53 structure Organizational StructuresWhat room the timeless forms of organizational structure?

The an essential functions that managers perform incorporate planning, organizing, leading, and controlling. This module concentrates specifically ~ above the arranging function. Organizing involves coordinating and also allocating a firm’s resources so the the for sure can bring out its plan and accomplish its goals. This organizing, or structuring, procedure is completed by:

Determining work activities and splitting up work (division of labor)Grouping jobs and employees (departmentalization)Assigning authority and responsibilities (delegation)

The result of the organizing process is a formal framework within one organization. An company is the order and design of relationships within a company or firm. It consists of two or much more people working in addition to a common objective and clarity that purpose. Official organizations additionally have well-defined present of authority, channels for details flow, and method of control. Human, material, financial, and information sources are deliberately connected to form the business organization. Some relationships are long-lasting, such as the links amongst people in the finance or marketing department. Others deserve to be adjusted at almost any time—for example, as soon as a committee is formed to study a problem.

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Every organization has actually some kind of basic structure. Typically, organizations base their frameworks on traditional, contemporary, or team-based approaches. Traditional structures are an ext rigid and also group employee by function, products, processes, customers, or regions. Contemporary and team-based frameworks are more flexible and also assemble employee to respond easily to dynamic business environments. Regardless of the structural frame a agency chooses come implement, all managers must very first consider what kind of work requirements to be done within the firm.


Founded in 1943, Sweden retailer IKEA has actually grown native a tiny mail-order operation to a an international force in residence furnishings with much more than 390 stores throughout Europe, north America, Africa, Australia, and also Asia. Best known for its modern-day furniture designs, highly trafficked save openings, and also quirky advertising, the IKEA Group consists of multiple divisions matching to the that company retail, supply chain, sales, and design and also manufacturing functions. What factors likely affected the development of IKEA’s organizational structure together the firm expanded over the years? (Credit: JJBers/ flickr/ Attribution 2.0 generic (CC through 2.0))

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Division of Labor

The process of dividing work right into separate jobs and assigning work to workers is called department of labor. In a fast-food restaurant, for example, some employees take it or fill orders, rather prepare food, a few clean and maintain equipment, and also at least one supervises all the others. In an auto assembly plant, some workers install rearview mirrors, while others mount bumpers on bumper brackets. The degree to i beg your pardon the tasks are subdivided into smaller tasks is dubbed specialization. Employee who occupational at highly dedicated jobs, such together assembly-line workers, execute a minimal number and selection of tasks. Employee who become specialists at one task, or a small number of tasks, construct greater ability in act that certain job. This deserve to lead to higher efficiency and also consistency in production and other work-related activities. However, a high level of specialization deserve to also result in employees who room disinterested or bored as result of the absence of variety and challenge.

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Traditional Structures

After a firm divides the work-related it needs to do into certain jobs, managers then team the jobs together therefore that comparable or connected tasks and activities can be coordinated. This group of people, tasks, and resources into organizational systems is called departmentalization. The facilitates the planning, leading, and control processes.

An organization chart is a visual depiction of the structured relationships among tasks and also the world given the government to execute those tasks. In the organization chart in (Figure), each number represents a job, and also each job includes several tasks. The sales manager, for instance, have to hire salespeople, create sales territories, motivate and also train the salespeople, and also control sales operations. The chart also indicates the general kind of occupational done in every position. Together (Figure) shows, five straightforward types that departmentalization are commonly used in organizations: