Designing organizational structure for achieving efficiency
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The document discusses the importance of organizational structure in achieving efficiency through task allocation, coordination, and supervision. It outlines key components of organizational design, including work specialization, chain of command, departmentalization, centralization, decentralization, and formalization, and highlights benefits such as improved decision-making and employee performance. It also identifies common mistakes in organizational structure design, emphasizing the need for a balance between strategy and structure.
Designing organizational structure for achieving efficiency
- 1. PRESENTATION BY MD. MOHAIMIN TALHA (193 -1 4-918) RABEYA AKTER (193 -1 4 -9 1 7 ) DESIGNING ORGANIZATIONAL STRUCTURE FOR ACHIEVING EFFICIENCY
- 2. How activities are directed toward the achievement of organizational aims. • Task allocation • Coordination • Supervision etc. ORGANIZATIONAL STRUCTURE 2
- 3. Identify dysfunctional aspects of workflow, procedures, structures and systems Realigns to fit current goals Develops plans to implement new changes ORGANIZATIONAL DESIGN 3
- 4. 4 6 KEY COMPONENTS OF ORGANIZATIONAL DESIGN 1 2 653 4 WORK SPECIALIZATIO N SPAN OF CONTRO L CENTRALIZATION & DECENTRALIZATION CHAIN OF COMMAND DEPARTMENTALIZATIO N FORMALIZATIO N
- 5. COMPONENTS OF ORGANIZATIONAL DESIGN WORK SPECIALIZATION Activities in the organization are subdivided into separate jobs. • Creates efficiency and productivity • Result in boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and higher turnover. Dividing an organization into different departments, where tasks are performed under departments' specializations • Functional • Product • Matrix (Functional & Product) • Geographical • Process • Customer DEPARTMENTALIZATION 5 1 2
- 6. COMPONENTS OF ORGANIZATIONAL DESIGN CHAIN OF COMMAND Authority, communication and responsibility along which orders are passed in the organization. The number of employees a manager can handle in an organization efficiently and effectively. • Whether employees are following the command or not. • A manager is how much capable enough to direct the employees. SPAN OF CONTROL 6 3 4 • Authority • Responsibility • Unity of command
- 7. COMPONENTS OF ORGANIZATIONAL DESIGN CENTRALIZATION & DECENTRALIZATION • Centralization Decision making should be done by only top management • Decentralization Decisions can be made by lower- level employees Standardization of jobs within the organization is called formalization. • Strict rules and regulations • What / When / How (it) is to be done FORMALIZATION 7 5 6
- 8. 8 No.1 Streamline Business Operations No.2 Improve Decision Making No.3 Improve Employee Performance No.4 Operate Multiple Locations No.5 Focus on Customer Service and Sales BENEFITS TO USE ORGANIZATIONAL STRUCTURE
- 9. DESIGNING ORGANIZATIONAL STRUCTURE 5 MAJOR MISTAKES #1 Changing organizational strategy but forgetting to change the structure #2 Functions focused on effectiveness report to functions focused on efficiency; breaking the balance between these #3 Functions focused on long-range development report to functions focused on short-range results #4 Not balancing the need for autonomy vs. the need for control #5 Having the wrong people in the right functions 9 Source: https://organizationalphysics.com/2012/01/09/the-5-classic-mistakes-in- organizational-structure-or-how-to-design-your-organization-the-right-way/
- 10. IF YOU WANT TO GO FAR, YOU’LL NEED A GOOD DESIGN. THANK YOU