5-organisation structure and design
TRANSCRIPT
![Page 1: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/1.jpg)
ORGANISATION STRUCTURE AND
DESIGN
LECTURE 5 Lecturer: Sara Aslam
Fall 2011
Kinnaird College for Women
1
![Page 2: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/2.jpg)
COMPONENTS OF ORGANIZATION
STRUCTURE
2
![Page 3: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/3.jpg)
THE NATURE OF ORGANIZING
Organization Design
The overall set of structural elements and the
relationships among those elements used to manage the
total organization.
A means to implement strategies and plans to achieve
organizational goals.
Job Specialization
The degree to which the overall task of the organization is
broken down and divided into smaller component parts.
Principles of Management
Instructor: Sara Aslam
3
![Page 4: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/4.jpg)
JOB SPECIALIZATION
Benefits of Specialization
Workers can become proficient at a task.
Specialized equipment can be more easily developed.
Employee replacement becomes easier.
Limitations of Specialization
Employee boredom and dissatisfaction with mundane
tasks.
Anticipated benefits of specialization do not always
occur.
Principles of Management
Instructor: Sara Aslam
4
![Page 5: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/5.jpg)
ALTERNATIVES TO SPECIALIZATION
Job Rotation
Systematically moving employees from one job to
another. Most frequent use today is as a training device
for skills and flexibility.
Job Enlargement
An increase in the total number of tasks workers
perform.
Increases training costs, unions contend that workers deserve
more pay for doing more tasks, and the work may still be dull
and routine.
Job Enrichment
Increasing both the number of tasks the worker does
and the control the worker has over the job.
Principles of Management
Instructor: Sara Aslam
5
![Page 6: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/6.jpg)
GROUPING JOBS: DEPARTMENTALIZATION
Departmentalization
The process of grouping jobs according to some logical
arrangement.
Rationale for Departmentalization
Organizational growth exceeds the owner-manager’s
capacity to personally supervise all of
the organization.
Additional managers are employed and assigned
specific employees to supervise.
6
Principles of Management
Instructor: Sara Aslam
![Page 7: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/7.jpg)
COMMON BASES OF DEPARTMENTALIZATION
7
![Page 8: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/8.jpg)
TYPES OF DEPARTMENTALIZATION
Functional Departmentalization
- The grouping of jobs involving the same or similar
activities.
Principles of Management
Instructor: Sara Aslam
8
![Page 9: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/9.jpg)
PRODUCT DEPARTMENTALIZATION
Product Departmentalization
The grouping of activities around products or product groups.
Advantages
All activities associated with one product can be integrated
and coordinated.
Speed and effectiveness of decision making are enhanced.
Disadvantages
Managers may focus on their product to the exclusion of the
rest of the organization
Human Resource Management
Instructor: Sara Aslam
9
![Page 10: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/10.jpg)
CUSTOMER DEPARTMENTALIZATION
Customer Departmentalization
Grouping activities to respond to and interact with specific
customers and customer groups.
Advantage
Skilled specialists can deal
with unique customers or
customer groups.
Disadvantage
A large administrative staff
is needed to integrate activities
of various departments.
Principles of Management
Instructor: Sara Aslam
10
![Page 11: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/11.jpg)
LOCATION DEPARTMENTALIZATION
Location Departmentalization
The grouping of jobs on the basis of defined geographic
sites or areas.
Advantage
Enables the organization to
respond easily to unique
customer and environmental
characteristics.
Disadvantage
Large administrative staff
may be needed to keep track
of units in scattered locations.
Principles of Management
Instructor: Sara Aslam
11
![Page 12: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/12.jpg)
TALL VERSUS FLAT ORGANIZATIONS
President
President
Tall Organization
Flat Organization
12
![Page 13: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/13.jpg)
TALL VERSUS FLAT ORGANIZATIONS
Tall Organizations
Are more expensive because of the number of managers
involved.
Foster more communication problems because of the number
of people through whom information must pass.
Flat Organizations
Lead to higher levels of employee morale and productivity.
Create more administrative responsibility for the relatively few
managers.
Create more supervisory responsibility for managers due to
wider spans of control.
Principles of Management
Instructor: Sara Aslam
13
![Page 14: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/14.jpg)
DISTRIBUTING AUTHORITY
Authority
Power that has been legitimized by the organization.
Delegation
The process by which managers assign a portion of their
total workload to others.
Reasons for Delegation
To enable the manager to get more work done by utilizing
the skills and talents of subordinates.
To foster the development of subordinates by having them
participate in decision making and problem solving that
allows them to learn about overall operations and improve
their managerial skills. (increased participation)
Principles of Management
Instructor: Sara Aslam
14
![Page 15: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/15.jpg)
DECENTRALIZATION AND CENTRALIZATION
Decentralization
The process of systematically delegating power and
authority throughout the organization to middle- and lower-
level managers.
Centralization
The process of systematically retaining power and authority
in the hands of higher-level managers.
Principles of Management
Instructor: Sara Aslam
15
![Page 16: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/16.jpg)
FACTORS DETERMINING THE CHOICE OF
CENTRALIZATION
Factors Determining the Choice of Centralization
The complexity and uncertainty of the external
environment.
The history of the organization.
The nature (cost and risk) of the decisions to be made.
Principles of Management
Instructor: Sara Aslam
16
![Page 17: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/17.jpg)
COORDINATING ACTIVITIES
Coordination
The process of linking the activities of the various
departments of the organization.
The Need for Coordination
Departments and work groups are interdependent;
the greater the interdependence, the greater
the need for coordination.
Principles of Management
Instructor: Sara Aslam
17
![Page 18: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/18.jpg)
EMERGING ISSUES IN ORGANIZATION DESIGN
The Learning Organization
An organization that works to facilitate the lifelong
learning and development of its employees while
transforming itself to respond to
changing demands and needs.
Principles of Management
Instructor: Sara Aslam
18
![Page 19: 5-Organisation Structure and Design](https://reader035.vdocument.in/reader035/viewer/2022081900/577cce6e1a28ab9e788e0e71/html5/thumbnails/19.jpg)
Thank You
19