Organisation Communication

1. 6-1
Organizational
Structure
and
Communication
Presented by:
Dr. Akhlas Ahmed
Preston University

2. 6-2
Introduction
Organization
structure determines who
works together
It
is the way managers design their firms to
achieve their organization’s mission and goals
Organizational
communication flows
through its structure, which affects:
behavior
human
relations
performance

3. 6-3
The transition from an economy based on
materials to an economy based on flows of
information has created considerable
challenges for organizational structure, and
communication.

4. 6-4
Principles of Organization (1 of 3)
Division
of Labor and Departmentalization
Division
of labor, or work specialization – refers to
the degree to which tasks are subdivided into
separate jobs
Departmentalization – grouping of related
activities into units
Chain
line
of Command
of authority from the top to the bottom of the
organization, which is shown in an organization
chart

5. 6-5
Principles of Organization (2 of 3)
Span
of Management
refers
to number of employees reporting to a
manager
Centralized
With
and Decentralized Authority
centralized authority, top managers make
important decisions
With decentralized authority, middle and first-line
managers make important decisions where the
action is

6. 6-6
Principles of Organization (3 of 3)
Coordination
With
the division of labor and departmentalization
comes the need to coordinate the work of all
departments

7. Questions and Answers for
Designing Organizational Structure:
Questions
Answers
How should we subdivide work?
Division of Labor and
Departmentalization
Who should departments and
individuals report to?
Chain of Command
How many individuals should report to Span of Management
each manager?
At what level should decisions be
made?
Centralization vs.
Decentralization
How do we get everyone to work
together as a team?
Coordination
6-7

8. 6-8
Formal Organization Structure
Vertical downward
communication
President
Vice President
Production
Vice President
Finance
Vice President
Marketing
Vertical upward
communication
Manager
A
Manager
B
Manager
C
Manager
D
Manager
E
Exhibit 6.2
Manager
F
Manager
G
Manager
H
Manager
I

9. 6-9
Informal Organization Structure
Horizontal
communication
networks
President
President
Vice President
Vice President
Production
Production
Manager
A
Manager
B
Vice President
Vice President
Finance
Finance
Manager
C
Manager
D
Manager
E
Exhibit 6.2
Vice President
Vice President
Marketing
Marketing
Manager
F
Manager
G
Manager
H

10. Common Types
of Departmentalization (1 of 4)
Functional
Product
Divisional
Customer
Territory
Matrix
6 - 10

11. Common Types of
Departmentalization (2 of 4)
Functional
6 - 11
Departmentalization
involves
organizing departments around essential
input activities, such as:
 production
and operations
 finance and accounting
 marketing and sales
 human resources
Product
(Service) Departmentalization
involves
organizing departments around goods
and services provided

12. Common Types of
Departmentalization (3 of 4)
Customer
6 - 12
Departmentalization
involves
organizing departments around the
needs of different types of customers with unique
needs calling for different sales staffs and
products
Divisional
Departmentalization (M-Form)
the
firm develops independent lines of business
that operate as separate companies, all
contributing to the corporation profitability
Territory
(Geographic) Departmentalization
involves
organizing departments in each area in
which the enterprise does business

13. Common Types of
Departmentalization (4 of 4)
Matrix
Departmentalization
combines
the functional and product
departmental structures
Combination
many
large companies have more than one form
of departmentalization
6 - 13

14. 6 - 14
American and Japanese Organization
Structures
Division
of labor tends to be a bit less
specialized in Japan
Both countries use the same types of
departmentalization
American organizations tend to be quicker to
hire, lay off, and to change jobs than the
Japanese

15. 6 - 15
THANKS