Nature of organization Flashcards
It s the process of bringing together
physical, financial, and human
resources and developing a productive
relationship across them for
achievement of your goals.
Organizing
It is collection of people
working together under a
division of labor and a
hierarchy of authority to
achieve a common goal.
Organization
It involves assigning different tasks to different
people in the organization’s different work units.
Division of Labor
When factors of production perform task that they can do more efficiently than others.
Specialization
It is the systematic arrangement of human resources in an organization so as to achieve common business objectives.
Organizational Structure
Benefits of Organizational Structure
Enhances efficiency and productivity
Swift decision-making possible
Empowers employees
Reduces conflict within an organization
Better communication among members
Types of Organization Structure
Hierarchal Structure
Horizontal/Flat Structure
Functional Structure
Divisional Structure
Matrix Structure
The pyramid-shaped organizational chart.
It’s the most common type of organizational structure.
The chain of command goes from the top (e.g., the CEO or manager) down (e.g., entry-level and low-level employees), and each employee has a supervisor.
Hierarchal Organizational Structure
This is an organizational chart type mostly adopted by small companies and start-ups in their early stage.
It refers to the departmentalization of an organization into smaller work units as tasks become increasingly varied and numerous.
Horizontal/Flat Organizational Structure
It creates a fixed set of departments based on certain functions like HR, finance, marketing, production, etc
-allows employees to work for a particular functional role without worrying about the other departments.
Functional Organizational
Structure
Divisional types of organizational charts have their own division which corresponds to either products or geographies.
The main advantage of the divisional structure is the independent operational flow, that failure of one company does not threaten the existence of the others.
Divisional Organizational Structure
or hybrid organizational structure is a combination of two structures namely, divisional and functional.
There are two chains of command, where project team members have two bosses or managers, a functional manager and a project manager.
It is typically used in large multinational companies.
Matrix Organizational Structure
Two Classifications of Theories
Traditional and Modern
-pertains to the usual old fashioned ways.
Tradittional
refers to contemporary or new design theories.
Modern
It has few departments, wide span of control or a big number of subordinates directly reporting to a manager; it has a centralized authority figure and has very little formalization of work
Simple Theory
This design groups together similar or related specialties. Generally, functional departmentalization is utilized and put into practice in an entire organization.
Functional Theory
This design is made up of separate business divisions or units, where the parent corporation acts as overseer to coordinate and control the different divisions and provide financial and legal support services.
Divisional Theory
In this theory, the entire organization is made up of work groups or teams. Its advantages include empowerment of team members and reduced barriers among functional areas.
Team Design
It refers to an organization design where specialist from different departments work on projects that are supervised by a project manager.
Matrix Project Design
This design is not defined or limited by vertical, horizontal, and external boundaries.
The idea behind this format is to retain only the value-generating and strategic functions in-house, while the rest of the operations are outsourced to many suppliers.
Boundary-Less Design
Oragnization Formal and Informal
Organization
is a structured group of people that has a defines set of rules, and responsibilities for achieving specific goals or objectives
Ex. Schools, businesses, healthcare, government agencies
Formal Organizations
It consists of informal groups born out of the need of social affiliation.
Ex. Sports Club, a group of co-workers, Parent-Teachers Association, Student Council
Informal Organizations
