Organization Structure and Design


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Organization Structure and Design

  1. 1. HISTORY & CONCEPTS OF KM<br />Presentation <br />Organization Structure <br />&<br /> Design<br />Members <br />Mohammed Yunesi, ID: 1092300122<br />Mahayaradl, ID: 1092300037<br />MarwanNoman, ID: 1092300108<br />Abdusamad Ahmed, ID: 109230043<br />
  2. 2. Organization Structure & Design<br />* The Nature of Organizing<br />* Departmentalization<br />* Establishing Reporting Relationships<br />* Allocating Authority<br />* Coordinating Activities<br />* Basic Forms of Organizational Design<br />* Current Issues in Organizational Design<br />
  3. 3. Organizational Structure<br />Organizational structure is formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocates rights and duties.<br />
  4. 4. Organization<br />For most participating managers, the term organization implies a formalized intentional structure of roles or positions.<br />
  5. 5. Organizational role<br />(1) verifiable objectives, which are major part of planning; <br />(2) a clear idea of the major duties or activities involved;<br />(3) an understood area of discretion or authority so that the person filling the role knows what he or she can do to accomplish goals.<br />
  6. 6. Organizational Design<br />… Enabling a group of people to combine, coordinate, and control resources and activities in order to produce value, all in a way appropriate to the environment in which the business competes.<br />
  7. 7. Organizational Design<br />
  8. 8. Organizational Design<br />
  9. 9. Organizational Design<br />Principles in Organizational Design:<br />1- Division of Labour-Departmentalization and Specialization<br />2- Unity of command - Defining the line of Command<br /> - One superior<br />3- Authority and Responsibility - Line and Staff Authority<br /> - Authority and Power<br />4- Spans of Control - Levels of Control <br /> - Centralization and Decentralization<br />5- Contingency Factors- Environment and technology<br /> - Knowledge technology<br />
  10. 10. Departmentalization…!<br />
  11. 11. Departmentalization…!<br />What’s the departmentalization into the organization?<br />
  12. 12. Some structural design of departmentalization <br />Vertical functional approach<br />
  13. 13. Team-based approach<br />can exist from the office of the president all the way down to the shop floor.<br />Team Based<br />
  14. 14. Horizontalmatrixapproach<br />Matrix<br />Human<br />Resources<br />Accounting<br />Manufacturing<br />Product<br />Division 1<br />Product<br />Division 2<br />
  15. 15. <ul><li>Network Approach</li></ul>Central hub electronically connected to other organizations that perform vital functions.<br />Network<br />Manufacturer<br />Designer<br />Central Hub<br />Human<br />Resources<br />Agency<br />Marketer<br />
  16. 16. Majorformsofdepartmentalization.<br /><ul><li>Functional departmentalization
  17. 17. Product departmentalization
  18. 18. Customer departmentalization
  19. 19. Geographic departmentalization
  20. 20. Process departmentalization</li></li></ul><li> Advantagesofdepartmentalization<br /><ul><li>Department can be staffed by experts with specialized training.
  21. 21. Consistency among departments for repetitive activities.
  22. 22. Shared management responsibility.
  23. 23. Supervision is facilitated.
  24. 24. Coordination within the department is easier.</li></li></ul><li> Disadvantagesofdepartmentalization<br /><ul><li>Personnel unfamiliar with procedures performed in their department by others.
  25. 25. Inter-department documentation of activities is often not accessible.
  26. 26. Delays when there are problems.
  27. 27. Decision making becomes slow.
  28. 28. Accountability and performance are difficult to monitor. </li></li></ul><li> EstablishingReportingRelationship<br /><ul><li> HRIS keeps track of this departmental organizational information through the Reporting Relationship fields.
  29. 29. This data can be updated through the Establish/Maintain Position workflow to initially enter or maintain any changes in the organizational structure
  30. 30. changes must be approved by the ECC Team Assistants
  31. 31. The data maintained in HRIS for the reporting relationship will also export to another part
  32. 32. This action is processed in the Establish/Maintain Position workflow</li></li></ul><li> Allocating Authority<br />
  33. 33. Allocating Authority<br /><ul><li>Responsibility.
  34. 34. Improving the quality of the service.
  35. 35. Span of control.</li></li></ul><li> Line & Staff Authority<br />A) Line Units (Production, marketing, Finance..etc)<br />B) Staff Units (Clerks, staffs..etc)<br />Public Relations<br />Manufacturing<br />Programming<br />Accounting<br />Reports<br />
  36. 36. Line Authority<br /> line authority gives an individual a certain degree of power relating to the performance of an organizational task.<br />
  37. 37. Line Authority (2)<br /><ul><li>line authority does not ensure effective performance.
  38. 38. line authority is not restricted to line personnel.</li></ul>Example:<br />The head of marketing department has line authority over his or her employees by virtue of authority relationships between the department head and his or her directly-reporting employees. <br />
  39. 39. Staff Authority<br />* Staff authority is the right to advise or counsel those with line authority<br />
  40. 40. Staff Authority (2)<br />Example:<br />a quality control manager aids a production manager by determining the acceptable quality level of products or services at a manufacturing company, initiating quality programs, and carrying out statistical analysis to ensure compliance with quality standards.<br />
  41. 41. Functional Authority<br />Functional authority is referred to as limited line authority. It gives a staff person power over a particular function<br />Usually, functional authority is given to specific staff personnel with expertise in a certain area.<br />
  42. 42. Line & Staff Conflict<br />Why?<br /><ul><li>Poor human relations
  43. 43. overlapping authority and responsibility
  44. 44. misuse of staff personnel by top management</li></ul>How?<br /><ul><li>integrate line and staff personnel into a work team
  45. 45. ensure that the areas of responsibility and authority of both line and staff personnel are clearly defined.</li></li></ul><li> Coordination Activities<br />It's the linking of the two or more organizational members and/or units.<br />
  46. 46. Coordination Activities (2)<br /> Vertical <br /><ul><li> It's a process of ensuring that each successive stage in the production, processing, and marketing.
  47. 47. product is appropriately managed and interrelated to the next.</li></ul>Horizontal<br />- It's like dealing with members or units for the same operational or functional level. <br /><ul><li>Working together in a team with a visional goal is a cooperative idea to enhance the idea of horizontal coordination since all of the members are working and performing from the same purpose.</li></li></ul><li> The basic forms of organization design:<br />
  48. 48. Thebasicformsoforganizationdesign:<br />1.Simple structure<br />2.Functional structure<br />3.Multidivisional structure<br />4.Strategic Business Units (SBUs)<br />5.Conglomerate structure<br />
  49. 49. The basic forms of organization design:<br />1. Simple structure<br />These are structures with low degree of departmentalization and a wide span of control. The authority is largely centralized in a single person with very little formalization. <br />2. Functional structure:<br /><ul><li> chief executive
  50. 50. corporate staff
  51. 51. functional line managers
  52. 52. production- accounting- marketing-R&D- engineering- human resources</li></li></ul><li> Functional structure model<br />
  53. 53. Multidivisional Structure:<br />The multidivisional structure consists of operating divisions, each representing a separate business or profit center in which the top corporate officer delegates responsibilities for day-to-day operations and business-unit strategy to division managers<br />
  54. 54. Strategic Business Units (SBUs):<br />During the past ten years, large companies have restructured into strategic business units(SBUs). An SBU is a grouping of functional units that have the responsibility for profit (or loss) of part of the organization’s core business. SBUs are divisions (or groups) composed of independent prod-market segments that are given primary responsibility and authority for the management of their own functional areas.<br />
  55. 55. New forms of structuring in organizations:<br />Team structure:<br /><ul><li> based on one overall objective
  56. 56. given the power to be as innovative as they want
  57. 57. may have a group leader who is in charge of the group</li></li></ul><li>Example<br />
  58. 58. New forms of structuring in organizations<br />Matrix structure:The matrix organization is an attempt to combine the advantages of the pure functional structure and the product organizational structure<br />Advantages of matrix organizational form, to project management, include:<br />•Because key people can be shared, the project cost is minimized<br />•Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved<br />•There is a better balance between time, cost and performance<br />•Authority and responsibility are shared<br />•Stress is distributed among the team<br />
  59. 59. Project Structure:<br /><ul><li> Employees continuously work on projects
  60. 60. This is like the matrix structure
  61. 61. Each team has the necessary employees to successfully complete the project
  62. 62. Each employee brings his or her specialized skill to the team.</li></li></ul><li> The Current Issues in organizational Design: <br /><ul><li> One of the most challenging things which companies face today is the working environment which is rapidly changing. The only way they can survive in this situation is adapting themselves with this changing environment.
  63. 63. Today, organizations adapt to and influence a rapidly changing environment. Consider Google, provider of the Internet’s most popular search engine, which continues to adapt and evolve along with the evolving Internet
  64. 64. organi z eations have to cope with and accommodate today’s challenges of workforce diversity and growing concerns over ethics and social responsibility</li></li></ul><li>Organizations exits to do the following:<br />THANK YOU<br />1Bring together resources to achieve desired goals and outcomes<br /><ul><li> Produce goods and services efficiently
  65. 65. Facilitate innovation
  66. 66. Use modern manufacturing and information technologies
  67. 67. Adapt and influence a changing environment
  68. 68. Create values for owners, customers, and employees
  69. 69. Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees</li>