Org. structure by Neeraj Bhandari ( Surkhet.Nepal )
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Org. structure by Neeraj Bhandari ( Surkhet.Nepal )

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Org. structure by Neeraj Bhandari ( Surkhet.Nepal ) Org. structure by Neeraj Bhandari ( Surkhet.Nepal ) Presentation Transcript

  •  Organizing: Arranging and structuring work to accomplish an organizational’s goals.  Organization chart: The visual representation of an organatization’s structure.  Organizational Structure: The formal arrangement of jobs within an organization.
  •  Organizational Design: Creating or changing an organization’s structure.  Work specialization: Dividing work activities into separate job tasks.  Departmentalization: The basis on which jobs are grouped together.  Formalization: How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures.
  • Coordinating Establishing such relationships among various parts of the organization that they all together pull in the direction of the organizational objectives. Involves Clear definition of authority-responsibility relationship Unity of direction Unity of command
  •  Organizational Structure: is the formal arrangement of jobs within organization. This structure, which can be shown visually in an organization chart.  Organizational Design: When managers create or change the structure, they are engaged in organizational design, a process that involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.
  •  Chain of command: The line of authority extending from upper organizational levels to the lowest level, which clarifies who reports to whom.  Span of Control: The number of employees a manager can efficiently and effectively manage.
  •  Number of employees who report to a supervisor › Traditional view = seven subordinates per manager › Lean organizations today = 30+ subordinates  Supervisor Involvement › must be closely involved with subordinates, the span should be small › need little involvement with subordinates, it can be large
  •  Unbroken line of authority that links all persons in an organization  Shows who reports to whom  Associated with two underlying principles Unity of Command Scalar Principle
  •  Following are the different approaches to organization structure: 1. Functional Organizational Structure 2. Product Organizational Structure 3. Geographical Organizational Structure 4. Matrix Organizational Structure 5. Team Organizational Structure 6. Virtual Organizational Structure 7. Line & Staff Organizational Structure
  •  Functional structure: This structure is based on functions of business firms Plant manager Manager Engineering Manager Accounting Manager Manufacturing
  •  A functional structure would be effective in single business firms where key activities revolved around well- defined skills and areas of specialization.  The functional structure is most appropriate when firms compete on the basis of technical specialization or efficiency in a relatively stable environment.
  •  The departmental members may see the activities from the narrow view point of the department rather than the total organization. This aspect results in poor coordination and cooperation.  Delay in decision making or ineffective decision making.
  •  This structure is based on the products produced by the firm. Managing Director Telecommunication Sector Recreational and Utility Vehicles Sector Rail /products Sector
  •  Appropriate for organizations with multiple products.  Suited for more dynamic environment.  Moves decisions close to the problem  Clarifies profit/ loss accountability.
  •  Involves difficulty in allocating overheads  Results in duplication of equipment and personnel.
  • This structure is based on the geographical areas of operations of the firm. Vice President Sales Director Western Sales Director Southern Region Sales Director Eastern Region
  •  Improves functional coordination within the target market.  Takes advantage of economies of local operations.
  •  Adds another layer of management to run the geographic units.  Can result in duplication of staff services at head-quarters and regional levels, creating a relative cost disadvantage.
  •  Matrix is a hybrid grid structure wherein pure project organization is superimposed on a functional structure. It combines vertical and horizontal lines of authority.
  • Function Project WorkerProgram CEO Project workers have two bosses
  •  The matrix structure is commonly used in the firms whose technological change is rapid.  This structure has considerable flexibility. The personnel can be transferred from one project to the other depending upon the need of the project.
  •  Greater administrative cost associated with its operation.  Personnel spend much time in exchanging information to coordinate functional areas with projects.
  •  This structure is based on the business teams.
  •  Same advantages as functional structure  Reduced barriers among departments  Quicker response time  Better morale  Reduced administrative overhead
  •  Dual loyalties and conflict  Time and resources spent on meetings  Unplanned decentralization
  •  These structures are not visible but their presence is felt wherever necessary.  An organizational structure that disaggregates major functions to separate companies that are brokered by a small headquarters organization.
  •  Can draw on expertise worldwide  Work force flexibility  Reduced administrative overhead
  •  Lack of control, weak boundaries  Greater demands on managers  Employee loyalty weakened
  •  Line Authority = individuals in management positions have the formal power to direct and control immediate subordinates  Staff Authority = granted to staff specialists in their area of expertise
  •  Line and staff organization is a combination of line and functional structures. Under it, line authority flows in a vertical line in the same manner as in the line organization. In addition, staff specialists are attached to line positions to advise them on important matters. These specialists do not have power of command over subordinates in other departments. They are purely of advisory nature.
  •  Advantages: 1) Expert advice 2) Reduced Workload 3) Quality decisions 4) Flexibility
  •  Disadvantages: 1) Line and staff conflicts 2) Confusion 3) Ineffective staff 4) Expensive