Organization Behaviour - Organixation Structure

8/9/2019 Organization Behaviour - Organixation Structure

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Submitted By:Uma kumari Agarwal

069Aakash Choudhary 079Shray Taneja 089

Jayshree

099Ar un Vi 109

Group 9


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Were constantly being told that hierarchies arebad and we must flatten companies to make

them more effective, but dont companies needsome layers in order to organize for success?

-Jack and Suzy Welch


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Organizational Structure

An effective structure facilitates management andclarifies relationships, roles and responsibilities,levels of authority, and supervisory or reportinglines

By reviewing an organizations structure, amanager will be able to determine which human,

financial, and technical resources are available,how they should be allocated, and which resourcesare lacking


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Organization Structure:Determinants And Outcomes

Implicit Models of Organizational

StructurePerceptions that people hold regardingstructural variables formed by observingthings around them in an unscientific fashion.


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Common Organization Designs

SIMPLE STRUCTURE

A structure characterized by a low degree ofdepartmentalization, wide spans of control, authority

centralized in a single person, and littleformalization

Vipul

(CEO)

Lalit

(MarketingHead)

Nirav

(InvestmentHead)

Ajay

(FinanceHead)

Saakshi

(PR Head)

Shvika

(HR Head)


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Bureaucracy

Works best with Less Talented- Low/Middle Level

Managers

Greater prevalence of Rules and Regulations Substitutes

Managerial Discretion

Little need for Innovative and Experienced Decision

makers below the Senior Executives

Specialization creates Subunits Conflicts- Functional

Unit goals Override the overall goals of the org.


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Common Organization Designs

MATRIX STRUCTURE

A structure that creates dual lines of authority andcombines functional and product

departmentalization Gains the advantages of functional and product

departmentalization while avoiding their weaknesses

Facilitates coordination of complex andinterdependent activities

Breaks down unity-of-command concept


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Project CManager

Project BManager

Project AManager

Engineering Marketing Design

Matrix Structure (Project-based)

CEO

Employees ( ) are temporarily assigned to a specificproject team and have a permanent functional unit


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Matrix Structure: GM


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New Design Options

TEAM STRUCTURE

The use of teams as the central device to coordinatework activities

Breaks down departmental barriers

Decentralizes decision making to the team level

Requires employees to be generalists as well asspecialists

Creates a flexible bureaucracy


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New Design Options

VIRTUAL ORGANIZATION

A small, core organization that outsources its majorbusiness functions

Highly centralized with little or nodepartmentalization

Advantage: Provides maximum flexibility whileconcentrating on what the organization does best

Disadvantage: Reduced control over key parts ofthe business


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A Virtual Organization


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CoreFirm

Productdevelopment

partner(U.S.A.)

Call centerpartner(India)

Accountingpartner

(Canada)

Packagedesignpartner

(UK)

Assemblypartner

(Mexico)

New Design OptionsNetwork Organizational Structure


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Network Structure v. Virtual Corp.

NETWORK STRUCTURE

An alliance of several organizations for thepurpose of creating a product or serving aclient

VIRTUAL CORPORATION

Several independent companies that formunique partnership teams to providecustomized products or services, usually tospecific clients, for a limited time


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Test


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Organizational Growth

Four levels of organizational growth recognized

by management professionals are:

Emergent

Launch or growth Consolidation

Mature


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Organizational Growth


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h i i O i


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Mechanistic Versus OrganicModels

Why Do Structures Differ?


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SIZE

How the size of an organization affects its structure

As an organization grows larger, it becomes moremechanistic

Characteristics of large organizations:

More specialization

More vertical levels

More rules and regulations


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ENVIRONMENT

Institutions or forces outside the organization thatpotentially affect the organizations performance

Key Dimensions-

Capacity: the degree to which an environment can support

growth

Volatility: the degree of instability in the environment

Complexity: the degree of heterogeneity and concentration

among environmental elements


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Change YourOrganizations Structure...

Identify the ideal organizational structure

List the functions and activities of each unit

Review and categorize personnel

Examine existing policies, regulations, and laws

Geographical scope and branches of theorganization


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Change YourOrganizations Structure...

Outline the formal and informal channels ofcommunication

Review the job descriptions for all key positions

Proposed changes and its potential affect resource implications of a structural change


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Nokia Before Reconstructing

NOKIA

Computers

Rubber

Cell Phones

Electronics

Finance

Marketing

Human Resource


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Nokia: After Restructuring

Nokia

Businesscentre 1

Businesscentre 2

Manufacturing

Marketing

FinanceBusinesscentre 3

Businesscentre 4


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Bright Ideas...

You may want to review your organizationsstructure when

Adopting a new strategic plan

A new contract or a new grant

Assessment reveals new trends

Community demands for new services

Competitive external environment forces

Expansion which cannot be accommodated easilyunder the existing structure


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Thank You

Questions Please..??

Organization Behaviour - Organixation Structure

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