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Organizational
Structure and Design
Minhazur Rahman Rezvi
Development Studies
University of Dhaka
Organizational structure: how job tasks are
formally divided, grouped, and
coordinated.
Organizational design: The process an
organization is to be structured and
operated by it members in the most
efficient and effective way.
Six key elements of
Organizational structure:
Work specialization: describe the degree to which
tasks in the organization are subdivided into
separate jobs.
Departmentalization: The basis by which jobs are
grouped together. Ex: accounting, manufacturing.
Chain of command: A hierarchy of authority in
which each rank is accountable to the one directly
superior. It combination of authority and unity of
command. Ex: Militarily force
Span of control: The number of subordinates
a manager can efficiently and effectively direct.
Centralization: The degree to which
decision making is concentrated at a
single point in the organization.
Decentralization: Decision discretion is
pushed down to lower-level employees.
Formalization: The degree to which jobs
within the organization are standardized.
The Simple structure
 Low degree of departmentalization,
 Wide spans of control,
 Authority centralized in a single person,
 Less formalization.
 The simple structure is a “flat” organization
 Fast, flexible, inexpensive to maintain, and
accountability is clear.
The Bureaucracy
 Highly routine operating tasks achieved through
specialization
 Highly formalized rules and regulations
 Tasks that are grouped into functional
departments,
 Centralized authority,
 Narrow spans of control
 Decision making that follows the chain of
command.
The Matrix Structure
 Dual lines of authority.
 Combines functional and product
departmentalization.
 It breaks the unity-of-command concept.
Organizational structure and design
Organizational structure and design

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Organizational structure and design

  • 1. Organizational Structure and Design Minhazur Rahman Rezvi Development Studies University of Dhaka
  • 2. Organizational structure: how job tasks are formally divided, grouped, and coordinated. Organizational design: The process an organization is to be structured and operated by it members in the most efficient and effective way.
  • 3. Six key elements of Organizational structure: Work specialization: describe the degree to which tasks in the organization are subdivided into separate jobs. Departmentalization: The basis by which jobs are grouped together. Ex: accounting, manufacturing. Chain of command: A hierarchy of authority in which each rank is accountable to the one directly superior. It combination of authority and unity of command. Ex: Militarily force
  • 4. Span of control: The number of subordinates a manager can efficiently and effectively direct.
  • 5. Centralization: The degree to which decision making is concentrated at a single point in the organization. Decentralization: Decision discretion is pushed down to lower-level employees. Formalization: The degree to which jobs within the organization are standardized.
  • 6. The Simple structure  Low degree of departmentalization,  Wide spans of control,  Authority centralized in a single person,  Less formalization.  The simple structure is a “flat” organization  Fast, flexible, inexpensive to maintain, and accountability is clear.
  • 7. The Bureaucracy  Highly routine operating tasks achieved through specialization  Highly formalized rules and regulations  Tasks that are grouped into functional departments,  Centralized authority,  Narrow spans of control  Decision making that follows the chain of command.
  • 8. The Matrix Structure  Dual lines of authority.  Combines functional and product departmentalization.  It breaks the unity-of-command concept.