Organizational Structure

Group members
Sheraz Shakeel Kiyani
Talha Faiq
Halima Kabir
Subject: Organizational Behavior
Section: B
BBA, 4th semester
There is no such thing as a good or bad organizational
structure; there are only appropriate or inappropriate
ones.

Harold Kerzner
 Introduction

Organizational Structure
 Literature Review

• Tamika Kampini (2018)

• John and James (2014)

• Faruk Kalay and Gary S. Lynn (2016)

Importance of Organizational Structure

• Responsibility
• Concentration
• Coordination
 Organizational Relationship

• Formal Relations
• Informal Relations
 Formal Relations

• Authority
• Rules and policies
• Communication
• Rigid and stable
 Informal Relations

• Social Structure

• Personal qualities
• Communication
• Flexible
 Types

1. Tall or Centralized Organizational Structure

2. Flat or Decentralized Organizational Structure
3. The Matrix Structure
 Types

1. Tall or Centralized Organizational Structure

• More managerial Layers
 Tall Organizational Structure

• Advantages
• Quality of performance
• Discipline
• Control and Supervision
• Disadvantages
• Delays & Distortion
• Costly
 Types

2. Flat or Decentralized Organizational Structure

• Fewer managerial Layers

 Flat Organizational Structure

• Advantages
• Less costly
• Quick decisions
• Clear communication
• Disadvantages
• Loose of control
• Bad discipline
 Types

3. The Matrix Structure

 Elements
The structure of an organization usually features six
different elements:

● Work specialization
● Departmentalization
● Chain of command
● Span of control
● Centralization and decentralization
● Formalization
 Examples

Flat

McDonald's Valve
 Examples

Tall
Walmart Tesco
 Examples

Matrix

Starbucks Adidas
 Recommendations

• Dream structure
• Organize by function
• Combine function
• Chain of command
• Communicate it
 Conclusion

• Sheila (2014)
• Ingram (2019)
• Brian (2019)