design of ion structure
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©chintech Principles & Practice of Management Reshma
Principles and Practice of Management
Design of Organisation Structure
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©chintech Principles & Practice of Management Reshma
Definition
Organisation structure refers to thedifferentiation and integration of activities and
authority, role and relationships in the
organisation.
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©chintech Principles & Practice of Management Reshma
Formal Organisation
It refers to the structure of well-defined jobs,each bearing a definite authority,
responsibility, and accountability.
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Informal Organisation
It refers to people in group associations atwork, but these associations are not specified
in the blueprint of the formal organisation.
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©chintech Principles & Practice of Management Reshma
Diff. b/w. Formal & Informal OrganisationsOrigin
Purpose
Size
Nature and Number of Groups
Authority
Behavior of Members
Communication
Abolition
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©chintech Principles & Practice of Management Reshma
Reasons for Informal Organisation
Desire to socialise with others
Psychological fatigue of routine tasks
Hierarchical control and communication
Various functions of informal organisation
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©chintech Principles & Practice of Management Reshma
Working of Informal Organisation
Authority Structure
Leadership
Communication
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©chintech Principles & Practice of Management Reshma
Difficulties due to informal orgn.
Resistance to change
Generation of rumour
Role conflict
Conformity
Social costs
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©chintech Principles & Practice of Management Reshma
Managing Informal Organisation
Structural Approach
Behavioural Approach
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©chintech Principles & Practice of Management Reshma
Need for Formal Organisation structure
Facilitating management action
Encouraging efficiency
Communication
Optimum use of organisational resources
Stimulating creativity
Job satisfaction
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©chintech Principles & Practice of Management Reshma
Features of Good Organisation strtucture
Simplicity
Flexibility
Clear line of authority
Application of ultimate responsibility
Proper delegation of authority
Minimum possible managerial levels
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©chintech Principles & Practice of Management Reshma
Principles of unity of direction and command
Proper emphasis on staff
Provision for top management
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©chintech Principles & Practice of Management Reshma
Approaches for Organisational design
Process Approach
Result Approach
Decision Approach
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©chintech Principles & Practice of Management Reshma
Departmentation
The process of grouping the activities is
commonly known as departmentation.
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©chintech Principles & Practice of Management Reshma
Need & Importance of Departmentation
Advantages of specialisation
Fixation of responsibility
Development of managers
Facility in appraisal
Feeling of autonomy
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©chintech Principles & Practice of Management Reshma
Bases of departmentation Function
Product
Territory
Process
Customer
Time Alpha numerical
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©chintech Principles & Practice of Management Reshma
Choice of bases of departmentation Specialisation
Coordination
Control
Economy
Focus on results
Local conditions Human consideration
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©chintech Principles & Practice of Management Reshma
Span of management
It refers to the number of subordinates who
can be managed effectively by a superior.
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©chintech Principles & Practice of Management Reshma
Determination of span of management
Direct single relationships
Direct group relationships
Cross relationships
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©chintech Principles & Practice of Management Reshma
Factors affecting span of managementCapacity of superior
Capacity of subordinates
Nature of work
Degree of decentralisation
Degree of planning
Communication techniquesUse of staff assistance
Supervision from others
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©chintech Principles & Practice of Management Reshma
Wide or Narrow Span
Tall or Flat Structure