3. Organizational design involves the creation of roles, processes and structures to
ensure that the organization’s goals can be realized.
The choice of an appropriate organizational design depends on the firm's:-
- Size.
- Operations and information technology.
- Environment.
- Strategy for growth and survival
4. A structure characterized by a low degree of departmentalization,
wide spans of control, authority centralized in a single person, and
little formalization.
CEO
PRODUCTION SALES SERVICE ADMINISTRATION
5. An organization may have one or more cross functional teams that form for
special projects. An individual may work for a department manager and on a
project led by a project manager. When the project ends, the individual goes
back to the department or takes on another project.
Functional
manager
Staff
Staff
Functional
manager
Staff
Staff
6. ADVANTAGES
Decentralization of decisions.
Increase in specialization.
Productive exchange of information.
DISADVANTAGES
Breaks down unity-of-command
concept.
Rise in conflicts.
Rise in administrative cost.
Ambiguity in responsibility and
authority.
7. Project-based organizations are temporary in nature and are developed to fulfil
some defined set of results for a project.
IT HEAD
PROJECT HEAD
(DEPARTMENT)
PLANNING DESIGNING DEVELOPING TESTING
PROJECT HEAD
(DEPARTMENT
2)
PLANNING DESIGNING DEVELOPING TESTING
8. ADVANTAGES
It is a quick way to produce highly
complex product systems.
It facilitates planning,
implementation, and control.
Leads to strong teams that focus on
project goals.
DISADVANTAGES
Requires close attention to quality
control through customer feedback.
Requires detailed project tools and
support.
9. This design is the combination of different types of organizations
whose actions are coordinated by contracts and agreements rather
than through a formal hierarchy of authority. Usually one firm takes
the lead in creating the network. This design consists of several
satellite organizations clustered around a core firm.
CORE
FIRM
PUBLIC-
RELATIO
N FIRM
MANUFA
CTURING
FIRM
ASSEMB
LY FIRM
CALL
CENTRE
FIRM
10. ADVANTAGES
Individual entities realize the
benefits of a large organization
without needing to manage one.
Once entities establish a
relationship, it can relieve them of
some of their marketing burden
DISADVANTAGES
It can require redundancies to
mitigate disruptions in the supply
chain.
Requires close attention to risks and
liabilities
11. A virtual organization is a group of individual firms that pool their knowledge,
resources, and expenses often temporarily, to produce a service or product.
The key benefits of this style of organization are flexibility and adaptability.It is
made up of a network of In a virtual organization, each member contributes simply
to their core expertise.
Virtual
organization
Information
technology
distributor
s
End users
suppliers
12. ADVANTAGES
Lower Overhead Costs.
Increased productivity
Facilities to work from home.
Access to New Markets.
Goal oriented
Customer oriented
DISADVANTAGES
The lack of physical interactions
with its associated verbal and non-
verbal cues.
Difficult to control
Technologies can be easily revealed
Problems with external partner can
occur
13. A horizontal organization structure has few hierarchical layers with
wide span of control.
president
Vp
marketing
Marketing
staffs
Vp Hr
Hr staffs
Vp finance
Finance
staffs
Vp
operations
Operations
staffs
Executive
assistant
14. ADVANTAGES
Employee satisfaction
Faster decisions
Empower employee
DISADVANTAGES
Higher workload
Confusion
Power struggle
CHARACTERISTICS
Span of control
Autonomy
Teamwork and collaboration
15. Boundaryless Organization, as the word implies, is an organization with no boundaries. Normally, a
company has a structure and a set of hierarchies. But a boundaryless organization has no or minimal
structure and hierarchies.
The primary goal of such organizations is to ensure greater flexibility and responsiveness, as well as a
smooth flow of information and ideas.
16. ADVANTAGES
No supervisions over employees.
Employees acts as managers & coordinators.
Flexibility.
Easy Communications through text, mails,
video conferences and more.
Authority and responsibility to take decisions.
DISADVANTAGES
Lack of Control and coordination among
groups.
Chain of management may be confusing.
Communication difficulties due to expansive
diverse collaborations.