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8/3/2019 Group 4_Organization Design Fashion or Fit
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Organization Design: Fashionor Fit?
Submitted by:
Group 4
Ashish Paliwal
Ayush Rai
Isha Agarwal
Mohit Gandhi
Shaveta Dhawan
Shephali Karn
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What makes an organization
effective?
The components of an effective organisation
Spans of control
Degrees of job enlargement
Forms of decentralization Planning System
Structure
These components should be consistent with
Age and size of an organization
The industry in which the organization operates
Production technology
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Five parts of an organization
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Five parts of an organization
(contd.)
Strategic Apex
The top management
o Operating coreThose who carry out the basic work of theorganization
o Support staff
Those who provide indirect service to theorganization
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Simple Structure
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Simple Structure
Few top managers and a group which does the corework
There is little planning, standardization and
formalization Suitable for flexible innovation but can fail for
complex innovation due to centralization
Mostly used by new organization but can hardlysustain the pressure as the organization grows
E.g Psyche Panacea (a startup)
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Machine Bureaucracy
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Machine Bureaucracy
Standardization and formalization in place- manyanalysts design and maintain the system
Formal Power at the top
Fits naturally with mass production where productsand processes are rationalized
External control pushes towards machinebureaucracy
Example McDonald which is highly standardized
Problems with this include dullness of work E.g BEL
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Professional Bureaucracy
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Professional Bureaucracy
Standardization of skills
Control is given to skilled people like in hospitals andeducational institutes
A very democratic structure as the power flows tothe operating core
Suitable for stable yet complex environment
Training need is high
Wide at bottom
E.g Deloitte
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Divisionalized Form
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Divisionalized Form
A partial structure superimposed on others, not acomplete one
Reason: product lines are diversified
Structure of semiautonomous market-based units Relies on standardization of outputs
Middle-line managers run independent divisions
Does not mean decentralization e.g Alfred Sloan @General Motors divisionalized so as to reduce the
power at different units Created to solve the problem of adaptability in
machine bureaucracy
E.g Airtel
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Adhocracy
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Adhocracy
Industries of our age: aerospace, think tank,petrochemicals, consulting, & film making
Flexible, innovation in complex ways, interacting
project team structure Integrating managers, task forces, matrix structure
Job specialization based on formal training
Expertise, organic structure
Only one to combine some sense of democracy with
an absence of bureaucracy E.g. Microsoft
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Conclusion
Critical factors in organization design Consistency, coherence and fit
Choose and achieve the required configuration and
accept its consequences as well
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