The document discusses different types of organizational structures. It defines organizational structure as the framework that specifies relationships between people, work, and resources. There are two main types discussed: functional and divisional. A functional structure groups similar jobs into departments, while a divisional structure divides the organization into self-contained divisions based on products, projects, customers or geography. The organizational structure impacts coordination, communication, decision making, and overall efficiency of the organization.

1. CHAPTER 5

2. ORGANISING - MEANING
• To organise means to bring about a
good orderly structure and to put into
working order
• Organising is concerned with building
up a stable structure or frame work of
various interrelated parts of an
enterprise

3. STEPS IN ORGANISING
IDENTIFICATION
AND DIVISION
OF WORK
DEPARTME
NTATION
ASSIGNMEN
T OF DUTIES
ESTABLISHING
REPORTING
RELATIONSHIPS

4. • 1.Division of work: The work is divided so that
duplication can be avoided and burden can be shared.
• 2.Departmentalisation:Grouping of similar activities
is called departmentalisation.
• 3.Assignment of duties: Jobs are allocated to
workers in accordance to their skills .
• 4.Establishing reporting relationships: It helps
in coordination amongs various departments.

5. IMPORTANCE OF ORGANISING
BENEFITS OF SPECIALISATION
CLARITY IN WORKING RELATIONSHIPS
OPTIMUM UTILIZATION OF RESOURCES
ADAPTATION TO CHANGE
EFFECTIVE ADMINISTRATION
DEVELOPMENT OF PERSONNEL
EXPANSION AND GROWTH

6. ORGANISATION STRUCTURE
• Organisation structure is the outcome of
organising process
• Organisation structure is the established pattern of
relationship among various job positions of the
enterprise

8. DEFINITION
• Organisation structure can be defined as the
framework within which managerial and operating
tasks are performed. It specifies the relationship
between people, work and resources.

9. FUNCTIONAL STRUCTURE
• It is an organisation structure wherein jobs of
a similar nature are grouped into major
functions and these major functions are
organised as separate departments
• A person will be in charge of each department

10. 1.

11. FUNCTIONAL STRUCTURE
MANAGING
DIRECTOR
HUMAN
RESOURCES MARKETING
RESEARCH AND
DEVELOPMENT
PURCHASING

14. It is most suitable when the size of the
organisation is large and has diversified
activities and operations which require
a high degree of specialisation

16. DIVISIONAL STRUCTURE
CHAIRMAN/M.D
G.M
PRODUCT
A DIVISION
MANAGER
PRODUCTION
MANAGER
PERSONNEL
G.M
PRODUCT B DIVISION
MANAGER
PRODUCTION
MANAGER
PERSONNEL
G .M
PRODUCT C
DIVISION
MANAGER
PERSONNEL
MANAGER
PRODUCTION

19. SUITABILITY OF DIVISIONAL STRUCTURE
 Divisional structure is suitable for those business
enterprises where a large variety of products are
manufactured using different productive
resources.

28. •Speedy communication
•Fulfils social needs
•Support formal organization