Organization Structure and Design

1. Business Fundamentals And Bangladesh Studies
Course Co-ordinator : Mrs. Suraiya Nazneen
University of Chittagong
Evening MBA Program
Center for Business Studies
Faculty of Business Administration
University of Chittagong

2.  Describe what is meant by organizational structure and how it is
revealed by an organization chart.
 Explain the basic characteristics of organizational structure
revealed in an organization chart.
 Describe different approaches to departmentalization.
 Explain how organizations can be designed with strategy in mind.
 Find the consistency or discrepancy between theoretical and
practical organization structure.

3. > The Nature of Organizing
> Departmentalization
> Establishing Reporting Relationships
> Allocating Authority
> Coordinating Activities
> Basic Forms of Organizational Design
> Current Issues in Organizational Design

4. For most participating managers, the term
organization implies a formalized intentional
structure of roles or positions.

5. 1. Verifiable objective , which are major part of planning.
2. A clear idea of the major duties or activities involved.
3. An understood area of discretion or authority so that the person
pilling the role knows what he or she can do accomplish goals.

6. >> 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 completes

8. Input:
Customers
requirements
Environmental
demand and
opportunities
Processing Elements:
people, work
Informal
organization...
Formal
Organization(working
balance/ harmony)
Output:
Products/services

9. Principles of Organization Design
1. Division of Labor Departmentalization and Specialization
2. Unity of Command Defining the line of command
One Superior
3. Authority and Responsibility line and staff authority
Authority and Power
4. Spans of control levels of control
centralization and decentralization
5. Contingency Factor Environment and technology
knowledge technology

10. What's the departmentalization into the organization
Departmentalization…

11. Vertical functional approach
CEO
Human
Resource
Team HR
Manufacturing
Team MF
Accounting
Team ACC

12. Central HUB electronically connected to other organizations that perform vital function
Central
Hub
Designer
Manufacturer
Marketer
Human
Resources
Agency

13. • HRIS keeps track of this departmental organizational
information through the reporting relationship fields.
•This data can be updated through the Establish/Maintain
Position workflow to initially enter or maintain any changes in
the organizational structure.
• Changes must be approved by the ECC team Assistants.
•The data maintained in HRIS for the reporting relationship will
also export to another part.
• This action is processed in the Establish/Maintain position
workflow.

14. Plant Manager
New Product
development
Team
Manufacturing
Manager
Employee/
Subordinates
Sales Manager
Employee/
Subordinates
Human Resource
Manager
Employee/
Subordinates
Diversity task
Force

16.  Matrix structure: The Matrix structure is an attempt to
combine the Advantages of the pure functional structure and the
product organization structure
Advantages of Matrix organizational form,
to project management, include:
• Because key people can be shared, the project cost is minimized
• Conflicts are minimal, and those requiring hierarchical referrals
are more easily resolved
• There is a better balance between time, cost and performance
• Authority and responsibility are shared
• stress is distributed among the team

17. # Employees continuously work on projects
# This like Matrix Structure
# Each team has the necessary employees to
successfully complete the project
# Each employee brings his or her specialized skill to the
team.

18. Θ 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.
Θ 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.
Θ Organization have to cope with and accommodate today’s
challenges of workforce diversity and growing concerns over ethics
and social responsibility.

20. ↘ The HIRDARAMANI began their business in 1890, Parmanand Hirdaramani set up the
first HIRDARAMANI retail store in FORT, Colombo, in Sri Lanka.
↘ The Lollytogs (UK based company) made a partnership with Hirdaramani in 1980 as
expand of their business outside of Sri Lanka.
↘ The HIRDARAMANI Group has diversified in recent years to encompass the apparel,
power, Information Technology, Finance Sector and Retail Industries, Stamping the
respected Hirdaramani standard on each.
↘ Hirdaramani started their business in Bangladesh in apparel and IT sector at 1987,
today they boost a rich and diverse heritage with over 30,000 employees in more than
six industries.
↘ For meet the demand of more than 35 brand customers, Hirdaramani Produces 13
million garments each month.
↘ In 2011, Achieved turnover more than $ 1000 million.

21. Profit
If Profit > 15%
No
5% for
HIRDARAMANI
5 % for
Lollytogs
Overhead
cost and re-
investment
Yes
5% for
HIRDARAMANI
5 % for
Lollytogs
Overhead
cost and re-
investment
For Employee
(actual profit-
15%)

22. Director of
country A
Director of
country B
Director of
country C
Director of
country A
Director of
country B
Director of
country C
Director of
UK
Director of
Sri Lanka
Asst. Group
CEO
Asst. Group
CEO
Group Auditor
head
Group CEO
CFO (All Power
Sector)
CFO (Financial
Organization
CFO (Electronic
Sector)
CFO(Apparel
Sector)
CFO(Tourism)
Owners

23. Merchant
Sample
dept.
IE dept.
Production
unit
Merchant
Sample
dept.
IE dept.
Production
unit
Merchant
Sample
dept.
IE dept.
Productio
n unit

24. TOTAL QUANTITY
Tommy
Polo
G-star
I/E Team
U-3
U-4
U-5
Band
2-5/63
18-23/63
55-58/63
HR
U-3
U-4
U-5

25. Chief Financial Officer(CFO)
Director/CEO
Factory
Manager
(swing
Unit)
Shift
Manager
Production
Asst/
Supervisors
Factory
Manager
(Washing
Unit)
Maintenance
In charge
Maintenance
In charge
Maintenance
Manager
Asst. Mgr.
Quality
Quality In
charge /
Fabric
Inspection
Quality
Team
Quality
Manager
Asst.
Mgr.
Planning
Planning
Officer /
Coordination
Planning
Manage
r
Asst.
Manager
Coordinator
Sample
Manger
Cutting
Mngr.
Asst.
Mngr.
Production
Asst.
Factory
Manager
(Cutting
Unit)
Accounts Mngs.
Merchandising
Sr.
Merchandising
Asst. Or Tr.
Merchandising
Sr.
Merchandising
Manager
W/S
Manger
Team
Member
production
manager
Production
Asst. /
Supervisor
Finishing
Manager
Asst. Mgr. Finishing
Finishing
Team
Admin Sr.
Executive /
Officer
Internal
Security
Officer
Compliance
Executive /
Officer
Compliance & Admin
Manager
HR
Coordinator
Hr. Sr.
Executive
/Executive
Officer
HR Manager()
Group
HR
Manager
IT
Manager
IT
Executive/
Officer
Store
Manager
Store
Executive
Store
Office
Asst
Finance
Controller
Accountant
Accounts Sr.
Executive
Accounts
Executive /
Officer
Commercial
Manager
Operator
Manager
Export
Operator
Executives/
Officers
Internal Auditor

26. × Personnel unfamiliar with procedures performed in their department by
others.
× Inter-department documents of activities is often not accessible.
× Delays when there are problems.
× Decisions Making becomes slow.
× Accountability and performance are difficult to monitor.
× All higher rank are reserved for Srilankan.
× Limitation to take organization based decision