Organizational Structures
-> Organizations need to be organized into structures that will help them meet their purposes/
aims.
-> It is important that departments or job roles are structured so that everyone can contribute to
the overall purpose of the business and no job is duplicated.
-> Dividing up the work this way means that staff are clear about who does what within the
company.
-> It also ensures all tasks are completed.
->It avoids conflict and decisions being made that contradict each other.
-> It creates a pattern through which decisions are made, this is called a chain or command or
line of control.
Types of Organizational Structures
-> Function – An area within an organization that is designed to meet a specific purpose. E.g.,
production, marketing, HR, accounts.
-> Geographic area – E.g., northeast, midlands.
-> Product group – E.g., apple could be grouped by iPad, iPhone, iPod.
-> Type of customer – E.g., HSBC, mortgage departments, corporate customers.
Organizational Charts
-> Shows the main parts of the organization and the relationship between the various parts.
-> When you look at an organizational chart you should get a clear picture of the relevant
sections of the organization and who reports to who.
-> A line manager refers to a person who is directly responsible for someone else.
Hierarchical Structure
-> Shows layers of management
-> Very regimented.
-> Clear progression route.
-> Army, local government are good examples.
Flat Structure
-> Only 1 or 2 layers.
-> Used when staff need little supervision.
-> Usually, a small organization.
-> enables staff to share ideas.
-> Organizations need to be organized into structures that will help them meet their purposes/
aims.
-> It is important that departments or job roles are structured so that everyone can contribute to
the overall purpose of the business and no job is duplicated.
-> Dividing up the work this way means that staff are clear about who does what within the
company.
-> It also ensures all tasks are completed.
->It avoids conflict and decisions being made that contradict each other.
-> It creates a pattern through which decisions are made, this is called a chain or command or
line of control.
Types of Organizational Structures
-> Function – An area within an organization that is designed to meet a specific purpose. E.g.,
production, marketing, HR, accounts.
-> Geographic area – E.g., northeast, midlands.
-> Product group – E.g., apple could be grouped by iPad, iPhone, iPod.
-> Type of customer – E.g., HSBC, mortgage departments, corporate customers.
Organizational Charts
-> Shows the main parts of the organization and the relationship between the various parts.
-> When you look at an organizational chart you should get a clear picture of the relevant
sections of the organization and who reports to who.
-> A line manager refers to a person who is directly responsible for someone else.
Hierarchical Structure
-> Shows layers of management
-> Very regimented.
-> Clear progression route.
-> Army, local government are good examples.
Flat Structure
-> Only 1 or 2 layers.
-> Used when staff need little supervision.
-> Usually, a small organization.
-> enables staff to share ideas.
