Organization Design & StructureOrganization Design & Structure
Organizational structureOrganizational structure
 The formal configuration between individuals and
groups with respect to...
Organizational DesignOrganizational Design
 The process of coordinating the structural
elements of an organization in the...
Factors affecting OrganizationalFactors affecting Organizational
StructureStructure
Organizational
Structure
Environment
T...
Key Design DecisionsKey Design Decisions
Division of Labor - Low
- High
Departmentalization - Homogeneous
- Heterogeneou...
DIFFERENTIATIONDIFFERENTIATION
 Process of deciding how to divide the work in an organization.
Ensures that essential ta...
HORIZONTAL DIFFERENTIATIONHORIZONTAL DIFFERENTIATION
 Differentiation between organizational subunits
 Based on employee...
VERTICAL DIFFERENTIATIONVERTICAL DIFFERENTIATION
 Difference in authority and responsibility in
organizational hierarchy
...
SPATIALSPATIAL
DIFFERENTIATIONDIFFERENTIATION
 Geographic dispersion of offices, plants and
personnel
 Increase in no. o...
INTEGRATIONINTEGRATION
Definition- The process of coordinating the
different parts of an organization.
Designed to achie...
VERTICAL INTEGRATIONVERTICAL INTEGRATION
Hierarchical referral
Rules and procedures
Plans and schedules
Positions add ...
DESIGN DIMENSIONSDESIGN DIMENSIONS
Guide to designing structuresGuide to designing structures
 How many tasks should a position contain?
 How specialized s...
ORGANIZATION IMPLICATIONSORGANIZATION IMPLICATIONS
 External environment
Dynamic vs Stable environments
Complex vs Simp...
MINTZBERG’S MODEL – ORGANISATIONALMINTZBERG’S MODEL – ORGANISATIONAL
STRUCTURESTRUCTURE
5 Generic Structures – Simple5 Generic Structures – Simple
StructureStructure
Little or no techno structure
Few support ...
MACHINE BUREAUCRACYMACHINE BUREAUCRACY
 Highly specialized, routine operating tasks
 Very formalized procedures in the o...
PROFESSIONAL BUREAUCRACYPROFESSIONAL BUREAUCRACY
Relies for Coordination on
 Standardization of Skills
 Professionals ar...
DIVISIONALISED FORMDIVISIONALISED FORM
Semi Autonomous units
 Horizontally Diversified Products and Services
 In a strai...
ADHOCRACYADHOCRACY
Highly Organised structure with,
 Little formalization of Behaviour
 Job Specialization
 Group the S...
THANK YOU.THANK YOU.
Organizational design and structure
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Organizational design and structure

  1. 1. Organization Design & StructureOrganization Design & Structure
  2. 2. Organizational structureOrganizational structure  The formal configuration between individuals and groups with respect to the allocation of tasks, responsibilities, and authorities within organizations.  The pattern of jobs and groups of jobs in an organization.  A diagram representing the connections between the various departments within an organization: a graphic representation of organizational design –  Organizational Chart
  3. 3. Organizational DesignOrganizational Design  The process of coordinating the structural elements of an organization in the most appropriate manner.  The process by which managers create a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way.
  4. 4. Factors affecting OrganizationalFactors affecting Organizational StructureStructure Organizational Structure Environment Technology Strategy Human Resources
  5. 5. Key Design DecisionsKey Design Decisions Division of Labor - Low - High Departmentalization - Homogeneous - Heterogeneous Span of Control - Less - More Authority - High -Low
  6. 6. DIFFERENTIATIONDIFFERENTIATION  Process of deciding how to divide the work in an organization. Ensures that essential tasks are assigned to one or more jobs.  Four Dimensions of Differentiation by Lawrence and Lorsch 1.Manager’s goal orientation 2.Time orientation 3.Interpersonal orientation 4.Formality of struscture FORMS OF DIFFERENTIATION: Horizontal Differentiation  Vertical Differentiation  Spatial Differentiation
  7. 7. HORIZONTAL DIFFERENTIATIONHORIZONTAL DIFFERENTIATION  Differentiation between organizational subunits  Based on employees’ specialization  Increases with specialization and departmentalization DEPARTMENTALIZATION The process of breaking up organizations into coherent units.  Functional OrganizationFunctional Organization: The type of departmentalization based on the activities or functions performed (e.g., sales, finance).  Product OrganizationProduct Organization: The type of departmentalization based on the products (or product lines) produced.  Matrix OrganizationMatrix Organization: The type of departmentalization in which a product or project form is superimposed on a functional form.
  8. 8. VERTICAL DIFFERENTIATIONVERTICAL DIFFERENTIATION  Difference in authority and responsibility in organizational hierarchy  Tall, narrow organizations-greater vertical differentiation  Flat, wide organizations-less vertical differentiation Tall structures have many levels of authority relative to the organization’s size. Flat structures have few levels but wide spans of control.
  9. 9. SPATIALSPATIAL DIFFERENTIATIONDIFFERENTIATION  Geographic dispersion of offices, plants and personnel  Increase in no. of locations-increases complexity but necessary  May give organization political and legal advantages in a country  Horizontal, vertical and spatial differentiation indicate the width, height and breadth of an organizational structural needs
  10. 10. INTEGRATIONINTEGRATION Definition- The process of coordinating the different parts of an organization. Designed to achieve unity among individuals and groups . Supports a state of dynamic equilibrium - elements of organization are integrated, balanced.
  11. 11. VERTICAL INTEGRATIONVERTICAL INTEGRATION Hierarchical referral Rules and procedures Plans and schedules Positions add to the organization structure Management information system HORIZONTAL INTEGRATIONHORIZONTAL INTEGRATION Liaison roles Task forces Integrator positions Teams
  12. 12. DESIGN DIMENSIONSDESIGN DIMENSIONS
  13. 13. Guide to designing structuresGuide to designing structures  How many tasks should a position contain?  How specialized should each task be?  Skills, ability, knowledge and training needed for work?  Basis for grouping positions?  What should be the span of control?  How centralized or de-centralized should the decision making power be?  How standardized should the work content be?  How large should each unit be?
  14. 14. ORGANIZATION IMPLICATIONSORGANIZATION IMPLICATIONS  External environment Dynamic vs Stable environments Complex vs Simple environments Diverse vs Integrated environments Hostile vs Munificent environments  Organizational size  Technology  Organizational Strategy
  15. 15. MINTZBERG’S MODEL – ORGANISATIONALMINTZBERG’S MODEL – ORGANISATIONAL STRUCTURESTRUCTURE
  16. 16. 5 Generic Structures – Simple5 Generic Structures – Simple StructureStructure Little or no techno structure Few support staffers Loose division of Labor Minimal differentiation among its units Small managerial hierarchy
  17. 17. MACHINE BUREAUCRACYMACHINE BUREAUCRACY  Highly specialized, routine operating tasks  Very formalized procedures in the operating core  Proliferation of rules, regulations, & formalized communication  Reliance on the functional basis for grouping tasks  Relatively centralized power for decision making  Elaborate administrative structure with sharp distinctions between line and staff.
  18. 18. PROFESSIONAL BUREAUCRACYPROFESSIONAL BUREAUCRACY Relies for Coordination on  Standardization of Skills  Professionals are hired for the operating core.  Coordination between operating professionals is handled by standardardization of skills and knowledge.
  19. 19. DIVISIONALISED FORMDIVISIONALISED FORM Semi Autonomous units  Horizontally Diversified Products and Services  In a straight forward, stable environment  Where Large economies of Scale do not apply
  20. 20. ADHOCRACYADHOCRACY Highly Organised structure with,  Little formalization of Behaviour  Job Specialization  Group the Specialists into functional units  Reliance on liaison devices to encourage mutual adjustment
  21. 21. THANK YOU.THANK YOU.
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