Organisation Structure
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Transcript Organisation Structure
Departmentation and Organization Structure
Chapter 6
Departmentation
Process of grouping activities into units for the purpose of
effective management
Grouping of jobs, processes and resources into logical units
to perform some organizational task
Importance of Departmentation
Specialization
Growth
Sovereignty
Performance appraisal easier
Boosts efficiency
Helps in coordination within departments
Defined responsibilities
Helps in control
Bases of Departmentation
By functions
By Area
By Product
By Customer
By Process
By Task Force
By time
By Numbers
Organization as a structure
Network of relationships among individuals
and positions in the organization
Relationships between positions on one hand
and jobs on the other
Types of Organizational Structures
Line Organization
Functional Organization
Line and Staff Organization
Matrix Organization
Formal and Informal Organization
Line Organization
Simplest and oldest form
Also called scalar or military type Organisation
Direct flow of authority
Unity of Command
Clear responsibility
Suitable to small Organisations
Lack of specialisation
Easy coordination
Better relationships
Quick decision making
Functional Organization
Introduced by Taylor
Each function managed by a functional expert
Each functional expert may serve the other functional
experts also
Encourages specialization
Reduced pressure
Optimum use of resources
Higher efficiency
Lack of unity of command
Expensive
Line and Staff Organization
Combination of activities of line executives and staff experts
Line executives-decision makers, staff-advisors or planners
Line executives implement plans, staff engage in research and
planning
Need for staff due to growth of organizations, technological
developments and uncertainties
Suitable for large organizations
Conflicts between line and staff possible
Expensive
Conflicts between line and staff
Complaints of line against staff
Grabbing compliments
Unfamiliar with actual work
Interference
Superiority complex
Excessive paper work
Easy access to management
Complaints of staff against Line
Last minute advice
Irresponsible
Lack clarity
Shift responsibility
Reluctant to accept new ideas
Lack respect
Matrix Organization
Uses two or more co-existing structures-functional and
project
Hybrid structure
In functional organization , the manager has absolute
responsibility for the project and the resources required, in
matrix organization the project manager shares resources
with the rest of the organization.
Problem of unity of command
Suitable for multi projects organizations
Formal and Informal Organization
Formal:
Two or more persons consciously coordinated towards a
common objective
Informal:
A network of personal, and social relations not established or
required by the formal organization but arising spontaneously as
people associate with each other (through grapevine)
Features of Formal Organization
Specific Duties and responsibilities
Well defined goals
Clear superior- subordinate relationships
System of Authority and Coordination
Set of rules and regulations
Features of Informal Organization
No specific goals
No established superior subordinate relationships
No system of authority or coordination
Communication through grapevine
Develops social and personal ties
Differences between Formal and
Informal Organizations
Authority
Flow of Communication
Creation
Stability
Importance of Rules
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