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Organizational Structure
Presented by DEVESH KUMAR KANAUJIA RISHES DWIVEDI RISHI SINGH CHAUHAN VISHAL SRIVASTAVA
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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
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“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:-
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Airtel
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Simple StructureFunctional StructureDivisional StructureMatrix Structure
Types of Organizational Structure
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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.
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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:
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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
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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
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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
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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
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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
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Matrix Structure
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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
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Departmentation Span of management Delegation of authority Assigning responsibility Organizational strategy
Elements of organizational structure-
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11
Organization Structure: Its Determinants and Outcomes
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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
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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
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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
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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…
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The degree to which task in an organization are sub-divided into separate jobs.
Work specialisation(Division of Labour)
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The basis by which jobs in an organization are grouped together
departmentation
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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
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The rights inherent in a manegerial position to give orders and to expect the orders to be obeyed.
Authority
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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
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The no. of suboordinates a manager can efficiently and effectively direct.
Span of Control
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Centralization refers to the degree of which decision making is concentrated at a single point in the organization.
Centralization
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In this organization decision making is pushed down to the managers closed to the action.
Decentralization
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The degree to which jobs with in an organization are standardized.
Formalization
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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-
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Strengths Weaknesses Opportunities Threats
Internal environment
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Political environment Economic environment Socio-culture environment Technological environment Market environment Supplier environment International environment Regularity environment
External factors:-
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Defining clear objectives Determining the appropriate type of
organizational structure Defining scalar chain of command
Design of organizational structure-
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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-
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Hard elements- Strategy Structure Systems
Soft elements- Shared value Style Staff Skills
Conti……..
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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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Thank You