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Organization structure is the established pattern of 
relationship among various job positions of the 
enterprise. 
Organization structure is defined as “a system of 
job positions, the roles assigned to them and the 
authority relation among the various positions”. 
It provides framework for managers and other 
employees for performing their functions.
Job Design 
Organizational 
Structure 
DEPARTME-NTATION 
SPAN OF CONTROL 
Delegation of 
authority
 The various tasks to be accomplished under 
each job and the qualities, skills and 
qualifications required to undertake a 
particular job are specified in job design. 
 Job design helps in formulating organizational 
structure.
 Similar jobs are grouped together to form a 
department. 
 Co-ordination of different jobs becomes easy, 
when similar jobs are grouped under one 
department and under one manager.
 The number of jobs a manager can effectively 
supervise and control are called span of 
control. 
 Span of control varies accordingly to the nature 
of industry, type of products, service and 
organization process involved.
 After grouping the jobs into departments, the 
powers required to perform the jobs are 
determined. 
 Where the number of jobs in a department is 
large, and exercising authority may be difficult, 
part of the authority may be transferred to 
subordinates. 
 The transmission of decision making power to 
subordinates by superior is called delegation of 
authority.
 Function structure is formed by grouping 
together the entire work to be done into major 
functional departments. 
 In functional organizational structure. Each 
major function of business is organized as a 
separate department.
Chairman /Managing 
Director 
Manager 
Production 
Manager 
Marketing 
Manager 
Finance 
Manager 
Human 
Resource
Chairman /Managing 
Director 
General 
Manager 
Production 
General 
Manager 
Marketing 
General 
Manager 
Finance 
General 
Manager 
Human 
Resource
o In large and diversified organizations, 
activities and personnel are grouped on the 
basis of different products manufactured. 
o Divisional structure facilitates expertise in one 
product line. 
o It becomes easy for the top management for 
easily Co-ordinate the activities of different 
product manufactured.
Chairman /Managing 
Director 
G.M 
Product 
A 
division 
Manager 
production 
Manager 
Personnel 
G.M 
Product B 
division 
Manager 
Production 
Manager 
Personnel 
G.M 
Product C 
division 
Manager 
Production 
Manager 
Personnel 
G.M 
Product 
D 
division 
Manager 
production 
Manager 
Personnel
Structure of organisation

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Structure of organisation

  • 1. Organization structure is the established pattern of relationship among various job positions of the enterprise. Organization structure is defined as “a system of job positions, the roles assigned to them and the authority relation among the various positions”. It provides framework for managers and other employees for performing their functions.
  • 2.
  • 3. Job Design Organizational Structure DEPARTME-NTATION SPAN OF CONTROL Delegation of authority
  • 4.  The various tasks to be accomplished under each job and the qualities, skills and qualifications required to undertake a particular job are specified in job design.  Job design helps in formulating organizational structure.
  • 5.  Similar jobs are grouped together to form a department.  Co-ordination of different jobs becomes easy, when similar jobs are grouped under one department and under one manager.
  • 6.  The number of jobs a manager can effectively supervise and control are called span of control.  Span of control varies accordingly to the nature of industry, type of products, service and organization process involved.
  • 7.  After grouping the jobs into departments, the powers required to perform the jobs are determined.  Where the number of jobs in a department is large, and exercising authority may be difficult, part of the authority may be transferred to subordinates.  The transmission of decision making power to subordinates by superior is called delegation of authority.
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  • 9.  Function structure is formed by grouping together the entire work to be done into major functional departments.  In functional organizational structure. Each major function of business is organized as a separate department.
  • 10. Chairman /Managing Director Manager Production Manager Marketing Manager Finance Manager Human Resource
  • 11. Chairman /Managing Director General Manager Production General Manager Marketing General Manager Finance General Manager Human Resource
  • 12. o In large and diversified organizations, activities and personnel are grouped on the basis of different products manufactured. o Divisional structure facilitates expertise in one product line. o It becomes easy for the top management for easily Co-ordinate the activities of different product manufactured.
  • 13. Chairman /Managing Director G.M Product A division Manager production Manager Personnel G.M Product B division Manager Production Manager Personnel G.M Product C division Manager Production Manager Personnel G.M Product D division Manager production Manager Personnel