ORGANIZATION DESIGN & STRUCTURE AND TYPES OF STRUCTURE
- 1. DEPARTMENT OF BUSINESS ADMINISTRATION ALIGARH MUSLIM UNIVERSITY , KISHANGANJ CENTRE PRESENTED BY: REHAN AHMAD UNDER : MR. YASAR IMAM
- 3. Organization Design is a process for shaping the way organization are structured and run Organizational design & REDESIGN can help any type of organization to achieve goals REDESIGN
- 4. FOUR BUILDING BLOCKS OF ORGANIZATION Division Of Work Divide the total workload into tasks that can logically and comfortably be performed by individuals or groups. Hierarchy Specify who reports to whom in the organization. This linking of departments results in an organizational hierarchy Departmentalization Combine tasks in a logical and efficient manner i.e. grouping of employees and tasks. Coordination Establish mechanisms for departmental integration and monitor its effectiveness
- 5. ELEMENT OF ORGANIZATIONAL STRUCTURE Work specialization Departmentation Chain of command Span of control Decentralization Formalization
- 6. CHAIN OF COMMAND SPAN OF CONTROL CENTRALIZATION $ DECENTRALIZATION FORMALIZATION The chain of command is line of authority ,extending from upper organizational level to lower level. It helps employees with questions such as “who do i report to” and “who do i go if i have a problem” How many employees can manager efficiently and effectively manage than is Span of control Today there is no magic number that how many employees manager can supervise depend on its skills and abilities. Technology play vital role in supervision Centralization in organizational design refers to the degree to which decision making authority and control are concentrated at the top of organization Decentralization distributes decision-making authority and control throughout an organization, giving lower-level employees more autonomy and influence Formalization in organizational design refers to the extent to which an organization has established explicit rules, procedures, and standardized processes for various aspects of its operations. It involves the systematic roles, responsibilities, and workflows, often through written documents such as policies, manuals, and standard operating procedures.
- 7. A flat hierarchy has fewer levels of management with a wider span of control. Decision-making authority is distributed more evenly across the organization. This structure is typically found in smaller companies or startups and is associated with a more decentralized approach to management. Flat Hierarchy
- 8. In a tall hierarchy, there are multiple levels of management with a relatively small span of control. Decision-making authority is concentrated at the top, and communication flows through several layers. This structure is often seen in traditional, large organizations with strict top-down control. Tall Hierarchy
- 10. Organizational structure refers to the framework or system that defines how an organization is organized, including how roles, responsibilities, and decision-making authority are distributed among its members and units. It provides a visual representation of the hierarchy and relationships within the organization, outlining how different parts of the organization work together to achieve its goals and objectives. DEFINITION OF ORGANIZATIONAL STRUCTURE Clear communication and coordination Optimal resource allocation
- 11. TYPES OF ORGANIZATIONAL STRUCTURE There are several common types of organizational structures. The choice of structure depends on an organization's goals, industry, size, and specific needs. Functional Structure Divisional Structure Matrix Structure The organization is divided into departments or functions, such as marketing, finance, human resources, and operations. Each department is responsible for specific tasks related to its function Organizes the organization into distinct divisions or units based on different product lines, geographic locations, customer segments, or projects. Each division operates independently with its own set of functions and resources Combines elements of both functional and divisional structures. Employees report to multiple managers, with one responsible for their functional area and another for their project or product group
- 13. FUNCTIONAL STRUCTURE ADVANTAGES Communication Encourages specialization and it is scalable Ideal for smaller organization Facilitates tight control by CEO/President DISADVANTAGES Responsibility for overall performance with chief executive only Can overburden CEO leading to slowed decision-making and less responsiveness
- 15. DIVISIONAL STRUCTURE ADVANTAGES Communication Encourages specialization and it is scalable Ideal for smaller organization Facilitates tight control by CEO/President DISADVANTAGES Responsibility for overall performance with chief executive only Can overburden CEO leading to slowed decision-making and less responsiveness
- 16. MATRIX STRUCTURE
- 17. MATRIX STRUCTURE ADVANTAGES An efficient way of bringing diverse skills together The entire organization need not be permanently organized around what may turn out to be temporary projects COST SAVING FLEXIBILITY :helps give bigger companies some of the advantages of smaller ones DISADVANTAGES Role Ambiguity: Employees often report to two or more managers simultaneously, which can lead to confusion and role ambiguity. Employees may find it challenging to understand their specific responsibilities and to whom they should prioritize their work. Morales can be adversely affected when personnel are rearranged once projects are completed and new ones begun The dual reporting relationships in a matrix structure can create power struggles between functional managers and project or divisional managers. Work in two chain of commands; People with Interpersonal skills are favoured