ORGANIZATION AND

MANAGEMENT

Lesson 2: Types of
Organization Structures
Organization Structure
•is a system made up of
tasks to be accomplished
•Unite the work of different
individual person and groups
TYPES OF
ORGANIZATIONAL
STRUCTURE
1. VERTICAL
STRUCTURE
Clears out issues related to
authority rights,
responsibilities and reporting
relationships(Bateman and
Snell)
* Authority rights- refers to the
legitimate rights of individuals,
appointed in positions like
presidents, vice pres, manager,
and etc. to give orders to the
subordinate, who in turn, report
to them what they have dobe.
2. HORIZONTAL
STRUCTURE
refers to the
departmentalization of an
organization into smaller work
unit as tasks become
increasingly varied and
numerous
TYPES OF DEPARTMENT
1. Line
Department/Production-deal
directly with firm’s primarily
goods and services;
responsible for manufacturing,
selling and providing services
to clients
2. Staff Department/research
and development-support the
activities of the line department
by doing research, attending to
legal matters, performing public
relations duties
Functions if staff department:
*functional approach-
subdivision are formed based
on specialized activities asuch
as marketing, production,
financial management and
human resources management
*divisional approach-
departments are formed
based on management of
their products, customers
or geographic areas
covered
Matrix approach-
managers and staff
personnel report to the
superiors, the functional
manager, and the
divisional manager
Types of
Department
3. NETWORK
STRUCTURE
-collection of independent,
usually single function
organizations/companies
that work together in order to
produce a product or service