By: Iftikhar Ahmad I-E-R Punjab University Lahore (Pakistan)

2. Formal divisions, grouping, and
coordination of job tasks.

3. 6 KEY ELEMENTS:
 Work Specialization
 Departmentalization
 Chain of Command
 Span of Control
 Centralization / Decentralization
 Formalization

4. The degree to which
organizational tasks are
sub-divided into individual jobs.

5.  Early in the twentieth century, Henry Ford became
rich and famous by building automobiles on an
assembly line.
 Every Ford worker was assigned a specific, repetitive
task.
 For instance, one person would just put on the right-
front wheel and someone else would install the right
front door.
 By breaking jobs up into small standardized tasks,
which could be performed over and over again, Ford
was able to produce cars at the rate of one every 10
seconds, using employees who had relatively limited
skills.
(Organizational Behavior. Stephen P. Robbins p.480)

8. Work Specialization
Productivity
High
HighLow
Impact of
economies of
specialization
Impact of
human
diseconomies

9. The basis on which
jobs in an organization
are grouped together is
called as departmentalization

10. BASES OF DEPARTMENTALIZATION:
Functions
Product
Geography
Process
Customer

11. Function:
One of the most popular ways to
group activities is by functions
performed.
A manufacturing manager might
organize a plant into engineering,
accounting,manufacturing,personnel,
and supply specialists departments.

13. Product:
We can also departmentalize jobs by the type of
product or service the organization
produces.

15. Goegraphy:
When a firm is departmentalized on the basis of
geography, or territory, the sales function, for
instance, may have western, southern,midwestern, and
eastern regions, each, in effect, a department organized
around geography.
This form is valuable when an organization’s
customers are scattered over a large
geographic area and have similar needs based on their
location.

16. Process departmentalization :
Process departmentalization works for processing
customers as well as products.
If you’ve ever been to a state motor vehicle office to get a
driver’s license,
you probably went through several departments before
receiving your license.
In one typical state, applicants go through three steps, each
handled by a separate
department: (1) validation by motor vehicles division, (2)
processing by the
licensing department, and (3) payment collection by the
treasury department.

17. A final category of departmentalization uses the
particular type of customer
the organization seeks to reach.
Microsoft, for example, is organized around four
customer markets: consumers, large corporations,
software developers, and small businesses
 Customers in each department have a common set
of problems and needs best met by having specialists
for each.

19. Unbroken line of authority
from top to bottom,
clarifying who reports to whom.

20. RELATED CONCEPTS:
Authority
Unity of Command

21. Number of subordinates a
manager can efficiently and
effectively direct.

24. The degree to which
decision making is concentrated
at a single point or distributed.

25. In centralized organizations, top
managers
make all the decisions, and lower-
level managers merely carry out their
directives.
A decentralized organization can
act more quickly to solve problems,
more people provide
input into decisions.

26. The degree to which jobs
within an organization are
Standardized.
(Organizational Behavior,
Stephen P. Robbins p.486)

27. Simple Structure
Bureaucracy
Team Structure
Virtual Organization

28. Not elaborate.
Low degree of
departmentalization.
Wide spans of control.
Centralized authority.
Less formalization.

29. - Widely practiced in small businesses.
- Its strength is its simplicity.
- Fast, flexible, inexpensive, clear
accountability.
- Inadequate for large organizations.

30. - Standardization.
- Specialization.
- Formalized rules and regulations.
- Departmentalization.
- Centralized authority.
- Narrow span of control.
- Chain of command is followed.

31. - Breaks down departmental barriers.
- Decentralization of decision making.
- May complement / supplement a
bureaucracy.

32. - Why own when you can rent?
- Small, core organization that outsources
major business functions.
-Highly centralized.
- Little or no departmentalization.
- High flexibility.
- Management has less control.

33. 1. Tall Organizational Structure
2. Flat Organizational Structure
3. Virtual Organizational Structure
4. Boundary less Organizational Structure

34. Large, complex organizations often require a
taller hierarchy.
In its simplest form, a tall structure results in
one long chain of command similar to the military.
As an organization grows, the number of
management levels increases and the structure
grows taller. In a tall structure, managers form
many ranks and each has a small area of control.

36. Flat structures have fewer management
levels, with each level controlling a broad area
or group.
 Flat organizations focus on empowering
employees rather than adhering to the chain of
command.
By encouraging autonomy and self-direction,
flat structures attempt to tap into employees’
creative talents and to solve problems by
collaboration.

38. Virtual organization can be thought of as a way
in which an organization uses information and
communication technologies to replace or
augment some aspect of the organization.
 People who are virtually organized primarily
interact by electronic means.
 For example, many customer help desks link
customers and consultants together via telephone
or the Internet and problems may be solved
without ever bringing people together face-to-
face.

39. A boundary less Organizational structure is a
contemporary approach in Organizational design.
It is an organization that is not defined by, or
limited to the horizontal, vertical or external
boundaries imposed by a pre-defined structure.
It behaves more like an organism encouraging
better integration among employees and closer
partnership with stakeholders.
It’s highly flexible and responsive and draws
on talent wherever it’s found.

40. Impacts effectiveness and efficiency.
Reduces redundant actions.
Promotes teamwork.
Improves communication.
Contributes to success or failure.
Divides work to be done in specific jobs &
dept.

41. Assigns tasks and responsibilities
associated with individual jobs.
Coordinates diverse organizational tasks.
Establishes relationship b/w individuals,
groups and departments.
Establishes formal lines of authority.
Allocates organizational resources.
Clusters jobs into units.