Lesson Plan Organizational Structure

Course Title: Business Management

Session Title: Organizational Structure
Performance Objective:
Upon completion of this lesson, the student will understand that different types of
organizational structure exist within businesses and how to increase competitiveness
depending upon the type utilized.
Approximate Time:
When taught as written, this lesson should take 5-6 days to complete.
Specific Objectives:
Students will define the four types of organizational structure.
Students will apply the differences in organizational structure to different types of
businesses.
Students will analyze the advantages and disadvantages of the different types of
organizational structure.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the
activities may result in the elimination of any or all of the TEKS listed.
130.121(c)(2)(H)
identify the need for change
130.121(c)(3)(A)
explain how to design an adaptive organization
130.121(c)(3)(B)
define the concepts, methods, and types of departmentalization
130.121(c)(3)(C)
define the chain of command
130.121(c)(3)(D)
explain line authority
130.121(c)(3)(E)
define staff authority
130.121(c)(3)(F)
explain the advantages and disadvantages of different types of organizations, including
(i) line;
(ii) line and staff; and
(iii) matrix
130.121(c)(3)(G)
define delegation in a management context
130.121(c)(3)(H)
compare and contrast centralized and decentralized organizations
130.121(c)(3)(I)
identify the concept of teams and teamwork
130.121(c)(3)(J)
define span of control or span of management
Interdisciplinary Correlations:
English:

110.31 (b)(23)(C) uses graphics and illustrations to help explain concepts where
appropriate
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1

110.31 (b)(23)(D) uses a variety of evaluative tools (e.g., self-made rubrics, peer reviews,
teacher and expert evaluations) to examine the quality of the research
110.33(b)(1)(A) Reading/Vocabulary Development
determine the meaning of grade-level technical academic English words in multiple
content areas (e.g., science, mathematics, social studies, the arts) derived from Latin,
Greek or other linguistic roots and affixes.
110.33(b)(1)(C) Reading/Vocabulary Development
infer word meanings through the identification and analysis of analogies and other word
relationships.
110.33(b)(12)(B) Reading/Media Literacy
evaluate the interactions of different techniques (e.g., layout, pictures, typeface in print
media, images, text, sound in electronic journalism) used in multi-layered media.
110.33(b)(12)(C) Reading/Media Literacy
evaluate the objectivity of coverage of the same event in various types of media.
110.33(b)(12)(D) Reading/Media Literacy
evaluate changes in formality and tone across various media for different audiences and
purposes.

Occupational Correlation (O*Net http://www.onetonline.org/)

Human Resources Managers 11-3121.00
Similar Job Titles: Employee Benefits Manager, Director of Human Resources, Employee
Relations Manager
Tasks:
Plan, direct, supervise, and coordinate work activities of subordinates and staff relating to
employment, compensation, labor relations, and employee relations.
Plan, organize, direct, control or coordinate the personnel, training, or labor relations activities of an
organization.
Serve as a link between management and employees by handling questions, interpreting and
administering contracts and helping resolve work-related problems.
(Soft) Skills:
Active listening, management of personnel resources, problem sensitivity, complex problem solving

Accommodations for Learning Differences:

It is important that lessons accommodate the needs of every learner. These lessons may be
modified to accommodate your students with learning differences by referring to the files found on
the Special Populations page of this website.
Teacher Preparation:
References:
1. Business Principles and Management, Everard Burrow, South-Western Thompson Learning
Instructional Aids:
1. Organizational Structure presentation
Copyright Texas Education Agency, 2012. All rights reserved.
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2.
3.
4.
5.
6.
7.
8.
9.

Corporate Organizational Chart Assignment #1

Corporate Organizational Chart Assignment #1 Rubric
Org Structure Rap Assignment #2
Org Structure Rap Assignment #2 Rubric
Case Study Report Assignment #3
Case Study Report Assignment #3 Rubric
Teamwork Project Assignment #4
Teamwork Project Assignment #4 Rubric

Materials Needed:
1. Poster board
2. Flip chart paper
3. Markers
Equipment Needed:
1. Computers for students to complete projects
2. Projector for PowerPoint
Learner Preparation:
1. Ask students what one thing that they think is the one thing that any business cannot do
without, regardless of the size of the company or the industry it is in. Ideally they should
provide a response that has something to do with people or employees. Even in virtual
businesses, Internet businesses with no brick-and-mortar locations, people are needed to
perform business functions. This is why Human Resource Management is so essential for
any business to succeed.
2. Ask students to brainstorm functions of Human Resource Management. List on the board
or document camera their responses. You will later compare their list to the information
contained in the PowerPoint for this lesson.
Lesson Plan
Introduction (LSI Quadrant I)
1. Discuss with students the importance of organizing the human resources of any
organization. Ask students for their ideas on how their school is run. Begin drawing an
organization chart on the board with the Principal at the top, then the Assistant Principals,
departments, etc.
2. Next discuss with them the functions of some of the people in the chart, for example, their
job descriptions. They may not realize that many of them have duties that are behind-thescenes, as opposed to merely handling student discipline issues.
Important Terms for this Lesson:
Organizing effectively accomplishing plans and using resources effectively
Line organization a form of organization where the line of authority begins with the top
executive down through the lowest level in the organization
Line and staff organization similar to line organization but utilizes specialized staff to assist
employees at different levels
Matrix organization temporary work teams are created and utilized to accomplish a
specific task or project
Organizational chart a visual representation of an organizations structure
Team organization permanent work teams utilizing a team leader as opposed to
supervisors
Supervisor directs the work of the employees reporting to him/her
Mid-manager a middle-level manager who focuses mainly on one management function,
although spends some time on other functions as well
Executive a top-level manager who primarily spends time on management functions
Manager - concentrates on all management functions and has others reporting to him/her
Copyright Texas Education Agency, 2012. All rights reserved.
3

Outline
Outline (LSI Quadrant II)
Instructors can use the presentation slides, handouts, and the Internet in conjunction with the
following outline.
MI
Outline
Notes to Instructor
I.

What is organizational structure?

A. The hierarchy of an organization that sets
forth the chain of command
B. Depends upon the goals of the organization
C. Illustrated by an organization chart
D. Centralized or de-centralized
1. Centralized decision-making rests with
upper management
2. Decentralized decision-making is the
responsibility of departments or divisions

Use presentation as
aid. Ask if any of the
students have jobs.
See if they are familiar
with the structure or
the titles of the
individuals in the
company. Ask
students if they would
rather have a list of
tasks to complete
during their shift or if
they would like to be
able to have input into
their jobs. Then lead
into a discussion
about decentralized
and centralized
decision-making.

II.

What is an Adaptive Organization?

A. An organization that adjusts to changes
B. Decision-making is mainly decentralized
C. Team-oriented
D. Focuses on customer needs

Can companies do
things the way they
did decades ago and
achieve the same
results? No, they
usually cannot. They
must adapt to
changes because if
they do not, the
competition probably
will.

III. When is Change Needed? If . . .

A. A merger is anticipated
B. There are new competitors
C. There is new technology
D. There is rapid growth or decline in your
business
E. There is a change in legal issues
F. There is a new product or service pending
G. There is customer dissatisfaction
H. Costs are increasing
I. Employee morale is decreasing

Companies must
recognize when
change is needed.
Ask students what
could have happened
to companies that
dont learn to
compete. What are
the benefits to the
consumer when
companies adjust to
change? What are

Copyright Texas Education Agency, 2012. All rights reserved.

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the costs to
companies, aside
from the actual cost of
manufacturing the
product?
IV. What is Human Resource Management? All of
the activities associated with personnel, such as:
A. Hiring, recruiting
B. Compensation
C. Performance evaluation
D. Employee relations
E. Health and safety

Give students sticky

notes and ask them to
write down one thing
that they think a
Human Resource
department does in a
business. Have them
place all their sticky
notes on the board
and as you go through
the different activities,
write the headings on
the left on the board.
Ask a student to call
out what is on the
sticky notes one at a
time, and ask another
student to place them
in the appropriate
columns.

V.

A span of control that

is large is typically for
routine tasks that do
not necessarily
require as much
managerial input.
However, a span of
control that is too
small can result in
micromanaging or too
much managerial
input.
Show students the
organizational chart
for BPA listed in the
references and
calculate the span of
control. Ask students
to research on the
Internet another
businesss
organizational chart
and have them
volunteer the span of

What is Span of Control?

A. The number of subordinates over which a
member of management has direct control
B. Displayed in an organizational chart

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5

control.
VI. Types of Organizational Structure
A. Line
1. Oldest form of organization
2. Simplest form of organization
3. Quicker decisions due to top-to-bottom
chain of command
4. Lack of specialization
B. Line-and-Staff
1. More complex than line organization
2. Allows for experts at different levels
3. Specialization
4. More costly than line organization
C. Matrix
1. Project teams
2. No consistent organization structure
3. Matches skills with projects
D. Team
1. Permanent work teams
2. Self-directed teams-autonomy over
planning and reviewing work
3. Team leader as facilitator
4. Feedback from customers important

Discuss with students

how their school is
organized. Does the
principal make
department decisions
or do the
departments? If the
departments make
decisions, what type
of structure is this?

Copy and Paste Multiple Intelligences Graphic in appropriate place in left column.

Application
Guided Practice (LSI Quadrant III):
Go to the Business Professionals of America web site listed above and go through the
specifics of the organizational chart with the students on a projector. Discuss which type of
organizational structure BPA could be: line, line and staff, matrix, or team. Also point out
the span of control of the organization.
Independent Practice (LSI Quadrant III):
Corporate Organizational Chart Assignment #1 - Students are to go to a finance website,
and create organizational charts for 2 different corporations in different industries, or
students can use a local community business. You may create these charts in a word
processing software or using online graphics. Identify each as to the type of organizational
structure it is and comment on whether or not the structure varied for different industries.
Org Structure Rap Assignment #2 In pairs students will create a rap outlining the four
types of organization structure of a business. They should include enough detail in the rap
to demonstrate their knowledge of the topic. They should also include reference to at least
one major corporation or local business that the other students can recognize as well as its
organizational structure. Students will then perform their rap to the class.
Case Study Report Assignment #3 You are the owner of a business that sells uniforms
Copyright Texas Education Agency, 2012. All rights reserved.
6

and provides embroidery services for high school, college, and recreational sports teams in
your area. You have managers in the following departments: High School Sales, Collegiate
Sales, Recreational Sales, and Accounting. The High School and Collegiate Sales have
one full-time sales associate and two part-time associates as well as a delivery person. The
Recreational Sales department has one full-time and one part-time associate. The
Accounting department has two full-time employees that report to the manager. Students
will prepare a 2-page report that addresses the following questions: 1) What does the
organizational chart look like for your business? (Hint: create an organizational chart),
2) What organizational structure is your business?, 3) Assuming sales are declining in one
of the sales departments, what would your recommendation be to possibly restructure to
improve sales? 4) If sales are increasing, make a recommendation on how to restructure
to handle the increased business, 5) Is the current structure considered tall (more
centralized) or flat (more decentralized)?
Teamwork Project Assignment #4 - Divide the class into teams of 5 if possible. They are
to think of a team name and logo. Provide them with objects they can use to create a
product. Bring either fruit or other food items they can arrange or put together in any way
possible. Or you can give them wooden or plastic building logs or blocks with which to
create a toy. They must create an organization chart of all of their team members,
identifying the type of structure, as well as job titles. They are to create a Marketing Plan for
their finished food dish or toy including the four Ps for their product (product, price, place,
promotion). All items can be affixed to a poster or flip chart. Finally, they will each prepare
an exit ticket that will include their own critique of their teams organizational structure,
team member duties, teamwork, their success (or lack of) with their product, and their
overall assessment of their marketing plan.
Summary
Review (LSI Quadrants I and IV):
Q: Which form of organizational structure is the oldest and simplest?
A: Line organization is the most traditional form of organization.
Q: Which organizational structure works best for temporary projects?
A: The matrix form of organization.
Q: Line-and-staff organization is the preferred structure in what types of situations?
A: This structure is best suited where specialization is needed at different levels of an
organization.
Q: What is a characteristic of a decentralized organization?
A: Decision-making is generally left to departments or divisions within an organization.
Q: What are three of the most common signs that change may be needed in a company?
A: New competitors, a merger, or decreasing profits are a few of the many reasons a change may
be in order.
Evaluation
Informal Assessment (LSI Quadrant III):
1. Instructor will observe students during Independent Practice.
2. Instructor will assist students as needed.
Formal Assessment (LSI Quadrants III and IV):
Use the assigned rubrics to evaluate the four Independent Practice Assignments (LSI Quadrant III).
Extension
Extension/Enrichment (LSI Quadrant IV):
1. Have students think of several goals that management may have that could potentially
conflict with personal goals of employees. Create a table listing the management goals in
the left column, and, in the right column, how positive employee relations can create
solutions to achieve both the company goals and the employees personal goals.
Copyright Texas Education Agency, 2012. All rights reserved.
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Copyright Texas Education Agency, 2012. All rights reserved.

8

Organizational Structure
Independent Practice Assignment Sheet

Corporate Organizational Chart Assignment #1 - Students are to go to a finance

website, and create organizational charts for 2 different corporations in different
industries, or students can use a local community business. They may create these
charts in a word processing program using online graphics. Identify each as to the type
of organizational structure it is and comment on whether or not the structure varied for
different industries.
Org Structure Rap Assignment #2 In pairs students will create a rap outlining the
four types of organization structure of a business. They should include enough detail in
the rap to demonstrate their knowledge of the topic. They should also include reference
to at least one major corporation or local business that the other students can recognize
as well as its organizational structure. Students will then perform their rap to the class.
Case Study Report Assignment #3 You are the owner of a business that sells
uniforms and provides embroidery services for high school, college, and recreational
sports teams in your area. You have managers in the following departments: High
School Sales, Collegiate Sales, Recreational Sales, and Accounting. The High School
and Collegiate Sales have one full-time sales associate and two part-time associates as
well as a delivery person. The Recreational Sales department has one full-time and one
part-time associate. The Accounting department has two full-time employees that report
to the manager. Students will prepare a 2-page report that answers the following
questions: 1) What does the organizational chart look like for your business? (Hint:
create an organizational chart), 2) What organizational structure is your business?,
3) Assuming sales are declining in one of the sales departments, what would your
recommendation be to possibly restructure to improve sales? 4) If sales are
increasing, make a recommendation on how to restructure to handle the increased
business, 5) is the current structure considered tall (more centralized) or flat (more
decentralized)?
Teamwork Project Assignment #4 - Divide the class into teams of 5 if possible. They
are to think of a team name and logo. Provide them with objects they can use to create
a product. Bring either fruit or other food items they can arrange or put together in any
way possible. Or you can give them wooden or plastic building blocks or logs with which
to create a toy. They must create an organization chart of all of their team members,
identifying the type of structure, as well as job titles. They are to create a Marketing Plan
for their finished food dish or toy including the four Ps for their product (product, price,
place, promotion). All items can be affixed to a poster or flip chart. Finally, they will
each prepare an exit ticket that will include their own critique of their teams
organizational structure, team member duties, teamwork, their success (or lack of) with
their product, and their overall assessment of their marketing plan.

Copyright Texas Education Agency, 2012. All rights reserved.

9

Organizational Structure
Corporate Organizational Chart Assignment #1
Student Name:

________________________________________

CATEGORY

20

10

Required
Elements

The charts include all All required elements

required elements as are included on the
well as additional
charts.
information.

All but 1 of the

Several required
required elements is elements were
included on the
missing.
charts.

Use of Class
Time

Used time well

during each class
period. Focused on
getting the project
done.

Used time well

during each class
period. Usually
focused on getting
the project done.

Used some of the

Did not use class
time well during each time to focus on the
class period. There project.
was some focus on
getting the project
done.

Organization

All parts of both

organization charts
are clearly
organized.

Both charts are

adequately
organized but order
could be slightly
better.

One chart is not

clearly or logically
organized.

Mechanics

Capitalization and
punctuation are
correct throughout
the charts.

There is 1 error in
capitalization or
punctuation.

There are 2 errors in There are more than

capitalization or
2 errors in
punctuation.
capitalization or
punctuation.

Additional
Information

Charts are clearly

labeled as to type as
well as comment
regarding industry.

Both charts correctly

identified but
comment regarding
industry is unclear.

Only one chart

correctly identified
and comment is
missing.

Organization charts
are weak and poorly
organized.

Neither chart is
identified as to type,
weak comment
provided regarding
industry.

Total Score _____________

Maximum 100 Points

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Organizational Structure
Org Structure Rap Assignment #2
Student Name:

________________________________________

25

15

Flow and
Rhythm

All sentences sound

natural and are easyon-the-ear when read
aloud. Each sentence
is clear and has an
obvious emphasis.

Almost all
sentences sound
natural and are
easy-on-the-ear
when read aloud,
but 1 or 2 are stiff
and awkward or
difficult to
understand.

Most sentences
sound natural and
are easy-on-the-ear
when read aloud, but
several are stiff and
awkward or are
difficult to
understand.

The sentences are

difficult to read
aloud because they
sound awkward, are
distractingly
repetitive, or difficult
to understand.

Required
Elements

Rap contains all

possible elements of
organizational
structure and relates
information to a known
business.

Rap contains many

elements of
organizational
structure and
relates information
to a known
business.

Rap contains a few

elements of
organizational
structure but does
mention a known
business.

Rap contains very

little pertinent
information and
does not relate to a
known business.

Content

After participating in
the rap, student has
substantial knowledge
of the topic.

After participating in
the rap, student has
adequate
knowledge of the
topic.

After participating in
the rap, student has
minor knowledge of
the topic.

After participating in
the rap, student has
very little, if any,
knowledge of the
topic.

Collaboration

Pair worked extremely

well together and
created an outstanding
rap presentation.

Pair worked well

together and
performance was
successful.

Pair tolerated each

other and was not
enthusiastic about
their rap but did
complete the
presentation.

Pair did not work

well together and
did not deliver a
successful
presentation.

CATEGORY

Total Score _____________

Maximum 100 Points

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Organizational Structure
Case Study Report Assignment #3
Student Name:

________________________________________

20

10

Amount of
Information

All topics are

addressed and all
questions answered
with at least 2
sentences about
each.

All topics are

addressed and most
questions answered
with at least 2
sentences about
each.

All topics are

One or more topics
addressed, and most were not addressed.
questions answered
with 1 sentence
about each.

Organization

Information is very
organized with wellconstructed
paragraphs.

Information is
organized with wellconstructed
paragraphs.

Information is
organized, but
paragraphs are not
well-constructed.

The information
appears to be
disorganized.

Diagrams &
Illustrations

Organizational chart
is neat, accurate and
adds to the reader's
understanding of the
topic.

Organizational chart
is accurate and adds
to the reader's
understanding of the
topic.

Organizational chart
is somewhat
accurate and slightly
adds to the reader's
understanding of the
topic.

Organizational chart
is not accurate OR
does not add to the
reader's
understanding of the
topic.

Mechanics

No grammatical,
spelling or
punctuation errors.

Almost no
A few grammatical
grammatical, spelling spelling or
or punctuation
punctuation errors.
errors.

Many grammatical,
spelling, or
punctuation errors.

Quality of
Information

Information clearly
relates to the main
topic. It includes
several supporting
details.

Information clearly
relates to the main
topic. It provides 1-2
supporting details.

Information has little

or nothing to do with
the main topic.

CATEGORY

Information clearly
relates to the main
topic. No details
given.

Total Score _____________

Maximum 100 Points

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12

Organizational Structure
Teamwork Project Assignment #4
Student Name:

________________________________________

CATEGORY

20

10

Quality of Work

Provides work of the Provides high quality Provides work that

highest quality.
work.
occasionally needs
to be checked/
redone by other
group members to
ensure quality.

Provides work that

usually needs to be
checked/ redone by
others to ensure
quality.

Timemanagement

Routinely uses time

well throughout the
project to ensure
things get done on
time. Group does not
have to adjust
deadlines or work
responsibilities
because of this
person's
procrastination.

Usually uses time

well throughout the
project, but may
have procrastinated
on one thing. Group
does not have to
adjust deadlines or
work responsibilities
because of this
person's
procrastination.

Tends to
procrastinate, but
always gets things
done by the
deadlines. Group
does not have to
adjust deadlines or
work responsibilities
because of this
person's
procrastination.

Rarely gets things

done by the
deadlines AND
group has to adjust
deadlines or work
responsibilities
because of this
person's inadequate
time management.

Working with
Others

Almost always
listens to, shares
with, and supports
the efforts of others.
Tries to keep people
working well
together.

Usually listens to,

shares, with, and
supports the efforts
of others. Does not
cause "waves" in the
group.

Often listens to,

shares with, and
supports the efforts
of others, but
sometimes is not a
good team member.

Rarely listens to,

shares with, and
supports the efforts
of others. Often is
not a good team
player.

Focus on the
Task

Consistently stays
focused on the task
and what needs to
be done. Very selfdirected.

Focuses on the task

and what needs to
be done most of the
time. Other group
members can count
on this person.

Focuses on the task

and what needs to
be done some of the
time. Other group
members must
sometimes nag,
prod, and remind to
keep this person ontask.

Rarely focuses on
the task and what
needs to be done.
Lets others do the
work.

Pride

Work reflects this

Work reflects a
Work reflects some
student's best efforts. strong effort from this effort from this
student.
student.

Work reflects very

little effort on the part
of this student.

Required
Elements

All assigned tasks

completed
exceptionally well.

More than 1
assigned task not
completed.

All assigned tasks

completed
adequately.

1 assigned task not

completed.

Total Score _____________

Maximum 120 Points
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13