Organisational
Behaviour
Lesson 7:
Foundations of Organisation Structure &
Organisation Communication
Lecturer: Raymond Wiranatakusuma
rwiranatakusuma@[Link]
Today’s Lesson
Organisational Structure
• Elements of organisation structure
• Types of organisation structure
Organisational Communication
• Communication Flow: Vertical, Horizontal, Diagonal Communication
• Organisation communication & organisation culture
• Communication skills for managers
• Channels of communication & technology
Organisation Structure
Organization Structure
◼ Defines how job tasks are formally
divided, grouped, and coordinated
◼ Key elements to be addressed:
◼ Work specialization
◼ Departmentalization
◼ Chain of command
◼ Span of control
◼ Centralization/Decentralization
◼ Formalization
14-4
Work Specialization
◼ Division of labor
◼ Describes the degree to which activities in the organization are subdivided into
separate jobs
◼ Creates problems when carried too far
14-5
Departmentalization
◼ Basis by which jobs are grouped together
◼ Function
◼ Product
◼ Geography
◼ Process
◼ Customer
14-6
Chain of Command
◼ Unbroken line of authority that extends from the top of the organization to the
lowest echelon and clarifies who reports to whom
◼ Authority
◼ Unity of Command principle
◼ Fewer organizations find this is effective
14-7
Span of control
◼ Determines the number of levels and managers an organization has
◼ Trend in recent years has been toward wider spans of control
◼ Wider span depends on employees knowing their jobs well
14-8
Centralization and Decentralization
◼ Centralization - degree to which decision making is concentrated at a single point in
the organization
◼ Highly centralized is when top managers make all the decisions
◼ More decentralized is when front line employees and managers make decisions
14-9
Formalization
◼ Degree to which jobs
within the organization are
standardized
14-10
Common Types of Organisation Structure
Useful reading: [Link]
[Link]
Divisional Structure
◼ Can take on many forms, such as by
market, product, or location.
◼ Each division has its separate P&L and a
division president who reports to the CEO.
Matrix
Manager Manager Manager Manager
R&D
Group
Helix org R&D
Group
R&D
Group
Agile (Team Based) organisations …
Case Study: Haier
◼ Describe the organisation structure of Haier.
◼ Do you consider this as a functional, divisional, matrix, or agile structure? Explain.
◼ What are the benefits of this structure/why does Haier choose to use this structure?
Organisation Communication
Activity/Discussion
Work in a group of 3 to 4 people. Use the resources given in the next 3 slides and your
understanding of Organisation Communication to answer the following questions. Let’s
practice your cognitive skills and not use AI and the internet for this activity. Be ready to
present and explain your answer to the class without reading your notes.
ALL Groups:
1. What is organisational communication?
2. Explain what “vertical communication”, “horizontal communication”, and “diagonal
communication” mean
GROUP 1 & 2:
3. Discuss the importance of upward communication.
4. Discuss reasons that prevent upward communication from effectively taking place in
organisations. What can organisations do to ensure effective upward communication? Explain.
GROUP 3 & 4
3. Discuss the importance of Horizontal Communication.
4. Discuss factors that prevent effective horizontal communication within an organisation.
What can organisations do to ensure effective horizontal communication?
GROUP 5 & 6
3. What are the advantages and disadvantages of diagonal communication?
4. Should organisations encourage diagonal communication? Justify your opinion.
What is “Organisation Communication”?
Downward & Upward Communication
Communication Flows
Source: [Link]
Visit & Read:
Communication Flo
ws
Source: [Link]
Communication necessary throughout the organisation
At each management
level the roles and
responsibilities are
different …
Communication
plays an important
part at all levels of an
organisation…
What makes a
manager an excellent
communicator?
◼ Active listening.
◼ Authenticity.
◼ Ethical - do what you say!
◼ Trust and rapport.
◼ Be clear and succinct
◼ Emotional intelligence.
◼ Be aware of your non-
verbal body language
◼ Articulation and tone of
voice.
◼ Ask great questions.
◼ Provide feedback
Channels of communication in organisations
• It is important to select the correct channel of
communication (and location) depending on the purpose
of your communication.
New technology changing communication
in organisations…
Changing how information is stored and
shared
CONCLUSION – SO WHAT YOU’VE LEARNED TODAY?
◼ _____________________________________________________________________________
◼ _____________________________________________________________________________
◼ _____________________________________________________________________________
◼ _____________________________________________________________________________
END OF LESSON
7