Bureaucracy
 In the first place, bureaucracies are

characterized by impersonality.
 Race, gender, ethnicity, and other
...
 formal recruiting process.
 In traditional China, officials (often referred to in the

West as “mandarins”) were select...
 bureaucratic impersonality, coupled with the use of

rationally derived procedures, produces a
“meritocracy” in which po...
occupational specialties:
 A single organization may have dozens or even

hundreds of specialized job titles. At the
orga...
Defining Organizational Structure
 Organizational Structure
 The formal arrangement of jobs within an organization.

 O...
Purposes of Organizing

• Divides work to be done into specific jobs and
departments.

• Assigns tasks and responsibilitie...
 Work Specialization
 The degree to which tasks in the organization are
divided into separate jobs with each step comple...
What Is Organizational Structure?
Departmentalization
(cont’d)
The basis by which jobs are grouped together.
Grouping Acti...
Departmentalization by Type
 Functional
 Grouping jobs by

functions performed

 Product
 Grouping jobs by product

li...
Functional Departmentalization

• Advantages
• Efficiencies from putting together similar specialties and
people with comm...
Geographical Departmentalization

• Advantages
• More effective and efficient handling of specific
regional issues that ar...
Product Departmentalization

+
+
+
–
–

Allows specialization in particular products and services
Managers can become expe...
Process Departmentalization

+ More efficient flow of work activities
– Can only be used with certain types of products
Customer Departmentalization

+ Customers’ needs and problems can be met by specialists
- Duplication of functions
- Limit...
Organization Structure (cont’d)
 Chain of Command
 The continuous line of authority that extends from
upper levels of an...
Organization Structure (cont’d)
 Authority
 The rights inherent in a managerial position to tell
people what to do and t...
Organization Structure (cont’d)
 Span of Control
 The number of employees who can be effectively and
efficiently supervi...
Contrasting Spans of Control
Organization Structure (cont’d)
 Centralization
 The degree to which decision-making is concentrated at
a single point i...
Factors that Influence the Amount of Centralization

• More Centralization
 Environment is stable.
 Lower-level managers...
Factors that Influence the Amount of Centralization

• More Decentralization
 Environment is complex, uncertain.
 Lower-...
Organization Structure (cont’d)
 Formalization
 The degree to which jobs within the organization are
standardized and th...
Line organization Structure
Line organization is the most oldest and simplest
method of administrative organization.
Accor...
Line and Staff Organizational
Structure
Line and staff organization is a modification of
line organization and it is more ...
Organizational sructure
Upcoming SlideShare
Loading in …5
×

Organizational sructure

499 views

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
499
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
13
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Organizational sructure

  1. 1. Bureaucracy  In the first place, bureaucracies are characterized by impersonality.  Race, gender, ethnicity, and other ascribed characteristics should have no bearing on one’s interaction with a bureaucracy and the outcomes it produces.  characteristics are also irrelevant when it comes to filling positions  workers who are chosen according to their ability to perform the tasks assigned to them, or at least their capacity to learn to do these tasks.
  2. 2.  formal recruiting process.  In traditional China, officials (often referred to in the West as “mandarins”) were selected on the basis of their performance in official examinations that tested their knowledge of the Confucian classics. 9 Absorption of Confucian ideals gave these officials a common cultural mooring, but it had little relevance to the actual performance of their duties.  In modern societies, government bureaucracies generally employ civil service examinations to recruit new employees, and many private organizations use job-specific tests for the same purpose. In similar fashion, promotion is sup- posed to be based on objective assessments of performance
  3. 3.  bureaucratic impersonality, coupled with the use of rationally derived procedures, produces a “meritocracy” in which positions are staffed and jobs are done in accordance with the employees’ capabilities.  on merit and expertise of some sort also ties in with another key characteristic of bureaucratic organization, an elaborate division of labor.
  4. 4. occupational specialties:  A single organization may have dozens or even hundreds of specialized job titles. At the organizational level, these specialized tasks are often incorporated into formal roles that define an employee’s area of responsibility
  5. 5. Defining Organizational Structure  Organizational Structure  The formal arrangement of jobs within an organization.  Organizational Design  A process involving decisions about six key elements:  Work specialization  Departmentalization  Chain of command  Span of control  Centralization and decentralization  Formalization
  6. 6. Purposes of Organizing • Divides work to be done into specific jobs and departments. • Assigns tasks and responsibilities associated with individual jobs. • Coordinates diverse organizational tasks. • Clusters jobs into units. • Establishes relationships among individuals, groups, and departments. • Establishes formal lines of authority. • Allocates and deploys organizational resources.
  7. 7.  Work Specialization  The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person.  Overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover. Organizational Structure
  8. 8. What Is Organizational Structure? Departmentalization (cont’d) The basis by which jobs are grouped together. Grouping Activities By: • Function • Product • Geography • Process • Customer
  9. 9. Departmentalization by Type  Functional  Grouping jobs by functions performed  Product  Grouping jobs by product line  Geographical  Grouping jobs on the basis of territory or geography  Process  Grouping jobs on the basis of product or customer flow  Customer  Grouping jobs by type of customer and needs
  10. 10. Functional Departmentalization • Advantages • Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations • Coordination within functional area • In-depth specialization • Disadvantages • Poor communication across functional areas • Limited view of organizational goals
  11. 11. Geographical Departmentalization • Advantages • More effective and efficient handling of specific regional issues that arise • Serve needs of unique geographic markets better • Disadvantages • Duplication of functions • Can feel isolated from other organizational areas
  12. 12. Product Departmentalization + + + – – Allows specialization in particular products and services Managers can become experts in their industry Closer to customers Duplication of functions Limited view of organizational goals
  13. 13. Process Departmentalization + More efficient flow of work activities – Can only be used with certain types of products
  14. 14. Customer Departmentalization + Customers’ needs and problems can be met by specialists - Duplication of functions - Limited view of organizational goals
  15. 15. Organization Structure (cont’d)  Chain of Command  The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to who.
  16. 16. Organization Structure (cont’d)  Authority  The rights inherent in a managerial position to tell people what to do and to expect them to do it.  Responsibility  The obligation or expectation to perform.  Unity of Command  The concept that a person should have one boss and should report only to that person.
  17. 17. Organization Structure (cont’d)  Span of Control  The number of employees who can be effectively and efficiently supervised by a manager.  Width of span is affected by:        Skills and abilities of the manager Employee characteristics Characteristics of the work being done Similarity of tasks Complexity of tasks Physical proximity of subordinates Standardization of tasks
  18. 18. Contrasting Spans of Control
  19. 19. Organization Structure (cont’d)  Centralization  The degree to which decision-making is concentrated at a single point in the organizations.  Organizations in which top managers make all the decisions and lower-level employees simply carry out those orders.  Decentralization  Organizations in which decision-making is pushed down to the managers who are closest to the action.  Employee Empowerment  Increasing the decision-making authority (power) of employees.
  20. 20. Factors that Influence the Amount of Centralization • More Centralization  Environment is stable.  Lower-level managers are not as capable or experienced at making decisions as upper-level managers.  Lower-level managers do not want to have a say in decisions.  Decisions are relatively minor.  Organization is facing a crisis or the risk of company failure.  Company is large.  Effective implementation of company strategies depends on managers retaining say over what happens.
  21. 21. Factors that Influence the Amount of Centralization • More Decentralization  Environment is complex, uncertain.  Lower-level managers are capable and experienced at making decisions.  Lower-level managers want a voice in decisions.  Decisions are significant.  Corporate culture is open to allowing managers to have a say in what happens.  Company is geographically dispersed.  Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions.
  22. 22. Organization Structure (cont’d)  Formalization  The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.   Highly formalized jobs offer little discretion over what is to be done. Low formalization means fewer constraints on how employees do their work.
  23. 23. Line organization Structure Line organization is the most oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern.
  24. 24. Line and Staff Organizational Structure Line and staff organization is a modification of line organization and it is more complex than line organization. Specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority.

×