ORGANIZATIONAL

STRUCTURE
 OBJECTIVES:

At the end of this report, the student should be able to:

1. Discuss the definition of organizational structure
2. Describe formal and informal organizational structures
3. Identify the organizational concepts
4. Describe the differences between centralized and
decentralized structures
5. Discuss the organizational chart and types of organizational
charts
6. Explain the relationship between responsibility and authority
under ideal circumstances
 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
 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
 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. FORMAL RELATIONS
2. 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 Well
not be defned
jobs
fexible

Formal
Channeled Defnite
Organizatio
individual and authority /
n responsibility
group efforts
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 Structure (membership),

organize communication networks
d Informal (“grapevine”), and relationships
behaviors and norms) do not
organizatio necessarily follow those of
fexible n the formal organization.

ill defned

SSppoonnttaa
1. Tall or Centralized Organizational
Structure
2. Flat or Decentralized 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.
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. Tall Organisation creates many levels
of management.
2. There are many delays and distortion
in communication.
3. Decisions and actions are delayed.
4. It is very costly because there are
many managers. The managers
are paid high salaries.
5. It is difficult to coordinate the activities
of different levels.
6. There is strict supervision. So
the subordinates do not have
any freedom.
7. Tall Organisation is not suitable
for routine and standardised jobs.
8. Here, managers may became
more dominating.
• 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.
ADVANTAGES DISADVANTAGES

1. Flat Organization is less costly 1. There are chances of loose control

because it has only few because there are many
managers. subordinates under one manager.
2. The discipline in the organization may be
2. It creates fewer levels of bad due to loose control.
management. 3. The relations between the superiors
3. Quick decisions and
and subordinates may be bad. Close
actions
only acan be
fewtaken becauseof
levels and informal relations may not be
it has
management. possible.
4. Fast and clear communication 4. There may be problems of team work
is possible among these few because there are many
levels of management. subordinates under one manager.
5. Subordinates free from 5. Flat organization structure may create
are close and supervision problems of coordination between various
strict and control. subordinates.
6. It is more suitable for routine 6. Efficient and experienced superiors
and standardized activities. are required to manage a large
7. Superiors may not be too number of subordinates.
dominating because of large 7. It may not be suitable for complex
numbers of subordinates. activities.
8. 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 authority—the official power to act
 Responsibility—the duty or assignment
 Accountability—the 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 unit’s 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:
10.Charts become outdated quickly.
11.Does not show informal relationship.
12.Does not show duties and responsibilities.
13.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;
 CONTROLLING
WHAT IS CONTROLLING….?

A process of monitoring performance and taking action to ensure desired results

Controlling ensures right things , right ways and at the right time
CONTROL PROCESS