Organizational Structure

Presented by DEVESH KUMAR KANAUJIA RISHES DWIVEDI RISHI SINGH CHAUHAN VISHAL SRIVASTAVA

CONTENTS 1-Definition2-Types Of Organizational Structure3-Principals of Organizational Structure4-Elements Of Organizational Structure5-Organizational Design6-Features Of Organizational Structure7-Key Design Questions8-Factors influencing Organizational Structure9-Design Of Organization Structure10- Seven S Model

“Organizational structure refers to the differentiation and integration of activities and authority, roles, and relationships in the organization”

The way in which job-task are formally divided, grouped and coordinated is called organizational structure

Definition:-

Airtel

Simple StructureFunctional StructureDivisional StructureMatrix Structure

Types of Organizational Structure

Owner/Manager

Workers

Simple structure

This structure is most common in smaller organizations.The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. Useful for new business as the founder control growth and development.Is best used to solve simple tasks.

It is appropriate for medium sized firms, with several related product lines.

Employees tend to be specialist in the business functions, such as marketing and finance etc.

Functional structure:

Functional Structure

V P M arke tin g V P F in an ce

C ou n try A C ou n try B

P rod u c t 1 P rod u c t 2 P rod u c t 3

V P O p era tion s V P R & D V P L eg a l is su es

C E O

Top Management

Manufacturing Finance Sales HR

E.g.-1

E.g.-2 Function A

Function B

Function C

Function D

Divisional Structure

The divisional structure groups each organizational function into a division

It is appropriate for a large corporation with many product lines in several related industries.

Employees tend to be functional specialist organized according to product market distinction.

It has 2 Types : Geographic & Product Basis

Division Structure - Geographic

A d m in /F in an ce

V P fo r th e A m ericas V P E u rop e V P E . A s ia

M arke tin g O p era tion s

A u s tra lia /N Z In d on es ia Is lan d s

V P A u s tra las ia

C E O

Division A

Division B

Division C

Division D

Division Structure - Product

D IV IS IO N A L S TR U C TU R E (B Y P R O D U C T L IN E S )

F R A G R A N C E S S K IN C A R E P R O D U C TS H A IR C A R E P R O D U C TS O TH E R P R O D U C TS

C O S M E TIC S C O R P O R A TIO N

Division A Division

BDivision C

Division D

It is a group of employees by both function and product.

This structure can combine the best of both separate structures.

Employees from Different Depts. are employed for the same assignment or project.

Matrix Structure

Matrix Structure

Division of labor Work specialization Unity of command Principle of departmentation Principle of authority Span of management Scalar chain Unity of purpose Principle of flexibility Principle of synergy Principle of team spirit

Principles of Organizational Structure

Departmentation Span of management Delegation of authority Assigning responsibility Organizational strategy

Elements of organizational structure-

11

Organization Structure: Its Determinants and Outcomes

Organizational Designs range from highly structured and standardized bureaucracy to the loose and amorphous boundary less organization.

One end – mechanistic model. Other end- organic model.

Organizational Design

Simplicity Flexibility Clear line of authority Application of ultimate responsibility Proper delegation of authority Minimum possible managerial levels Principles of unity of direction and

command Proper emphasis on staff Provision for top management

Features of a good organizational structure

The key question1.To what degree are activities

sub-divided into separate jobs?

2 On what basis will jobs be grouped together?

3.To whom do individuals and groups report?

4.How many individuals can a manager efficiently and effectively direct?

The answer is provided by

Work specialization

Departmentalization

Chain of command

Span of control

Key design questions and answers for designing the proper organizational structure

5.Where does decision making authority lie?

6.To what degree will there be rules and regulations to direct employees and managers?

Centralization & Decentralization

Formalization

CONTD…

The degree to which task in an organization are sub-divided into separate jobs.

Work specialisation(Division of Labour)

The basis by which jobs in an organization are grouped together

departmentation

The unbroken line of authority that extends from the top of the organization to the lowest echelon and clerifies who reports to whom.

Chain of command

The rights inherent in a manegerial position to give orders and to expect the orders to be obeyed.

Authority

The idea that a suboordinate should have only one superior to whom he or she is directly responsible.

Right Approach Wrong Approach

Unity of Command

The no. of suboordinates a manager can efficiently and effectively direct.

Span of Control

Centralization refers to the degree of which decision making is concentrated at a single point in the organization.

Centralization

In this organization decision making is pushed down to the managers closed to the action.

Decentralization

The degree to which jobs with in an organization are standardized.

Formalization

The structure of an organization may influence various factors. These factors may be internal or externalto the organization. Some of the important factors are :-

1.Internal factors2.External factors

Factors influencing organizational structure-

Strengths Weaknesses Opportunities Threats

Internal environment

Political environment Economic environment Socio-culture environment Technological environment Market environment Supplier environment International environment Regularity environment

External factors:-

Defining clear objectives Determining the appropriate type of

organizational structure Defining scalar chain of command

Design of organizational structure-

The seven S model was developed by one of the most renowned organization, McKinsey and categories organizational elements into two types, namely hard or soft elements:

1-Hard Elements2-Soft Elements

The seven S model of organizing-

Hard elements- Strategy Structure Systems

Soft elements- Shared value Style Staff Skills

Conti……..

All Images-Google images Organizational Behavior-Surpreet Ahluwalia Organizational Behavior-Stephen P Robbins Timothy A Judge Niharika Vohra Organizational Behavior- L M Prasad Organizational Behavior- Surendra Jain Sonia Bhargava

References: -

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