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Learning organization
Flow of presentation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
DEVIKA SHINDE Roll No. – p-34
General introduction to Organizational theories and design
What is Organizational Design ,[object Object],[object Object]
Key elements of organizational designs: Departmentalization Span of Control Work Specialization Chain of Command Authority and  Responsibility Centralization vs.  Decentralization
Organizational Theories ,[object Object]
Classical & Neoclassical Theory ,[object Object],[object Object]
Differentiation
Differentiation ,[object Object],[object Object]
Example ,[object Object]
Organizational Role ,[object Object],[object Object],[object Object]
Contd….. ,[object Object],[object Object]
Sub units ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sub-units ,[object Object]
Vertical and horizontal differentiation ,[object Object],[object Object],[object Object]
[object Object],01/02/10
Balancing differentiation & integration
What is differentiation? ,[object Object]
Challenges of horizontal differentiation  ,[object Object],[object Object],[object Object],[object Object],[object Object]
What is integration? ,[object Object]
7-integrating mechanism ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Hierarchy of authority ,[object Object],[object Object],[object Object]
Liaison team Marketing Production
Team Force or Team Engineering Marketing R & D Sales Production
Integrating Role or Department Computer  Hardware Division Integration Role or  Department Application Division Computer Software Division
Differentiation & Integration-key aspects Differentiation Integration A highly complex, highly differentiated organization needs high level of integration An organization that has a relatively  simple, clearly defined role structure needs to use only simple integrating mechanism  Expensive –in terms of the number of  managers employed & the amount of managerial time spent on coordinating organizational activities. Unnecessary investment
Summary  ,[object Object],[object Object]
[object Object]
What is Centralization? ,[object Object]
What is Decentralization? ,[object Object]
Centralization  Advantages  Disadvantages  Top managers coordinate  organizational activities  effectively & keep the organization focused on its goal. Top management become overloaded  & need to take care of day-to-day activities & cannot focus on long term decision making Lower hierarchy-afraid to make news or express their ideas Hierarchy of authority  exists , people are constantly looking to their superiors for help.
Decentralization Advantages  Disadvantages  Promotes flexible & responsiveness by allowing subordinate to make on the spot decisions Planning & coordination becomes more difficult Motivates to perform the best Personal goals & objectives can be pursed at the expense of organization
SUKHADA p17
Standardization ,[object Object]
Mutual adjustment. ,[object Object]
Balancing standardization & Mutual adjustment ,[object Object],[object Object],[object Object],[object Object]
[object Object]
[object Object],[object Object]
[object Object],[object Object]
Socialization ,[object Object],[object Object],01/02/10
Standardization Vs Mutual adjustment Manager facing the challenge of balancing  the need for standardization  against need for mutual adjustments
PUJA a. govikar Roll no. p-9
Mechanistic and Organic Organizational Structure `
Mechanistic structure ,[object Object],[object Object],[object Object],[object Object]
Mechanistic structure cont. ,[object Object],[object Object],[object Object],[object Object],[object Object]
Organic Structure ,[object Object],[object Object],[object Object],[object Object]
Organic Structure cont. ,[object Object],[object Object],[object Object],[object Object],[object Object]
Mechanistic  v/s Organic Structure 01/02/10 Mechanistic Organic Individual Specialization Joint Specialization Simple Integration Complex integration Centralization Decentralization Standardization Mutual Adjustment
Mechanistic  v/s Organic Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Contingency Approach to Organizational Design ,[object Object],[object Object],[object Object]
Tom burns and G.M. Stalker theory ,[object Object],[object Object]
McDonald Changing Environment ,[object Object],[object Object],[object Object],[object Object]
Organizational Structure ,[object Object],[object Object]
Solution McDonalds came up with.. ,[object Object],[object Object],[object Object]
Identify the organization structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DHANRAJ P16
Functional structure ,[object Object],01/02/10
Functional structure 01/02/10
Functional structure ,[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
Functional structure ,[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
Control problems  01/02/10
continue 01/02/10
Divisional structure ,[object Object],01/02/10
Types of Divisional structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
ANANDITA C 34
Divisional Structures Functions according to the specific demands of products, markets, or customers.
Divisional Structures 01/02/10
Divisional Structure I ,[object Object],[object Object],01/02/10
I) Product structures ,[object Object],01/02/10
Types of product structures 01/02/10
a) Product Division Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
Product Division Structure 4-19 Large Food Processor – E.g. Heinz 01/02/10 Vice President Sales and Marketing Vice President Research and Development Vice President Materials Management CEO Vice President Finance PDM PDM PDM PDM Centralized support functions Divisions
Product Division Structure – Contd. ,[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
b) Multidivisional Structure ,[object Object],[object Object],[object Object],[object Object],01/02/10
Multidivisional Structure. Consumer Products Company. Corporate Managers CEO Divisional Managers Senior VP Marketing Senior VP Finance Senior VP Materials Management Senior VP Research and Development Functional Managers Corporate Headquarters Staff Division B Support functions Division D Support functions Division A Support functions Support functions Division C 4-21 01/02/10
COMPARISON 01/02/10 MULTIDIVISIONAL STRUCTURE PRODUCT DIVISION STRUCTURE Independence of each division – self contained. Divisions shares the services of a set of centralized functions. New level of management – a corporate head quarters staff – adds more control.  No such level – control is lesser. Structure is designed to allow a Company to operate in many different businesses. Structure can only be used to control the activities of a Company that is operating in one business or Industry.
ADVANTAGES ,[object Object],[object Object],[object Object],[object Object],01/02/10
DISADVANTAGES ,[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
Product Team Structure ,[object Object],[object Object],[object Object],01/02/10
Product Team Structure. 4-29 01/02/10 Product Division Product Division CEO Functions Product Development Teams Product Division V ice President Research and Development V ice President Sales and Marketing V ice President Manufacturing V ice   President Finance Functional specialist V ice   President Materials Management PTM Product Team Manager PTM PTM PTM
Product Team Structure…Contd. ,[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
Divisional Structure II 01/02/10 ,[object Object],[object Object],[object Object],[object Object],[object Object]
Geographic Structure 4-31 01/02/10 Regional Operations Regional Operations Regional Operations Regional Operations CEO Central Support Functions Individual stores
Divisional Structure III ,[object Object],[object Object],[object Object],01/02/10
Market Structure 01/02/10 Commercial Division Consumer Division Government Division Corporate Division CEO Central Support Functions
JAYASHREE C43
MATRIX STRUCTURE
Matrix Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
01/02/10 Matrix Structure CEO V ice President Engineering V ice President Finance V ice President Purchasing V ice President Sales and Marketing V ice President Research and Development Product A Manager Product B Manager Product C Manager Product D Manager Product Team Two-boss employee
Advantages of a Matrix  Structure ,[object Object],[object Object],[object Object],[object Object],01/02/10
Disadvantages of a Matrix  Structure ,[object Object],[object Object],[object Object],[object Object],01/02/10
Multidivisional Matrix Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
01/02/10 Multidivisional Matrix Structure CEO Senior Vice President Marketing Senior Vice President Finance Senior Vice President Research and Development Senior Vice President Materials Management Automobile Products Division Personal Computer Division Consumer Electronics Division
Network Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],01/02/10
Network Structure Network structures often result from outsourcing. Outsourcing  is the process of  moving  activities that were previously performed  inside the organization to the outside  (where they are done by other companies). 01/02/10
Advantages of Network  Structure ,[object Object],[object Object],[object Object],[object Object],01/02/10
Disadvantages of Network  Structure ,[object Object],[object Object],[object Object],01/02/10
Boundaryless Organization ,[object Object],01/02/10
[object Object],01/02/10
Bibliography  ,[object Object],01/02/10
01/02/10

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Organization Theory & Design

  • 2.
  • 3. DEVIKA SHINDE Roll No. – p-34
  • 4. General introduction to Organizational theories and design
  • 5.
  • 6. Key elements of organizational designs: Departmentalization Span of Control Work Specialization Chain of Command Authority and Responsibility Centralization vs. Decentralization
  • 7.
  • 8.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 25. Team Force or Team Engineering Marketing R & D Sales Production
  • 26. Integrating Role or Department Computer Hardware Division Integration Role or Department Application Division Computer Software Division
  • 27. Differentiation & Integration-key aspects Differentiation Integration A highly complex, highly differentiated organization needs high level of integration An organization that has a relatively simple, clearly defined role structure needs to use only simple integrating mechanism Expensive –in terms of the number of managers employed & the amount of managerial time spent on coordinating organizational activities. Unnecessary investment
  • 28.
  • 29.
  • 30.
  • 31.
  • 32. Centralization Advantages Disadvantages Top managers coordinate organizational activities effectively & keep the organization focused on its goal. Top management become overloaded & need to take care of day-to-day activities & cannot focus on long term decision making Lower hierarchy-afraid to make news or express their ideas Hierarchy of authority exists , people are constantly looking to their superiors for help.
  • 33. Decentralization Advantages Disadvantages Promotes flexible & responsiveness by allowing subordinate to make on the spot decisions Planning & coordination becomes more difficult Motivates to perform the best Personal goals & objectives can be pursed at the expense of organization
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42. Standardization Vs Mutual adjustment Manager facing the challenge of balancing the need for standardization against need for mutual adjustments
  • 43. PUJA a. govikar Roll no. p-9
  • 44. Mechanistic and Organic Organizational Structure `
  • 45.
  • 46.
  • 47.
  • 48.
  • 49. Mechanistic v/s Organic Structure 01/02/10 Mechanistic Organic Individual Specialization Joint Specialization Simple Integration Complex integration Centralization Decentralization Standardization Mutual Adjustment
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56.
  • 58.
  • 60.
  • 61.
  • 62. Control problems 01/02/10
  • 64.
  • 65.
  • 67. Divisional Structures Functions according to the specific demands of products, markets, or customers.
  • 69.
  • 70.
  • 71. Types of product structures 01/02/10
  • 72.
  • 73. Product Division Structure 4-19 Large Food Processor – E.g. Heinz 01/02/10 Vice President Sales and Marketing Vice President Research and Development Vice President Materials Management CEO Vice President Finance PDM PDM PDM PDM Centralized support functions Divisions
  • 74.
  • 75.
  • 76. Multidivisional Structure. Consumer Products Company. Corporate Managers CEO Divisional Managers Senior VP Marketing Senior VP Finance Senior VP Materials Management Senior VP Research and Development Functional Managers Corporate Headquarters Staff Division B Support functions Division D Support functions Division A Support functions Support functions Division C 4-21 01/02/10
  • 77. COMPARISON 01/02/10 MULTIDIVISIONAL STRUCTURE PRODUCT DIVISION STRUCTURE Independence of each division – self contained. Divisions shares the services of a set of centralized functions. New level of management – a corporate head quarters staff – adds more control. No such level – control is lesser. Structure is designed to allow a Company to operate in many different businesses. Structure can only be used to control the activities of a Company that is operating in one business or Industry.
  • 78.
  • 79.
  • 80.
  • 81. Product Team Structure. 4-29 01/02/10 Product Division Product Division CEO Functions Product Development Teams Product Division V ice President Research and Development V ice President Sales and Marketing V ice President Manufacturing V ice President Finance Functional specialist V ice President Materials Management PTM Product Team Manager PTM PTM PTM
  • 82.
  • 83.
  • 84. Geographic Structure 4-31 01/02/10 Regional Operations Regional Operations Regional Operations Regional Operations CEO Central Support Functions Individual stores
  • 85.
  • 86. Market Structure 01/02/10 Commercial Division Consumer Division Government Division Corporate Division CEO Central Support Functions
  • 89.
  • 90. 01/02/10 Matrix Structure CEO V ice President Engineering V ice President Finance V ice President Purchasing V ice President Sales and Marketing V ice President Research and Development Product A Manager Product B Manager Product C Manager Product D Manager Product Team Two-boss employee
  • 91.
  • 92.
  • 93.
  • 94. 01/02/10 Multidivisional Matrix Structure CEO Senior Vice President Marketing Senior Vice President Finance Senior Vice President Research and Development Senior Vice President Materials Management Automobile Products Division Personal Computer Division Consumer Electronics Division
  • 95.
  • 96. Network Structure Network structures often result from outsourcing. Outsourcing is the process of moving activities that were previously performed inside the organization to the outside (where they are done by other companies). 01/02/10
  • 97.
  • 98.
  • 99.
  • 100.
  • 101.