organisational structure and hrm 171
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Organisational Structure&
HRM
• Formal & Informal Organisation• Tall & Flat Organisation structure• Responsibility , Authority and Accountability• Line & Staff Functions
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Organisational Design & Organisational Structures
• Organisational Design : The determination of organisational structure that is appropriate for the strategy, people, technology and task of the organisation.
• Organisational Structures : The way in which an organisation’s activities are divided, organised and coordinated.
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Organizational Design
1. The Classical Approach –• Fredrick Taylor- (1911)• “One Best Way to Accomplish the task”
• Henry Fayol – Principles of Management
• Max Webber- Bureaucracy
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2. The Task-Technology Approach
Woodwards’ Research :Classified org. based on mode of technology
1. Unit
2. Mass
3. Process
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Woodwards’ Research
1. Unit:• Manufactures custom made
products – • Tailor made suit, turbine or
Avanti cars
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The Task-Technology Approach
2. Mass:• Manufactures would make
large-batch or mass produced products• Refrigerator, TV, Fans• Ford Motors
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The Task-Technology Approach
3. Process production:• Heavily Automated Continuous
process providers• Oils & Chemical refiners• Reliance petrochemicals
AL JUBAIL PETROCHEMICAL PLANT, SAUDI ARABIA
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3. The Environmental Approach
• Burns and StalkerStudied 20 org. to determine how their org. structure & managerial practices might differ based on different environmental conditions.
• They found org. structure found in dynamic environment is very different from org. structure found in static environment.
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The Environmental ApproachMechanistic structures - a form of organization that
seeks to maximize internal efficiency• They performed – routine task• Slow in responding to unfamiliar
Organic structure – an organization form that emphasizes flexibility & adaptiveness
• people work more as teammates than as subordinates
• Influence based on knowledge than authority• Loosely defined responsibilities• Emphasis on exchanging information than giving
directions
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Comparing Mechanist & organic structure
Characteristics Mechanist Organic
Task Definition Rigid Flexible
Communication
Vertical Lateral
Formalization High Low
Influence Authority Expertise
Control Centralized Diverse
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Formal & Informal Organisations1. Formal Organisation:
• Set-up of roles for the achievement of organisation goals
• Reporting channels and job description is rigid• Accountability and responsibility are fixed
2. Informal Organizations• Formation is ad-hoc and follows no structure• They generally share same interest, ideas or
information.• They donot contribute directly to organisations
goals.
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Span of Control of 4:Total employees = 4096
Managers at levels 1-6 = 1365
Span of Control of 8: Total employees = 4096Managers at levels 1-4 = 585
Difference in managers equals 780.
1
8
64
512
4096
1
4
16
64
256
4096
1024
Span of Control
Defines the number of people that one person will supervise. There may be a narrow span or a wide span of control.
Tall & Flat Org. Structure
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Span of Control
1
4
16
64
256
1024
4096
18
64
512
4096
Span of 8Span of 4
Members at each level
Managers = 1365
Managers = 585
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Matrix Structure
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Network Structure
• Workers or worker groups contribute to multiple organizational tasks
• Work groups are reconfigured when the tasks change
• Relationships among groups are governed by the requirements of the task
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Responsibility, Authority & Accountability
• Responsibility: One’s obligation to perform the function assigned to the best of one’s ability in accordance with directions received.
• Key principles to be considered :• Delegation should improve org. working• No two employees should be assigned the same
responsibility• The boundaries of the responsibility should be
fixed.• Org. cannot afford gap in the delegation chain.
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Authority
• Authority:
• It refers to the right to give orders and the power to exact obedience from others in the process of discharging duties
• It enables managers to act, exert influence and make decisions in carrying out their responsibilities.
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Accountability
• An employee’s answerability on using the authority in discharging a responsibility is termed as accountability.
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Line & Staff Functions• Line function: The department or
employees of the firm that performs core activity that contributes to its business directly.
• Staff Functions: The department or employees of the firm that performs a support function that contributes to its business indirectly.
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Line & Staff Conflict• Expectations & complaints from line :1. HR staff don't see the whole picture2. HR Staff try to steal the lime light3. HR doesn’t provide the right support.
• Expectations & complaints from staff:1. Line function is prejudiced & biased2. Doesn’t understand importance of
developing the employees3. Doesn’t value contribution of HRD
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The role of HRD in an organisation
Specialist
Controller
Change Agent
Facilitator
HRD
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HRM & other Org. Functions
Products
Techn-ology
Marketing
Production
HRM
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HR Strategy ABBTo build value, performance and leadership into ABB, responsibility, respect and determination are key
Assuming responsibility, and acting with respect and determination makes it possible to nurture
ABB’s traditional strengths – our technology leadership, our pioneering spirit and our ability to be at home everywhere. That is our legacy, and our future.
‘3S’ (System, Speed, Spirit) Management Philosophy at ABB India.
Café – HR part of SAP HR module, serves as an employee self service portal:
• Payroll management, Leave & Attendance management etc