What is Structure?
Construction or framework of identifiable elements
(components, entities, factors, members, parts, steps, etc.)
which gives form and stability, and resists stresses and
Structures have defined boundaries within which (1) each
element is physically or functionally connected to the other
elements, and (2) the elements themselves and their
interrelationships are taken to be either fixed (permanent)
or changing only occasionally or slowly.
See also infrastructure, superstructure, and system.
http://www.businessdictionary.com/definition/structure.html#ixzz3CAWcnMYO
2 ITE 112 © by Vasin Chooprayoon
What is Organisation?
A social unit of people that is structured and managed to
meet a need or to pursue collective goals.
All organisations have a management structure that
determines relationships between the different activities
and the members, and subdivides and assigns roles,
responsibilities, and authority to carry out different tasks.
Organisations are open systems--they affect and are
affected by their environment.
http://www.businessdictionary.com/definition/organizatio
n.html#ixzz3CAXmvErf
3 ITE 112 © by Vasin Chooprayoon
Why Have a Structure?
All businesses have to organise what they do
A clear structure makes it easier to see which part
of the business does what
There are many ways to structure a business
4 ITE 112 © by Vasin Chooprayoon
Some Key Terms
Flat or tall structure
Chain of command
5 ITE 112 © by Vasin Chooprayoon
Ways to Structure a Business
By function: arranging the business according to
what each section
or department does
By product or activity: organising according to the
different products made
By area: geographical or regional structure
6 ITE 112 © by Vasin Chooprayoon
Ways to Structure a Business
By customer: where different customer groups
have different needs
By process: where products have to go through
stages as they are made
What are the advantages/disadvantages of
different types of business structure?
7 ITE 112 © by Vasin Chooprayoon
Types of Organisational Structure
8 ITE 112 © by Vasin Chooprayoon
1. Line Organisation
Original structure; the oldest; all executives are over their
subordinates; subordinates report to the executives hierarchically
There is a hierarchical arrangement of authority.
Each division has its own responsibility; independent working; free
Lines of authority are vertical, i.e. from top to bottom.
There are no staff specialists.
02/09/57 ITE 112 © by Vasin Chooprayoon 9
1. Line Organisation (cont.)
10 ITE 112 © by Vasin Chooprayoon
What is Structure?
Construction or framework of identifiable elements
(components, entities, factors, members, parts, steps, etc.)
which gives form and stability, and resists stresses and
Structures have defined boundaries within which (1) each
element is physically or functionally connected to the other
elements, and (2) the elements themselves and their
interrelationships are taken to be either fixed (permanent)
or changing only occasionally or slowly.
See also infrastructure, superstructure, and system.
http://www.businessdictionary.com/definition/structure.html#ixzz3CAWcnMYO
2 ITE 112 © by Vasin Chooprayoon
What is Organisation?
A social unit of people that is structured and managed to
meet a need or to pursue collective goals.
All organisations have a management structure that
determines relationships between the different activities
and the members, and subdivides and assigns roles,
responsibilities, and authority to carry out different tasks.
Organisations are open systems--they affect and are
affected by their environment.
http://www.businessdictionary.com/definition/organizatio
n.html#ixzz3CAXmvErf
3 ITE 112 © by Vasin Chooprayoon
Why Have a Structure?
All businesses have to organise what they do
A clear structure makes it easier to see which part
of the business does what
There are many ways to structure a business
4 ITE 112 © by Vasin Chooprayoon
Some Key Terms
Flat or tall structure
Chain of command
5 ITE 112 © by Vasin Chooprayoon
Ways to Structure a Business
By function: arranging the business according to
what each section
or department does
By product or activity: organising according to the
different products made
By area: geographical or regional structure
6 ITE 112 © by Vasin Chooprayoon
Ways to Structure a Business
By customer: where different customer groups
have different needs
By process: where products have to go through
stages as they are made
What are the advantages/disadvantages of
different types of business structure?
7 ITE 112 © by Vasin Chooprayoon
Types of Organisational Structure
8 ITE 112 © by Vasin Chooprayoon
1. Line Organisation
Original structure; the oldest; all executives are over their
subordinates; subordinates report to the executives hierarchically
There is a hierarchical arrangement of authority.
Each division has its own responsibility; independent working; free
Lines of authority are vertical, i.e. from top to bottom.
There are no staff specialists.
02/09/57 ITE 112 © by Vasin Chooprayoon 9
1. Line Organisation (cont.)
10 ITE 112 © by Vasin Chooprayoon
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