Organizational Structure’s six elements are the six building blocks that managers must use in developing and structure organizational Hierarchy.
Departmentalization of Organization by Process Types is most commonly found in production and frequently at operative levels.
Customer departmentalization is where the organization structure is designed to accommodate specific customers or customer groups’ needs and specifications.
Departmentalization indicates the formal structure of the organization, composed of various divisions, levels and managerial positions for different job and their relationships to each other.
Centralization refers to withholding of delegating authority for decision-making. Decentralization means the allocation of some decision-making power down the line to subordinate managers.
Matrix departmentalization is a combination of functional departmentalization and task force departmentalization for improved harmonization of multiple components.
Departmentalization by Territory is the division of organization according to geographic regions as it groups jobs on the basis of territory or geography.
Functional departmentalization groups together jobs involving the same or similar activities as it allows the organization to staff all important positions with functional experts and facilitates coordination and integration.
Management is concerned with high levels of productivity and for that management must maintain a perfect balance of effectiveness and efficiency.