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  2. OBJECTIVES  Organization structure.  Organizational design.  Organizations for future.  Organizational culture creating and sustaining a positive culture.
  3. ORGANIZATION STRUCTURE Organizational structure is the method by which work flows through an organization. It allows groups to work together within their individual functions to manage tasks.
  4. FORMAL ORGANIZATION An organization chart is a diagram describing reporting relationships and the formal arrangement of work positions within an organization. It includes: The division of work Supervisory relationships Communication channels Major subunits Levels of management
  5. INFORMAL STRUCTURES :  The set of unofficial relationships between organization members  Social network analysis  Identifies informal structures and social relationships in the organization
  6. ADVANTAGES OF INFORMAL STRUCTURES: •Informal learning •Gaining access to interpersonal networks DISADVANTAGES OF INFORMAL STRUCTURES •May carry inaccurate information •Susceptibility to rumor
  7. TYPES OF ORGANIZATIONAL STRUCTURES •Hierarchical org structure. •Functional org structure. •Horizontal or flat org structure. •Divisional org structures (market-based, product-based, geographic) •Matrix org structure. •Team-based org structure. •Network org structure
  8. ORGANIZATIONAL DESIGN  Organisational design is the process by which manager select and manage elements of structure so that an organisation can control the activities necessary to achieve its goals  Organisational design is about how and why various means are chosen. It is a task that requires managers to strike a balance between external pressures from the organisations environment and internal pressures from, for example, its choice of technology  There are several reasons why designing an organisation such an important task:
  9.  Dealing with contingencies: A contingency is an event that might occur and must be planned for,such as a changing environment. The design of an organisation determines how effectively an organisation controls various factors in its environment and obtains scares resources. Gaining competitive advantage: increasingly, organisations are discovering that organisation design is a source of sustained competitive advantage.competitive advantange springs from a firms competencies,manager’s skills and abilities in value creaction activities such as manufacturing research and development, or organisational design.
  10.  Managing diversity: Differences in the race, gender and national origin of organisational members have important implications for the values of an organisations effectiveness. The quality of organisational decision making, for example, is a function of the diversity of the view points that are considered and of the kind of analysis that takes place.  Efficiency and Innovation: Organisations exist to produce goods and services that people value. The better the organisation function, the more value, in the form of more or better goods and services, they create.
  11. THE CONSEQUENCES OF POOR ORGANISATIONAL DESIGN Many managements fail to understand the effect of organisational design on their companies performance and effectiveness. The consequence of poor organisational design or lack of attention to organisational design is the declined of the organisation. Talented employees leave to take position in strong and growing companies. Resource become harder and harder to acquire and the whole process of value creation slows down. Neglecting design until crisis threatens or forces managers to make changes in organisational structure that derail the companies strategy.
  12. KEY FACTORS IN ORGANISATIONALDESIGN FACTORS INDICATORS Environment Degree of complexity Degree of dynamism Richness Business strategy Low cost Differentiation Focused Technology Technological complexity Internal contingency Goals factors Size Employees
  13. Environmental factors : The environment includes those external stake holders and forces that directly affect the organisation’s survival. Major share holders include customers, suppliers, regulatory agencies ,share holders and creditors. After identifying the relevant stake holders and forces in the environment, management should access their characteristics and relative importance in the organisation. It basically vary in terms of complexity and dynamism. Strategy choices : Many of the top managements choices affect organisational design decisions. Strategic choice enable an organisation to capitalise on its unique capabilities. Companies need to distinguish and position them self from their competitions in order to build and sustain competitive advantage.
  14. Technological factors : Technology has significant impact on organisational design in terms of the creation of teams and departments, the delegation of authority and responsibility, sequence of operations and the tasks and deciding who is standing where and who is reporting to whom. Internal contingency factors : There are many internal forces which have their impact on organisational design. Three most important of them are: a, Organisational goals b, Size of the organisation c, Employee characteristics
  15. ORGANISATION FOR FUTURE Organizational designs for the future center around the following forms  Matrix structure  Networked Structure  Learning organization  Virtual organization  Strategic Alliance  Boundary less organization
  16. MATRIX STRUCTURE  Matrix structure is a combination of two or more types of organizational structures.  it is a way of arranging your business so that you setup reporting relationships as a grid, or a matrix, rather than the traditional hierarchy
  17. NETWORKED STRUCTURE  In this structure certain types of employees work together based around their common specialization.  These employees then form partnerships with other specialists throughout the organization to take a new projects and work towards a common goal.
  18. LEARNING ORGANIZATION  A learning organization in a company that continuously learns and develops itself through the process of creating new knowledge.  In this they regularly learn new processes and adapt it to change. In this businesses they used the knowledge of the employees, customer feedback and data to make decisions and improve their process
  19. VIRTUAL ORGANIZATION  It is a flexible network of independent entities liked by information technology to share skill, knowledge and access to others expertise in non-traditional way.  Virtual organization is a business without wall  It is an temporary network of independent companies, suppliers customers & even rivals–linked by information technology to share skill, cost and access to one another’s markets.
  20. STRATEGIC ALLIANCE  Is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organization  A strategic alliance will usually fall short of a legal partnership entity, agency or corporate affiliate relationship. Example: Jet airways and Ethiad airways strategic alliance
  21. BOUNDARY LESS ORGANIZATION  The term Boundary less organization was found by ‘Jach Welch’ the former chairman of Ground Electric [G.E]  Boundary less organization or those organization which removes all the road block and maximize the information transferring the organization  Characteristics of Boundary less organization :  Heavy use of technology Freedom to employee to make decision Customer focus and flexible working Hrs
  22. CREATING ORGANIZATION CULTURE  Culture creation occurs in three way: Employees hire and keep employees with same thinking  They introduce and socialize the employees with the organization`s thinking The founder`s behaviour acts as a role model for the employees  With the organization success the founders personality is embedded in the organization culture
  23. Factors Create A Positive Workplace Culture  Define The Ideal Workplace Culture.  Set Clear Expectations And Goals.  Focus On Employee Engagement.  Define The Ideal Workplace Culture.
  25. SUSTAINING ORGANIZATION CULTURE There are three Important part in sustaining a culture: • Selection practices. • Actions of top management • Socialization methods
  26. Selection  Explicit goal  Two way street  Decision maker`s judgements
  27. TOP MANAGEMENT The action of top management establishes the firm for organization as to:  Weather risk taking is desirable  How much freedom managers should gives to their subordinates  What action will pay off in them of pay rise promotions and other rewards ,etc.
  28. SOCIALIZATION METHODS  The process by which people learn about and adjust to the knowledge, skills, attitudes, expectations, and behaviors needed for a new or changing role within an organization.  Socialization focuses on organizational membership.
  29. SOCIALIZATION PROCESS  Preparing the new employees to adopt & understand the org culture , which has the following 3 stages.
  30. EMPLOYEES LEARN CULTURE  Stories  Rituals  Material symbols  Language
  31. CONCLUSION  Every organization needs a structure in order to operate systematically.  Managers need to understand the nature and role of the culture  Culture adapts to diverse circumstance  Organizations can function within a number of different structures, each possessing distinct advantages and disadvantages