different structure of the organization

1. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-1
• Centralization and Decentralization
• Functional structure,
• Multidivisional structure
• Formal and informal integrating mechanisms
Chapter no. 8 Organizing

2. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-2
Designing Organizational Structure
• Organizing - arranging and structuring work to accomplish an
organization’s goals.
• Organizational Structure - the formal arrangement of jobs
within an organization.

3. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-3
Purposes of Organizing
• Divides work to be done into specific jobs and
deparments.
• Assigns tasks and responsibilities associated with
individual jobs.
• Coordinates diverse organizational tasks.
• Establishes relationships among individuals, groups and
deparments.
• Allocates organizational resources.

4. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-4
Organization Structure
The location of decision-making responsibilities
in the firm, the formal division of the
organization into subunits, and the
establishment of integrating mechanisms to
coordinate the activities of subunits.

5. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-5
Controls
Metrics used to measure the performance of
subunits and to judge how well managers are
running those subunits.

6. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-6
Incentives
Devices used to encourage desired employee
behavior.

7. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-7
Organizational Culture
Value and assumptions that are shared among the
employees of an organization.
Control
Structure
Incentives
Culture
People

8. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-8
Departmentalization by Type
• Functional
– Grouping jobs by
functions performed
• Product
– Grouping jobs by
product line
• Geographical
– Grouping jobs on the
basis of territory or
geography
• Customer
– Grouping jobs by type of
customer and needs

9. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-9
Common
Forms of Departmentalization

10. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-10
Centralization
• Centralization - the degree to which decision
making is concentrated at upper levels in the
organization.
• This is common in organizations in which top managers
make all the decisions and lower-level employees
simply carry out those orders.

11. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-11
Organizational Structure
• Chain of Command - the continuous line of
authority that extends from upper levels of an
organization to the lowest levels of the
organization—clarifies who reports to whom.

12. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-12
Chain of Command

13. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-13
Organizational Structure
• Authority - the rights inherent in a managerial
position to tell people what to do and to
expect them to do it.
• Responsibility - the obligation or expectation
to perform.
• Unity of Command - the concept that a
person should have one boss and should
report only to that person.

14. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-14
Span of Control
• Span of Control - the number of employees who can
be effectively and efficiently supervised by a
manager.

15. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-15
Decentralization
• Decentralization - when an organization
delegates decision making to managers who
are closest to the action.
• Employee Empowerment
– Increasing the decision-making authority (power)
of employees

16. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-16
Types of Structure
• Functional Structure
• Multidivisional Structure
Structure:
Dividing into subunits.

17. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-17
Types of Structure
• Functional Structure
A structure that follows the obvious division of
labor within the firm with different functions
focusing on different tasks.

18. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-18
Types of Structure
• Multidivisional Structure
A structure in which a firm is divided into
different divisions, each of which is
responsible for a distinct business area.

19. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-19
Designing Structure: Integrating Mechanism
• To examine some means of coordinating
those subunits.
1.Formal Integrating Mechanism
2.Informal Integrating Mechanism

20. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-20
Formal Integrating Mechanism
• Direct contact between subunits managers.
• Managers of various subunits just contact
each other whenever they have a common
concern.
• Coordination is more important today.
• Integration can be improved by assigning a
person in each subunit to coordinate with
another subunit (Permanent relationship).

21. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
2-21
Informal Integrating Mechanism
• To know each other personally.
• Suppose A a marketing manager in spain need
to know a solution of a technical issue. The
solution is with Manager D in UK. He will 1st
ask B then C.
• Firms also using management development
programs to build informal networks.