The document discusses various aspects of organizational design and structure. It begins by listing four presenters and their employee IDs. It then covers topics such as work specialization, organizational design elements like authority, departmentalization, chain of command, span of control and alternatives to specialization. The key aspects of work specialization include breaking down jobs into discrete tasks and having workers focus on specific skills. While specialization increases efficiency, it can also lead to monotony and loss of flexibility. The document discusses alternatives like job rotation, enlargement and enrichment to address the disadvantages.

1. Presenters
1. Muhammad Tayyab
2. Ali Fahad
3. Khizer Javaid
4. Adeel Khan
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(2011-ME-339)
(2011-ME-337)
(2011-ME-336)
(2011-ME-338)
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2. Work Specializtion
Do what you excel
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3. Organizational design
 An organizational design is the outline of a
company’s framework and guidelines for
managing business operations.
 Is
or
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engaged when managers develop
change an organization's structure.
3

4. Six Elements
•
•
•
•
•
•
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Work specialization
Authority and responsibility
Centralization versus decentralization
Chain of command
Span of control
Departmentalization
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5. Specialization
• Specialization is the term used to
describe when someone gets really
good at a particular work task.
• One task can be done very well and
quickly.
• Workers end up with very specific
skills
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6. Work Specialization
Work specialization is a component of
organization structure that involves
having each discrete step of a job done
by a different individual rather than
having one individual do the whole job.
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7. Key Features
• The entire job is broken down into
steps, each step completed by a
separate individual.
• Individual workers specialize in
doing part of an activity.
• Involves repetitive performance of
a few skills.
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8. Key Features
• Can be viewed as a means to make
the most efficient use of employee's
skills
• Some task requires highly developed
skills
• Others can be performed by the
untrained
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9. Productivity
High
Impact from
economies of
specialization
Low
Impact from
human
diseconomies
High
Work Specialization
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10. Advantages
• Efficiency:
A person who spends his or her time
performing one relatively simple task
becomes very efficient at that particular
task.
• Time Saving:
No time wasted on in moving from
one job to another. Transfer time between
tasks is decreased.
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11. Advantages
• Equipment:
The savings on equipment. If workers
specialize, they will not need to have a full
set of tools or other equipment.
• Training:
There is a saving time on training of
operatives. An employee could be easily
trained for a particular task he or she
specializes in, in a short period.
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12. Advantages
• Employee replacement becomes easier.
• Efficiency:Practice make perfect, there fore
the work within particular skills will develop
skills and efficiency through repetition of the
job.Work specialization creates efficiency and
productivity
• Job specialization is job security and you could
also get higher pay for being specialized in a
certain area.
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13. Advantages
• Reduce Cost of Production:
In the particular activities the specialized
person will be effectively handling it out
as a result there be no need giving cost of
repeating the same job.
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14. Disadvantages
• Loss of flexibility:
If workers specialize too much it may
be difficult for them to performing other
tasks when there is a need to cover for
workers who are not present.
• Monotony:
Workers can get bored performing
the same tasks everyday. This may result in
them making mistakes and may result in
absenteeism or even labor turnover.
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15. Disadvantages
• Loss of skills:
Some claim that by breaking
production into a series of separate, simple
and often mechanized tasks, workers are
not challenged and are not able to gain
sufficient job satisfaction.
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16. Disadvantages
• Increased risk of unemployment:
Specialization means that workers
may not have a wide range of skills. When
demand or supply conditions change their
particular skills may no longer be needed.
You could also have a hard time
finding a new job if your set of skills is
specialized in one area.
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17. Alternatives
• To promote career
development, alternatives include job
rotation, job enlargement and job
enrichment activities
• You can enable employees to develop
and expand their abilities in a few
ways. Broaden the job
characteristics, such as the number of
tasks a person performs.
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18. Alternatives
• Job Rotation



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Systematically moving employees from
one job to another.
This reduces employee boredom.
It also enables you to ensure that you
have trained employees ready to perform
all the different types of tasks required to
produce a product or service.
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19. Alternative
• Job Enlargement:


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An increase in the total number of
tasks performed.
Increases training costs, unions want
workers paid more pay for doing more
tasks, and work may still be dull and
routine.
This can make employees feel more
valuable to the organization and reduce
absenteeism due to low morale and
boredom with a single task.
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20. Alternative
• Job Enrichment:




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Increasing both the number of tasks the
worker does and the control the worker has
over the job.
It is more comprehensive than job rotation
or job enlargement
When workers have a high degree of
autonomy, they tend to take more interest
in their work.
This motivates them to produce products
and services of high quality.
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21. Alternative
• Job characteristics approach
• The job characteristics approach is an
alternative to job specialization that
suggests that jobs should be diagnosed
and improved along five core
dimensions, taking into account both the
work system and employee preferences.
The five dimensions are as follows:
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22. Alternatives
Core Dimensions
• Skill variety—the number of tasks a person does
in a job.
• Task identity—the extent to which the worker
does a complete or identifiable portion of the
total job.
• Task significance—the perceived importance of
the task.
• Autonomy—the degree of control the worker
has over how the work is performed.
• Feedback— the extent to which the worker
knows how well the job is being performed.
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23. Alternatives
• Work Team
– An alternative to job specialization that allows
the entire group to design the work system it
will use to perform an interrelated set of tasks.

24. Centralized Design
Centralized organizational structures rely on
one individual to make decisions and provide
direction for the company.
 Small businesses
Owner Responsible
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25. Advantages
Efficient regarding Business Decision.
Business owners typically develop the
company’s mission and vision.
Employees follow clear cut commands.
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26. Disadvantages
Negative Effect from Bureaucracy.
Sluggish Business Decision.
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27. Decentralized Design
Several Individuals responsible for decision
making and running of business.
“Run their department as they see fit.”
Rely on Team Environment.
Individuals have certain level authority.
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28. Advantages
Innovation
Variety of expertise and knowledge for
running of business.
Broad-based management team.
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29. Disadvantages
Everyone has different opinion.
Difficult in gathering everyone on same
business page.
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30. Authority and Responsibility
Authority: It is the power that has been
legitimized by the organization.
Responsibility: It is an obligation to perform
the assigned activities.
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31. Delegation
 The process by which managers assign a
portion of their total workload to others.
Reasons:
 To enable the manager to get more work done by utilizing
the skills and talents of subordinates.
 To foster the development of subordinates by having them
participate in decision making and problem solving.
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32. Line Authority and Staff Authority
• Line authority entitles manager to direct the
work of an employer. A manager with the line
authority has the right to direct the work f
employees and make certain decisions
without consulting anyone.
• The staff authority is used to support, assist
and advise the holder of line authority.
e.g., organization policy enforcement
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33. Line authority
Executive
Director
Assistant to the
Executive Director
Staff authority
Director of
Human
Resources
Director of
Operations
Director of
Purchasing
Unit 1
Manager
Other
Human
Operations Purchasing
resources
Other
directors
Unit 2
Manager
Other
Human
Operations Purchasing
resources
Line Versus Staff Authority

34. Departmentalization
Departmentalization is the
grouping of jobs according to some
logical arrangement. As the
organization grows in size and
complexity, it is no longer possible for
one manager to oversee all of the
workers, so workers are assigned to
new managers based on some overall
plan.
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35. Types of Departmentalization
•
•
•
•
•
Functional Departmentalization:
Product Departmentalization:
Customer Departmentalization:
Process Departmentalization:
Location Departmentalization:
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36. Functional Departmentalization
The grouping of jobs involving the same
or similar activities.
Example: manufacturing, marketing, sales
and accounting.
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37. •
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38. Functional Departmentalization
• Advantages
– Each department can be
staffed by functional-area
experts.
– Supervision is facilitated in
that managers only need be
familiar with a narrow set of
skills.
– Coordination inside each
department is easier.
• Disadvantages
– Decision making becomes
slow and bureaucratic.
– Employees narrow their
focus to the department and
lose sight of organizational
goals/ issues.
– Accountability and
performance are difficult to
monitor.

39. Product Departmentalization
• It involves grouping and arranging activities
around products or product groups.
Examples:
Advantages:
Disadvantages:
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40. Divisional Organization
for a Pharmaceuticals Company
FIGURE 6–2
G.Dessler, 2003
April 18, 2006
LIS580- Spring 2006
40

41. Product Departmentalization
The grouping of activities around products or
product groups
• Advantages
– All activities associated with
one product can be
integrated and coordinated.
– Speed and effectiveness of
decision making are
enhanced.
– Performance of individual
products or product groups
can be assessed.
• Disadvantages
– Managers may focus on
their product to the
exclusion of the rest of the
organization.
– Administrative costs may
increase due to each
department having its own
functional-area experts.

42. Location Departmentalization
• It groups jobs on the basis of geographic sites
or areas.
Examples:
Advantages:
Disadvantages:
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43. Location Departmentalization
The grouping of jobs on the basis of defined
geographic sites or areas.
• Advantage
– Enables the organization to respond
easily to unique customer and
environmental characteristics.
• Disadvantage
– Large administrative staff may be
needed to keep track of units in
scattered locations.

44. Customer Departmentalization
• It structures the organization’s activities to
respond to and interact with specific
customers and customer groups.
• Examples:
Advantages:
Disadvantages:
•
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45. Customer Departmentalization,
Grayson Steel Company
FIGURE 6–3
G.Dessler, 2003
April 18, 2006
LIS580- Spring 2006
45

46. Chain Of Command
• A clear and distinct line of authority among
the positions in an organization.
Components of chain of command:
There are two components:
• Unity of command.
• The scalar principle.
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47. •
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48. Unity of Command
• Unity of command suggests that each person
within an organization should have a clear
reporting relationship to one and only one
boss.
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49. The Scalar Principle
• The scalar principle suggests that there
should be a clear and unbroken line of
authority that extends from the lowest to the
highest position in the organization.
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50. Span of control
• The span of control determines how
many people will report to each
manager.
• It is the number of subordinates that a
manager can direct efficiently and
effectively.
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51. Spans of Control in Country-Based
Organization
April 18, 2006
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52. Span of Control
• Wide span: Larger number of direct reports.
• Narrow span: Fewer number of direct reports.
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53. Tall Vs Flat organization
• Tall organization: More management layers
and more hierarchical controls.
• Flat organization: Fewer management layer and
decision making closer to the customer.
.
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54. Establishing Reporting Relationships:
Tall Versus Flat Organizations
• Tall Organizations
– Are more expensive
because of the number
of managers involved.
– Foster more
communication
problems because of
the number of people
through whom
information must pass.
• Flat Organizations
– Lead to higher levels of
employee morale and
productivity.
– Create more administrative
responsibility for the
relatively few managers.
– Create more supervisory
responsibility for managers
due to wider spans of
control.

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