Types of Organization

Structures
• An organization structure is a
system made up of tasks to be
accomplished, work
movements from one work
level to other work levels in
the system, reporting
relationships, and
communication passageways
that unite the work of
different individual persons
and groups.
Types of Organizational Structures

vertical horizontal network

structure structure structure
 • According to Bateman and Snell
(2008), a vertical structure clears
out issues related to authority
rights, responsibilities, and
reporting relationships. Authority
Vertical right refer to the legitimate rights
Structure of individuals, appointed in
positions like president, vice
president, manager, and the like, to
give orders to their subordinates,
who in turn, report to them what
they have done.
Below the top-level managers Under the middle-level
are the middle-level managers are the lower-level
managers in charge of managers which include
departments who, as earlier office managers, sales
mentioned m, report to them. managers, and supervisors
who directly report to the
former.
Employees under the lower-
level managers also have
reporting relationships with
their respective department
managers.
Horizontal Structure

• It refers to the
departmentalization of an
organization into smaller
work units as tasks become
increasingly varied and
numerous.
 Functional approach – where the subdivisions are
formed based on specialized activities such as
marketing, production, financial management, and
human resources management.

Meanwhile,
Divisional approach – where departments are formed
departmentalization may based on management of their products, customers, or
be done using three geographic areas covered.
approaches:

Matrix approach – is a hybrid form of

departmentalization where managers and staff
personnel report to the superiors, the functional
manager, and the divisional manager.
Divisional
Approach
Matrix
Approach
 Network Structure
• It is a collection of independent,
usually single function
organizations/ companies that work
together in order to produce a
product or service. Such network
organizations are each capable of
doing their own specialized work
activities independently, like
producing, distributing, designing,
etc., but are capable of working
effectively at the same time with
other network members.
3. Network
Structure
• Often their communication is by
electronic means where sharing of
information is speedy. This results
to their ability to respond at once
to their customers‘ demand.
Organizational structure are
needed to keep employees needed,
to build a learning organization
and to manage global structural
problems.
Definition of Terms

• Vertical Organization Structure – clears out issues

related to authority rights, responsibilities, and reporting
relationships.

• Horizontal Organization Chart – refers to a section

organizations that work together to produce a product or
service.
Thank you for
your attention!