Organizational structure By Vishal Srivastava
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This document discusses organizational structure and its key components. It begins with definitions of organizational structure and describes the main types as simple, functional, divisional, and matrix. It then explains each type in more detail along with examples. The document also covers principles, elements, design questions, and factors that influence organizational structure. Finally, it discusses organizational design models and the seven S framework for analyzing organizational elements.
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Organizational structure By Vishal Srivastava
- 1. Presented by DEVESH KUMAR KANAUJIA RISHES DWIVEDI RISHI SINGH CHAUHAN VISHAL SRIVASTAVA
- 2. 1-Definition 2-Types Of Organizational Structure 3-Principals of Organizational Structure 4-Elements Of Organizational Structure 5-Organizational Design 6-Features Of Organizational Structure 7-Key Design Questions 8-Factors influencing Organizational Structure 9-Design Of Organization Structure 10- Seven S Model
- 3. “Organizational structure refers to the differentiation and integration of activities and authority, roles, and relationships in the organization” The way in which job-task are formally divided, grouped and coordinated is called organizational structure
- 5. Simple Structure Functional Structure Divisional Structure Matrix Structure
- 6. This structure is most common in smaller organizations. The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. Useful for new business as the founder control growth and development. Is best used to solve simple tasks. Owner/Manager Workers
- 7. It is appropriate for medium sized firms, with several related product lines. Employees tend to be specialist in the business functions, such as marketing and finance etc.
- 8. E.g.-1 Top Management Sales Manufacturing E.g.-2 Function A Finance Function B Function C HR Function D CEO VP Marketing VP Finance VP Operations Product 1 Country A Product 2 Country B VP R&D Product 3 VP Legal issues
- 9. The divisional structure groups each organizational function into a division It is appropriate for a large corporation with many product lines in several related industries. Employees tend to be functional specialist organized according to product market distinction. It has 2 Types : Geographic & Product Basis
- 10. CEO Division D Admin/Finance VP for the Americas VP Europe VP E. Asia VP Australasia Australia/NZ Division A Indonesia Division B Marketing Division C Operations Islands
- 11. DIVISIONAL STRUCTURE (BY PRODUCT LINES) COSMETICS CORPORATION FRAGRANCES Division A SKIN CARE PRODUCTS Division B HAIR CARE PRODUCTS Division C OTHER PRODUCTS Division D
- 12. It is a group of employees by both function and product. This structure can combine the best of both separate structures. Employees from Different Depts. are employed for the same assignment or project.
- 14. Division of labor Work specialization Unity of command Principle of departmentation Principle of authority Span of management Scalar chain Unity of purpose Principle of flexibility Principle of synergy Principle of team spirit
- 15. Departmentation Span of management Delegation of authority Assigning responsibility Organizational strategy
- 16. Organization Structure: Its Determinants and Outcomes 11
- 17. Organizational Designs range from highly structured and standardized bureaucracy to the loose and amorphous boundary less organization. One end – mechanistic model. Other end- organic model.
- 19. Simplicity Flexibility Clear line of authority Application of ultimate responsibility Proper delegation of authority Minimum possible managerial levels Principles of unity of direction and command Proper emphasis on staff Provision for top management
- 20. The key question The answer is provided by 1.To what degree are activities Work specialization sub-divided into separate jobs? 2 On what basis will jobs be Departmentalization grouped together? 3.To whom do individuals and Chain of command groups report? 4.How many individuals can a manager efficiently and Span of control effectively direct?
- 21. 5.Where does decision making authority lie? 6.To what degree will there be rules and regulations to direct employees and managers? Centralization & Decentralization Formalization
- 22. The degree to which task in an organization are sub-divided into separate jobs.
- 23. The basis by which jobs in an organization are grouped together
- 24. The unbroken line of authority that extends from the top of the organization to the lowest echelon and clerifies who reports to whom.
- 25. The rights inherent in a manegerial position to give orders and to expect the orders to be obeyed.
- 26. The idea that a suboordinate should have only one superior to whom he or she is directly responsible. Right Approach Wrong Approach
- 27. The no. of suboordinates a manager can efficiently and effectively direct.
- 28. Centralization refers to the degree of which decision making is concentrated at a single point in the organization.
- 29. In this organization decision making is pushed down to the managers closed to the action.
- 30. The degree to which jobs with in an organization are standardized.
- 31. The structure of an organization may influence various factors. These factors may be internal or externalto the organization. Some of the important factors are :1.Internal factors 2.External factors
- 33. Political environment Economic environment Socio-culture environment Technological environment Market environment Supplier environment International environment Regularity environment
- 34. Defining clear objectives Determining the appropriate type of organizational structure Defining scalar chain of command
- 35. The seven S model was developed by one of the most renowned organization, McKinsey and categories organizational elements into two types, namely hard or soft elements: 1-Hard Elements 2-Soft Elements
- 36. Hard elementsStrategy Structure Systems Soft elementsShared value Style Staff Skills
- 37. All Images-Google images Organizational Behavior-Surpreet Ahluwalia Organizational Behavior-Stephen P Robbins Timothy A Judge Niharika Vohra Organizational Behavior- L M Prasad Organizational Behavior- Surendra Jain Sonia Bhargava
- 38. Thank You
Editor's Notes
- Functional structureEmployees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with software engineers. This leads to operational efficiencies within that group. However it could also lead to a lack of communication between the functional groups within an organization, making the organization slow and inflexible.As a whole, a functional organization is best suited as a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost.[11] For instance, a small business could start making the components it requires for production of its products instead of procuring it from an external organization.But not only beneficial for organization but also for employees faiths.
- Divisional structureAlso called a "product structure", the divisional structure groups each organizational function into a division. Each division within a divisional structure contains all the necessary resources and functions within it. Divisions can be categorized from different points of view. One might make distinctions on a geographical basis (a US division and an EU division, for example) or on product/service basis (different products for different customers: households or companies). In another example, an automobile company with a divisional structure might have one division for SUVs, another division for subcompact cars, and another division for sedans.Each division may have its own sales, engineering and marketing departments.
- Matrix structureThe matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. An example would be a company that produces two products, "product a" and "product b". Using the matrix structure, this company would organize functions within the company as follows: "product a" sales department, "product a" customer service department, "product a" accounting, "product b" sales department, "product b" customer service department, "product b" accounting department. Matrix structure is amongst the purest of organizational structures, a simple lattice emulating order and regularity demonstrated in nature.Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas. Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition. Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed. Among these matrixes, there is no best format; implementation success always depends on organization's purpose and function.
- Advantagesuseful when teams are needed to innovate;when information sharing is important.Disadvantagespeople report to two or more bosses;increases structural complexity;can make it harder to work toward common goals.