ORGANIZATIONAL STRUCTURES
Matrix Model organizational structure where In a large tech company, a software
employees report to multiple managers— engineer might report to the head of the
May multiple managers typically, both a functional manager and a Software Development Department
project manager. This approach is (functional manager) while also working
designed to optimize resource use across on a specific project under a Project
various projects and departments. Manager. For instance, while contributing
to the development of a new mobile app,
It combines aspects of both functional the engineer balances responsibilities for
and projectized organizations, allowing for ongoing department tasks and project-
better coordination and collaboration specific goals.
across different functions.
Holocracy (decentralization) decentralized management system where A digital marketing agency adopts
decision-making is distributed throughout holocracy, where teams responsible for
Everyone or most of the employees have self-organizing teams rather than a content creation, social media
the right to make decisions based on their traditional management hierarchy. Each management, and client relations operate
specific domains team, or "circle," has the authority to independently. Each circle sets its own
make decisions in their domain, leading to goals, experiments with new strategies,
more autonomy and flexibility. and adapts quickly to changes in client
demands, without needing approval from
a higher management level.
Centralized decision-making authority is concentrated A large retail chain with stores nationwide
at the top levels of management. All major employs a centralized model. The head
Isa lang pwede mag decide decisions and policies are made by a few office decides on pricing, marketing
key individuals or a central body, with little strategies, and product offerings for all
input from lower levels of the stores. Store managers and employees
organization. have little authority to make decisions
locally, ensuring consistency across all
locations but potentially reducing flexibility
to respond to local market conditions.
Functional Structure In a functional structure, the organization A medium-sized software company has
is divided into departments based on separate departments for software
specialized functions, such as development, customer support,
marketing, finance, human resources, marketing, and finance. Each department
and production. Each department is focuses on its specific tasks, with the
managed independently, with a clear
hierarchy and a focus on efficiency within head of each department reporting
each function. directly to the CEO.
Characteristics:
• Clear lines of authority and
responsibility within each
department.
• Specialization leads to greater
expertise and efficiency.
• Potential for silos, where
departments may focus on their
own goals rather than the
organization's overall objectives.
Divisional Structure The divisional structure groups the A global consumer goods company is
organization based on products, services, divided into divisions based on product
Parang may sarili silang mini separate or geographic regions. Each division lines: household products, personal care,
entity because they have their own operates as a semi-autonomous unit, and food items. Each division has its own
production, sales, etc. but still under the with its own resources and objectives. production, marketing, and sales teams,
same company. This structure is often used by large tailored to the specific needs of its
organizations with diverse product lines or product line.
operations in multiple locations.
Characteristics:
• Each division operates
independently with its own
resources and objectives.
• Flexibility to respond to market
changes or specific customer
needs.
• Potential duplication of resources
across divisions
Flat Structure A flat structure has few or no levels of A startup with 15 employees operates
middle management between staff and with a flat structure, where everyone
executives. This structure emphasizes a reports directly to the founders. Decisions
more horizontal approach to are made collaboratively, and employees
isa lang ang boss. Horizontal ang all, management, with a focus on employee have a significant degree of autonomy in
okay sya pero maka create sya role autonomy and a reduction in hierarchical their work.
ambiguity layers.
Characteristics:
• Fewer levels of management,
leading to faster decision-
making.
• Greater employee involvement in
decision-making processes.
• Potential for role ambiguity or
overload due to a lack of clear
hierarchy.
Network Structure organization relies on a core group of A fashion brand designs its products in-
functions or processes, while outsourcing house but outsources production to
Outsourcing, Partnership, ETC. or partnering with other organizations to manufacturers in different countries. The
handle additional tasks. This structure brand also partners with marketing
allows for greater flexibility and focus on agencies for advertising and social media
core competencies. management, allowing it to focus on
design and brand strategy.
Characteristics:
• Focuses on core competencies,
with other functions outsourced or
handled by partners.
• Highly flexible and adaptable to
changes in the market or
technology.
• Potential challenges in managing
relationships with external
partners.
Team-Based Structure A team-based structure organizes the A video game development company
company around teams rather than forms teams for each new project, with
Somehow same ang goal? Basta to traditional departments. Teams are often members from programming, design,
achieve certain goal cross-functional, comprising members marketing, and customer support working
from different areas who work together to together from the start. These teams
achieve specific goals or complete operate with a high degree of autonomy
projects. to bring the project to completion.
Characteristics:
• Emphasizes collaboration,
innovation, and flexibility.
• Teams are empowered to make
decisions and are often self-
managed.
• Potential for challenges in
coordination if team goals are not
aligned with organizational
objectives.
THEORIES IN IO PSYCH
Institutional Theory explores how organizations are shaped A university decides to offer online
by the broader social, cultural, and courses and obtain accreditation from a
regulatory environment. It posits that recognized educational body because this
organizations strive to gain legitimacy and is increasingly expected in the higher
acceptance by conforming to established education sector. By doing so, the
norms, values, and expectations in their university aligns with societal
institutional context. The theory highlights expectations and maintains its legitimacy
how organizations are influenced by in the academic community.
external pressures, such as government
regulations, industry standards, and
cultural beliefs.
Humanistic Theory rooted in the Human Relations A tech company implements flexible work
Movement, emphasizes the importance of hours, provides opportunities for
human needs, motivations, and the well- professional development, and promotes
being of employees in the workplace. This a culture of open communication. By
theory suggests that organizations addressing employees' needs for
function best when they consider the autonomy, growth, and recognition, the
psychological and social needs of their company sees increased job satisfaction
employees, fostering a positive work and productivity.
environment and encouraging employee
participation and growth.
Scientific Management Theory developed by Frederick Taylor, focuses In a manufacturing plant, management
on improving efficiency and productivity introduces standardized procedures for
through the systematic study of work assembling products, with each worker
processes. It advocates for the assigned a specific, repetitive task. By
standardization of tasks, division of labor, analyzing the workflow and minimizing
and the use of time-and-motion studies to unnecessary movements, the plant
optimize performance. The theory significantly reduces production time and
emphasizes the importance of selecting increases output.
the right workers for specific tasks and
providing them with proper training and
incentives.
Systems Theory views an organization as a complex set of In a hospital, the administration
interrelated components that work recognizes that patient care involves
together to achieve common goals. It coordination between multiple
emphasizes the interconnectedness of departments (e.g., emergency, surgery,
various subsystems (e.g., departments, radiology). To improve overall efficiency
teams) and how changes in one part of and patient outcomes, the hospital
the organization can affect the whole. The implements a systems approach,
theory promotes a holistic approach to ensuring that information flows smoothly
management, recognizing that the between departments, and that each
success of the organization depends on department’s activities are aligned with
the effective interaction and alignment of the hospital’s overarching goal of
its parts. providing high-quality care.
Classical Management Theory one of the earliest frameworks for In a large manufacturing company, the
understanding organizational management follows a strict hierarchy,
management. It emerged during the where each level of employee reports to a
Industrial Revolution and focuses on supervisor, and all decisions are made by
efficiency, productivity, and organizational top management. Employees have
structure. This theory is characterized by specific roles, and standardized
its emphasis on hierarchy, clear division procedures dictate how tasks are
of labor, standardized procedures, and a performed. For instance, assembly line
strong central authority. It includes sub- workers are trained to follow exact steps
theories such as Scientific Management in producing goods to ensure consistency
(by Frederick Taylor), Administrative and efficiency.
Theory (by Henri Fayol), and
Bureaucratic Management (by Max
Weber).
Social Exchange Theory rooted in social psychology and posits An employee considers staying late to
that human relationships and social help a colleague finish a project. They
behavior are based on a cost-benefit weigh the benefits (e.g., strengthening
analysis. The theory suggests that their relationship with the colleague,
individuals engage in social interactions possibly receiving a favor in return, or
by weighing the potential rewards and recognition from their boss) against the
costs, seeking to maximize benefits while costs (e.g., personal time sacrificed,
minimizing losses. In the context of potential fatigue). The employee decides
organizations, this theory is often used to to stay late, anticipating that the long-term
understand employee relationships, benefits outweigh the immediate costs.
motivation, and behavior in the
workplace.
Contingency Theory asserts that there is no one-size-fits-all A multinational corporation operates in
approach to management and that the different countries, each with its own
most effective management style cultural and economic context. In a
depends on the specific circumstances rapidly changing market environment, the
and variables within an organization. company adopts a flexible management
Factors such as the external environment, approach, using a decentralized structure
organizational size, technology, and the in dynamic markets (to allow quick
nature of tasks influence which decision-making) and a centralized
management practices will be most structure in more stable markets. This
effective. The theory suggests that allows the company to remain competitive
managers must adapt their strategies and in diverse conditions by tailoring its
structures to fit the situation. management practices to the specific
needs of each market.