1.

Give five types of an organizational structure which an organizational manager can use

Flat organizational structure

Many small companies use a flat organizational structure, where very few levels of management
separate executives from analysts, secretaries and lower-level employees. In this organizational
structure decisions are made relatively quickly and it lacks typical bureaucracy of taller organizational
structures-those with many levels.

Functional organizational structure

It is centered on job functions, such as marketing, research and development and finance. It can be used
by small companies when they want to arrange their organizational structure by department.

Product organizational structure

It has managers reporting to the president or head of the company by product type. It is primarily used
by retail companies that have stores in various cities. However stores in each city may still need a local
human resources or marketing department to carry out functions locally.

Geographical organizational structure

The small business Administration is responsible for defining small businesses in different industries. A
geographical organizational structure is when companies decentralize the functional areas.

Matrix organizational structure

A matrix structure provides for reporting levels both horizontally as well as vertically. Employees
must be part of a functional group but may serve on a team that supports new product
development

2. Discuss the importance of organizational structure in a business

Function
Organizational structure is particularly important for decision making. Most companies either have a tall
or flat organizational structure. Small companies usually use a flat organizational structure. Flat
structures enable small companies to make quicker decisions, as they are often growing rapidly with
new products and need this flexibility. As a smaller organization grows, it can decide to add more
management levels. Roles become more defined. Therefore, it is important to know which people
oversee certain functions.

Communication
Importance of organizational structure is particularly crucial for communication. It enables the
distribution of authority. Most companies funnel their communication through department leaders.

Evaluating Employee Performance

Organizational structure is important for evaluating employee performance. The linear structure of
functional and product organizational structures allow supervisors to better evaluate the work of their
subordinates. Supervisors can evaluate the skills employees demonstrate, how they get along with other
workers, and the timelines in which they complete their work.
Achieving Goals
Organizational structure is particularly important in achieving goals and results. Organizational structure
allows for the chain of command. Department leaders are in charge of delegating tasks and projects to
subordinates so the department can meet project deadlines.

Prevention/Solution
Organizational structure enables companies to manage change in the marketplace, including consumer
needs, government regulation and new technology. Department heads and managers can meet, outline
various problem areas, and come up with a solution as a group.

3. Explain four classical theory of management

a) Scientific- This theory was propounded by Frederick Winslow Taylor. Taylor believed that by analyzing
work in a scientific manner, it was possible to find the one best way to perform a task. He felt that by
organizing work in the most efficient way, the organizations productivity would be increased, allowing it
to reward employees with additional Remuneration which Taylor argued employees only motivation.

b) Bureaucratic- It was developed by a German political economist Max Webber (1864-1920). According
to him, bureaucracy is the most efficient form of organization. The organization has well defined line of
authority. It has clear rules and regulations which are strictly followed.

c) Administrative-The first expert of administrative Management theory was Hemi Fayal (1841-1925) Fayal
is called the Father of Modern Management. According to this theory it is the process of getting things
done through people, their importance is given to groups and not individuals.

d) Human-it focuses more on individuals in a workplace than the rules, procedures and processes instead
of directives coming directly from a management. A human provides communication between employees
and managers allowing them to interact with one another to help make decisions.

References:
Business Dictionary Flat organization

The Business plan: A strong Business organization is paramount to Business success

Lamar University organizational structure

Reference for Business: organizational structure