Organization Structure

An organization is a system that groups people together towards establishing a common

goal. Business organizations are centered on creating goods and services for profit. There
are several types of business organizations that one can start.

The organizational structure of a business determines the roles and responsibilities and
authority of its managers and employees with an organization.

The organizational structure refers to the way in which a business allocates roles and
responsibilities and authority within its organization to achieve its objectives.

Informal Organization - is formed within the formal organization as a network of

interpersonal relationships when people interact with each other (unofficial).

Formal Organization - An organization in which the job of each member is clearly

defined, whose authority, responsibility, and accountability are fixed.

Formal Organization structure

This is an officially codified hierarchical arrangement of relationships between different
jobs within the organizational units and relationships between departments within the
organization.it defines hierarchical relationships and assigned competencies, mutual ties
and liability.

Organizational Chart
An organizational chart is a diagram that visually conveys a company's internal structure
by detailing the roles, responsibilities, and relationships between individuals within an
entity.
An organizational chart is a pictorial representation of the flow of responsibility and
authority in an organization. It shows the roles and the relationship between staff
members.
Organization Structure

An organization is a system that groups people together towards establishing a common

goal. Business organizations are centered on creating goods and services for profit. There
are several types of business organizations that one can start.
The organizational structure of a business determines the roles and responsibilities and
authority of its managers and employees with an organisation.

The organisational structure refers to the way in which a business allocates role and
responsibilities and authority within its organisation to achieve its objectives.

Informal Organization - is formed within the formal organisation as a network of

interpersonal relationships when people interact with each other (unofficial).

Formal Organization - An organisation in which the job of each member is clearly

defined, whose authority, responsibility and accountability are fixed.

Formal Organization structure

This is an officially codified hierarchical arrangement of relationships between different
jobs within the organizational units and relationships between departments within the
organization.it defines hierarchical relationships and assigned competencies,mutual ties
and liability.

Organizational Chart
An organizational chart is a diagram that visually conveys a company's internal structure
by detailing the roles, responsibilities, and relationships between individuals within an
entity.
An organizational chart is a pictorial representation of the flow of responsibility and
authority in an organization. It shows the roles and the relationship between staff
members.

Differentiate between the organization structure and the organizational chart

Types of Formal Organizational Structures
1. Line - This is a traditional structure that gives a direct flow of authority from the
top to the bottom of the organization.
The diagram below is an organizational chart representing a line organizational
structure

2. Line and Staff - The aim is to show line or main relationships and staff or
supporting relationships within an organization. This structure includes the use of
specialists.
- The organization structure, in which specialists are added to the line managers to
provide guidance and support, is called line and staff organization.
3. Functional - This shows the specialized functions within the organisation such as
production, marketing, personnel etc.
Define the following terms:

Span of Control - This is the number of subordinates directly reporting to a single

manager. It has to do with how many persons are supervised by a manager

Narrow Span of Control - A narrow span of control refers to a structure with few
employees reporting to the manager. A narrow span of control increases the level of
contact between the manager and members of the team.

Wide Span of Control - This is when a person supervises a large number of

subordinates.

Chain of Command - Shows the flow of information in an organization, it shows who

reports to whom and a line of authority.

Delegating Authority - This is the process of allocating tasks and goals to subordinates.
Managers hand over responsibilities for carrying out a task to someone else in an
organization. The person a task is delegated to must be able to complete it accurately,
safely, on time, and to the required standards.

Hierarchy - refers to the arrangement and organization of individuals within an

organization according to power, status, and job function.

Unity of Command - The Unity of Command is a management principle that establishes

a hierarchy where a subordinate reports to a single superior directly above their own
position.

Tall Organizational Structure - A tall organizational structure means that management

is broken down into several layers, with executives on top and normal employees on the
bottom. In a tall organization, there will be a large number of managers, and each
manager will usually be responsible for a small group of employees.
 Flat Organizational Structure- A flat organization (also known as horizontal organization)
has an organizational structure with few or no levels of middle management between staff
and executives.

Rules for drawing an organizational chart

● Must drawn with black or blue ink
● Group people with the same title into one box.
● Make all boxes the same size and space them evenly.
● Show assistants with a sidebar below the manager.
● Put the title of the position first, then the name of the person occupying it.
● Show managers with two titles as two different boxes in the chart.

Purpose of an Organizational Chart

● To show the relationships among personnel
● It enables members to know who to report
● Display the organizational structure
● To show the channel of communication