Chapter 9
Organizational Structure
By Boundless
![Thumbnail](../../../../../figures.boundless-cdn.com/9494/square/management-process.jpg)
Management is tasked with generating an organizational system and integrating operations for high efficiency.
![Thumbnail](../../../../../figures.boundless-cdn.com/9507/square/sso-organization.jpeg)
Most organizations fall into one of four types: pyramids/hierarchies, committees/juries, matrix organizations, and ecologies.
![Thumbnail](../../../../../figures.boundless-cdn.com/9516/square/matrix-organisation-scheme.jpg)
An organization chart is a diagram that illustrates the structure of an organization.
The four common elements of an organization include common purpose, coordinated effort, division of labor, and hierarchy of authority.
![Thumbnail](../../../../../figures.boundless-cdn.com/9607/square/decentralization.jpeg)
Important characteristics of an organization's structure include span of control, departmentalization, centralization, and decentralization.
![Thumbnail](../../../../../figures.boundless-cdn.com/29800/square/functional structure fedex.jpg)
An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing.
Divisional structures group various organizational functions into product or regional divisions.
![Thumbnail](../../../../../figures.boundless-cdn.com/29801/square/matrix structure.jpg)
The matrix structure is a type of organizational structure in which individuals are grouped via two operational frames.
The team structure is a newer, less hierarchical organizational structure in which individuals are grouped into teams.
In the network structure, managers coordinate and control relationships with the firm that are both internal and external.
![Thumbnail](../../../../../figures.boundless-cdn.com/14847/square/gnu-health-modular-design.jpg)
In the modular structure, an organization focuses on developing specialized and relatively autonomous strategic business units.
![Thumbnail](../../../../../figures.boundless-cdn.com/24559/square/porters-five-forces.jpg)
Considerations of the external environment—including uncertainty, competition, and resources—are key in determining organizational design.
The size and operational scale of a company is important to consider when identifying the ideal organization structure.
![Thumbnail](../../../../../figures.boundless-cdn.com/14826/square/c-4-systems.jpeg)
Technology impacts organizational design and productivity by enhancing the efficiency of communication and resource flow.
![Thumbnail](../../../../../figures.boundless-cdn.com/14616/square/7685626030-74ecd11a8e-b.jpeg)
The life cycle of an organization is important to consider when determining its overall design and structure.
![Thumbnail](../../../../../figures.boundless-cdn.com/10808/raw/organization-chart-wide01.jpg)
Flattening hierarchies can benefit smaller organizations by increasing employee empowerment, participation, and efficiency.
![Thumbnail](../../../../../figures.boundless-cdn.com/10799/raw/hierarchical-chart-2012.jpg)
In decentralized structures, responsibility for decision making is broadly dispersed down to the lower levels of an organization.
![Thumbnail](../../../../../figures.boundless-cdn.com/29826/square/decentralization.jpg)
Modern organizations are more aware of the value of empowered employees and actively strive to structurally increase empowerment.
![Thumbnail](../../../../../figures.boundless-cdn.com/10855/square/loeindexfigure1.jpeg)
In order to succeed, modern organizations must constantly adapt to evolving technologies and expanding global markets.
![Thumbnail](../../../../../figures.boundless-cdn.com/10828/square/workspace-looking-out.jpeg)
Employers can offer flexible working arrangements in the form of flextime and telecommuting work.
![Thumbnail](../../../../../figures.boundless-cdn.com/10785/square/rganizational-structure-v1.jpeg)
Increasing coordination helps organizations to maintain efficient operations through communication and control.