Organization Structure – PowerPoint PPT Template

Organization Structure

Lecture Outline
1. Organization Structure
2. The Relationship of Organization Design to Efficiency vs. Learning Outcomes
3. Ladder of Mechanisms for Horizontal Linkage and Coordination
4. Departmental Grouping Options
5. Organization Design Alternatives
6. Dual-Authority Structure in a Matrix Organization

Organizational structure aligns and relates parts of an organization, so it can achieve its maximum performance. The structure chosen affects an organization's success in carrying out its strategy and objectives. Leadership should understand the characteristics, benefits and limitations of various organizational structures to assist in this strategic alignment.

Organizational structure is the method by which work flows through an organization. It allows groups to work together within their individual functions to manage tasks. Traditional organizational structures tend to be more formalized—with employees grouped by function (such as finance or operations), region or product line. Less traditional structures are more loosely woven and flexible, with the ability to respond quickly to changing business environments.

Organizational structures have evolved since the 1800s. In the Industrial Revolution, individuals were organized to add parts to the manufacture of the product moving down the assembly line. Frederick Taylor's scientific management theory optimized the way tasks were performed, so workers performed only one task in the most efficient way. In the 20th century, General Motors pioneered a revolutionary organizational design in which each major division made its own cars.

Today, organizational structures are changing swiftly—from virtual organizations to other flexible structures. As companies continue to evolve and increase their global presence, future organizations may embody a fluid, free-forming organization, member ownership and an entrepreneurial approach among all members.

The PPT includes detailed examples of vertical and horizontal linkages, illustrating their impact on organizational communication and coordination. It also explores the use of task forces and teams in achieving effective horizontal integration.