This document discusses organizational structures and organizing principles. It describes common organizational structures like functional, divisional, and matrix structures. It also covers topics such as departmentalization, centralization vs decentralization, span of control, and factors that influence structural choice. Traditional designs like simple and functional structures are outlined as well as more adaptive structures for virtual and learning organizations. The document aims to provide an overview of key concepts in organizing and organizational structure.

1. UNIT 3 ORGANIZING
Prof. Dr. Kiran S. Shinde
Sanjivani Institute of Management Studies Kopargaon

2. Dr. Prof. Kiran S.Shinde SIMS

3. Dr. Prof. Kiran S.Shinde SIMS

4. Dr. Prof. Kiran S.Shinde SIMS

5. Dr. Prof. Kiran S.Shinde SIMS

6. Dr. Prof. Kiran S.Shinde SIMS

7. Dr. Prof. Kiran S.Shinde SIMS

8. Dr. Prof. Kiran S.Shinde SIMS

9. Dr. Prof. Kiran S.Shinde SIMS

10. Dr. Prof. Kiran S.Shinde SIMS

11. Dr. Prof. Kiran S.Shinde SIMS

12. Dr. Prof. Kiran S.Shinde SIMS

13. Dr. Prof. Kiran S.Shinde SIMS

14. Dr. Prof. Kiran S.Shinde SIMS

15. Dr. Prof. Kiran S.Shinde SIMS

16. Organizational structure
• Organizational structure refers to how a company arranges its
workforce and resources to achieve its goals efficiently.
• Organization and Organizing:
• Organization: An entity structured to achieve specific objectives,
involving individuals, resources, and processes.
• Organizing: The process of establishing and structuring an
organization, defining roles, and arranging resources to accomplish
tasks effectively.

17. Organizational Structures:
• Functional Structure:
• Departments are organized based on specialized functions (e.g., marketing,
finance, operations).
• Advantages: Expertise development, clear career paths within functions.
• Disadvantages: Communication barriers between departments, potential for
lack of coordination.
• Divisional Structure:
• Departments are organized around products, services, or geographical
locations.
• Advantages: Focus on specific markets or products, faster decision-making.
• Disadvantages: Duplication of functions across divisions, potential for
competition among divisions.

18. • Matrix Structure:
• Key Feature: Employees report to multiple managers, combining functional
and divisional structures.
• Advantages: Cross-functional communication, flexibility, skill development.
• Disadvantages: Complex reporting relationships, potential for conflicts
between managers

19. Organizational Structures:
• Mechanistic Structures:
• Characteristics: Centralized, formalized, rigid hierarchies, specialized tasks,
and clear lines of authority.
• Organic Structures:
• Characteristics: Decentralized, flexible, adaptive, less formal, fluid
communication, and dynamic roles.

20. Principles of Work Specialization:
• Division of Labor:
• Definition: Breaking down tasks into smaller, specialized tasks assigned to
individuals or groups.
• Advantages: Increased efficiency, skill development, and expertise in specific
tasks.
• Disadvantages: Monotony, potential for decreased motivation, and lack of
holistic understanding of the process.

21. Departmentalization:
• By Function:
• Organizing departments based on specialized functions like marketing,
finance, human resources, etc.
• By Product/Service:
• Grouping departments based on specific products or services offered by the
organization.
• By Geography:
• Dividing departments based on geographical regions where the organization
operates.

22. Departmentalization:
• By Function:
• Organizing departments based on specialized functions like marketing,
finance, human resources, etc.
• By Product/Service:
• Grouping departments based on specific products or services offered by the
organization.
• By Geography:
• Dividing departments based on geographical regions where the organization
operates.

23. Centralization vs. Decentralization:
• Centralization involves decision-making authority at the top, while
decentralization distributes authority across the organization.
• Span of Control:
• Refers to the number of employees a manager supervises. Wider spans can
lead to greater efficiency but may reduce control.
• Organizational Culture:
• The values, beliefs, and norms that define an organization and its working
environment, influencing employee behavior and decision-making

24. Key Elements of Organizational Structures:
• Chain of Command:
• Refers to the hierarchy of authority within an organization, outlining the reporting
relationships from top management to the lower levels.
• Span of Control:
• The number of subordinates directly reporting to a manager. Wider spans indicate
fewer hierarchical levels and more autonomy.
• Centralization and Decentralization:
• Centralization: Concentration of decision-making authority at the top of the
hierarchy.
• Decentralization: Distribution of decision-making authority throughout the
organization.
• Formalization:
• Degree to which an organization's procedures, rules, and processes are standardized
and written down.

25. Factors Affecting Structural Choice:
• Strategy:
• Organizational structure should align with the chosen strategy, whether it's
innovation-focused, cost leadership, differentiation, etc.
• Size:
• Larger organizations may opt for more complex structures, while smaller ones might
prefer simpler, flatter structures.
• Technology:
• Advanced technology may require more flexible structures to foster innovation and
adaptation.
• Environmental Uncertainty:
• High uncertainty may favor organic structures, allowing quicker responses and
adaptability to changes.

26. Traditional Organizational Designs:
• Simple Structure:
• Found in small organizations with a single leader making decisions and minimal
hierarchy.
• Functional Structure:
• Organizes departments based on specialized functions (e.g., marketing, finance, HR).
• Divisional Structure:
• Departments organized based on products, services, or geographic locations.
• Matrix Structure:
• Employees report to multiple managers, combining functional and divisional
structures.
• Team Structures and Project Structures:
• Teams organized around specific tasks or projects with cross-functional members.

27. Adaptive Organizations:
• Boundaryless Organization:
• Eliminates traditional boundaries between internal and external environments to enhance
flexibility and innovation.
• Virtual Organizations:
• Operate mainly through digital communication, collaborating remotely without a physical
presence.
• Learning Organization:
• Focuses on continuous learning, adapting, and improving based on experiences and new
knowledge.
• Flexi Work and Tele-working:
• Emphasizes flexible work arrangements, including remote work options and flexible
schedules.
• Global Organizations:
• Operate and collaborate across different countries, dealing with diverse cultures, regulations,
and markets.

28. •THANK YOU
Prof. Dr. Kiran S. Shinde
Sanjivani Institute of Management Studies Kopargaon