Organizational Structure for a Manager Supervisor

by Leigh Richards

Organizational structure refers to the arrangement of individuals and departments in a company. Depending on the size and nature of the organization, organizational structure can take many forms. The two most basic considerations in such a structure are the number of formal layers composing the organizational structure and the division of activities. For a manager or supervisor, the number of layers in an organization will particularly affect the manager's level of authority and responsibility.

Tall versus Flat Structure

In most organizations, there is some level of hierarchy, even if it is simply one individual as the head of the group and an equal position for the others. This could be described as a very flat organizational structure, with few intervening layers between top and bottom. A tall structure, on the other hand, has many layers. For example, a corporation might have a CEO, president, vice president and director all above a manager supervising her employees.

Product Departmentalization

Departmentalization refers to the way the activities of the business are divided among the various employees. In a product departmentalization organization, the focus of the business units is on a particular product. For example, an automobile company might break the company into units based on particular car models. A manager might be assigned to oversee all of the aspects of one particular offering provided by the company.

Functional Departmentalization

Functional departmentalization is a division of activities in a company that focuses on specific business functions. For example, a cereal company might be divided into marketing, operations, finance and sales divisions. Managers of these divisions would focus on these specific functions across all product lines.

Matrix Departmentalization

With large, complex organizations, matrix departmentalization is very common. Matrix departmentalization uses cross-functional groups to work on both products and functions. For example, an automobile manufacturer might combine units from its X100 model with units from the marketing division to create a marketing plan specifically for that model, thereby combining the knowledge and skills of both distinct groups.

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