ORGANIZATIONAL

STRUCTURE Prepared by:

JO ALBERT D. CARLOS
BS ENTREPRENEURSHIP 1C

 WHAT IS ORGANIZATIONAL STRUCTURE?

∆ Organizational structure is the method by
which work flows through an organization. It
allows groups to work together within their
individual functions to manage tasks.

∆ The organizational structure refers to how a

company or organization is organized, as well as the
types of relationships that exist among the directors,
managers, and other employees. So every
employee's position, including their function and
who they report to within the company, is identified.

∆ Usually represented in the form of a pyramid, with the most

powerful members of the organization at the top and the least
powerful members at the bottom.
TYPES OF ORGANIZATIONAL STRUCTURE
HIERARCHICAL
A hierarchical
ORGANIZATIONAL
structure is an STRUCTURE
organisation
structure that
follows a chain-of- It resembles a
command from pyramid, and the
the top executives individual with the
to regular most authority
employees. occupies a sole senior-
most position above
the pyramid, while the
junior-most workers
occupy the positions
at the bottom.
TYPES OF ORGANIZATIONAL STRUCTURE
HIERARCHICAL
ORGANIZATIONAL
PROS

Inspires employees by
STRUCTURE
providing clear career
paths and opportunities
for advancement.
Creates a sense of CONS

solidarity among Can cause employees to

employees in the same act in the department’s
department. best interests rather than
the company’s as a whole.
Can make lower-level
employees feel like they
don’t have as much
ownership and that they
can’t express their ideas for
the company.
TYPES OF ORGANIZATIONAL STRUCTURE
FUNCTIONAL
A functional ORGANIZATIONAL
organizational structure
is a business structure STRUCTURE
that groups employees
by specialty, skill or
related roles. It is based
on levels of hierarchy Businesses commonly
that include different operate under functional
departments, under the structure because it
direction of designated
groups people who have
leaders.
similar knowledge, and
when used in a team
environment, helps
companies achieve their
goals.
TYPES OF ORGANIZATIONAL STRUCTURE
FUNCTIONAL
ORGANIZATIONAL
PROS
STRUCTURE
Enables employees to
concentrate on their jobs.
Promotes specialization.
Assist teams and departments CONS
in feeling self-assured.

Investigates a company’s
processes and strategies for
various markets and product.
Roles and tasks do not change
very much so there is little time
spent learning.
Accountability is clear.
TYPES OF ORGANIZATIONAL STRUCTURE
DIVISIONAL
ORGANIZATIONAL
The divisional STRUCTURE
organizational structure
organizes the activities
of a business around
geographical, market, Each such division
or product and service contains a complete set of
groups functions. Thus, the green
widget division would
handle its own
accounting activities,
sales and marketing,
engineering, production,
and so forth.
TYPES OF ORGANIZATIONAL STRUCTURE
DIVISIONAL
PROS ORGANIZATIONAL
Aids in the flexibility of
STRUCTURE
large corporations.
Encourages self-
sufficiency, autonomy,
CONS
and a unique approach. It's very easy to end up

with duplicate resources.

Can indicate a lack of or
muddled communication
between the
headquarters and also its
divisions.

TYPES OF ORGANIZATIONAL STRUCTURE
ORGANIZATIONAL
A matrix structure is a
combination of two or more
types of organisational
structures. It is a way of
arranging your business so
that you set up reporting
relationships as a grid, or a
matrix, rather than in the
traditional hierarchy.
MATRIX
STRUCTURE
A matrix organisational
structure doesn't follow
the traditional,
hierarchical model. In the
matrix structure, you
share resources and staff
across teams and projects,
as well as within
departments or functions
TYPES OF ORGANIZATIONAL STRUCTURE
MATRIX
PROS ORGANIZATIONAL
Allows project managers STRUCTURE
to quickly select
individuals based on
project requirements.
Provides a more dynamic CONS
view of the company.
Encourage employees to There may be a conflict
use their skills in roles between department and
other than their original project managers in this
role.
scene.
Changes more frequently
than other types of
organizational charts.
TYPES OF ORGANIZATIONAL STRUCTURE
HORIZONTAL/FLAT
Flat organisational
ORGANIZATIONAL
structure is an
organisational model
STRUCTURE
with relatively few or no
levels of middle
management between For a small business with
the executives and the a handful of employees,
frontline employees. having a flat or horizontal
Its goal is to have as structure is often the
little hierarchy as logical approach. The
possible. staff-level employees
usually report directly to
the business owner. There
is typically no formal
management structure.
TYPES OF ORGANIZATIONAL STRUCTURE
HORIZONTAL/FLAT
ORGANIZATIONAL
PROS
STRUCTURE
Employees are given
more responsibility.
Improves the
coordination and speed
CONS
with which new ideas Employees with a broader
are implemented. range of skills and
knowledge are more likely
to be produced.
Once the company has
grown past the start-up
stage, it can be difficult to
maintain.
TYPES OF ORGANIZATIONAL STRUCTURE
TEAM-BASED
ORGANIZATIONAL
Team-based
organizational
STRUCTURE
structures are made of
teams working towards
a common goal while They are less hierarchical
working on their and they have flexible
individual tasks structures that reinforce
problem-solving, decision-
making and teamwork.
Team organization
structures have changed
the way many industries
work.
TYPES OF ORGANIZATIONAL STRUCTURE
TEAM-BASED
ORGANIZATIONAL
PROS
Encourages you to think of
STRUCTURE

yourself as a learner.
Traditional career models
are disrupted by
encouraging people to CONS
move laterally. It goes against the
Experience is valued over
seniority.
natural inclination
of many companies
to have a purely
hierarchical
structure.

TYPES OF ORGANIZATIONAL STRUCTURE

NETWORK-BASED
The network ORGANIZATIONAL
organization is a modern
concept that contracts STRUCTURE
any business
functions
that can be done better
and cheaper. Managers
in this structure spend The spread of resources
the majority of their time is explained by a network
coordinating and organizational structure.
controlling external It can also refer to an
relations. internal organization that

prioritizes open
communication and
relationships over
hierarchy.

TYPES OF ORGANIZATIONAL STRUCTURE

NETWORK-BASED
ORGANIZATIONAL
PROS
Visualizes a company's

STRUCTURE
complex web
of onsite and
offsite relationships.
Allows businesses to be more
adaptable and flexible. CONS
Allow all employees more When dealing with a large
freedom to collaborate, number of offsite processes,
take initiative, and make it can quickly become overly
decisions. complicated.
Employees may find it more
difficult to figure out who
has the final say.
 REFERENCES:

https://courses.lumenlearning.com/boundless-management/chapter/common-
organizational-
structures/#:~:text=The%20network%20structure%20is%20a,and%20external%20to%20th
e%20firm.
https://uk.indeed.com/career-advice/career-development/hierarchical-
structurehttps://www.indeed.com/career-advice/career-development/functional-
structure#:~:text=A%20functional%20organizational%20structure%20is,the%20direction%
20of%20designated%20leaders.
https://www.accountingtools.com/articles/divisional-organizational-structure
https://www.nibusinessinfo.co.uk/content/flat-organisational-
structurehttps://courses.lumenlearning.com/boundless-management/chapter/common-
organizational-
structures/#:~:text=The%20network%20structure%20is%20a,and%20external%20to%20th
e%20firm.

THANK YOU!