Organisational Structure And Hrm 171


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Organisational Structure And Hrm 171

  1. 1. Organisational Structure & HRM <ul><li>Formal & Informal Organisation </li></ul><ul><li>Tall & Flat Organisation structure </li></ul><ul><li>Responsibility , Authority and Accountability </li></ul><ul><li>Line & Staff Functions </li></ul>
  2. 2. Organisational Design & Organisational Structures <ul><li>Organisational Design : The determination of organisational structure that is appropriate for the strategy, people, technology and task of the organisation. </li></ul><ul><li>Organisational Structures : The way in which an organisation’s activities are divided, organised and coordinated. </li></ul>
  3. 3. Organizational Design <ul><li>The Classical Approach – </li></ul><ul><ul><ul><li>Fredrick Taylor- (1911) </li></ul></ul></ul><ul><ul><ul><li>“ One Best Way to Accomplish the task” </li></ul></ul></ul><ul><ul><li>Henry Fayol – Principles of Management </li></ul></ul><ul><ul><li>Max Webber- Bureaucracy </li></ul></ul>
  4. 4. 2. The Task-Technology Approach <ul><li>Woodwards’ Research :Classified org. based on mode of technology </li></ul><ul><li>Unit </li></ul><ul><li>Mass </li></ul><ul><li>Process </li></ul>
  5. 5. Woodwards’ Research <ul><li>Unit: </li></ul><ul><ul><li>Manufactures custom made products – </li></ul></ul><ul><ul><li>Tailor made suit, turbine or Avanti cars </li></ul></ul>
  6. 6. The Task-Technology Approach <ul><li>Mass: </li></ul><ul><ul><li>Manufactures would make large-batch or mass produced products </li></ul></ul><ul><ul><li>Refrigerator, TV, Fans </li></ul></ul><ul><ul><li>Ford Motors </li></ul></ul>
  7. 7. The Task-Technology Approach <ul><li>Process production: </li></ul><ul><ul><li>Heavily Automated Continuous process providers </li></ul></ul><ul><ul><li>Oils & Chemical refiners </li></ul></ul><ul><ul><li>Reliance petrochemicals </li></ul></ul>AL JUBAIL  PETROCHEMICAL PLANT, SAUDI ARABIA
  8. 8. 3. The Environmental Approach <ul><li>Burns and Stalker Studied 20 org. to determine how their org. structure & managerial practices might differ based on different environmental conditions. </li></ul><ul><li>They found org. structure found in dynamic environment is very different from org. structure found in static environment. </li></ul>
  9. 9. The Environmental Approach <ul><ul><li>Mechanistic structures - a form of organization that seeks to maximize internal efficiency </li></ul></ul><ul><ul><li>They performed – routine task </li></ul></ul><ul><ul><li>Slow in responding to unfamiliar </li></ul></ul><ul><ul><li>Organic structure – an organization form that emphasizes flexibility & adaptiveness </li></ul></ul><ul><ul><ul><li>people work more as teammates than as subordinates </li></ul></ul></ul><ul><ul><ul><li>Influence based on knowledge than authority </li></ul></ul></ul><ul><ul><ul><li>Loosely defined responsibilities </li></ul></ul></ul><ul><ul><ul><li>Emphasis on exchanging information than giving directions </li></ul></ul></ul>
  10. 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. 11. Formal & Informal Organisations <ul><li>Formal Organisation : </li></ul><ul><ul><li>Set-up of roles for the achievement of organisation goals </li></ul></ul><ul><ul><li>Reporting channels and job description is rigid </li></ul></ul><ul><ul><li>Accountability and responsibility are fixed </li></ul></ul><ul><li>Informal Organizations </li></ul><ul><ul><li>Formation is ad-hoc and follows no structure </li></ul></ul><ul><ul><li>They generally share same interest, ideas or information. </li></ul></ul><ul><ul><li>They donot contribute directly to organisations goals. </li></ul></ul>
  12. 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. <ul><li>Span of Control </li></ul><ul><ul><li>Defines the number of people that one person will supervise. There may be a narrow span or a wide span of control. </li></ul></ul>
  13. 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. 14. Matrix Structure
  15. 15. Network Structure <ul><li>Workers or worker groups contribute to multiple organizational tasks </li></ul><ul><li>Work groups are reconfigured when the tasks change </li></ul><ul><li>Relationships among groups are governed by the requirements of the task </li></ul>
  16. 16. Responsibility, Authority & Accountability <ul><li>Responsibility : One’s obligation to perform the function assigned to the best of one’s ability in accordance with directions received. </li></ul><ul><li>Key principles to be considered : </li></ul><ul><ul><li>Delegation should improve org. working </li></ul></ul><ul><ul><li>No two employees should be assigned the same responsibility </li></ul></ul><ul><ul><li>The boundaries of the responsibility should be fixed. </li></ul></ul><ul><ul><li>Org. cannot afford gap in the delegation chain. </li></ul></ul>
  17. 17. Authority <ul><li>Authority : </li></ul><ul><li>It refers to the right to give orders and the power to exact obedience from others in the process of discharging duties </li></ul><ul><li>It enables managers to act, exert influence and make decisions in carrying out their responsibilities. </li></ul>
  18. 18. Accountability <ul><li>An employee’s answerability on using the authority in discharging a responsibility is termed as accountability. </li></ul>
  19. 19. Line & Staff Functions <ul><li>Line function : The department or employees of the firm that performs core activity that contributes to its business directly. </li></ul><ul><li>Staff Functions : The department or employees of the firm that performs a support function that contributes to its business indirectly. </li></ul>
  20. 20. Line & Staff Conflict <ul><li>Expectations & complaints from line : </li></ul><ul><li>HR staff don't see the whole picture </li></ul><ul><li>HR Staff try to steal the lime light </li></ul><ul><li>HR doesn’t provide the right support. </li></ul><ul><li>Expectations & complaints from staff : </li></ul><ul><li>Line function is prejudiced & biased </li></ul><ul><li>Doesn’t understand importance of developing the employees </li></ul><ul><li>Doesn’t value contribution of HRD </li></ul>
  21. 21. The role of HRD in an organisation Specialist Controller Change Agent Facilitator HRD
  22. 22. HRM & other Org. Functions Products Techn- ology Marketing Production HRM
  23. 23. HR Strategy ABB To build value, performance and leadership into ABB, responsibility, respect and determination are key <ul><li>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. </li></ul><ul><li>‘ 3S’ (System, Speed, Spirit) Management Philosophy at ABB India. Café – HR part of SAP HR module, serves as an employee self service portal: </li></ul><ul><li>Payroll management, Leave & Attendance management etc </li></ul>