2. A social unit of people, systematically structured
and managed to meet a need or to pursue
collective goals on a continuing basis.

3. DEFINITIONS
• Organizing: the process by which managers
establish working relationships among employees
to achieve goals.
• Organizational Structure: formal system of task &
reporting relationships showing how workers use
resources.
• Organizational design: managers make specific
choices resulting in a given organizational
structure.
• Successful organizational design depends on the
organization’s unique situation

4. All Organizations have a management structure
that determines the relationships b/w
functions and positions and subdivides and
delegates roles, responsibilities and authority
to carry out defined tasks.

5. It is a framework within which an Organization
arranges it’s lines of authorities and
communications and allocates rights and
duties.

6. 1. Tall Organizational Structure
2. Flat Organizational Structure
3. Virtual Organizational Structure
4. Boundary less Organizational Structure

7. • Other names:- Hierarchial, centralized or
Bureaucratic structure.
• Large, complex organizations often require a
taller hierarchy.
• In its simplest form, a tall structure results in one
long chain of command similar to the military.
• As an organization grows, the number of
management levels increases and the structure
grows taller. In a tall structure, managers form
many ranks and each has a small area of control.

9. • Other names:- Horizontal, Decentralization or
participatory structure)
• Flat structures have fewer management
levels, with each level controlling a broad area or
group.
• Flat organizations focus on empowering
employees rather than adhering to the chain of
command.
• By encouraging autonomy and self-direction, flat
structures attempt to tap into employees’
creative talents and to solve problems by
collaboration.

11. Matrix Organizational Structure
• Managers group people by function and product
teams simultaneously.
• Results in a complex network of reporting
relationships.
• Very flexible and can respond rapidly to change.
• Each employee has two bosses which can cause
problems.
• Functional manager gives different directions
than product manager and employee cannot
satisfy both.

12. • Virtual organization can be thought of as a way in
which an organization uses information and
communication technologies to replace or
augment some aspect of the organization.
• People who are virtually organized primarily
interact by electronic means.
• For example, many customer help desks link
customers and consultants together via
telephone or the Internet and problems may be
solved without ever bringing people together
face-to-face.

13. • A boundary less Organizational structure is a
contemporary approach in Organizational design.
• It is an organization that is not defined by, or
limited to the horizontal, vertical or external
boundaries imposed by a pre-defined structure.
• It behaves more like an organism encouraging
better integration among employees and closer
partnership with stakeholders.
• It’s highly flexible and responsive and draws on
talent wherever it’s found.

14. • Determines the manner and extent to which
roles, power and responsibilities are
delegated.
• Depends on objectives and strategies.
• Acts as a perspective through which
individuals can see their organization and it’s
environment.

15. • Impacts effectiveness and efficiency.
• Reduces redundant actions.
• Promotes teamwork.
• Improves communication.
• Contributes to success or failure.

16. • Divides work to be done in specific jobs & dept.
• Assigns tasks and responsibilities associated with
individual jobs.
• Coordinates diverse organizational tasks.
• Establishes relationship b/w individuals, groups
and departments.
• Establishes formal lines of authority.
• Allocates organizational resources.
• Clusters jobs into units.

18. Organizational Principles
The continuous line of
authority that extends from upper level of
organization to lowest level of organization
and clarifies who reports to whom.
The rights inherent in a managerial
position to tell people what to do and expect
them to do it.

19. Organizational principles
The obligation or expectation
to perform. Responsibility brings with it
accountability.
The concept that a person
should have one boss and should report only
to him.
The assignment of authority to
another person to carry out specific duties.

20. Organizational principles

21. Factors Affecting Organizational
Design
Environment
Determine design
Strategy or organizational Technology
structure
Human Resources

22. Determinants of Structure
• The environment: The quicker the environment
changes, the more problems face managers.
• Structure must be more flexible when environmental
change is rapid.
• Usually need to decentralize authority.
• Strategy: Different strategies require the use of
different structures.
• A differentiation strategy needs a flexible
structure, low cost may need a more formal structure.
• Increased vertical integration or diversification also
requires a more flexible structure.

23. Determinants of Structure
• Technology: The combination of
skills, knowledge, tools, equipment, computers and
machines used in the organization.
• More complex technology makes it harder for managers to
regulate the organization. Technology can be measured by:
• Task Variety: new problems a manager encounters.
• Task Analyzability: programmed solutions available to a
manager to solve problems.
• High task variety and low analyzability present many
unique problems to managers.
• Flexible structure works best in these conditions.
• Low task variety and high analyzability allow managers to
rely on established procedures.

24. Determinants of Structure
• Human Resources: the final factor affecting
organizational structure.
• Higher skilled workers who need to work in
teams usually need a more flexible structure.
• Higher skilled workers often have professional
norms (CPA’s, physicians).
• Managers must take into account all four
factors (environment, strategy, technology and
human resources) when designing the structure
of the organization.

25. • When a company expands to
Supply goods or services
Produces variety of diff. products
Engage in several diff. markets
in such conditions the company can adopt
Departmentalization.

26. • Functional
• Product
• Customer
• Geographic
• Process

27. • Arranging the business according to what each
section or department does.

29. • Organizing according to the different types of
products produced.

31. • Where different customer groups have
different needs.

33. • It’s based on geographical or regional
structure.

35. • Where products have to go through stages as
they are made.

37. • Department can be staffed with specialized
training.
• Shared management responsibility.
• Supervision is facilitated.
• Coordination within the department is easier.

38. • Inter department documentation of activities
is not possible.
• Decision-making becomes slow.
• Delays when there are problems.
• Accountability and performance are difficult
to monitor.

39. Minimum requirements of an
Organizational Structure
• Clarity
• Economy
• Direction of vision
• Decision making
• Stability and Accountability
• Perception and self - renewal

40. Analyzing Organizational Structures in
a Division of Nursing
• Compile a list of the key activities determined by the
mission and objectives of patient care Decide on the
units of the Organization
• Decide which units or components will be joined and
which separated
• Decide on the size and shape of the units or
components
• Decide on appropriate placement and relationships of
different units or components
• Draw or diagram the design and put it into operation.
This will result in an organizational chart.

41. Thank u