Organisation structure

NAME- Muhammad Zubair HassanRabia Riaz Asmat ulallah Aamar BabuAamer SaeedFaraz Khan Ali Raza

The nature of organisation The nature of organisation structurestructure

The formal pattern of interactions and The formal pattern of interactions and

coordination designed by managementcoordination designed by management

to link the tasks of individuals and groupsto link the tasks of individuals and groups

in achieving organisational goals.in achieving organisational goals.

The nature of organisation The nature of organisation structurestructure

The organisation chartThe organisation chart• Line diagram depicting broad outlines of an Line diagram depicting broad outlines of an

organisation’s structureorganisation’s structure

The chain of commandThe chain of command• Unbroken line of command ultimately linking Unbroken line of command ultimately linking

each individual with the top organisational each individual with the top organisational positionposition

The nature of organisation The nature of organisation structurestructure

CEO

DIRECTORHRM

DIRECTORFINANCE

DIRECTOR SALES

MANAGERFINANCE

SUBORDINATE

ABC Inc.

Managing diversity: Managing diversity: alternative work schedulesalternative work schedules

Balancing work and personal lifeBalancing work and personal life

Flexitime: core hours to be worked; more at employee discretion

Flexitime: core hours to be worked; more at employee discretion

Job sharing: two or more people sharinga full-time job

Job sharing: two or more people sharinga full-time job

Compressed work- week: longer hours worked per day; shorter working week

Compressed work- week: longer hours worked per day; shorter working week

DepartmentalisationDepartmentalisation

Clustering individuals into units, and Clustering individuals into units, and units into departments and larger units into departments and larger units, to achieve organisational units, to achieve organisational goals.goals.

Types of departmentalisationTypes of departmentalisation

Functional structure Divisional structure Matrix structure Hybrid structure Emerging structures

Functional structure Divisional structure Matrix structure Hybrid structure Emerging structures

Functional structureFunctional structureA structure in which positions are A structure in which positions are grouped according to their main grouped according to their main functional (or specialised) area.functional (or specialised) area.

Functional structureFunctional structure

A structure in which positions A structure in which positions are grouped according to their are grouped according to their main functional (or specialised) main functional (or specialised) area.area.

CEO

Manager,Distribution

Manager,Administration

Manager, Manufacturing

Functional structureFunctional structureAdvantages:Advantages: In-depth expertise developmentIn-depth expertise development Clear career path within functionClear career path within function Efficient use of resourcesEfficient use of resources Possible economies of scalePossible economies of scale Ease of coordination within functionEase of coordination within function Potential technical advantage over Potential technical advantage over

competitorscompetitors

Functional structureFunctional structure

Disadvantages:Disadvantages: Slow response to multifunction Slow response to multifunction

problemsproblems Decision backlog at top of hierarchyDecision backlog at top of hierarchy Bottlenecks due to sequential tasksBottlenecks due to sequential tasks Inexact measures of performanceInexact measures of performance Narrow training of future managersNarrow training of future managers

Divisional structureDivisional structure A structure in which positions are A structure in which positions are

grouped according to similarity of grouped according to similarity of products, services or markets.products, services or markets.

Divisional structureDivisional structureAdvantages:Advantages: Fast response to environmental changeFast response to environmental change Simplified coordination across functionsSimplified coordination across functions Simultaneous emphasis on organisational Simultaneous emphasis on organisational

goalsgoals Strong customer orientationStrong customer orientation Accurate measurement of performanceAccurate measurement of performance Broad training in management skillsBroad training in management skills

Divisional structureDivisional structure

Disadvantages:Disadvantages: Resource duplication in each divisionResource duplication in each division Reduction of in-depth expertiseReduction of in-depth expertise Competition amongst divisionsCompetition amongst divisions Limited sharing of expertise between Limited sharing of expertise between

divisionsdivisions Innovation restricted to each divisionInnovation restricted to each division Neglect of overall goalsNeglect of overall goals

Hybrid structureHybrid structure A structure adopting both functional A structure adopting both functional

and divisional structures at the same and divisional structures at the same management levels.management levels.

Hybrid structureHybrid structureAdvantages:Advantages: Alignment of corporate and divisional Alignment of corporate and divisional

goalsgoals Functional expertise and/or efficiencyFunctional expertise and/or efficiency Adaptability and flexibility in Adaptability and flexibility in

divisionsdivisions

Hybrid structureHybrid structureDisadvantages:Disadvantages: Conflicts between corporate Conflicts between corporate

departments and divisionsdepartments and divisions Excessive administration overheadExcessive administration overhead Slow response to exceptional Slow response to exceptional

situationssituations

Matrix structureMatrix structureMatrix structure is the realisation of two-Matrix structure is the realisation of two-

dimensional structure which emanates directly dimensional structure which emanates directly from two dimensions of authority.from two dimensions of authority.

Two complementary structures-Pure project Two complementary structures-Pure project structure & functional structure –are merged structure & functional structure –are merged together two create matrix structure.together two create matrix structure.

Thus, matrix structure not only in employs a Thus, matrix structure not only in employs a multiple command but also related support multiple command but also related support mechanism and associated organisational culture mechanism and associated organisational culture and behaviour. It shows how many organisational and behaviour. It shows how many organisational overlaps not only in terms of command system overlaps not only in terms of command system but also in terms of whole organisational but also in terms of whole organisational processes and behaviour. processes and behaviour.

Matrix structureMatrix structure

ManagerProduction

ManagerMarketing

ManagerHRM

ManagerFinance

Manager,Project A

Manager,Project B

Manager,Project C

Manager,Project D

Manager,Project E

Production, Project A

Production, Project B

Production, Project C

Production, Project D

Production, Project E

Marketing, Project A

Marketing, Project B

Marketing, Project C

Marketing, Project D

Marketing, Project E

HRM, Project A

HRM, Project C

HRM, Project D

HRM, Project E

Finance, Project A

Finance, Project B

Finance, Project C

Finance, Project D

Finance, Project E

HRM, Project B

matrix bosses

two-boss employees

Matrix structureMatrix structure

Advantages:Advantages: Decentralised decision-makingDecentralised decision-making Strong product coordinationStrong product coordination Improved environmental monitoringImproved environmental monitoring Flexible use of human resourcesFlexible use of human resources Efficient use of support systemsEfficient use of support systems Fast response to changeFast response to change

Matrix structureMatrix structure

Disadvantages:Disadvantages: High administrative costsHigh administrative costs Confusion over authority and Confusion over authority and

responsibility (potential)responsibility (potential) Excessive focus on internal relationsExcessive focus on internal relations Overemphasis on group decision-Overemphasis on group decision-

makingmaking Slow response to change (possible)Slow response to change (possible)

Emerging structuresEmerging structures Process structureProcess structure

A type of departmentalisation where A type of departmentalisation where positions are grouped by a complete flow positions are grouped by a complete flow of work.of work.

Networked structureNetworked structureA form of organisation where many A form of organisation where many functions are contracted out to other functions are contracted out to other independent firms and coordinated by use independent firms and coordinated by use of information technology networks to of information technology networks to operate as if they were within a single operate as if they were within a single corporation.corporation.

Organisation structure of Abc IncOrganisation structure of Abc Inc

Chairman

Director finance

Director marketing

Director exports

Director research

Director HR technical

Director, legal & secretarial

Director beverages

Director personal products

Director detergent

Director ICFD