Group 4_Organization Design Fashion or Fit

8/3/2019 Group 4_Organization Design Fashion or Fit

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Organization Design: Fashionor Fit?

Submitted by:

Group 4

Ashish Paliwal

Ayush Rai

Isha Agarwal

Mohit Gandhi

Shaveta Dhawan

Shephali Karn


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What makes an organization

effective?

The components of an effective organisation

Spans of control

Degrees of job enlargement

Forms of decentralization Planning System

Structure

These components should be consistent with

Age and size of an organization

The industry in which the organization operates

Production technology


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Five parts of an organization


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Five parts of an organization

(contd.)

Strategic Apex

The top management

o Operating coreThose who carry out the basic work of theorganization

o Support staff

Those who provide indirect service to theorganization


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Simple Structure


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Simple Structure

Few top managers and a group which does the corework

There is little planning, standardization and

formalization Suitable for flexible innovation but can fail for

complex innovation due to centralization

Mostly used by new organization but can hardlysustain the pressure as the organization grows

E.g Psyche Panacea (a startup)


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Machine Bureaucracy


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Machine Bureaucracy

Standardization and formalization in place- manyanalysts design and maintain the system

Formal Power at the top

Fits naturally with mass production where productsand processes are rationalized

External control pushes towards machinebureaucracy

Example McDonald which is highly standardized

Problems with this include dullness of work E.g BEL


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Professional Bureaucracy


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Professional Bureaucracy

Standardization of skills

Control is given to skilled people like in hospitals andeducational institutes

A very democratic structure as the power flows tothe operating core

Suitable for stable yet complex environment

Training need is high

Wide at bottom

E.g Deloitte


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Divisionalized Form


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Divisionalized Form

A partial structure superimposed on others, not acomplete one

Reason: product lines are diversified

Structure of semiautonomous market-based units Relies on standardization of outputs

Middle-line managers run independent divisions

Does not mean decentralization e.g Alfred Sloan @General Motors divisionalized so as to reduce the

power at different units Created to solve the problem of adaptability in

machine bureaucracy

E.g Airtel


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Adhocracy


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Adhocracy

Industries of our age: aerospace, think tank,petrochemicals, consulting, & film making

Flexible, innovation in complex ways, interacting

project team structure Integrating managers, task forces, matrix structure

Job specialization based on formal training

Expertise, organic structure

Only one to combine some sense of democracy with

an absence of bureaucracy E.g. Microsoft


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Conclusion

Critical factors in organization design Consistency, coherence and fit

Choose and achieve the required configuration and

accept its consequences as well


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Group 4_Organization Design Fashion or Fit

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