chapter 5

1. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
Chapter 5
ORGANIZATIONAL
STRUCTURE

2. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
Learning Objectives
 To understand what is meant by organizational
structure.
 To comprehend different dimensions of organizational
structure.
 To understand difference between job specialization
and differentiation
 To understand what is meant by formalization
 To understand difference between centralization and
decentralization.
 To understand the use of different bases for
departmentation.
 To understand the effect of size, environment and
technology on organizational structure.
 To learn about Mintzberg’s typology of organizational
configurations.

3. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
DIMENSIONS OF ORGANIZATIONAL
STRUCTURE
 Job Specialization
 Behaviour Formalization
 Centralization

4. Management: Principles, Processes & Practices
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JOB SPECIALIZATION
 Division Of Labour
 Job Specialization in horizontal and
vertical dimensions
 Job Enlargement
 Job Enrichment
 When to go for job Enlargement?
 When to go for Job Enrichment?

5. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
BEHAVIOUR FORMALIZATION
 By Positions [Job Description].
 By Work-Flow [Process Descriptions].
 By Specifying Rules [Regulations,
Policy Manuals, Code and Conduct
Rules etc.]

6. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
CENTRALIZATION
 Vertical Decentralization.
 Horizontal Decentralization
 Selective Decentralization.
 Parallel Decentralization.

7. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
DEPARTMENTALIZATION Based
on…..
 Number
 Function
 Product-line
 Territory
 Customers
 Processes
 Matrix
 Cross-functional team
 Virtual Network

8. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
SPAN OF MANAGEMENT
 Tall Structure Vs. Flat
Structure.
 Chain of Command.
 Line and Staff Relationships.

9. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
SITUATIONAL FACTORS AFFECTING
STRUCTURE
 SIZE
 ENVIRONMENT
 STATIC VS. DYNAMIC
 SIMPLE VS. COMPLEX
 TECHNOLOGY
 BATCH PRODUCTION
 MASS PRODUCTION
 PROCESS PRODUCTION

10. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
MINTZBERG’S TYPOLOGY
Key Parts Of an Organization:-
 Operating Core
 Strategic Apex
 Middle Line
 Techno-structure
 Support Staff

11. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
MINTZBERG’S TYPOLOGY….
Coordinating Mechanisms:-
 Direct Supervision
 Mutual Adjustment
 Work-Process Standardization
 Outputs Standardization
 Skills or Knowledge
Standardization

12. Management: Principles, Processes & Practices
© Oxford University Press 2008 All rights reserved
MINTZBERG’S TYPOLOGY….
 Simple Structure
 Machine Bureaucracy
 Professional Bureaucracy
 Divisionalized Form
 Adhocracy