Organisational Structure with advantages and disadvantages.
- 2. What is an Organization ? A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis.
- 3. Why do we need an Organizational Structure ? All Organizations have a management structure that determines the relationships b/w functions and positions and subdivides and delegates roles, responsibilities and authority to carry out defined tasks.
- 4. Organizational Structure It is a framework within which an Organization arranges it’s lines of authorities and communications and allocates rights and duties.
- 5. Types of Organizational Structure 1. Tall Organizational Structure 2. Flat Organizational Structure 3. Virtual Organizational Structure 4. Boundary less Organizational Structure
- 6. Tall Organizational Structure • Large, complex organizations often require a taller hierarchy. • In its simplest form, a tall structure results in one long chain of command similar to the military. • As an organization grows, the number of management levels increases and the structure grows taller. In a tall structure, managers form many ranks and each has a small area of control.
- 8. Flat Organizational Structure • Flat structures have fewer management levels, with each level controlling a broad area or group. • Flat organizations focus on empowering employees rather than adhering to the chain of command. • By encouraging autonomy and self-direction, flat structures attempt to tap into employees’ creative talents and to solve problems by collaboration.
- 10. Virtual Organizational Structure • Virtual organization can be thought of as a way in which an organization uses information and communication technologies to replace or augment some aspect of the organization. • People who are virtually organized primarily interact by electronic means. • For example, many customer help desks link customers and consultants together via telephone or the Internet and problems may be solved without ever bringing people together face-to-face.
- 11. Boundary less Organizational Structure • A boundary less Organizational structure is a contemporary approach in Organizational design. • It is an organization that is not defined by, or limited to the horizontal, vertical or external boundaries imposed by a pre-defined structure. • It behaves more like an organism encouraging better integration among employees and closer partnership with stakeholders. • It’s highly flexible and responsive and draws on talent wherever it’s found.
- 12. Features of Organizational Structure • Determines the manner and extent to which roles, power and responsibilities are delegated. • Depends on objectives and strategies. • Acts as a perspective through which individuals can see their organization and it’s environment.
- 13. Importance of Organizational Structure • Impacts effectiveness and efficiency. • Reduces redundant actions. • Promotes teamwork. • Improves communication. • Contributes to success or failure.
- 14. Purpose of Organizing • Divides work to be done in specific jobs & dept. • Assigns tasks and responsibilities associated with individual jobs. • Coordinates diverse organizational tasks. • Establishes relationship b/w individuals, groups and departments. • Establishes formal lines of authority. • Allocates organizational resources. • Clusters jobs into units.
- 15. A Simple Organizational Structure
- 16. • Chain of command: The continuous line of authority that extends from upper level of organization to lowest level of organization and clarifies who reports to whom. • Authority: The rights inherent in a managerial position to tell people what to do and expect them to do it.
- 17. • Responsibility: The obligation or expectation to perform. Responsibility brings with it accountability. • Unity of command: The concept that a person should have one boss and should report only to him. • Delegation: The assignment of authority to another person to carry out specific duties.
- 18. Departmentalization • When a company expands to Supply goods or services Produces variety of diff. products Engage in several diff. markets in such conditions the company can adopt Departmentalization.
- 19. Forms of Departmentalization • Functional • Product • Customer • Geographic • Process
- 20. Functional Departmentalization • Arranging the business according to what each section or department does.
- 22. Product Departmentalization • Organizing according to the different types of products produced.
- 24. Customer Departmentalization • Where different customer groups have different needs.
- 26. Geographic Departmentalization • It’s based on geographical or regional structure.
- 28. Process Departmentalization • Where products have to go through stages as they are made.
- 30. Pros of Departmentalization • Department can be staffed with specialized training. • Shared management responsibility. • Supervision is facilitated. • Coordination within the department is easier.
- 31. Cons of Departmentalization • Inter department documentation of activities is not possible. • Decision-making becomes slow. • Delays when there are problems. • Accountability and performance are difficult to monitor.