Organizational Structure
Procedia - Social and Behavioral Sciences XXXXXXXXXX455 – 462
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XXXXXXXXXX © 2016 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
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doi: XXXXXXXXXX/j.sbspro XXXXXXXXXX
3rd International Conference on New Challenges in Management and Organization: Organization
and Leadership, 2 May 2016, Dubai, UAE
Organizational Structure
Gholam Ali Ahmadya, Maryam Mehrpou
,*, Aghdas Nikooravesh
aAssociate Professor of Rajai University, Humanistic science department, Educational management, Tehran, Iran
Azad University, Garmsar
anch, Humanistic science department, Educational management, Garmsar, Iran
Abstract
Conceptualization of organizational structure is the manifestation of systematic thought. The organization is composed of
elements, relations between elements and structure as a generality composing a unit. Structure is high combination of the
elations between organizational elements forming existence philosophy of organizational activity. Systematic view of
organization to structure shows that structure is composed of hard elements on one side and soft elements on the other side. The
eview of literature views structural relations from various aspects. Organizational structure is a way or method by which
organizational activities are divided, organized and coordinated. The organizations created the structures to coordinate the
activities of work factors and control the member performance. Organizational structure is shown in organizational chart. The
present study is descriptive and li
ary method is used for data collection.
© 2016 The Authors. Published by Elsevier Ltd.
Peer-review under responsibility of the Ardabil Industrial Management Institute.
Keywords: Organization, Structure, System
1. Structure
Structure refers to the relations between the components of an organized whole. Thus, structure concept can be
used for everything. For example, a building is a structure of the relationship between foundation, skeleton, ceiling
and wall. The body of human being is a structure consists of the relations between bones, organs, blood and tissues
(Jo. hatch, XXXXXXXXXXOrganizational structure is the framework of the relations on jobs, systems, operating process,
people and groups making efforts to achieve the goals. Organizational structure is a set of methods dividing the task
to determined duties and coordinates them (Monavarian, Asgari, & Ashna, XXXXXXXXXXOrganizational structure is a
* Co
esponding author. Tel.: XXXXXXXXXX; fax: XXXXXXXXXX .
E-mail address: XXXXXXXXXX
© 2016 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http:
creativecommons.org/licenses
y-nc-nd/4.0/).
Peer-review under responsibility of the Ardabil Industrial Management Institute
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456 Gholam Ali Ahmady et al. / Procedia - Social and Behavioral Sciences XXXXXXXXXX455 – 462
method by which organizational activities are divided, organized and coordinated. The organizations create the
structures to coordinate the activities of work factors and control the members’ actions (Rezayian, 2005).
2. Organization structure definition
Minterzberg (1972): Organizational structure is the framework of the relations on jobs, systems, operating
process, people and groups making efforts to achieve the goals. Organizational structure is a set of methods dividing
the task to determined duties and coordinates them. Hold and Antony (1991): Structure is not a coordination
mechanism and it affects all organizational process. Organizational structure refers to the models of internal
elations of organization, power and relations and reporting, formal communication channels, responsibility and
decision making delegation is clarified. Amold and Feldman (1986): Helping the information flow is one of the
facilities provided by structure for the organization (Monavarian, Asgari, & Ashena, 2007).Organizational structure
should facilitate decision making, proper reaction to environment and conflict resolution between the units. The
elationship between main principles of organization and coordination between its activities and internal
organizational relations in terms of reporting and getting report are duties of organization structure (Daft, Translated
y Parsayian and Arabi, 1998).
2.1. Conceptualization of organizational structure
Conceptualization of organizational structure is the manifestation of systematic thinking. Organization consists
of elements, relations between elements and structure of relations as a generality composing a unit. Structure is high
combination of the relations between organizational elements forming existence philosophy of organizational
activity. Systematic view of organization to structure shows that structure is composed of hard elements on one side
and soft elements on the other side. At the end of hard dimension, there are tangible elements as groups and
hierarchy organizational units. The relations between these units and groups show soft element in organization
structure. At the end of soft continuum dimension, judgment of organization people to structure can be observed.
The review of literature views structural relations from various aspects. According to the study of Schine (1971,
1988) regarding the identification of three dimensions: Hierarchy, functional and inclusion, it is a unique study.
Three dimensions of his study are as followings:
Hierarchy dimension: It shows relative ranks of organizational units by similar method of organizational
chart.
Functional dimension: It shows different works performed in organization.
Inclusion dimension: The close or far distance of each person in organization to central core of organization.
The proper combination of mentioned dimensions shows formal structure as manifested in organizational
chart. The reality is that there are many organizational forms and they cannot be easily explained by
organizational chart (Foruhi, 2004).
3. Dimensions of organizational structures
Organizational structure is manifested in organizational chart. In planning organizational structure, there are
three principles:
1- Organizational structure determines formal relations and reporting in organization and it shows the number
of levels in the hierarchy and it defines the span of the control of managers.
2- Organizational structure determines the position of people as working in group in a unit and it divides the
units in the entire organization.
3- Organizational structure includes the design of systems by which all units are coordinated and effective
elation in organization is guaranteed.
Organizational structure can be affected by goals, strategy, environment, technology, organization size. These
variables are key and content-based and indicate the entire organization and its position between the organization
457 Gholam Ali Ahmady et al. / Procedia - Social and Behavioral Sciences XXXXXXXXXX455 – 462
and environment. Content variables can be important as they show organization and the environment in which there
are structural variables. Structural variables indicate internal features of an organization and present a basis by
which the organizations can be measured and their structure features can be compared with each other. The content
variables affect structural variables. Complexity, formality and centralization are important examples of content
variables. Content variables affect structural variables and by their combination, different types of structural
designers are created (Rabinz, Translated by Parsian and Arabi, 2012).
4. Different types of organizational structures
The organization theorists consider mostly two types of structures: Physical and social structures. Physical
structure refers to the relations between physical elements of organizations as buildings and geographical places in
which the works are done (business). In organization theory, social structure refers to the relations between social
elements as people, positions and organizational units (e.g. departments and sectors).
4.1. Different types of social structures
Simple structure: This is a set of flexible relations and due to limited separation, it has low complexity. The
members of such organization can design organization chart with focusing on leaders and there is no need to
formality. Considering the duties or management order is done by mutual agreement and coordination and
supervision are direct and informal.
Functional structure: The organization with increased complexity is managed based on simple structure.
Normally, functional structure is used as a tool to fulfill the increasing needs of separation. This is called function as
in this structure, the activities are classified based on logical similarity of work functions. The functions that are
created based on dependent duties and shared goals. In functional structure, re-work of activities is limited and this
structure is efficient. The aim of this plan is maximizing saving of specialization scale.
Multidivisional structure: In organizational development path, if functional structure is developed, it is turned
into multidivisional structure as a tool to reduce the decisions responsibility by top manager.
Multidivisional structure is a set of separate functional structures reporting a central center. Each functional structure
is responsible for management of daily operation. The central staff is responsible for supervision and management
of organization relation with environment and strategy.
Matrix structure: This structure is created with the aim of creating a type of structure composed of functional and
multidivisional structures. The aim of matrix structure is combining the efficiency of functional structure with
flexibility and sensitivity of multidivisional structure not only based on product logic, customer or geographical
egion, but also based on functional logic in multidivisional structure. In matrix organization, functional specialized
employees work in one or some project teams. This delegation of activities to employees is done via negotiation
etween functional and project managers and sometimes with the presence of people of teams or potential members.
Hy
id structure: In hy
id structure, one part is dedicated to the type of structure and another part to another
type of structure. The reason of formation of hy
id structures is combination of advantages of two structures by
designers or the organization is changing. As in hy
id structure, by moving from one section of structure to another
structure, the relations basis is changed and hy
id forms can be unclear. On the other hand, hy
id structure enables
the organization in which the best and flexible structure is used.
Network structure: The networks are formed when the organizations are faced with rapid changes of technology,
short life cycles of product and dispersed and specialized markets. IN a network, required assets are distributed
among some network partners as there is no unified organization in a network to generate the products or services
and the network is producer or supplier. In a network structure, the partners are associated via customer supplier
elations and a type of free market system is created. It means that the goods are traded among network partners as
in a free market, they are traded (Jo. hatch, Translated by Danayifard, 2014)