ORGANIZATIONAL
STRUCTURE AND
DESIGN
OVERVIEW
• Organizational structure
• Types of Organizational Structure
• Organizational design
• Key considerations in organizational design include
• Factors influencing Organizational Structure and Design
• Challenges in Organizational Structure and Design
• Principle of Organizational Design and its impact
• Key Principles and their Impacts
1
ORGANIZATIONAL STRUCTURE AND
DESIGN
are essential aspects of how a company arranges
its employees, tasks, and resources to achieve
its goals. These concepts help determine how
information flows within the organization, how
decisions are made, and how work is divided and
coordinated.
ORGANIZATIONAL STRUCTURE
refers to the framework that outlines how various roles,
responsibilities, and tasks are organized and coordinated
within an organization.
TYPES OF ORGANIZATIONAL STRUCTURE
Functional Structure: Organized based on specialized
functions or departments
Divisional Structure: Organized around products, services,
geographic regions, or customer groups.
Matrix Structure: Combines elements of both functional
and divisional structures, often involving dual reporting
relationships.
Flat Structure: Few hierarchical levels with a wide span of
control.
Hierarchical Structure: Multiple levels of management with
clear lines of authority.
ORGANIZATIONAL DESIGN
involves the process of aligning an organization's
structure with its overall strategy. The design aims to
enhance efficiency, effectiveness, and adaptability
KEY CONSIDERATIONS IN ORGANIZATIONAL DESIGN
INCLUDE:
Centralization vs. Decentralization: Determines the level
at which decisions are made within the organization.
Departmentalization: Deciding how to group tasks and
activities based on functions, products, geography, or
other factors.
Span of Control: The number of subordinates a manager can
effectively supervise.
Formalization: The extent to which rules, procedures, and
guidelines are in place.
FACTORS INFLUENCING ORGANIZATIONAL STRUCTURE
AND DESIGN
Organizational Size: Larger organizations may require
more complex structures.
Technology: The nature of the business and the use of
technology can influence structure.
Environment: The external environment, including
market conditions and competition, can impact
organizational design.
Strategy: The chosen strategy, whether cost leadership,
differentiation, or focus, affects organizational structure.
CHALLENGES IN ORGANIZATIONAL STRUCTURE AND
DESIGN
Resistance to Change: Employees may resist changes
to established structures.
Coordination Issues: Poorly designed structures can
lead to communication and coordination challenges.
Adaptability: Structures may need to adapt to changes
in the business environment.
PRINCIPLE OF ORGANIZATIONAL DESIGN AND
ITS IMPACT
are fundamental guidelines that organizations
follow when structuring their internal
components to achieve their objectives
efficiently and effectively. These principles
help organizations adapt to their
environments, enhance communication, and
facilitate coordination.
KEY PRINCIPLES AND THEIR IMPACTS:
• Clarity of Purpose: • Technology Integration:
• Simplicity: • Continuous
• Flexibility and Adaptability:
Improvement:
• Integration and Coordination:
• Empowerment and Autonomy:
• Alignment with Strategy:
• Scalability:
• Customer-Centric Design
THANK YOU
Presented By : Zelca Bon
Melissa Bio
Zaybil Bornilla