ELEMENTS OF

ORGANIZATION
Elements of Organization
01
People
02
02 Structure
03
Technology
04
03
04
Environment
06
 1. People
Make up the internal social system of the
organization. That system consists of
individuals and groups and groups may
be large and small, formal and informal.
 2. Structure
Defines the formal relationship and use of
people in the organization. There are
managers and employees, accounts
assemblers in order to accomplish
different kind of activities.
6 Elements of Organizational Structure
01
Job Design
02
02 Departmentalization
03
Chain of Command
03
04
Span of Control
04
05
Centralization
06
Formalization
 2.1 Job Design
Is the first building block of organization
Structure; it means-defining an individual’s
responsibilities at work
Involves defining areas of decision-making
responsibility, identifying goals and
expectations, and establishing appropriate
indicators of success.
Tools for Designing Jobs
• Job Specialization
• Job Characteristics Model
• Work Teams
• Job Rotation
• Job Enlargement
• Job Enrichment
 2.2 Departmentalization
Is a grouping of jobs according to some logical arrangement

It refers to the formal structure of the organization,

composed of various departments and managerial positions
and their relationship to each other.

It is the efficient and effective grouping of jobs into

meaningful work units to coordinate numerous jobs – all for
the expeditious accomplishment of the organization’s
objectives
Forms of Departmentalization
• Functional Departmentalization
• Product Departmentalization
• Customer Departmentalization
• Departmentalization by Process
• Departmentalization by Task Force
• Geographical Departmentalization
• Matrix Departmentalization
 2.3 Chain of Command
It is defined as a continuous line of
authority that extends from upper
organizational levels to the lowest levels
and clarifies who reports to whom.
Concepts of Chain of Command

• Authority
• Responsibility
• Unity of Command
 2.4 Span of Control
It determines the number of levels and
managers an organization has.

It also determines the number of

employees a manager can efficiently and
effectively manage.
2.5 Centralization and Decentralization
Centralization refers to the degree to which decision making is
concentrated at a single point in the organization. Level
managers are not capable or experienced in decision making
as upper level managers.
Decentralization means power or authority to take decision is
not in limited hands. Employee's can help the organization in
solving the problems by giving their ideas, more people
provide input into decisions. Decentralized departments make
it easier to address customer concern as well.
 2.6 Formalization
It refers to the degree to which jobs within the
organization are standardized and the extent to which
employee behaviour is guided by rules and
procedures

In organizations that are highly formalized, there are

explicit job descriptions, lots of organizational rules,
and clearly defined procedures covering work
processes.
 3. Technology
Provides the resources with which people work and a
ffects the tasks that they
perform. Without technology, people
cannot accomplish work with their bare
hands.

The technology used also has a significant influence

on working relationships.
 4. Environment
All organizations operate within an internal and an
external environment. A single organization does not e
xist alone.

An organization is a part of a lager system that

contains many other elements, such as government,
the family, and other organizations. Numerous
changes in the environment create demands on
organizations.
Elements of Organization
Environment
01
External Environment
- General Environment
- Task Environment

02
Internal Environment
02 06
 4.1 External Environment
The organization has no control over how the
external environment elements will shape up.

It can be subdivided into 2 layers: the General

Environment and the Task Environment.
 4.1.1 General Environment
Consists of factors that may have an immediate direct
effect on operations but nevertheless influences the
activities of the firm.
The dimensions of the general environment are broad
and non-specific.

- Economic Dimension - Political-Legal Dimension

- Technological Dimension - International Dimension
- Socio-Cultural Dimension
 4.1.2 Task Environment
Consists of factors that directly affect and are affected
by the organization’s operations. These factors
include suppliers, customers, competitors, regulators
and so on.

- Competitors - Regulators
- Customers - Strategic Partner
- Suppliers
 4.2 Internal Environment
Forces or conditions or surroundings within the
boundary of the organization are the elements
of the internal environment of the organization.

- Owners - Employees
- Board of Directors - Culture
Thank You!

By:
SHEKAIINAH VENUS A. SANTOS