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Topic 2: Managing Work Flows and
Organisation Structure
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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?
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◦ A structure that groups people together because of their expertise or the type of activity they do (typically into departments).
Functional Structure
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Functional Structure
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Functional Structure
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Advantages of a Functional Structure Coordination advantages Motivational advantages
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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
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Divisional Structures: Product and Geographic
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Product structure
Divisional Structures: Product and Geographic
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Product structure
Divisional Structures: Product and Geographic
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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
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Geographic Structure
Figure 8.6
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Advantages of a Divisional Structure
Coordination advantages
Motivational advantages
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Disadvantages of a Divisional Structure Operating costs are much higher Having more managers can result in
communications problems, slower decision making, and lower performance
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Matrix Structure Matrix Structure
◦ a structure that groups people and resources in two ways simultaneously: by function and by product.
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Matrix structure
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Matrix Structure
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Matrix Coordination Advantages1. The company can develop new products
more rapidly2. It can maximize communication and
cooperation between team members3. Maximizes innovation and creativity.
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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”.
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Tall and Flat Structures
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Problems in Companies with Too Many Levels in the Hierarchy
Figure 8.9
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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.
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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%)