traditional organizational structures unit 5: organizing
TRANSCRIPT
Traditional Organizational StructuresUnit 5: Organizing
What is Organizing? Organizing - is the process of bringing people and
resources together to work toward a goal Organizing creates structures to divide up the work,
arrange the resources, and coordinate activities Organizing identifies who does what, who is in charge
of whom, and how different parts of the business relate to and work with one another
Organizing is one of the four fundamental functions of a manager along with leading, planning, and controlling
What is Organizational Structure?
An Organizational Structure is a formal arrangement that shows how divisions, departments, functions, and people link together and interact
These organizational workflows are depicted on a diagram called an organizational chart
The organizational chart represents the way the organization is intended to function
By examining the organizational chart of a business, there are certain things you should be able to learn: Work Responsibilities Supervisory Relationships Communication Channels Levels of Management
The Traditional Organizational Structure
The traditional organizational structure is based on a hierarchy
The vertical hierarchy shows the chain of command The horizontal element of the chart shows the
different jobs or work specialization
Traditional Organizational Structures
Departmentalization - The first decision in creating an organizational structure is to decide how to group people and jobs into work units
Some common bases for grouping jobs together: function product Customer territory
Traditional Organizational Structures
The four traditional organizational structures commonly used throughout the 20th century are: Functional Divisional Hybrid Matrix
Many organizations today still use one of these traditional structures
Traditional Organizational Structures: Functional Structure
In a functional structure, people performing similar tasks are grouped together
Members of functional departments share skills, technical expertise, and responsibilities
This structure works best in businesses that produce only one product or service
Traditional Organizational Structures: Divisional Structure
In a divisional structure people, jobs, and activities are together based on: product produced or service provided process customer or client served geographic area
Traditional Organizational Structures: Hybrid Structure
A hybrid structure combines different types of divisional structure in the same organization
The larger the organization, the more likely it is that the organization will use a hybrid structure
Traditional Organizational Structures: Matrix Structure
The matrix structure combines the functional and divisional structures
The people in a matrix structure belong to two formal groups at the same time, a functional group and a project team
This distinction means they report to two supervisors Matrix structures allow cross-functional teams to
share expertise and information quickly to solve problems
Traditional Organizational Structures: Matrix Structure
Your Task Complete this chart (can be found in the
S: drive)
Advantages Disadvantages
Functional
Divisional
Matrix