Description
This is a presentation highlights on what is organization structure, need for formal organization structure and different forms of organizational structures.
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According to STEPHEN P ROBBINS “An organizational structure defines how job tasks are formally divided, grouped and coordinated.” According to FRED LUTHANS “Organization structure represents the skeleton framework for organizational behavior.” Organisational structure is defined as “the framework of tasks, reporting and authority relationships within which an organisation functions.”
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Facilitating Management Encouraging Growth Optimum Use of Technological Improvement Encouraging Human Use of Human Beings Stimulating Creativity
Departmentalization
Centralization and Decentralization
Chain of command
Elements of organization structure
Work specialisation
Formalization
Span of control
Work Specialization or Division Of Labour refers to the degree to which activities in an organization are subdivided into separate jobs. In essence, individuals specialise in doing part of an activity rather than the entire activity.
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The basis by which jobs are grouped together is called Depatmentalization. The various ways by which Departmentalization can be done are:Functional Product Customer Geographic
Who reports to whom?
How many people can a manager manage?
It refers to the degree to which the jobs within the organisation are standardized. The degree of formalization can vary widely between organizations and within organizations.
Lower
Higher
Low Formalization High Formalization
Higher Lower
Employee Freedom
Standardization
Centralization
Formal decision making authority is held by a few people, usually at the top
Decision making authority is dispersed throughout the organization
Decentralization
Making Decisions in Organizations
High Managerial Control Employee Empowerment High
Centralized Decision Making
Low
Employee Empowerment
Decentralized Decision Making
Managerial Control
Low
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The Line and Staff Organization Structure The Functional Organization Structure The Divisional Organization Structure The Matrix Structure The Project Organization Structure Free form Organization Structure Network Organization Structure
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Line Departments – Substantive (direct) in its contribution to organization’s overall objective
Staff Departments – Objective (indirect) in its contribution to organization’s overall objective
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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
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Traditional concept of organising. The basis of departmentation is the various functions to be performed by the organisation. Widely used in medium and large organisations.
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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
CEO
Vice President Sales and Marketing
Vice President Research and Development
Vice President Materials Management
Vice President Finance
PDM
PDM
PDM
PDM
Canned Soups Division
Frozen Vegetable Division
Frozen Entrees Division
Baked Goods Division
Centralized support functions Divisions
Geographic Divisionalisation
Regional Operations
Regional Operations
CEO
Central Support Functions
Regional Operations
Individual stores
Regional Operations
18
It is the realisation of two dimensional structure which emanates directly from two dimensions of authority. It is in voilation of unity of command.
Matrix = Matrix + Matrix + Matrix + Matrix Organization Structure Systems Culture Behaviour
CEO
Matrix Structure
Vice President Engineering Vice President Sales and Marketing Vice President Finance Vice President Research and Development Vice President Purchasing
Product A Manager
Product B Manager
Product Team
Product C Manager
Product D Manager
Two-boss employee
20
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Also known as naturalistic, organic or adhocratic form of organiztion 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.
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.
23
doc_406925494.pptx
This is a presentation highlights on what is organization structure, need for formal organization structure and different forms of organizational structures.
?
According to STEPHEN P ROBBINS “An organizational structure defines how job tasks are formally divided, grouped and coordinated.” According to FRED LUTHANS “Organization structure represents the skeleton framework for organizational behavior.” Organisational structure is defined as “the framework of tasks, reporting and authority relationships within which an organisation functions.”
?
?
? ? ? ? ?
Facilitating Management Encouraging Growth Optimum Use of Technological Improvement Encouraging Human Use of Human Beings Stimulating Creativity
Departmentalization
Centralization and Decentralization
Chain of command
Elements of organization structure
Work specialisation
Formalization
Span of control
Work Specialization or Division Of Labour refers to the degree to which activities in an organization are subdivided into separate jobs. In essence, individuals specialise in doing part of an activity rather than the entire activity.
?
?
? ?
The basis by which jobs are grouped together is called Depatmentalization. The various ways by which Departmentalization can be done are:Functional Product Customer Geographic
Who reports to whom?
How many people can a manager manage?
It refers to the degree to which the jobs within the organisation are standardized. The degree of formalization can vary widely between organizations and within organizations.
Lower
Higher
Low Formalization High Formalization
Higher Lower
Employee Freedom
Standardization
Centralization
Formal decision making authority is held by a few people, usually at the top
Decision making authority is dispersed throughout the organization
Decentralization
Making Decisions in Organizations
High Managerial Control Employee Empowerment High
Centralized Decision Making
Low
Employee Empowerment
Decentralized Decision Making
Managerial Control
Low
?
? ?
?
? ? ?
The Line and Staff Organization Structure The Functional Organization Structure The Divisional Organization Structure The Matrix Structure The Project Organization Structure Free form Organization Structure Network 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
? ?
?
Traditional concept of organising. The basis of departmentation is the various functions to be performed by the organisation. Widely used in medium and large organisations.
? ? ?
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
CEO
Vice President Sales and Marketing
Vice President Research and Development
Vice President Materials Management
Vice President Finance
PDM
PDM
PDM
PDM
Canned Soups Division
Frozen Vegetable Division
Frozen Entrees Division
Baked Goods Division
Centralized support functions Divisions
Geographic Divisionalisation
Regional Operations
Regional Operations
CEO
Central Support Functions
Regional Operations
Individual stores
Regional Operations
18
It is the realisation of two dimensional structure which emanates directly from two dimensions of authority. It is in voilation of unity of command.
Matrix = Matrix + Matrix + Matrix + Matrix Organization Structure Systems Culture Behaviour
CEO
Matrix Structure
Vice President Engineering Vice President Sales and Marketing Vice President Finance Vice President Research and Development Vice President Purchasing
Product A Manager
Product B Manager
Product Team
Product C Manager
Product D Manager
Two-boss employee
20
?
?
?
Also known as naturalistic, organic or adhocratic form of organiztion 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.
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.
23
doc_406925494.pptx