Elements Of Organizational Structure

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According to Business Dictionary, the organization structure is the specification of the jobs to be done within an organization and the ways in which those jobs relate to one another. The organizational represented the chain of command or relationships within a company. The determinants of an organizational structure consist mission, strategy, size, internal environment, external environment. Besides that, there are six elements of organization's structure shown in Figure 3. that are specialisation, chain of command, span of control, authority and responsibility, centralisation and decentralisation, and departmentalisation. The first elements of the organizational structure are specialization. There are many different departments within…show more content…
The activities of the organization's members are directly controlled by the people who are the top of the organization. The theory of the chain of command is logical at the structural level of an organization. In order to achieve the organizational goals, it allows the coordination of the groups or individual engaged in the task specialization. Furthermore, their efforts are also important is because to achieve the overall objectives will through the coordination of the management (Johnson, n.d.). For example, different employees involve to assemble the car that will be assembled on an assembly line, but there are no one know how to combined the entire car together. So, the management have to ensures that all the task is be performed to let the car is properly completed. According to Woods (n.d.), the span of control is simply the number of workers that report to one manager in a hierarchy. The span of control can separate in bigger span of control, which means the number of workers is more than six; the smaller span of control is less than six. Some companies also have their ideal span of control which they deem the number of workers can be effectively controlled by the manager. Figure 4 shows an example of the span of control of 4 for the marketing…show more content…
The department will according to the specializations in the organization to divide them into different departments. As an enterprise expands over the size that cannot be effectively managed by one person, grouping of activities into departments is necessary part of the process of setting up organization (Grimsley n.d.). Besides that, there are five methods of departmentalisation that are functional departmentalisation, product departmentalisation, customer departmentalisation, geographical departmentalisation, and process departmentalisation. As shown in Figure 6, the functional departmentalisation is referred to the jobs which group by functions performed. It depends on the goals of they want to achieve and it usually can be used in all kind of organization. Product departmentalisation is a type of departmentalisation which group the jobs by product line. Every manager has to responsible in the area which is depending on his/her

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