Organizations are experimenting with different approaches to
organizational structure and design.
Organizational structure can play an
important role in an organization’s
success. The process of
second management functions is how an
organization’s structure is created.
The nature of organization structure:
Managers are seeking structural designs that will best support and allow
employees to effectively and efficiently
do their work. Organizing is the
process of creating an organization’s
is the formal pattern of interactions
and coordination designed by management
to link the tasks of individuals and
groups in achieving organizational
goals. An organizational structure
is the formal framework by which job
tasks are divided, grouped, and
1. This formal pattern designed by management is to be distinguished from
informal pattern of interactions that simply emerges within
2. Organization structure consists primarily of four elements:
a. Job design
c. Vertical coordination
d. Horizontal coordination
is the process of developing an organization
structure. Organizational design
is the process of developing or changing
an organization’s structure. It involves
decisions about six key elements: work
chain of command, span of control,
formalization. We need to take a closer
look at each of these structural
The organization chart is a line diagram that depicts the broad
outlines of an organization’s structure.
While varying in detail from one
organization to another, typically
organization charts show the major
positions or departments in the
organization, the way positions are
grouped together, reporting
relationships for lower to higher
levels, official channels for
communications, and possibly the titles
associated with major positions in the
1. The organization chart provides a
visual map of the chain of command,
the unbroken line of authority that
ultimately links each individual with
the top organizational position thorough
a managerial position at each successive
layer in between.
2. Nearly all organizations having just a few members have an
is the obligation or expectation to perform
and carry out duties and achieve goals
related to a position.
Authority is the right inherent in a managerial
position to tell people what to do and
to expect them to do it, right to make
decisions and carry out actions to
achieve organizational goals.
While part of a manager’s work may be delegated, the manager remains
accountable for results.
is the requirement of being able to answer
for significant deviations from duties
or expected results.
The fact that managers remain accountable for delegated work
may cause them to resist delegation.
Delegation is assignment of part of manager’s work to others along with
responsibility and authority.
1. In addition to issues of
accountability, managers may resist
delegation for a number of reasons.
Managers may fear if subordinates fail.
Managers may think they lack time to train subordinates.
Managers may want to hold on to their power.
Managers may enjoy doing the tasks subordinates could do.
Managers may feel threatened by subordinates.
Managers may not know how to delegate.
2. Subordinates may resist delegation because of fear of failure or of
3. Failure to delegate may have serious
negative consequences for a manger’s
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