organisational structure
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organisational structure
- 2. WHAT IS ORGANIZATIONALWHAT IS ORGANIZATIONAL STRUCTURE?STRUCTURE? According to STEPHEN P ROBBINS “An organizationalAccording to STEPHEN P ROBBINS “An organizational structure defines how job tasks are formally divided,structure defines how job tasks are formally divided, grouped and coordinated.”grouped and coordinated.” According to FRED LUTHANS “Organization structureAccording to FRED LUTHANS “Organization structure represents the skeleton framework for organizationalrepresents the skeleton framework for organizational behavior.”behavior.” Organizational structure is defined as “the framework ofOrganizational structure is defined as “the framework of tasks, reporting and authority relationships within which antasks, reporting and authority relationships within which an organization functions.”organization functions.”
- 3. NEED FOR FORMALNEED FOR FORMAL ORGANIZATION STRUCTUREORGANIZATION STRUCTURE Facilitating ManagementFacilitating Management Encouraging GrowthEncouraging Growth Optimum Use of Technological ImprovementOptimum Use of Technological Improvement Encouraging Human Use of Human BeingsEncouraging Human Use of Human Beings Stimulating CreativityStimulating Creativity
- 5. Work SpecializationWork Specialization Work Specialization or Division Of LaborWork Specialization or Division Of Labor refers to the degree to which activities in anrefers to the degree to which activities in an organization are subdivided into separateorganization are subdivided into separate jobs.jobs. In essence, individuals specialize in doingIn essence, individuals specialize in doing part of an activity rather than the entirepart of an activity rather than the entire activity.activity.
- 6. DepartmentalizationDepartmentalization The basis by which jobs are grouped togetherThe basis by which jobs are grouped together is called Departmentalization.is called Departmentalization. The various ways by whichThe various ways by which Departmentalization can be done are:-Departmentalization can be done are:- FunctionalFunctional ProductProduct CustomerCustomer GeographicGeographic
- 7. Chain of CommandChain of Command Who reports to whom?Who reports to whom?
- 8. Span of ControlSpan of Control How many people can a manager manage?How many people can a manager manage?
- 9. FormalizationFormalization It refers to the degree to which the jobs withinIt refers to the degree to which the jobs within the organization are standardized.the organization are standardized. The degree of formalization can vary widelyThe degree of formalization can vary widely between organizations and withinbetween organizations and within organizations.organizations.
- 10. The Degree of FormalizationThe Degree of Formalization Higher EmployeeFreedom High Formalization Low Formalization HigherLower Standardization Lower
- 11. Formal decision making authority is heldFormal decision making authority is held by a few people, usually at the topby a few people, usually at the top CentralizationCentralization Decision making authority isDecision making authority is dispersed throughout the organizationdispersed throughout the organization DecentralizationDecentralization Centralization and Decentralization
- 12. DecentralizedDecentralized DecisionDecision MakingMaking CentralizedCentralized DecisionDecision MakingMaking EmployeeEmployee EmpowermentEmpowerment ManagerialManagerial ControlControl ManagerialManagerial ControlControl EmployeeEmployee EmpowermentEmpowerment HighHighHighHigh LowLow LowLow Making Decisions inMaking Decisions in OrganizationsOrganizations
- 13. FORMS OF ORGANIZATIONALFORMS OF ORGANIZATIONAL STUCTURESSTUCTURES The Line and Staff Organization StructureThe Line and Staff Organization Structure The Functional Organization StructureThe Functional Organization Structure The Divisional Organization StructureThe Divisional Organization Structure The Matrix StructureThe Matrix Structure The Project Organization StructureThe Project Organization Structure Free form Organization StructureFree form Organization Structure Network Organization StructureNetwork Organization Structure
- 14. Line and Staff Organization Structure Line Departments – Substantive (direct) in its contribution to organization’s overall objective Staff Departments – Objective (indirect) in its contribution to organization’s overall objective Line and Staff conflict Reasons of conflict are: • Difference in view points • Lack of Demarcation between Line and Staff • Lack of proper understanding of authority • Different background
- 15. Functional Organization Structure Traditional concept of organizing. The basis of departmentation is the various functions to be performed by the organization. Widely used in medium and large organizations.
- 16. Divisional Organization Structure Also known as Profit Decentralization. Organization is divided into fairly autonomous units. Each unit is self contained and directly accountable to the organization. Basis of Divisionalisation Product Divisionalisation Territorial Divisionalisation Strategic Business Divisionalisation
- 17. Product Divisionalisation Vice President Sales and Marketing Vice President Research and Development Vice President Materials Management CEO Vice President Finance Canned Soups Division PDM Frozen Vegetable Division PDM Frozen Entrees Division PDM Baked Goods Division PDM Centralized support functions Divisions
- 19. Matrix Organization Structure It is the realization of two dimensional structure which emanates directly from two dimensions of authority.
- 20. 2020 Matrix Structure CEO Vice President Engineering Vice President Finance Vice President Purchasing Vice President Sales and Marketing Vice President Research and Development Product A Manager Product B Manager Product C Manager Product D Manager Product Team Two-boss employee
- 21. Project Organization StructureProject Organization Structure
- 22. Free Form Organization Also known as naturalistic, organic form of organization structure. Free form structures reduce the emphasis on positions, departments and other formal units, and on the organizational hierarchy. Free form organizations are suitable for those industries which have to work in highly dynamic environments.
- 23. 2323 Network organization structure A recent innovation in organizational architecture is the use of network structures. A network structure is a cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy.