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ORGANIZATION STRUCTURE. Question. Have you ever been in a situation at home or work where there were too many people in charge of completing a task? What suggestions would you make to simplify the process?. Understanding how organizational structures work.
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Question Have you ever been in a situation at home or work where there were too many people in charge of completing a task? What suggestions would you make to simplify the process?
Understanding how organizational structures work • Can you describe a graphic organizer you have used in school or the classroom? • What are the benefits of using them? • Why is it important for businesses to have organization charts?
What You’ll Learn • How to read an organizational chart • The four main types of organizational structures • The difference between staff and line functions • The benefits of adopting a matrix or team structure
Why is this important? “Without an appropriate organizational structure, a business will not succeed”
What is an Organization Structure? • A way to organize employees into some kind of structure to meet goals • Minimizes confusion • Coordinates activities by clearly identifying which individuals are responsible for which tasks
Types of Organizational Structures? • Line Structure • Line and Staff Structure • Matrix Structure • Team Structure Organizational Chart: A visual representation of a business’s organizational structure
CFO Senior Managers Mid-level Managers Lower-level Managers Non-management Employees Line Structure • Top down authority • Common among small companies • Line Functions • Functions that contribute directly to company profits • Production managers, sales reps, and marketing managers
CFO Senior Managers Mid-level Managers Lower-level Managers Non-management Employees Line Structure • Line Managers • Collect and analyze all information needed to carry out their responsibilities • Example: • Production Managers • Hire and fire all of the assembly-line workers in their departments • Order all supplies for their department
President Vice President, Sales Vice President, Marketing Advertising Sales Personnel Fabrication Assembly Line and Staff Structure • Mid-sized and large companies • Other employees hired to help line managers perform activities they cannot • Staff Functions • Advise and support line functions • Staff departments include: legal, human resources, and public relations • Help line departments do their jobs • Authority is limited to making recommendations to line managers
Matrix Structure • Allows employees from different departments to come together temporarily to work on special project teams • Provides flexibility to respond quickly to a customer need by creating a team of people who devote all of their time to a project then return to their departments or join a new project team • I.E. – Boeing – assigns employees to project teams when it creates to design a new aircraft
Corporate Level Division A Division B Planners and analysts Planners and analysts Project Manager Production Group Engineering Group Personnel Group Accounting Group Production Engineering Personnel Finance Production Engineering Personnel Finance Matrix Structure
Team Structure • Brings together people with different skills in order to meet a particular objective • Belief is that the company will meet customer needs more effectively than traditional structures • Senior managers need not approve decisions by lower-level managers • Teams have the authority to make final decisions • Employee preferred due to its focus on completing a project rather than a task
Flat vs. Tall Structures • Flat structure: Small number of levels and broad span of management at each level • Tall Structure: Has many levels with small spans of management
1 1 2 3 2 4 5 3 6 4 7 FLAT TALL Span of Management 8:1 (Four Levels) Span of Management 5:1 (Seven Levels)
Extension Activity!!! • Design an organizational chart that illustrates the organizational structure of Weber High School • You can interview school staff for information • You can navigate the Weber High website to understand departmental structures and how to structure your organizational chart (Line, Line and Staff, Matrix, and/or Team) • Use Microsoft Word or something else to build out your organization chart