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OBJECTIVES
 Organization structure.
 Organizational design.
 Organizations for future.
 Organizational culture creating and sustaining a positive
culture.

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.

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

INFORMAL STRUCTURES :
 The set of unofficial relationships between organization
members
 Social network analysis
 Identifies informal structures and social relationships in the
organization

ADVANTAGES OF INFORMAL STRUCTURES:
•Informal learning
•Gaining access to interpersonal networks
DISADVANTAGES OF INFORMAL STRUCTURES
•May carry inaccurate information
•Susceptibility to rumor

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

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:

 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.

 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.

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.

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

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.

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

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

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

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.

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

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.

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

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

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

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.

ORGANIZATION CULTURE FORM

SUSTAINING ORGANIZATION
CULTURE
There are three Important part in sustaining a culture:
• Selection practices.
• Actions of top management
• Socialization methods

Selection
 Explicit goal
 Two way street
 Decision maker`s judgements

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.

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.

SOCIALIZATION PROCESS
 Preparing the new employees to adopt & understand
the org culture , which has the following 3 stages.

EMPLOYEES LEARN CULTURE
 Stories
 Rituals
 Material symbols
 Language

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

THANK YOU