This series include Organising function of management for XII Business Studies students for AISSCE preparation.

1. Organising
XII Business Studies
Organisation Structure
: An Introduction
Session : 3 Vikash Residential School
General Manager

2. Prepared by Pratap Naik
Organisation Structure
Learning Objectives
 What is an Organisation Structure
 How an Organisation Structure evolved
 Why that much importance to Organisation Structure
 What is Span of Management
 Factor affecting Span of Management
 Span of Management & Organisation Structure
 Type of Organisation Structure
 Functional Structure
 Divisional Structure

3. Prepared by Pratap Naik
Organisation Structure
“Organisation structure is an indispensable means and the wrong structure will seriously impair
business performance and even destroy it.”
- Peter Drucker
“Father of Modern Management Studies”
What is a structure?
Structure is a pattern in which various parts or components are interrelated or interconnected.
What is an Organisation Structure?
The organisation structure can be defined as the framework within which managerial and operating
tasks are performed.
In other words,
Organisation structure is the pattern or network of relationships among various components of
organisation, i.e. creates a links among various activities and job positions.
It specifies lines of authority and areas of responsibility of each individual.

4. Prepared by Pratap Naik
General Manager
Production
Production
Manager
Asst
Manager
Production
Officer
Supervisor
Marketing
Marketing
Manager
Asst
Manager
Sales
Supervisor
Sales
Executive
Finance
Finance
Manager
Dy.
Manager
Finance
Officer
Finance
Executive
Organisation Chart
How an Organisation Structure evolved?
• Organisation structure is the outcome of the organising process.
• It is shown in an organisation chart.
Organisation Structure

5. Prepared by Pratap Naik
How an Organisation Structure evolved?
• Organisation structure is the outcome of the organising process.
• It is shown in an organisation chart.
Why that much importance to Organisation Structure??
 An effective structure will result in increased efficiency and profitability of the enterprise.
 Better Coordination, as it becomes difficult due to increase in structural hierarchies & functions.
 Organisations functions smoothly and face environmental changes effectively.
 Role is clarified as it specifies the relationships between people, work and resources.
 It allows correlation and coordination among human, physical and financial resources to
accomplish desired goals.
 Essential to ensure a smooth flow of communication and better control over the operations.
 Enables the enterprise to function as an integrated unit by regulating and coordinating the
responsibilities of individuals and departments.
Organisation Structure

6. Prepared by Pratap Naik
Span of Management
 It refers to the number of subordinates that can be effectively controlled by a manager/ superior.
 It gives shape to the organisational structure and determines levels of management.
Factors affecting Span of Management
• Capacity of Superior
• Capacity of Subordinates
• Nature of Work
• Degree of decentralisation
Span of Management & Organisation Structure
• Wider span of management results in Flat Structure
Organisation Structure

7. Prepared by Pratap Naik
Span of Management
 It refers to the number of subordinates that can be effectively controlled by a manager/ superior.
 It gives shape to the organisational structure and determines levels of management.
Factors affecting Span of Management
• Capacity of Superior
• Capacity of Subordinates
• Nature of Work
• Degree of decentralisation
Span of Management & Organisation Structure
• Wider span of management results in Flat Structure
• Narrow span of management results in Tall Structure
Organisation Structure
Flat Structure Tall Structure

8. Prepared by Pratap Naik
Type of Organisation Structure
1. Functional Structure
 Grouping of jobs according to related function and organising these as separate departments is
called Functional Structure.
Example
Production, Purchase, Marketing, Finance, etc.
2. Divisional Structure
 Grouping of jobs according to product category or product divisions is called Divisional Structure.
 Each unit has a divisional manager responsible for performance and has complete authority over
the unit.
Example
Cosmetics, Textile, Skin Care, Electronics divisions
Organisation Structure
Cosmetic Textile Electronic
CEO
Production Marketing Finance
CEO

9. Prepared by Pratap Naik
Organisation Structure
 What is an Organisation Structure
 How an Organisation Structure evolved
 Significance of Organisation Structure
 Span of Management
 Factor affecting Span of Management
 Type of Organisation Structure
 Functional Structure
 Divisional Structure
Recap

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This presentation is the property of the author.
Thank you !!!
Session Complete Vikash Residential School
XII Business Studies