Examples of Internal Organization Structure How Internal Organizations responds to Environments Katz and Khan Open System Model The McKinsey 7-s Model

1. MANAGEMENT
ORGANIZATIONAL

2. EFFECTS OF INTERNAL ORGANIZATION
• An internal organizational structure is the particular
manner in which an organization such as a business,
charity group, or school is arranged in order to achieve its
goals.

3. Example of Internal Organization
Structure

4. 1. By Function

5. 2. By Product

6. 3. Grouping by Process

7. 3. Grouping by Process Advantages
• it is possible to set up teams of similar minded specialists
• it becomes easy to identify points in the production
process at which things go well or badly
• it is easy to introduce new technology at a given stage of
production (i.e. a given process).

8. 4. Grouping by Geographic Areas
PRESIDENT
Central Northeast Southwest

9. 4. Grouping by Process Advantages
• Setting up distinct regional divisions makes it possible to respond
quickly to local needs, issues and problems. The organization
thus becomes more sensitive to customers, employees and other
groups. At the same time it might be able to cut through a lot of
red tape if the regional groups are allowed to make their own
decisions.
• Setting up national and regional divisions makes it possible to
tailor the operation of an organization to local conditions.
Differences would include those of language, law and custom.
Local knowledge is best gained by hiring local specialists.

10. How Internal Organizations Respond to
Environments
The theory of Open Systems by
Katz and Kahn.(1966)

11. Closed systems - are less sensitive to
environmental resources and possibilities.
Open systems - are more responsive and
adaptive to environmental changes

12. KATZ and KHAN
Open System Model

13. An organization defines itself and its niche in an environment
by the choice of its domain
• What sector or field of the environment it
will use its technology, products, and
services to compete in and serve.
• Some of the major sectors of a task
environment include marketing, technology,
government, financial resources, and
human resources

14. Big 3 of U.S. Auto Manufactures
(Ford, General Motors and Chrysler)
Japanese 4-cylinder car

15. “With a chosen domain in which to operate, owners and
leaders must organize internal dimensions to compete in
and serve their markets”
For example, hierarchies of authority and chain of
command are used by owners and top-level leaders
to develop and implement strategic and enterprise
decisions; managers are required to provide
technologies, training, accounting, legal, and other
infrastructure resources; and cultures still count to
establish and maintain norms, relationships, legal and
ethical practices, and the reputation of organizations.

16. Internal Organizational
Dimensions
Leadership
Strategy Culture
Management
Goals
Marketing
Operations
Structure

17. Another popular depiction of internal organizational dimensions;
The McKinsey 7-S model,

18. Integration of internal organizational dimensions and how these
work in practice to align with the external environment
Note:
That it is the CEO and other top-level leaders who scan the external
environment to identify uncertainties and resources before using a
SWOT analysis (identifying strengths, weaknesses, opportunities, and
threats) to confirm and update the domain of an organization and then
to define the vision, mission, goals, and strategies. Once the
enterprise goals and strategies are developed, the organizational
culture, structure, and other systems and policies can be established
(human resources, technologies, accounting and finance, and so on).

19. After a CEO and the top-level team identify opportunities and
threats in the environment, they then determine the domain and
purpose of the organization from which strategies, organizational
capabilities, resources, and management systems must be
mobilized to support the enterprise’s purpose.

20. • Industrial Enterprise means any workplace, permanent or
temporary, including any building or collection of buildings,
shed, structure, yard or any other place, where permanently
or temporarily one or more persons are employed in any
manufacturing of goods or products processing and any other
activity similar.
• Business enterprises are getting wider and become more
advanced and they are using information system, which they
can get and know the status of information needs of a
business.
MAJOR FUNCTIONS OF THE INDUSTRIAL
ENTERPRISE

21. What are the Major Function of an
Industrial Enterprise?

22. • The action or business of product or services
including market research and advertising
Marketing is the activity set of institution and
processes for creating communicating delivering
and exchanging offerings that have value for
customers clients partners and society
1. MARKETING FINANCE

23. What is marketing examples?

24. • The purpose of marketing is to generate revenue
for a brand, company, or organization. Marketing
professionals and teams achieve this through the
execution of strategic digital activities that drive
traffic, qualified leads, and sales, in direct
collaboration with their sales team.
What is the purpose of marketing?

25. • is defined as the process of managing employees in
a company and it can involve hiring, firing, training
and motivating employees. An example of human
resource management is the way in which a
company hires new employees and trains those
new workers.
2. Human Resources Management

26. • health, safety, wage administration of the employees.
Labor relation and employee services and benefits are
increasingly important.
3. Production System

27. • Resource which are needed to produce goods and
service. Production cannot take place unless the
necessary resources are available.
• These resource are the things like factories, buildings,
machines, railways, farmlands, rivers, climate, human
skills, mines, shops etc.
• These economic resources are known as factors of
production. They are land, labor, capital and
enterprise/ entrepreneurship.
Factors of Production:

28. • Management structure refers to the organization of the
hierarchy of authority, which defines accountability and
communication channels within an organization and
with its external environment.
MANAGEMENT STRUCTURE

29. Management Structure Sample

30. • The objectives of a company determine its
management structure. Large companies like Proctor &
Gamble, that manufacture numerous products, prefer
to organize their company into subdivisions for various
product lines. The company has organized its
management structure according to the various regions
where it operates and also according to all the different
products it manufactures.

31. • An organizational structure outlines how certain
activities are directed to achieve the goals of an
organization. Successful organizational structures define
each employee's job and how it fits within the overall
system.
• Senior leaders should consider a variety of factors
before deciding which type of organization is best for
their business, including the business goals, industry,
and culture of the company.
ORGANIZATIONAL STRUCTURE

32. This structuring provides a
company with a visual
representation of how it is
shaped and how it can best move
forward in achieving its goals.
Organizational structures are
normally illustrated in some sort
of chart or diagram like a
pyramid, where the most
powerful members of the
organization sit at the top, while
those with the least amount of
power are at the bottom.

33. • Not having a formal structure in place may prove difficult for
certain organizations. For instance, employees may have difficulty
knowing to whom they should report. That can lead to uncertainty
as to who is responsible for what in the organization. Having a
structure in place can help with efficiency and provide clarity for
everyone at every level. That also means each and every
department can be more productive, as they are likely to be more
focused on energy and time.

34. CENTRALIZED
VS.
DECENTRALIZED ORGANIZATIONAL STRUCTURES
• An organizational structure is either centralized or
decentralized. Traditionally, organizations have been
structured with centralized leadership and a defined
chain of command. The military is an organization
famous for its highly centralized structure, with a long
and specific hierarchy of superiors and subordinates.

35. A centralized structure has a defined chain of
command, while decentralized structures give almost
every employee receiving a high level of personal
agency.

36. • In a centralized organizational system, there are very clear
responsibilities for each role, with subordinate roles
defaulting to the guidance of their superiors. There has
been a rise in decentralized organizations, as is the case
with many technology startups. This allows companies to
remain fast, agile, and adaptable, with almost every
employee receiving a high level of personal agency. For
example, Johnson & Johnson is a company that's known
for its decentralized structure With more than 130,000
employees worldwide, Johnson and Johnson has long
been known as a decentralized company.

37. Johnson and Johnson has chosen local management to run its companies
for a few reasons:
• They understand the consumer better
• They understand the people they are directly working with
• They understand the government and marketplace needs
• If they make mistakes, it won’t cripple the whole organization
“The men and women who run our businesses around the world
usually are people who grew up in those markets, understand those
markets, and develop themselves in those markets. They can relate
to the needs of the customer, whoever that customer may be.”
– Former CEO William Weldon

38. • As a large company with over 200 business units and
brands that function in sometimes very different
industries, each operates autonomously. Even in
decentralized companies, there are still usually built-in
hierarchies (such as the chief operating officer operating at
a higher level than an entry-level associate). However,
teams are empowered to make their own decisions and
come to the best conclusion without necessarily getting
"approval" from up top.

39. What is an organizational structure?
• An organizational structure, also known as “organogram
structure” or “org structure,” outlines the hierarchy within an
organization and describes the roles, responsibilities and lines
of command that exist to achieve the organization's business
goals.
TYPES OF ORGANIZATION STRUCTURE

40. Types of Organizational Structures

41. 1. Hierarchical Structure

42. 2. Functional Structure

43. 3. Matrix Structure

44. 4. Flat Structure

45. 5. Divisional Structure

46. 6. Network Structure

47. 7. Line Structure

48. 8. Team-based Structure

49. 9. Circular Structure

50. 10. Process-based Structure

51. 11. Flatarchy Structure

52. • A group of people appointed for a specific function by
a larger group and typically consisting of members of
that group.
• Committee organization is an association of people set
up to arrive at solutions to common problems. The line
people are given opportunities to discuss their
problems in the committee. The committee
organizational structure is not like line or functional
organization, but is similar to staff organization.
COMMITTEES

53. Roles of Committees in Organization

54. 1. Chief Executive Officer (CEO) or President
2. Chief Operating Officer (COO), Vice President of Operations or General
Manager
3. vice President of Marketing or Marketing Manager
4. Chief Financial Officer (CFO) or Controller
5. Vice President of Production or Production Manager
Lead Management Positions

55. 1. Operations manager
2. Quality control, safety, environmental manager
3. Accountant, bookkeeper, controller
4. Office manager
5. Receptionist
6. Foreperson, supervisor, lead person
7. Marketing manager
8. Purchasing manager
9. Shipping and receiving person or manager
10. Professional staff
Key Personnel