1. Organization structure is the established pattern of
relationship among various job positions of the
enterprise.
Organization structure is defined as “a system of
job positions, the roles assigned to them and the
authority relation among the various positions”.
It provides framework for managers and other
employees for performing their functions.
4. The various tasks to be accomplished under
each job and the qualities, skills and
qualifications required to undertake a
particular job are specified in job design.
Job design helps in formulating organizational
structure.
5. Similar jobs are grouped together to form a
department.
Co-ordination of different jobs becomes easy,
when similar jobs are grouped under one
department and under one manager.
6. The number of jobs a manager can effectively
supervise and control are called span of
control.
Span of control varies accordingly to the nature
of industry, type of products, service and
organization process involved.
7. After grouping the jobs into departments, the
powers required to perform the jobs are
determined.
Where the number of jobs in a department is
large, and exercising authority may be difficult,
part of the authority may be transferred to
subordinates.
The transmission of decision making power to
subordinates by superior is called delegation of
authority.
8.
9. Function structure is formed by grouping
together the entire work to be done into major
functional departments.
In functional organizational structure. Each
major function of business is organized as a
separate department.
11. Chairman /Managing
Director
General
Manager
Production
General
Manager
Marketing
General
Manager
Finance
General
Manager
Human
Resource
12. o In large and diversified organizations,
activities and personnel are grouped on the
basis of different products manufactured.
o Divisional structure facilitates expertise in one
product line.
o It becomes easy for the top management for
easily Co-ordinate the activities of different
product manufactured.
13. Chairman /Managing
Director
G.M
Product
A
division
Manager
production
Manager
Personnel
G.M
Product B
division
Manager
Production
Manager
Personnel
G.M
Product C
division
Manager
Production
Manager
Personnel
G.M
Product
D
division
Manager
production
Manager
Personnel
