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Organisational Structure And Hrm 171

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  • 1. Organisational Structure & HRM
    • Formal & Informal Organisation
    • Tall & Flat Organisation structure
    • Responsibility , Authority and Accountability
    • Line & Staff Functions
  • 2. 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.
  • 3. Organizational Design
    • The Classical Approach –
        • Fredrick Taylor- (1911)
        • “ One Best Way to Accomplish the task”
      • Henry Fayol – Principles of Management
      • Max Webber- Bureaucracy
  • 4. 2. The Task-Technology Approach
    • Woodwards’ Research :Classified org. based on mode of technology
    • Unit
    • Mass
    • Process
  • 5. Woodwards’ Research
    • Unit:
      • Manufactures custom made products –
      • Tailor made suit, turbine or Avanti cars
  • 6. The Task-Technology Approach
    • Mass:
      • Manufactures would make large-batch or mass produced products
      • Refrigerator, TV, Fans
      • Ford Motors
  • 7. The Task-Technology Approach
    • Process production:
      • Heavily Automated Continuous process providers
      • Oils & Chemical refiners
      • Reliance petrochemicals
    AL JUBAIL  PETROCHEMICAL PLANT, SAUDI ARABIA
  • 8. 3. The Environmental Approach
    • Burns and Stalker Studied 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.
  • 9. The Environmental Approach
      • Mechanistic 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
  • 10. Comparing Mechanist & organic structure Diverse Centralized Control Expertise Authority Influence Low High Formalization Lateral Vertical Communication Flexible Rigid Task Definition Organic Mechanist Characteristics
  • 11. Formal & Informal Organisations
    • Formal Organisation :
      • Set-up of roles for the achievement of organisation goals
      • Reporting channels and job description is rigid
      • Accountability and responsibility are fixed
    • 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.
  • 12. Tall & Flat Org. Structure Span of Control of 4: Total employees = 4096 Managers at levels 1-6 = 1365 Span of Control of 8: Total employees = 4096 Managers at levels 1-4 = 585 Difference in managers equals 780.
    • 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.
  • 13. Span of Control 1 4 16 64 256 1024 4096 1 8 64 512 4096 Span of 8 Span of 4 Members at each level Managers = 1365 Managers = 585
  • 14. Matrix Structure
  • 15. 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
  • 16. 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.
  • 17. 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.
  • 18. Accountability
    • An employee’s answerability on using the authority in discharging a responsibility is termed as accountability.
  • 19. 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.
  • 20. Line & Staff Conflict
    • Expectations & complaints from line :
    • HR staff don't see the whole picture
    • HR Staff try to steal the lime light
    • HR doesn’t provide the right support.
    • Expectations & complaints from staff :
    • Line function is prejudiced & biased
    • Doesn’t understand importance of developing the employees
    • Doesn’t value contribution of HRD
  • 21. The role of HRD in an organisation Specialist Controller Change Agent Facilitator HRD
  • 22. HRM & other Org. Functions Products Techn- ology Marketing Production HRM
  • 23. HR Strategy ABB To 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

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