The document discusses various organizational structures including functional, divisional, matrix, team, network, boundaryless, and virtual structures. It also defines key organizational concepts like management, stakeholders, aptitude, and attitude. Specifically, it provides details on centralized and decentralized structures, the evolution from pre-bureaucratic to bureaucratic and post-bureaucratic structures, and the current trends toward flatter and more flexible organizational designs.

1. Introduction to “Organization”
Fundamentals : 6 “M” S of an Organization:
MEN
MACHINE
MATERIALS
METHODS
MARKET
MONEY
6 “M”s of an
Organization
MEN
MACHINE
MATERIALS
METHODS
MARKET
MONEY

2. Introduction to “Organization”
7 “S” Model for Organization :
7 “S”
Super
ordinate
Goals
STAFF
STRUCTURE
STRATEGYSYSTEMS
SKILLS
STYLE

3. Introduction to “Organization”
Organizational structure
Definition
Formal and informal framework of policies and rules,
within which an organization arranges its lines of
authority and communications, and allocates rights
and duties.

4. Introduction to “Organization”
Organizational structures developed from the
ancient times of hunters and collectors in tribal
organizations through highly royal and clerical
power structures to industrial structures and
today's post-industrial structures.

5. Introduction to “Organization”
Organizational Structure
Organizational structure determines the manner
and extent to which roles, power, and
responsibilities are delegated, controlled, and
coordinated, and how information flows between
levels of management.

6. Introduction to “Organization”
This structure depends entirely on the
organization's objectives and the strategy chosen
to achieve them.
ORGANIZATIONAL STRUCTURE
CENTRALIZED STRUCTURE
DECENTRALIZED
STRAUCTURE

7. Introduction to “Organization”
Centralized Structure :
In a centralized structure, the decision making
power is concentrated in the top layer of the
management and tight control is exercised over
departments and divisions
Top mgt to take
Decision
Exercise of Control
over
Departments and
Divisions

8. Introduction to “Organization ”
De Centralized Structure :
In a decentralized structure, the decision making
power is distributed and the departments and
divisions have varying degrees of autonomy.
Dept-
2
Dept-3
Dept-
1
Central
Governance

9. Introduction to “Organization”
Pre-bureaucratic structures
Pre-bureaucratic (entrepreneurial) structures lack
standardization of tasks. This structure is most common in
smaller organizations and is best used to solve simple tasks.
The structure is totally centralized.
The strategic leader makes all key decisions and most
communication is done by one on one conversations. It is
particularly useful for new (entrepreneurial) business as it
enables the founder to control growth and development.

10. Introduction to “Organization”
Bureaucratic structures
Bureaucratic structures have a certain degree of
standardization. They are better suited for more
complex or larger scale organizations. They usually
adopt a tall structure.
Then tension between bureaucratic structures and
non-bureaucratic is echoed in distinction between
mechanistic and organic structures.

11. Introduction to “Organization”
Post-Bureaucratic ( Cleaned up Bureaucracy)
The term of post bureaucratic is used in two senses in the organizational
literature: one generic and one much more specific .
In the generic sense the term post bureaucratic is often used to describe a
range of ideas developed since the 1980s that specifically contrast
themselves with Weber's ideal type Bureaucracy.
This may include Total Quality Management, Culture Management and the
Matrix Organization amongst others. None of these however has left
behind the core tenets of Bureaucracy. Hierarchies still exist, authority is
still rational, legal type, and the organization is still rule bound

12. Introduction to “Organization”
Functional Structure
In a functional structure, the division of labor in an organization is grouped by the main activities or
functions that need to be performed within the organization -- sales, marketing, human resources,
and so on. Each functional group within the organization is vertically integrated from the bottom to
the top of the organization. For example, a Vice President of Marketing would lead all the marketing
people, grouped into the marketing department.
Employees within the functional divisions of an organization tend to perform a specialized set of
tasks, for instance the engineering department would be staffed only with engineers. This leads to
operational efficiencies within that group. However it could also lead to a lack of communication
between the functional groups within an organization, making the organization slow and inflexible.
As a whole, a functional organization is best suited as a producer of standardized goods and services
at large volume and low cost.

13. Introduction to “ Organization”
Divisional Structure
Also called a "Product Structure", the divisional structure groups each
organizational function into a divisions. Each division within a divisional
structure contains all the necessary resources and functions within it.
For example, an automobile company with a divisional structure might have
one division for SUVs, another division for subcompact cars, and another
division for sedans.
Each division would have its own sales, engineering and marketing
departments

14. Introduction to “Organization”
Matrix Structure
Matrix structure groups employees by both function and product. This
structure can combine the best of both separate structures.
A matrix organization frequently uses teams of employees to
accomplish work, in order to take advantage of the strengths, as well
as make up for the weaknesses, of functional and decentralized forms.
An example would be a company that produces two products,
"product a" and "product b".
Using the matrix structure, this company would organize functions
within the company as follows: "product a" sales department,
"product a" customer service department, "product a" accounting,
"product b" sales department, "product b" customer service
department, "product b" accounting department. Matrix structure is
the most complex of the different organizational structures.

15. Introduction to “ Organization”
Weak/Functional Matrix: A project manager with only limited
authority is assigned to oversee the cross- functional aspects of
the project.
The functional managers maintain control over their resources
and project areas.
Balanced/Functional Matrix: A project manager is assigned to
oversee the project. Power is shared equally between the
project manager and the functional managers. It brings the best
aspects of functional and projectized organizations.
However, this is the most difficult system to maintain as the
sharing power is delicate proposition.
Strong/Project Matrix: A project manager is primarily
responsible for the project. Functional managers provide
technical expertise and assign resources as needed.
Among these matrixes, there is no best format; implementation
success always depends on organization's purpose and function.

16. Introduction to “Organization ”:
Team structure:
One of the newest organizational structures developed in the 20th century is
team. In small businesses, the team structure can define the entire organization
.Teams can be both horizontal and vertical. While an organization is constituted
as a set of people who, together, synergize individual competencies to achieve
newer dimensions, the Quality of organizational structure revolves around the
competencies of Teams in totality.
To cite an example, every one of “Whole Foods Market” stores, the largest
natural-foods grocer in the US developing a focused strategy, is an autonomous
profit centre composed of an average of 10 self-managed teams, while team
leaders in each store and each region are also a team.
Larger bureaucratic organizations can benefit from the flexibility of teams as
well. Xerox, Motorola, and DaimlerChrysler are all among the companies that
actively use teams to perform tasks.

17. Introduction to “Organization”
Network structure:
Another modern structure is network. While business
giants risk becoming too clumsy to pro act, act and react
efficiently , the new network organizations contract out any
business function, that can be done better or more cheaply.
In essence, managers in network structures spend most of
their time coordinating and controlling external relations,
usually by electronic means.
H&M's is outsourcing its clothing to a network of 700
suppliers, more than two-thirds of which are based in low-
cost Asian countries.
Not owning any factories, H&M can be more flexible than
many other retailers in lowering its costs, which aligns with
its low-cost strategy.

18. Introduction to “Organization”
Boundary less structure
The most radical concept in today's organizational design is the
concept of 'boundary less ness', which seeks to overcome
traditional boundaries between layers of management
(vertical), functional areas (horizontal), as well as geographic
boundaries.
Some claim the boundary less structure is a combination of
team and network structures, with the addition of
temporariness .
Ikea, the world's largest furniture manufacture, has been
successful in implementing the boundary less structure. The
company works closely with suppliers by providing technical
assistance, leasing them equipment, and giving advice.
It also refined the role of the customer, putting responsibility
on them to cart the furniture home and assemble it
themselves. As a result, the company can offer lower prices
which supports its low-cost focused strategy.

19. Introduction to “ Organization”
Virtual Organization:
A special form of boundary less organization is virtual.
It works in a network of external alliances, using the
Internet.
This means while the core of the organization can be small
but still the company can operate globally be a market
leader in its niche.
According to Anderson, because of the unlimited shelf
space of the Web, the cost of reaching niche goods is falling
dramatically.
Although none sell in huge numbers, there are so many
niche products that collectively they make a significant
profit, and that is what made highly innovative
Amazon.com so successful .

20. Introduction to “ Organization”
Current trend of Organization:
As we can see, organizations develop, modify and change
their structures so that they align with their strategies.
And the main trend for the last decades seems to be
coming back to flatter structures.
Although this structure seems suitable for small companies
only, large organizations can take elements of it in harder
times.
Being at risk of losing profits or even going bankrupt due to
the major financial downturn today, a lot of companies are
moving to flatter structures .
Not only are they unable to maintain multiple management
levels any more, they are also in need of a more flexible
structure to cope with new threats.

21. Introduction to “ Organization”
MANAGEMENT - DEFINITION
As a discipline, management comprises of the
interlocking functions of formulating corporate-policy
and organizing, planning, controlling, and directing the
firm's resources to achieve the policy's objectives.
The size of management can range from one person in a
small firm to hundreds or thousands of managers in
multinational companies.
In large firms the board of directors formulates the policy
which is implemented by the chief executive officer.
Some business analysts and financiers accord the highest
importance to the quality and experience of the
managers in evaluating an organizations current and
future worth.

22. Introduction to “Organization”
STAKE HOLDER - Definition
Person, group, or organization that has direct or
indirect stake in an organization because it can
affect or be affected by the organization's actions,
objectives, and policies. Key stakeholders in a
business organization include creditors,
customers, directors, employees, government
(and its agencies), owners (shareholders),
suppliers, unions, and the community from which
the business draws its resources.

23. Introduction to “Organization”
Aptitude - Definition
Acquired or natural ability (usually measurable
with aptitude tests), for learning and proficiency
in a specific area or discipline.
Aptitude is expressed in interest, and is reflected
in current performance which is expected to
improve over time with training.

24. Introduction to “Organization”
Attitude-Definition
Predisposition or a tendency to respond positively or
negatively towards a certain idea, object, person, or
situation.
Attitude influences an individual's choice of action,
and responses to challenges, incentives, and rewards
(together called stimuli).
Four major components of attitude are
(1) Affective: emotions or feelings.
(2) Cognitive: belief or opinions held consciously.
(3) Conative: inclination for action.
(4) Evaluative: positive or negative response to
stimuli.