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Organizational structure
By
Shaurya Vashisth
Malla Manikanta
Darshi Jaiswal
Priyanka
Himanshu
Rinki
Vishal
Organizational structure
• An organizational structure defines how activities such as task
allocation, coordination and supervision are directed toward the
achievement of organizational aims.
• Organizations need to be efficient, flexible, innovative and caring in
order to achieve a sustainable competitive advantage
Classical Organization Theory
The main idea of this theory was that There is “one best way” to
perform a task
Modules of classical
organization theory
• Frederick Taylor, Henri Fayol and Max Weber created the structure
and the improvement frame of Classical Organization Theories
• Scientific Management – it is based on the concept of planning of
work to achieve efficiency, standardization, specialization and
simplification. Taylor was the first person who attempted to study
human behaviour at work using a systematic approach
• Administrative Management - The elements of administrative
structure by Fayol relate to the accomplishment of tasks, and include
principles of management, the concept of line and staff, committees
and function of management
• Bureaucratic Management - Max Weber considered the
organization as a segment of broader society. He looked at the
structure of the organization and the control of member behaviour.
Scientific Management
• He emphasized for mental revolution on both the part of management and labour
side, thus that they may work together in the essence of work coordination with a
vision to cultivating their particular lots achieving high pays for labour and better
output at little expenses for management. Taylor perceives that management is
ignoring its tasks, and force the liability of systems and production on labour
• Four Principles in Scientific management
1) Replace the old rule-of-thumb method through the development of a science
for every component of a man’s work.
2) Select, train, show and improve the workman through scientific method.
3) Collaboration with men wholeheartedly so as to complete the assignment
scientifically.
4) Equally divide the work and the responsibility concerning the management and
the worker. The management gets all determination for which they are fine
fitted than the workmen.
Administrative Management
• This theory is about business management along with overall management. Its
key attention is management. He offered six functions and fourteen principles
of management in his theory. Key six functions of management are such as
below:
• i) Forecasting
• ii) Planning
• iii) Organizing
• Iv) Commanding
• v) Coordinating
• vi) Monitoring
1. Division of Work
Specialization increases output by making employees more efficient
2. Authority and Responsibility
Managers must be able to give orders and authority gives them this right.
3. Discipline
Employees must obey and respect the rules that govern the organization.
4. Unity of Command
Every employee should receive orders from only one superior.
5. Unity of direction
The organization should have a single plan of action to guide managers and workers.
6. Subordination of Individual Interest
The interests of any one employee or group of employees should not take precedence
over the interests of organization as awhole.
14 Principles of Management
7. Remuneration
Workers must be paid a fair wage for their services.
8. Centralization
This term refers to the degree to which subordinates are involved in decision
making.
9. Scalar chain
The line of authority from top management to the lowest ranks in the scalar
chain.
10. Order
People and materials should be in the right place at the right time.
11. Equity
Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel
Management should provide orderly personnel planning and ensure the
replacements available to fill vacancies.
13. Initiative
Employees who are allowed to originate and carry out plans will exert high levels
of effort.
14. Esprit de corps
Promoting team spirit will build harmony and unity within the organization.
Bureaucratic Management
• Max Weber (1864-1920), who initiated the contemporary sociological study of
bureaucracy, freed the word from pejorative connotations, and stressed the
essentiality of bureaucracy for the rational achievement of the aims of the
organizations. Weber named his creation as “ideal type”, an ideal type is what
attempts selected by an organization
• Traditional authority: Centered on the traditionally shaped legitimacy where
authority is inherited and grounded on dependent subordinates.
• Rational-Legal authority: The bureaucratic type of authority, grounded on
normative procedures for job, chain of command etc.
• Charismatic authority: The particular authority, constructed on a type of
‘seduction’ and therefore, the dedication of followers
Characteristics of Bureaucracy
• 1. Bureaucratic offices are structured hierarchically; that is, every lower office is in the supervision
and control of a greater one.
• 2. Every office has an evidently demarcated range of action in the legitimate logic.
• 3. Bureaucrats are selected on the source of strict qualifications as resolute by certificates or
competitive examinations.
• 4. The bureaucrats are selected, not elected, on the source of an open agreement. The official
bureaucrats are allowed to resign always.
• 5. The bureaucrats accept fixed remunerations in money permitting to rank in the hierarchy of the
organization. For the utmost part they have a right to retirement pension.
• 6. The work is the one and only, or at least the key job of the bureaucrats.
• 7. There is a career progress structure wherein promotions are centered on merit and/or seniority
promotion is relying on the decision of the superior.
• 8. The bureaucrats do not specify his or her office and the resources of the administration. He
cannot apt his position.
• 9. The bureaucrats are matter of firm and orderly discipline and regulate in the behavior of the
office.
• 10. The staffs of a bureaucratic body are individually unrestricted and subject to authority merely
with respect to their impersonal formal responsibilities.
Rinki
ORAGANISATIONAL DESIGN
Organisational Design : The process of constructing and adjusting an Organisation Structure achieve
its goals.
To explore how designs are made about designing Organisational structure.
The linking of
departments and
jobs within an
organisation.
KEY ELEMENTS IN ORGANISATIONAL DESIGN :
1. Work specialization
2. Departmentalization
3. Chain Of Command
4. Span of Control
5. Centralization And Decentralization
6. Formalization
Departmentalisation :
There are five common forms of departmentalization:
• Functional Departmentalisation
• Product Departmentalisation
• Geographical Departmentalisation
• Process Departmentalisation
• Customer Departmentalisation
1. Functional Departmentalisation
2. Product Departmentalisation
4.
3.
5. Customer Departmentalisation
3. Chain Of Command
4. Span of Control
5. Centralization And Decentralization
6. Formalization
Types Of Organisational Design
1. Traditional Design
a. Simple Structure
b. Functional Structure
c. Divisional Structure
2. Contemporary Design
a. Team Structure
b. Matrix Structure
c. Project Structure
Priyanka
TYPES OF CULTURE
•Clan Culture
•The Hierarchy Culture
•The Adhocracy Culture
•The Market Culture
CREATIVITY AND INNOVATION
• Creativity is the essential first step in the innovation, which is vital for
long term organisational success.
• Creativity is the ability to visualize, foresee, generate and implement
new ideas.
THE CREATIVE PROCESS
• Preparation and Concentration
• Incubation
• Illumination
• Verification
CREATIVE PEOPLE: CHARACTERISTICS
• Bright but not brilliant.
• Possessing a high positive image of themselves.
• Sensitive to the world around them.
• Motivated by challenging problems.
• Value their independence.
• Flexible in their thinking and experience.
INCREASING CREATIVITY IN ORGANISATIONS
• Challenge Workers
• Establish worker autonomy
• Grant reasonable time to accomplish work
• Establish diverse work groups
• Encourage people to give their best
• Establish system support
• Hire and retain creative people
Himanshu
Creating Organizational Culture:
● The founder’s behaviour acts as a role model for the employees.
● Culture generally begins with the founder who articulates(expresses)
and implements particular ideas and values.
● If these ideas leads to success than they are institutionalised in
organization and its culture.
● Existing employees must socialize newly hired employees with
organization’s thinking.
Three Levels of Organizational Culture:
● Artifacts(man-made objects):
● Organizational heroes
● Ceremonies
● Stories
● Values:
● Instrumental values
● Terminal values
● Assumptions
Sustaining Organizational Culture:
Three Practices followed within the organization for sustaining a culture are:
● Selection practices
● Actions of top management
● Socialization method
Selection:
● Definite goal: Identifying and hiring individuals having knowledge, skills
and abilities to perform the jobs successfully.
● Individuals having values consistent with those of the organization as per
the decision maker’s judgements.
● Such employees will perpetuate the traditions, common beliefs and
values of the organization.
Top Management:
The actions of the top management establishes the norms for the
organization as to:
● Whether risk taking is desirable
● How much freedom managers should give to their subordinates
● What actions will pay off in terms of pay rises, promotions and other
rewards, etc
Socialization:
It is the process of adaptation by which new employees are able to
understand the basic values, customs, traditions and norms for
becoming the “accepted” members of the organization.
Three stages of socialization process:
● Pre- arrival: All the learning occurring before a new member joins
● Encounter: The new employee sees what the organization is realy like
and confronts the possibility that expectations and reality may diverge
● Metamorphosis(Transformation): The relatively long lasting changes
take place. The new employee masters the skills required for the job,
successfully performs the new roles and makes adjustment according to
the organization’s values and norms.
How Employees Learn Culture:
● Stories: Depicting the past events of the organization
● Rituals: Repetitive sequential activities reinforcing the values of
organization.
● Material Symbols: Conveying social equality, desired organizational
behaviour, etc by top management.
● Language: Acceptance and preservation of culture..
Conclusion:
● Managers need to understand the nature and role of culture.
● Managers must understand the importance of culture for organizational
change.
● Finally it can be well said that organizational culture serves as a control
mechanism that control, guides and shapes the attitude and behavior of
the employees.

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organizational structure

  • 1. Organizational structure By Shaurya Vashisth Malla Manikanta Darshi Jaiswal Priyanka Himanshu Rinki Vishal
  • 2. Organizational structure • An organizational structure defines how activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims. • Organizations need to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive advantage
  • 3. Classical Organization Theory The main idea of this theory was that There is “one best way” to perform a task Modules of classical organization theory
  • 4. • Frederick Taylor, Henri Fayol and Max Weber created the structure and the improvement frame of Classical Organization Theories • Scientific Management – it is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. Taylor was the first person who attempted to study human behaviour at work using a systematic approach • Administrative Management - The elements of administrative structure by Fayol relate to the accomplishment of tasks, and include principles of management, the concept of line and staff, committees and function of management • Bureaucratic Management - Max Weber considered the organization as a segment of broader society. He looked at the structure of the organization and the control of member behaviour.
  • 5. Scientific Management • He emphasized for mental revolution on both the part of management and labour side, thus that they may work together in the essence of work coordination with a vision to cultivating their particular lots achieving high pays for labour and better output at little expenses for management. Taylor perceives that management is ignoring its tasks, and force the liability of systems and production on labour • Four Principles in Scientific management 1) Replace the old rule-of-thumb method through the development of a science for every component of a man’s work. 2) Select, train, show and improve the workman through scientific method. 3) Collaboration with men wholeheartedly so as to complete the assignment scientifically. 4) Equally divide the work and the responsibility concerning the management and the worker. The management gets all determination for which they are fine fitted than the workmen.
  • 6. Administrative Management • This theory is about business management along with overall management. Its key attention is management. He offered six functions and fourteen principles of management in his theory. Key six functions of management are such as below: • i) Forecasting • ii) Planning • iii) Organizing • Iv) Commanding • v) Coordinating • vi) Monitoring
  • 7. 1. Division of Work Specialization increases output by making employees more efficient 2. Authority and Responsibility Managers must be able to give orders and authority gives them this right. 3. Discipline Employees must obey and respect the rules that govern the organization. 4. Unity of Command Every employee should receive orders from only one superior. 5. Unity of direction The organization should have a single plan of action to guide managers and workers. 6. Subordination of Individual Interest The interests of any one employee or group of employees should not take precedence over the interests of organization as awhole. 14 Principles of Management
  • 8. 7. Remuneration Workers must be paid a fair wage for their services. 8. Centralization This term refers to the degree to which subordinates are involved in decision making. 9. Scalar chain The line of authority from top management to the lowest ranks in the scalar chain. 10. Order People and materials should be in the right place at the right time.
  • 9. 11. Equity Managers should be kind and fair to their subordinates. 12. Stability of tenure of personnel Management should provide orderly personnel planning and ensure the replacements available to fill vacancies. 13. Initiative Employees who are allowed to originate and carry out plans will exert high levels of effort. 14. Esprit de corps Promoting team spirit will build harmony and unity within the organization.
  • 10. Bureaucratic Management • Max Weber (1864-1920), who initiated the contemporary sociological study of bureaucracy, freed the word from pejorative connotations, and stressed the essentiality of bureaucracy for the rational achievement of the aims of the organizations. Weber named his creation as “ideal type”, an ideal type is what attempts selected by an organization • Traditional authority: Centered on the traditionally shaped legitimacy where authority is inherited and grounded on dependent subordinates. • Rational-Legal authority: The bureaucratic type of authority, grounded on normative procedures for job, chain of command etc. • Charismatic authority: The particular authority, constructed on a type of ‘seduction’ and therefore, the dedication of followers
  • 11. Characteristics of Bureaucracy • 1. Bureaucratic offices are structured hierarchically; that is, every lower office is in the supervision and control of a greater one. • 2. Every office has an evidently demarcated range of action in the legitimate logic. • 3. Bureaucrats are selected on the source of strict qualifications as resolute by certificates or competitive examinations. • 4. The bureaucrats are selected, not elected, on the source of an open agreement. The official bureaucrats are allowed to resign always. • 5. The bureaucrats accept fixed remunerations in money permitting to rank in the hierarchy of the organization. For the utmost part they have a right to retirement pension. • 6. The work is the one and only, or at least the key job of the bureaucrats. • 7. There is a career progress structure wherein promotions are centered on merit and/or seniority promotion is relying on the decision of the superior. • 8. The bureaucrats do not specify his or her office and the resources of the administration. He cannot apt his position. • 9. The bureaucrats are matter of firm and orderly discipline and regulate in the behavior of the office. • 10. The staffs of a bureaucratic body are individually unrestricted and subject to authority merely with respect to their impersonal formal responsibilities.
  • 12. Rinki
  • 13. ORAGANISATIONAL DESIGN Organisational Design : The process of constructing and adjusting an Organisation Structure achieve its goals. To explore how designs are made about designing Organisational structure. The linking of departments and jobs within an organisation.
  • 14. KEY ELEMENTS IN ORGANISATIONAL DESIGN : 1. Work specialization 2. Departmentalization 3. Chain Of Command 4. Span of Control 5. Centralization And Decentralization 6. Formalization
  • 15. Departmentalisation : There are five common forms of departmentalization: • Functional Departmentalisation • Product Departmentalisation • Geographical Departmentalisation • Process Departmentalisation • Customer Departmentalisation
  • 16. 1. Functional Departmentalisation 2. Product Departmentalisation
  • 17. 4. 3.
  • 18. 5. Customer Departmentalisation 3. Chain Of Command 4. Span of Control 5. Centralization And Decentralization 6. Formalization
  • 19. Types Of Organisational Design 1. Traditional Design a. Simple Structure b. Functional Structure c. Divisional Structure 2. Contemporary Design a. Team Structure b. Matrix Structure c. Project Structure
  • 21. TYPES OF CULTURE •Clan Culture •The Hierarchy Culture •The Adhocracy Culture •The Market Culture
  • 22. CREATIVITY AND INNOVATION • Creativity is the essential first step in the innovation, which is vital for long term organisational success. • Creativity is the ability to visualize, foresee, generate and implement new ideas.
  • 23. THE CREATIVE PROCESS • Preparation and Concentration • Incubation • Illumination • Verification
  • 24. CREATIVE PEOPLE: CHARACTERISTICS • Bright but not brilliant. • Possessing a high positive image of themselves. • Sensitive to the world around them. • Motivated by challenging problems. • Value their independence. • Flexible in their thinking and experience.
  • 25. INCREASING CREATIVITY IN ORGANISATIONS • Challenge Workers • Establish worker autonomy • Grant reasonable time to accomplish work • Establish diverse work groups • Encourage people to give their best • Establish system support • Hire and retain creative people
  • 27. Creating Organizational Culture: ● The founder’s behaviour acts as a role model for the employees. ● Culture generally begins with the founder who articulates(expresses) and implements particular ideas and values. ● If these ideas leads to success than they are institutionalised in organization and its culture. ● Existing employees must socialize newly hired employees with organization’s thinking.
  • 28. Three Levels of Organizational Culture: ● Artifacts(man-made objects): ● Organizational heroes ● Ceremonies ● Stories ● Values: ● Instrumental values ● Terminal values ● Assumptions
  • 29. Sustaining Organizational Culture: Three Practices followed within the organization for sustaining a culture are: ● Selection practices ● Actions of top management ● Socialization method
  • 30. Selection: ● Definite goal: Identifying and hiring individuals having knowledge, skills and abilities to perform the jobs successfully. ● Individuals having values consistent with those of the organization as per the decision maker’s judgements. ● Such employees will perpetuate the traditions, common beliefs and values of the organization.
  • 31. Top Management: The actions of the top management establishes the norms for the organization as to: ● Whether risk taking is desirable ● How much freedom managers should give to their subordinates ● What actions will pay off in terms of pay rises, promotions and other rewards, etc
  • 32. Socialization: It is the process of adaptation by which new employees are able to understand the basic values, customs, traditions and norms for becoming the “accepted” members of the organization.
  • 33. Three stages of socialization process: ● Pre- arrival: All the learning occurring before a new member joins ● Encounter: The new employee sees what the organization is realy like and confronts the possibility that expectations and reality may diverge ● Metamorphosis(Transformation): The relatively long lasting changes take place. The new employee masters the skills required for the job, successfully performs the new roles and makes adjustment according to the organization’s values and norms.
  • 34. How Employees Learn Culture: ● Stories: Depicting the past events of the organization ● Rituals: Repetitive sequential activities reinforcing the values of organization. ● Material Symbols: Conveying social equality, desired organizational behaviour, etc by top management. ● Language: Acceptance and preservation of culture..
  • 35. Conclusion: ● Managers need to understand the nature and role of culture. ● Managers must understand the importance of culture for organizational change. ● Finally it can be well said that organizational culture serves as a control mechanism that control, guides and shapes the attitude and behavior of the employees.

Editor's Notes

  1. rule-of-thumb - ready practical rule, not based on science or exact measurement. Wholeheartedly - with complete sincerity and commitment.