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May 31, 2018 | Author: usmanehsan03 | Category: Organizational Structure, Apple Inc., Division Of Labour, Employment, Economies
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Short Description



Organizational Structure 

Simple Structure

 Name of Organization


Justification Based on Defined Six Key Elements

Work specialization  focuses on meeting a daily output goal and all the employees are specialist in the area they work within. Given the size of Apple and the amount of employees they have as well as their ability to produce so many products and majority of those products are successful it would take a organizational structure like work specialization to have a good outcome. Chain of command

In contrast to the tall hierarchical structure, a flat organizational structure is characterized by relatively few layers or just one layer of management. As a result, the chain of command from the top to the bottom staff is short.

Wide span of control According to the Apple Incorporated, the company can be classified as having a wide span of control. cont rol. 

Departmentalization Under the CEO of Apple Inc. Tim Cook, there are 13 departments and each department have their own group of employees. For example, under Phil Schiller there are many other employees like the iPad Director, vice  president of iPad marketing, vice president of education, vice president of iPhone Product marketing and vice  president of software marketing. 


Apple Inc. is a centralized compan y and that is the main reason that Apple Incorporated is the largest technolog y company in the world by single person that is the Ceo Steve Jobs. The company planned a high capital investment of 8 billion US dollars in 2012. Nowadays, technological businesses can be said to be the most competitive business in the world. This applies especially to smart phones and tablets. And for that Apple Inc. must maintain their high level of technology to prevent p revent itself

from losing customers to the other companies. Due to all these, Apple Inc. is highly encouraged to become a centralized company. In additional, Apple Inc. has many experiences in doing international businesses which leads to Apple Inc. being the most complimented company in the world. 

Formalization is little

Formalization of a company mean show standardized an organization's jobs are and the extent to which employees  behaviors are guided by a set of rules and procedures. For Apple Inc., we know that it's high in formalization. Tim Cook, who is the CEO of the company, has thirteen departments under him. Each of the departments has their own jobs and they will not do the other department's jobs. For example, the marketing department is only doing marketing and marketing only. If the other department, for example, the hardware engineering department has faced some problems, they will have to solve it themselves because the other department will not intervene.

Functional structure


Work specialization

It is based upon both specialist and multi skill people eg: in It department require specialized people but cus tomer relation department doesn’t require a specialized people 


Telenor Pakistan has several departments 

Commercial division Customer service division financial division financial service corporate affairs

Chain of command

  

It has clear chain of command

Span of control It also varies department to department like hrm &finance has narrow span of control but marketing &customer relationship has wider span of control 


There is centralization but some extend there is decentralization also employees are free to give ideas but action on these ideas will be taken by top managers. 


Formalization is not very high rules &procedure exist to improve employee behavior more predictable and reduce conflict between employees.

Divisional Structure

Dividing the whole organization according to the major products to be manufactured by them is known as Divisional Organizational Structure. For example Samsung

Work specialization

The work specialization and the division of labor is based on the fields of functioning and production of the organization. Individual experts specializing in different areas of the company’s manufacturing and development are given tasks to fulfill and execute. 

Chain of command

The chain of command is he flow of line of authority from the top level of management to functional level of the organization. The authority is inherent in the hands of the leaders and top of the managers with the responsibility lying over their competent shoulders. The unity o f command follows from the strict organizational structure

and management being accountable to just one authoritative leader . 


Also, many rules are developed and the decision making  process is centralized. The structure in Samsung is centralized as lower level managers are not competent or do not have the authority to make any kind of decision. The decision chain filters from the topmost level seaming down to the ground level of management. Moreover, the lower management do not even have a stance in decision structure. In this centralized structure all decisions are critical and significant acting as a decisive factor for the compan y. This ensures that the decisions taken are well consistent with the organizational strategic objectives and reduces to take up the risk of wrong decisions.


Each employee has fixed duties and the communication channels are formalized in such rigid hierarchical relationship. In Samsung Electronics, all the employees at any level of the hierarchy are strictly guided to follow the orders. 

Span of control

Span of control covers the entire organization spread across the globe. Otherwise, the structure of the Samsung has a large degree of span of control. 


Samsung Electronics company is a department organizational structure with CEO as a commanding officer for the whole organization spread globally and with multiple heads, managers or leaders taking up the departments of finance, technology, marketing, research and development, or finance

Team Structure

Whole food market, Inc . in the united states uses team structure.


Employees in team are also allowed to take decision, Employees’ empowerment is crucial in team structure. Chain Of Command: Line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. For example, facility managers’ report to regional presidents and regional presidents report to the global headquarters. Unity of command: If there is any problem facing to employee so he report to the main leader of that team.

Authority And Responsibility:

there is one responsible leader in team to look around the employees, make decision and authority give him this right. Span Of Control:

there is a wider span of control because the employees are maximum and many teams are situated in different areas. Departmentalization:

Geographic departmentalization  Functional departmentalization  Process departmentalization

Project Structure

Highly dynamic companies such as software developers, architecture firms, and event organization companies use this structure.


A series of specialized employees, ready to composed a work on specialized and on team basis as needed characterize this structure. Once project is complete they move on to another project

Unity of command:

With each project, these collaborators report to a l eader. Departmentalization:

There is no departmentalization or rigid organizational hierarchy to slow down decision making or taking actions. They have no formal departments that employees return to the completion of a project. Less formalizations:

Employees have unlimited freedom. More time is required for project task. It is tend to be fluids and flexible organizational design.

Matrix Structure


Centralization & decentralization

It is a very huge company so upper level managers take most important decision. If the decision are based on analyzing their expertise so all levels can make decision. 

Chain of command

The chain of command in loreal is continuous line of authority that extend from upper level to low level. Inside the upper level the board of directors make decision which are audit by committee and then Ceo will make the final decision. Departmentalization It has very clear range of departments 1. Product departmentalization Groups jobs by product line eg cosmetics hair care coloring skin care make up and perfume. 

2. Geographical departmentalization This brand has many location all around the world for eg its headquarters its research centers its evaluation centers its production sites etc. 3. Customer departmentalization One of the ambition of loreal is to make customize  product for all diverse customers that it can use by all the

customers in different parts of world. 

Span of control Loreal has narrow span of control. Work specialization

To ensure its development lor’eal divides its labor into global research and innovation centers. High specialization.

Formalization Formalization is high 

Virtual Organization


Highly centralized  No departmentalization Consolidation of units (external communication)

 Network Organization


The network structure is a newer type of organizational structure viewed as less hierarchical (i.e., more “flat”), Boundary less organization Decentralization: more decentralized Span of control: There is wider span of control Chain of command: there is less hierarchy tier system They are boundary less organization Formalization: No mode of formalization Structure is free and more flexible than other structures. They can think that they can operate more effectively by remaining flexible and unstructured.

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