ORGANIZATIONAL

STRUCTURE
Presentation November 22, 20232
 Objectives
At the end of this lesson, students should will be able to:

DISTINGUISH BETWEEN TALL AND FLAT ORGANIZATIONAL HIERARCHIES

IDENTIFY THREE (3) USE OF AN ORGANIZATIONAL CHART

CONSTRUCT AND INTERPRET ORGANIZATIONAL CHARTS

 Organizational
Structure
Organizational structure refers to the framework that
defines how activities, tasks, and responsibilities are
organized, coordinated, and directed within an
organization. It outlines the hierarchy of authority,
reporting relationships, and the distribution of tasks
among members of the organization. The structure
determines how information flows, how decisions
are made, and how the organization's resources are
allocated.
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 Organizational
Chart
An organizational chart is a visual representation of the structure
of an organization. It illustrates the hierarchy of positions,
reporting relationships, and the division of responsibilities within
an organization.

Organizational charts typically use shapes (such as rectangles or

circles) to represent positions or roles and lines to indicate the
relationships between them.

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 Organizational
Chart
Looking at an organizational chart, you can use it to identify:

1. The organizational hierarchy

2. Chain of command

3. Span of control

4. Auxiliary or support staff to managers

(eg. secretaries, legal advisors, administrative assistants)

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 Organizational
Hierarchy
CEO/ MD

HR Finance Sales
Manager Manager Manager

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 Organizational
Hierarchy
Hierarchy refers to the structured arrangement of roles, levels, and
authority within an organization. It establishes the order of
importance and the reporting relationships between different
levels of positions.
Hierarchy includes various levels of management, such as top-level
executives, middle management, and front-line employees. It also
encompasses the overall structure of the organization.
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 Chain of
Command
The chain of command is a specific aspect of hierarchy that
outlines the formal lines of authority and communication within an
organization. It details the flow of decision-making from the top
levels to the bottom and vice versa.
The chain of command includes the direct reporting relationships
between individuals or positions. It clarifies the path through
which orders, decisions, and information flow within the
organization. 9
 Span of Control
CEO/MD

HR FINANCE
MANAGER MANAGER

TRAINING PAYROLL BUDGET

LEAVE
OFFICER OFFICER OFFICER
OFFICER
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 Span of control in business refers to the number of

subordinates or employees that a manager can

effectively supervise and control.

It influences the organizational structure and the

distribution of authority within a company.

Span of control
A wider span of control means fewer levels of management and a more

decentralized structure, while a narrower span of control suggests more

layers of management and a more centralized approach.

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 It influences the organizational structure and the

distribution of authority within a company.

A wider span of control means fewer levels of management and a more

decentralized structure, while a narrower span of control suggests more

layers of management and a more centralized approach.

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 Tall Organizational

A tall organizational chart has multiple levels of hierarchy with more layers

of management between the top and bottom. This structure often results

in a more centralized decision-making process.

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 Flat Organizational
A flat organizational chart has fewer levels of management, promoting a

broader span of control for each manager. This structure encourages

quicker decision-making and can foster a more collaborative and flexible

work environment. The choice between tall and flat structures depends on

the organization's size, complexity, and communication needs..

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MATT ZHANG FRANCOIS MERCER
CEO / FOUNDER MANAGER
 Group Activity
Jameson Company Ltd is a private limited company. Robert Jameson , who established the

company 15 years ago, serves as it managing director. His wife, Libby Jameson, functions as

his secretary. The company is divided into four departments. The head of each department

reports directly to Robert. The Marketing Department is managed by his son Terrance, the

Personnel Department is managed by his daughter- in-law Christine, the Finance Department is

managed by his daughter Shian, and the Production

MATT Department
ZHANG is managed by his
FRANCOIS eldest son
MERCER
CEO
Joshua. Each department has four employees who / FOUNDER
report MANAGER
directly to the department managers.
Summary

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THANK YOU