Project report on Organisational Structure

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ORGANISATION BEHAVIOUR PROJECT
NAME :- Preetam Salve
SUBMITTED TO :- Prof. Dr. varsha Sonawane
TOPIC NAME :- Organisational Structure
CLASS :- M.COM-II (Sem. III)
ROLL NO :- 27
COLLEGE :- Bhavan`s H.S. College
[Chowpatty]

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DECLARATION
Certified that Ms. Preetam Salve Master of Commerce (M.COM) Part II
(Semester 3) have prepared titled topic name “Organizational structure “
under the guidance of Prof. Dr. varsha Sonawane-mallah of Commerce
Bhavans Hazarimal Somani College, Chowpatty, Mumbai in partial
fullfilment of the requirement for the degree of Master of Commerce
(M.COM). Their by no part of this Project has ever been Submitted any
other degree.
Preetam Salve
Roll no:- 27
M.COM (Part II)

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CERTIFICATE
This is to certify that this Project report entitled topic name
Organizational structure Submitted by Ms. Preetam Salve in partial
fulfilment of the requirement for the degree of Master of Commerce
(M.COM) Part II (Semester 3) is a bonafide research work completed
under my guidance & supervision. no part of this Project has ever been
Submitted any other degree. The assistant rendered during the course of
the study has been duly acknowledged.
External Examiner Internal Examiner
Date :- Dr. Varsha Sonawane

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ACKNOWLEDGEMENT
I gratefully acknowledge and express deep appreciation to many people
who have made this project possible and visible. Many thanks to our
guide Prof. Dr Varsha Sonawane- Mallah seems pretty small compared
to the months of tremendous support and indulgence she gave. Her
review, comments, corrections and suggestions have enormously
enriched my project.
Without cheerful support and motivation of my Family members &
friends this project would not have seen the light of the day.
I am also grateful to our Principal name .It gives me immense pleasure
to present this project in the course of financial market.
INDEX

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Name Page No.
Introduction 6-7
Review of literature 8-9
Objective Of Study 10
Research Methodology 11
Organization structure & its contents 12-20
Conclusion 21
Bibliography 22
INTRODUCTION

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Definition of company :-
A voluntary association formed and organized to carry on a business. Types of
companies include sole proprietorship, partnership, limited liability, corporation,
and public limited company
A company is any entity that engages in business.
Companies can be structured in different ways. For example, your company can be
a sole proprietorship, a partnership, or a corporation. Depending on which different
type of company you're dealing with, it may be owned by one person or a group of
people. Liability in most types of company is assumed by the owners, and can
either be limited or unlimited depending on the type.
Definition of Corporation :-
Corporations are different from other types of company in that they exist
separately from their legal owners. That means that liability is separate as well.
With corporations, liability is limited to the holding of shares. In fact, shareholding
is a major difference between corporations and other types of companies. With
corporations, the shareholders each own a small piece of the larger corporate
structure. Most companies are typically owned by one or a small handful of people,
while corporations can be owned by thousands of different individuals.
Definition of Organization Structure :-
A social unit of people that is structured and managed to meet a need or to pursue
collective goals. All organizations have a management structure that determines
relationships between the different activities and the members, and subdivides and
assigns roles, responsibilities, and authority to carry out different tasks.
Organizations are open systems--they affect and are affected by their environment.
An organization or economic system where goods and services are exchanged for
one another or for money.

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Every business requires some form of investment and enough customers to whom
its output can be sold on a consistent basis in order to make a profit.
Businesses can be privately owned, not-for-profit or state-owned. An example of a
corporate business is PepsiCo, while a mom-and-pop catering business is a private
enterprise
The typically hierarchical arrangement of lines of authority, communications,
rights and duties of an organization. Organizational structure determines how the
roles, power and responsibilities are assigned, controlled, and coordinated, and
how information flows between the different levels of management.
A structure depends on the organization's objectives and strategy. In a centralized
structure, the top layer of management has most of the decision making power and
has tight control over departments and divisions. In a decentralized structure, the
decision making power is distributed and the departments and divisions may have
different degrees of independence.
A company such as Proctor & Gamble that sells multiple products may organize
their structure so that groups are divided according to each product and depending
on geographical area as well.
A specific result that a person or system aims to achieve within a time frame and
with available resources.
In general, objectives are more specific and easier to measure than goals.
Objectives are basic tools that underlie all planning and strategic activities. They
serve as the basis for creating policy and evaluating performance. Some examples
of business objectives include minimizing expenses, expanding internationally, or
making a profit.
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REVIEW OF LITERATURE

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Armstrong and Stephens, (2008).
Organizations are entities that exist for a purpose, that is, to get things done. They
are composed of people who ensure that such purpose is achieved. Task
responsibility and decision making is given to individual members and teams and
arrangements are made to plan, direct, coordinate, and control them organizations
are open systems which transform inputs into outcomes and are continually
dependent on and influenced by their environments. Basic issues faced by
organizations are those relating to structure, relationships, and interdependence.
Lewin, ( 1951).
The socio-technical model developed by the researchers at the Tavistock Institute
led to the development of basic open systems theory which states that in any
organizational system, technical or task aspects are interrelated with the human or
social aspects, focusing on the relationships between the technical processes of
transformation within the organization as well as the organization of work groups
and the management structure of the organization
Child (1977)
Defines organizational structures as comprising all the tangible and regularly
occurring features which help to shape the behavior of its members.' According to
Armstrong and Stephens, organizational structures provide the framework for the
activities required to achieve organizational goals. Moreover, they 'define and
clarify the manner by which the activities required are grouped together into units,
functions, and departments, the lines of responsibility, power, and authority
emanating from the top of the organization.'
Organizations consist of people working cooperatively together. Hence, it is
inevitable that, at the managerial level, the organization may need to be adjusted to
fit the strengths and attributes of the people available. Although the result may not
conform to the ideal, it is more likely to work than a structure that ignores the

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human element. In addition, it is always desirable to have the ideal in mind, but it
is equally desirable to to modify it to meet specific situations.
Allison Stokes
While there exists extensive research in the area of public relations roles, as well as
the arena of organizational structure, little research focuses on the relationship
between organizational structure and the role of the public relations practitioner in
the organization. This study will provide a review of the different types of
organizational structures, as well as a review of public relations practitioner roles.
Organization theory literature supplies information on the characteristics of each
structure, including levels of complexity and decentralization involved in each
organizational type. Public relations literature includes research that aids in
formulation of role classifications that may be assumed by the practitioner.
. J. Grunig (1992)
recognized that the behavior of the practitioner is essentially established according
to organizational structure and the role of the public relations practitioner within
that structure. Early research on roles provided little by way of specification and
description about the detailed job responsibilities a public relations practitioner
may hold.
OBJECTIVE OF STUDY

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 To know the organization structure
 To know the Management & Micro environment
 To know the organization design
 To know the corporate strategies
RESEARCH METHODOLOGY

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SECONDARY DATA
Secondary data are those which have already been collected by someone else and
which have already been passed through the statistical process.The Secondary
data consist of reality available compendices already complied statistical
statements. Secondary data consists of not only published records and reports but
also unpublished records.
ORGANIZATION STRUCTURE

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Functional Structure :-
The classic organizational structure where the employees are grouped
hierarchically, managed through clear lines of authority, and report ultimately to
one top person
A functional structure is one of the most common organizational structures. Under
this structure, the organization groups employees according to a specialized or
similar set of roles or tasks.
Strength: Specialization
When companies use a functional organizational structure, people with similar
knowledge and skills are grouped together. This makes it possible for employees to
become specialists in their field. It requires a performance management system that
allows for the promotion, development and visibility of individual skills within
their functional area. The specialization that functional structures hone helps to
bring about in-depth knowledge and skill development among the employees, and
this can help you achieve your company's functional goals.
Strength: Productivity
Specialization leads to operational efficiencies and enhances productivity levels.
Because of their expertise, workers with specialized skills can perform tasks
quickly, efficiently and with more confidence, thus reducing the occurrence of
work-related mistakes. In addition, the clear nature of the career path within the
functional unit makes it possible for employees to be highly motivated to advance
their careers as they move up within the hierarchy. The main goal of functional
structures in organizations is to bring the entire human and informational resources
together to meet the organization’s goals.
Weakness: Management Issues

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Communication in organizations with functional organizational structures can be
rigid because of the standardized ways of operation and the high degree of
formalization. This can further make the decision-making process slow and
inflexible. Since it is more bureaucratic, functional units are often not accountable
to each other, and poor horizontal coordination within the departments can occur.
Lack of innovation and restricted views of organizational goals, along with too
much focus, can affect employees' motivation. As your company grow and you
create more functional units, the level of autonomy within units might increase,
making it difficult for you to coordinate all the units efficiently.
Weakness: Unit Coordination
Even though functional units often perform with a high level of efficiency, their
level of cooperation with each other is sometimes compromised. Such groups may
have difficulty working well with each other as they may be territorial and
unwilling to cooperate. The occurrence of infighting among units may cause
delays, reduced commitment due to competing interests, and wasted time, making
projects fall behind schedule. This ultimately can bring down production levels
overall, and the company-wide employee commitment toward meeting
organizational goals.
Corporate hierarchy :-

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The organizational structure of a company that delineates the relationships of
power, responsibility and function among stakeholders, management and
employees and generally reflects the style of management that permeates the
organization. For example, a company with flat hierarchy in which a larger number
of managers report directly to the CEO is considered to have a "partnership"
approach to management and compensation
This type of a model makes sense for linear work where no brain power is required
and where the people who work there are treated like expendable cogs. However,
as the war for talent continues to become more fierce, organizations around the
world are quickly trying to figure out alternatives to the hierarchy. In fact, every
single organization I speak with, work with, and research, is looking to flatten out
their structure. Nobody ever tells me they want more bureaucracy and more layers.
There are many challenges with this model but to name a few. Communication
typically flows from the top to the bottom which means innovation stagnates,
engagement suffers, and collaboration is virtually non-existent. This type of
environment is riddled with bureaucracy and is extremely sluggish. This is why the
hierarchy is perhaps the biggest vulnerability for any organization still employing
it. It opens up the doors for competitors and new incumbents to quickly take over.
There is also no focus on the employee experience in this type of a structure and as
organizations around the world are exploring alternative organizational models,
those still stuck with the hierarchy are going to have one heck of a time trying to
attract and retain top talent.
Line structure :-

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A military-type organizational structure, commonly employed in large, centralized
corporations. Line and staff management has two separate hierarchies: the line
hierarchy in which the departments are revenue generators (manufacturing,
selling), and their managers are responsible for achieving the organization's main
objectives by executing the key functions (such as policy making, target setting,
decision making.
A line organisation has only direct, vertical relationships between different levels
in the firm. There are only line departments-departments directly involved in
accomplishing the primary goal of the organisation. For example, in a typical firm,
line departments include production and marketing. In a line organisation authority
follows the chain of command
Advantages:
 Tends to simplify and clarify authority, responsibility and accountability
relationships
 Promotes fast decision making
 Simple to understand.
Disadvantages:
 Neglects specialists in planning
 Overloads key persons
Financial Structure :-

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The planning, directing, monitoring, organizing, and controlling of the monetary
resources of an organization
Leadership :-
The process of using well considered tactics to communicate a vision for an
organization or one of its parts. Strategic leadership typically manages, motivates
and persuades staff to share that same vision, and can be an important tool for
implementing change or creating organizational structure within a business.
MANAGEMENT & MICRO ENVIRONMENT

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The organization and co-ordination of the activities of a business in order to
achieve defined objectives.
Management is often included as a factor of production along with? machines,
materials, and money. According to the management guru Peter Drucker (1909-
2005), the basic task of management includes both marketing and innovation.
Practice of modern management originates from the 16th century study of low-
efficiency and failures of certain enterprises, conducted by the English statesman
Sir Thomas More (1478-1535). Management consists of the interlocking functions
of creating corporate policy and organizing, planning, controlling, and directing an
organization's resources in order to achieve the objectives of that policy.
The directors and managers who have the power and responsibility to make
decisions and oversee an enterprise.
The size of management can range from one person in a small organization to
hundreds or thousands of managers in multinational companies
In large organizations, the board of directors defines the policy which is then
carried out by the chief executive officer, or CEO. Some people agree that in order
to evaluate a company's current and future worth, the most important factors are
the quality and experience of the managers.
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 refers to the organization of the hierarchy of authority,
which defines accountability and communication channels within an organization
and with its external environment. Each organization has its unique management
structure based on its operations, but the common denominator present in every
organization's management structure is that it defines the flow of responsibility
within an organization. It also defines who is responsible for each role in an
organization
MICRO ENVIRONMENT

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1. The major external and uncontrollable factors that influence an organization's
decision making, and affect its performance and strategies. These factors include
the economic factors; demographics; legal, political, and social conditions;
technological changes; and natural forces.
2. Specific examples of macro environment influences include competitors,
changes in interest rates, changes in cultural tastes, disastrous weather, or
government regulations.
ORGANIZATION DESIGN

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The manner in which a management achieves the right combination of
differentiation and integration of the organization's operations, in response to the
level of uncertainty in its external environment.
Differentiation refers to the subdivision of functional or departmental units, each
concentrating on a particular aspect of the organization's operations. Integration
refers to the linking of differentiated units to achieve unity of effort in working
toward organization's goals. In times of high uncertainty, greater organizational
effectiveness is achieved through high differentiation coupled with high
integration.
CORPORATESTRATEGIES:-

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The overall scope and direction of a corporation and the way in which its various
business operations work together to achieve particular goals
As corporations become very large they often restructure as a means of revitalizing
the organization. Growth of a business often is accompanied by a growth in
bureaucracy, as positions are created to facilitate developing needs or
opportunities. Continued changes in the organization or in the external business
environment may make this bureaucracy a hindrance rather than a help, not simply
because of the size or complexity of the organization but also because of a sluggish
bureaucratic way of thinking. One approach to encourage new ways of thinking
and acting is to reorganize parts of the company into largely autonomous groups,
SBU Structure
called strategic business units (SBUs). Such units generally are set up like separate
companies, with full profit and loss responsibility invested in the top management
of the unit—often the president of the unit and/or a senior vice president of the
larger corporation. This manager is responsible to the top management of the
corporation. This arrangement can be seen as taking any of the aforementioned
departmentalization schemes one step further. The SBUs might be based on
product lines, geographic markets, or other differentiating factors. Figure 4 depicts
SBUs organized by geographic area.
CONCLUSION

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From this study I get to know the
 Organization structure.
 The management of organization
 Organization design
 Various corporate strategies.
Bibliography

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WEBSITES :-
http://www.businessweek.com
www.yourarticlelibrary.com
BOOKS :-
ORGANIZATION BEHAVIOUR