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Key Elements of Organizational Structure

What is an Organizational Structure?
Key Elements of Organizational Structure
Common Organizational Designs
Other Design Options
Why do structures differ?
True or False
About this project
The authors
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Final Words

Work Specialization
- the degree to which tasks in the organization are subdivided into separate jobs
  • the entire job is broken down into steps, each step completed by a separate individual
  • individual workers specialize in doing part of an activity
  • involves repetitive performance of a few skills
  • can be viewed as a means to make the most efficient use of employee's skills
  • some tasks require highly developed skills
  • others can be performed by the untrained

Division of labor:

  • makes efficient use of employees skills
  • increases employee's skills through repetition
  • less between-job downtime increases productivity
  • specialized training is more efficient
  • allows the use of specialized equipment
- the basis by which jobs are grouped together
Activities are grouped by:
  • functions performed
  • type of product
  • basis of geography or territory
  • particular type of customer


Chain of Command

- the unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom

authority - refers to the right inherent in a managerial position to give orders and expect the orders to be obeyed

unity of command - states that a subordinate should only have one superior to whom he or she is directly responsible



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