ORGANIZATIONAL-WPS Office

ORGANIZATIONAL STRUCTURE
1. Hierarchical Structure
Contains a direct chain of command from the top of the organization to the bottom of the organization
Pyramid-shaped organizational chart known as a hierarchical org chart.
Most common type of organizational structure.
Top _(e.g., the CEO or manaqger)
Down_ (e.g., entry-level and low-level employees)
Each employee has a supervisor.
Advantages :
1. Control orientation
2. Clear career and promotion path
3. Clearly defined authority

Disadvantages:
1. Poor communication
2. Slow decision-making
3. Added costs
2. Functional Structure
Groups people with the same skills, or who use similar tools or work processes, together into
departments.
Direct Task, Individual task
maganda ito pag large ang company
Is a business structure that groups employees by specialty, skill, or related roles.
_Works best for larger companies that employ multiple people with similar roles.
Similar to a hierarchical organizational structure.

Functional org structure starts with positions with the highest levels of responsibility at the top and goes
down from there.
Employees are organized according to their specific skills and their function in the company. Each
separate department is managed independently.
Advantages
1. Increased productivity
2. Skill development
3. Clarity
4. Minimized cost of operation
Disadvantages :
1. Hindered(hadlangan) decision
making
2. Competition between departments
3. Narrow scope
3. Divisional Structure
For large company
is a company's divisions have control over their own resources (by Area) essentially operating like their
own company within the larger organization.
Each division can have its own marketing team, sales team, IT team, etc.
This structure works well for large companies as it empowers the various divisions to make decisions
without everyone having to report to just a few executives.
Depending on your organization's focus, there's a few variations to consider.
(1) Market-based divisional structure
(2) Product-based divisional structure
(3) Geographic divisional structure
1. Market-based divisional org structure
Divisions are separated by market, industry, or customer type.

A large consumer goods company, like Target or Walmart, might separate its durable goods (clothing,
electronics, furniture, etc.) from its food or logistics divisions.
2. Product-based divisional org structure
Divisions are separated by product line.
For example, a tech company might have a division dedicated to its cloud offerings, while the rest of the
divisions
Focus on the different software offerings-e.g., Adobe and its creative suite of Illustrator, Photoshop,
InDesign, etc.
3. Geographic divisional org structure
Divisions are separated by region, territories, or districts, offering more effective localization and
logistics.
Companies might establish satellite offices across the cor the globe in order to stay close to their
customers.
Advantages :
1. Accountability and transparency
2. Gains local competitive advantage
3. Improves company culture
4. Increases offerings efficiently
Disadvantages :
1. Costs more to operate
2. Economies of scale
3. Encourages rivalries
4. Fosters silo mentality
4. Flat Structure /Horizontal
Small Business
An organizational has few or no levels of middle management between the executives and the frontline
employees.
Popular in the tech industry and startups.
Many start-up businesses use a horizontal org structure before they grow large enough to build out
different departments, but some organizations maintain this structure since it encourages less
supervision and more involvement from all employees.
Advantages :
1. Lower operating costs
2. Improved communication
3. Increased employee motivation and satisfaction
Disadvantages :
1. Difficult for large organizations
2. Low employee retention
3. Create power struggles

5. Matrix Structure
Malawak na Oragnization
is a company structure where teams report to multiple leaders.
Keeps open communication between teams and can help companies create more innovative products
and services.
(Open sa innovative openion)
Using this structure prevents teams from needing to realign every time a new project begins.
Easy becoz it has an open communication
A combination of 2 or more different kinds of organizational structures, such as project management or

functional management.
A matrix organizational chart looks like a grid, and it shows cross-functional teams that form for special
projects.
For example, an engineer may regularly belong to the engineering department
(led by an engineering director) but work on a temporary project (led by a project manager).
The matrix org chart accounts for both of these roles and reporting relationships.
Advantages :
1. Encourage collaboration
2. Increase efficiency
3. Develop new skill sets
Disdvantages:
1. Unclear managerial and team roles
2. Slow decision-making process
3. Too much work can cause overload
4. Difficult to measure performance

6. Network Org Structure
Pinag sanib sanib na organization
More than one organization combines to produce a good or provide a service.
These days, few businesses have all their services under one roof, and juggling the multitudes of
vendors, subcontractors, freelancers, offsite locations, and satellite offices can get confusing.
It makes sense of the spread of resources. It can also describe an internal structure that focuses more
on open communication and relationships rather than hierarchy.
Network structure newer type of organizational structure viewed as less hierarchical (i.e., more "flat"),
more decentralized, and more flexible than other structures. In a network structure, managers
coordinate and control relationships that are both internal and external to the firm.
Advantages :
1. Clearer focus
2. Lower Costs
3. Flexibility
Disadvantages :
1. Lack of reliability and consistency

2. Lack of secrecy
3. Loss of control
4. Sacrificing of profit
7. Team-based Org Structure
It'll come as no surprise that a team-based organizational structure groups employees according to
(what else?) teams-think scrum teams or tiger teams.
is meant to disrupt(guluhin) the traditional hierarchy, focusing more on problem solving, cooperation,
and giving employees more control.
Are made of teams working towards a common goal while working on their individual tasks.
They are less hierarchical and they have flexible structures that reinforce problem-solving, decision-
making, and teamwork
Advantages :
1. Increases productivity, performance, and transparency by breaking down silos
2. Promotes a growth mindset
3. Changes the traditional career models by getting people to move laterally

4. Values experience rather than seniority
5. Requires minimal management
6. Fits well with agile companies with scrum or tiger teams
Disadvantages :
Goes against many companies' natural inclination of a purely hierarchical structure
Might make promotional paths less clear for employees
See why forming tiger teams is a smart move for your organization.
• VOLATILITY (1)
• refers to the speed of change in business.
• things change too quickly.
• Example: the state of the UK financial markets soon after the Brexit vote
• UNCERTAINTY (2)
• refers to the inability to predict the future. Uncertain environments are almost impossible to predict
statistically.
• Example: the change in mindset of people regarding cash after the global Covid pandemic.
• COMPLEXITY (3)
• Complexity outlines the number of factors that need to be taken into account to explain a situation.
• Example: the expansion of a multi-national organisation in a new, unknown territory.
• AMBIGUITY (4)
• Ambiguity: if there's little clarity in terms of interpreting.
• Difficult to choose an interpretation.
• Example: the same company starting a completely new line of products, owing to a new development
in a foreign market and change in demand.

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ORGANIZATIONAL STRUCTURE

Pyramid-shaped organizational chart known as a hierarchical org chart.

Most common type of organizational structure.

Top _(e.g., the CEO or manaqger)

Down_ (e.g., entry-level and low-level employees)

Each employee has a supervisor.

2. Clear career and promotion path

3. Clearly defined authority

Direct Task, Individual task

maganda ito pag large ang company

Is a business structure that groups employees by specialty, skill, or related roles.

Similar to a hierarchical organizational structure.

4. Minimized cost of operation

2. Competition between departments

For large company

Depending on your organization's focus, there's a few variations to consider.

(1) Market-based divisional structure

(2) Product-based divisional structure

(3) Geographic divisional structure

1. Market-based divisional org structure

Divisions are separated by market, industry, or customer type.

2. Product-based divisional org structure

Divisions are separated by product line.

3. Geographic divisional org structure

1. Accountability and transparency

2. Gains local competitive advantage

3. Improves company culture

4. Increases offerings efficiently

1. Costs more to operate

4. Fosters silo mentality

4. Flat Structure /Horizontal

Popular in the tech industry and startups.

1. Lower operating costs

3. Increased employee motivation and satisfaction

1. Difficult for large organizations

2. Low employee retention

3. Create power struggles

is a company structure where teams report to multiple leaders.

(Open sa innovative openion)

Easy becoz it has an open communication

A combination of 2 or more different kinds of organizational structures, such as project management or

3. Develop new skill sets

1. Unclear managerial and team roles

2. Slow decision-making process

3. Too much work can cause overload

4. Difficult to measure performance

Pinag sanib sanib na organization

More than one organization combines to produce a good or provide a service.

1. Lack of reliability and consistency

7. Team-based Org Structure

1. Increases productivity, performance, and transparency by breaking down silos

2. Promotes a growth mindset

3. Changes the traditional career models by getting people to move laterally

5. Requires minimal management

6. Fits well with agile companies with scrum or tiger teams

Goes against many companies' natural inclination of a purely hierarchical structure

Might make promotional paths less clear for employees

• things change too quickly.

• Ambiguity: if there's little clarity in terms of interpreting.

• Difficult to choose an interpretation.