Topic 2: Managing Work Flows and

Organisation Structure

The framework of task-and-authority relationships in a company that coordinates and motivates employees to work together toward a common goal.

What is an organizational structure?

◦ A structure that groups people together because of their expertise or the type of activity they do (typically into departments).

Functional Structure

Functional Structure

Functional Structure

Advantages of a Functional Structure Coordination advantages Motivational advantages

Disadvantages of a Functional Structure1. Problems when the range of goods and

services a company makes increases2. Problems as companies attract customers

with different needs3. Problems when companies expand

nationally and globally

Divisional Structures: Product and Geographic

Product structure

Divisional Structures: Product and Geographic

Product structure

Divisional Structures: Product and Geographic

Divisional Structures: Product and Geographic

Geographic structure ◦ a structure in which divisions are created to serve

the needs of customers in a particular region, country, or world area

Geographic Structure

Figure 8.6

Advantages of a Divisional Structure

Coordination advantages

Motivational advantages

Disadvantages of a Divisional Structure Operating costs are much higher Having more managers can result in

communications problems, slower decision making, and lower performance

Matrix Structure Matrix Structure

◦ a structure that groups people and resources in two ways simultaneously: by function and by product.

Matrix structure

Matrix Structure

Matrix Coordination Advantages1. The company can develop new products

more rapidly2. It can maximize communication and

cooperation between team members3. Maximizes innovation and creativity.

Disadvantages of a Matrix Structure Dual reporting relationships Bosses come into conflict over precisely

who is in charge of which team members and for how long.

Employees feel the lack of a stable “home base”.

Tall and Flat Structures

Problems in Companies with Too Many Levels in the Hierarchy

Figure 8.9

Group Activity 3 (5%) Get into your teams and complete this task

in 20 minutes; You and your team mates are setting up a

new business in the maritime line. Discuss and submit;

1. The vision of your company.2. Construct an organisation structure for

your company.

Scenario: Your firm is expanding to Jakarta and Vietnam. You and your HR department staffs are sitting

in a meeting to present to the CEO on;1. The new firm structure (organization

chart).2. How many new people would you need?3. How would you attract the new people?4. What specific qualifications must these

new staffs possess?

GROUP ACTIVITY 3 (10%)