces

Wider span of control, flatter structure

The Environment:Mechanistic vs. Organic

The environment differentiation vs integration

The Environment:Differentiation vs. Integration

  • Differentiation: when forces push the organization apart

    • Differentiation is the tendency of the parts of an organization to disperse and fragment.

  • Integration: when forces pull the organization together

    • Integration is the tendency of the parts of an organization to draw together to achieve a common purpose.

Lecture six organizational structure


  • The larger the organization, the more mechanistic



  • Small-Batch Technology

    Custom–Made Products Made by Organic Organization



  • Large-Batch Technology: Mass – Produced Products Made by Mechanized Organization.



  • Continuous-Process: Highly Routinized Products Made by Organic Organization

Life cycle

Life Cycle

  • Stage 1. The Birth Stage – Nonbureaucratic

  • Stage 2. The Youth Stage – Prebureaucratic

  • Stage 3. The Midlife Stage – Bureaucratic

  • Stage 4. The Maturity Stage – Very Bureaucratic

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