ORGANIZATIONAL STRUCTURE

Organizational structure refers to the way in which a group is formed, its

lines of communication, and its means for channeling authority and
making decisions.

It clarifies the formal relationships of individuals in the various positions

within the organization

WHY DO WE NEED AN ORGANIZATIONAL

STRUCTURE ?

IMPORTANCE OF ORGANIZATIONAL STRUCTURE

It enables members to know what their responsibilities

It frees the manager and the individual workers to concentrate on

their respective roles and responsibilities

It coordinates all organization activities so there is minimal

duplication of effort or conflict.

Avoids overlapping of function because it pinpoints responsibilities.

Shows to whom and for whom they are responsible

PURPOSE :

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.

ORGANIZATIONAL RELATIONSHIP
1.
2.

FORMAL RELATIONS
INFORMAL RELATIONS

ORGANIZATIONAL RELATIONSHIP
1. FORMAL RELATIONS

Formal structure, through departmentalization and work division, provides a

framework for defining managerial authority, responsibility and accountability

FORMAL STRUCTURE
Should
not be
flexibl
e

Channeled
individual
and group
efforts

Well
define
d jobs

Formal
Organization

Definite
authority /
responsibil
ity

ORGANIZATIONAL RELATIONSHIP
2. INFORMAL RELATIONS

Informal structure is generally social, with blurred or shifting lines of authority

and accountability.

It also has its own channels of communication, which may distribute information
more broadly and rapidly than the formal communication system.

INFORMAL STRUCTURE
A network of personal / social
relationships, not established,
required by FORMAL
organization but arising
spontaneously

Loosely
organize
d
flexibl
e

Structure (membership),
communication networks
(grapevine), and
Informal
relationships behaviors
organization
and norms) do not
necessarily follow those of

ill
defined

the formal organization.

Spontaneo
Spontaneo
us
us

TYPES OF ORGANIZATIONAL STRUCTURE

1.

Tall or Centralized Organizational Structure

2.

Flat or Decentralized Organizational Structure

TALL ORGANIZATIONAL 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.

TALL ORGANIZATIONAL STRUCTURE

ADVANTAGES:
1.The quality of performance will improve
due to close supervision.
2.Discipline will improve.
3.Superior - Subordinate relations will
improve.
4.Control and Supervision will become easy
and convenient.
5.The manager gets more time to plan and
organise the future activities.
6.The efforts of subordinates can be easily
coordinated.
7.Tall Organisation encourages development
of staff.
8.There is mutual trust between superior and
subordinates

DISADVANTAGES:
1.
2.
3.
4.
5.
6.
7.
8.

Tall Organisation creates many levels of management.

There are many delays and distortion in
communication.
Decisions and actions are delayed.
It is very costly because there are many managers.
The managers are paid high salaries.
It is difficult to coordinate the activities of different
levels.
There is strict supervision. So the subordinates do not
have any freedom.
Tall Organisation is not suitable for routine and
standardised jobs.
Here, managers may became more dominating.

FLAT ORGANIZATIONAL 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.

FLAT ORGANIZATIONAL STRUCTURE

ADVANTAGES

DISADVANTAGES

1. Flat Organization is less costly

because it has only few managers.
2. It creates fewer levels of management.
3. Quick decisions and actions can be
taken because it has only a few levels
of management.
4. Fast and clear communication is
possible among these few levels of
management.
5. Subordinates are free from close and
strict supervision and control.
6. It is more suitable for routine and
standardized activities.
7. Superiors may not be too dominating
because of large numbers of
subordinates.

1.
2.
3.
4.
5.
6.
7.
8.

There are chances of loose control because there are

many subordinates under one manager.
The discipline in the organization may be bad due to loose
control.
The relations between the superiors and subordinates may
be bad. Close and informal relations may not be possible.
There may be problems of team work because there are
many subordinates under one manager.
Flat organization structure may create problems
of coordination between various subordinates.
Efficient and experienced superiors are required to
manage a large number of subordinates.
It may not be suitable for complex activities.
The quality of performance may be bad

ORGANIZATIONAL CHART
Organizational chart is a line drawing that shows how the parts of an
organization are linked.
The organization chart establishes the following:
Formal lines of authoritythe official power to act

Responsibilitythe duty or assignment

Accountabilitythe moral responsibility

ORGANIZATIONAL CONCEPTS:
1. AUTHORITY is defined as the official power to act. It is power given
by the organization to direct the work of others.
Example: A manager may have the authority to hire, fire, or discipline others.

2. A RESPONSIBILITY is a duty or an assignment. It is the

implementation of a job.
For example, a responsibility common to many charge nurses is establishing
the units daily patient care assignment

3. DELEGATION

is the process of assigning duties or responsibilities

along with corresponding authority to another person. Authority must
be delegated with the responsibility.

4. ACCOUNTABILITY means that individuals agree to be morally

responsible for the consequences of their actions.
Example: A nurse who reports a medication error is being accountable for the
responsibilities inherent in the position.

CHARACTERISTICS OF AN ORGANIZATIONAL
CHART

Division of Labor/Work

Chain of Command

Span of control

Unity of command

Authority

DIVISION OF LABOR/WORK
Subdivision of work into separate jobs assigned to different people
Potentially increases work efficiency
Necessary as company grows and work becomes more complex

CHAIN OF COMMAND
It is a formal line of authority and communication within the organization and the
structure. demonstrates who formally reports to whom within the organization. The
vertical lines in the chart represent chain of command.

UNITY OF COMMAND
The concept of unity of command is that each person on the organization chart has
one manager or one boss.

SPAN OF CONTROL
Span of control means the number of individuals a person is responsible for
managing. A wide span of control indicates that many people are reporting to a
manager, and a narrow span of control indicates that only a few people are
reporting to the manager.

AUTHORITY
The rights inherent in a managerial position to tell people what to do and expect
them to do it.

TYPES OF ORGANIZATIONAL CHARTS

1. Vertical charts

It shows high-level management at the top with formal lines of authority down
the hierarchy, are most common.

2. A left-to-right (horizontal) charts:

It shows the high-level management at the left with lower positions to the right.
Shows relative length of formal lines of authority, helps simplify understanding
the lines of authority and responsibility.

3. Circular charts

It shows the high-level management in the center with successive positions in

circles. It shows the outward flow of formal authority from the high-level
management. It reduces status implications.

VERTICAL CHART

CIRCULAR CHART

A LEFT-TO-RIGHT (HORIZONTAL) CHART

ADVANTAGES OF AN ORGANIZATIONAL CHART:

1. It provides a quick visual illustration of the organizational structure.
2. It provides help in organizational planning.
3. It shows lines of formal authority, responsibility and accountability.
4. It clarifies who supervises whom and to whom one is responsible.
5. It emphasizes the important aspect of each position.
6. It facilitates management development and training.
7. It is used to evaluate strengths and weakness of current structure.
8. It provides starting points for planning organizational changes.
9. It describes channels of communication.
DISADVANTAGES:
1. Charts become outdated quickly.
2. Does not show informal relationship.
3. Does not show duties and responsibilities.
4. Poorly prepared charts might create misleading effects.

STANDARDS FOR EVALUATING THE EFFECTIVENESS OF HIERARCHICAL

ORGANIZATION STANDARDS
1. Line authority relationships are clearly delineated and defined by the organizational and/or
functional charts and policies;
2. Staff authority relationships are clearly delineated and defined by the organizational and /or
functional charts and policies;
3. Functional authority relations are clearly delineated and defined by the organizational
and /or functional charts and policies;
4. Staff personnel consult with, advise and provide counsel to line personnel;
5. Service personnel functions are clearly understood by line and staff personnel;