Organization Structures for Slide Show

8/19/2019 Organization Structures for Slide Show

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ORGANIZATION STRUCTURES

“It’s all about

working together”


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Organizing As A Management Responsibility

Organizing is one of the

management functions.It involves determining how

activities

and resources are to begrouped.


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ORGANIZATION STRUCTURES Roles and Importance

What You Can Learn from an OrganizationChart

Division of work - Positions and titles show work responsibilities.

Supervisory relationships - Lines between positions show who reports to whom in

the chain of command.

Span of control - The number of persons reporting to a supervisor.

Communication channels - Lines between positions show routes for formal

communication flows.

Major subunits - Which job titles are grouped together in work units

departments or divisions.

Staff positions - Staff specialists that support other positions and parts of the

organi!ation.Levels of management - The number of management layers from top to bottom

." #hain of #ommand $ is Scalar Principles meaning unbroken line of authorityfrom top to bottom. % &nity of #ommand $ 'ne and only one boss.(elegation of )uthority $ Proper authority should be delegated to all levels of*anagement +


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Organizing As A Management Responsibility

Organizingprocess of arranging people and resources to work

toward a common goal.


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Formal tructureThe official structure of the organi!ation

Informal tructurethe unofficial relationships that develop

among an organi!ation,s members.


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ORGANIZATION STRUCTURES ormalStr!ct!res

tructure system of tasks reporting relationships and communication that links

people and positions within an organi!ation.

Organization Charts describe the formal structure how an organi!ation should ideally work.


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ORGANIZATION STRUCTURES In"ormal Str!ct!res

nformal

'rgani!ation

Sports roup

*orning #offee

regulars


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Major Concerns in Organizing Major Concerns in Organizing

!ivision of Labor "!i#erentiation$!ivision of Labor "!i#erentiation$Coordination "Integration$Coordination "Integration$

In %eference to the OrganizationalIn %eference to the OrganizationalChart&Chart& Organizing Involves'Organizing Involves'

()%*IC+L *%,C*,%) or Flat Org. Chart()%*IC+L *%,C*,%) or Flat Org. Chart

Coordination from *op to -ottomCoordination from *op to -ottom

O%I/O0*+L *%,C*,%) or *all Org ChartO%I/O0*+L *%,C*,%) or *all Org Chart

!epartmentalization "Who wor1s together2$!epartmentalization "Who wor1s together2$


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Tall and Flat Organizations Tall and Flat Organizations

/ Tall structures have many levels of authorityTall structures have many levels of authorityand narrow spans of control.and narrow spans of control.

As hierarchy levels increase, communicationAs hierarchy levels increase, communication

gets difcult, creating delays in the timegets difcult, creating delays in the time

being taken to implement decisions.being taken to implement decisions.Communications can also become garbled asCommunications can also become garbled as

it is repeated through the rm.it is repeated through the rm.

/0lat structures have fewer levels and wide0lat structures have fewer levels and wide

spans of control.spans of control.

tructure results in !uick communicationstructure results in !uick communications

but can lead to over"orked managers.but can lead to over"orked managers.


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Flat OrganizationsFlat Organizations

+igure '$,a


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Tall Organizations Tall Organizations

+igure '$,b


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Organization design and processinvolves decision about 3ve 1e4elements as '

Wor1 pecialization

Chain of Command

pan of Control+uthorit4

!epartmentalization

Structuring an organi!ation for


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Work Specialization Work Specialization

!egree to which tas1s are subdivided into individual 5obs!egree to which tas1s are subdivided into individual 5obs

+ highl4 specialized 5ob is narrow in scope+ highl4 specialized 5ob is narrow in scope

Increases e6cienc4 up to a pointIncreases e6cienc4 up to a point

With e7treme specialization& wor1ers tend to becomeWith e7treme specialization& wor1ers tend to become

bored and alienatedbored and alienated


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Chain of Command Chain of Command

*he line of authorit4& shown in*he line of authorit4& shown in

the organization chart& thatthe organization chart& that

lin1s all persons and shows wholin1s all persons and shows who

reports to whom.reports to whom.C-.C-.

/ Marketing/ Marketing / ro&uction/ ro&uction / +inance/ +inance


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Authority Authority

8anagers have authorit4 because of the8anagers have authorit4 because of thepositions the4 hold "not who the4 are$positions the4 hold "not who the4 are$

*o be e#ective& it*o be e#ective& it must be acceptedmust be accepted b4b4subordinates.subordinates.

%esponsibilit4%esponsibilit4!ut4 to perform the tas1 an emplo4ee!ut4 to perform the tas1 an emplo4ee

has been assignedhas been assigned+uthorit4 should be commensurate with+uthorit4 should be commensurate with

responsibilit4.responsibilit4.


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Span of Management Span of Management

0umber of emplo4ees reporting0umber of emplo4ees reporting

to a supervisorto a supervisor

*radition has recommended a*radition has recommended a

span of management of four tospan of management of four to

seven subordinatesseven subordinates

What is best depends on theWhat is best depends on the

situationsituation


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#asic $epartmentation


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-1#34 ))$ Changing Organizational tructures andIncreasing Comple7it4 as Firms 9row


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1$22

'rgani!ing process


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/ 4ime/ 5umber

6 -7uipment


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Departmentalization Departmentalization

-asis for grouping 5ob positions into departments-asis for grouping 5ob positions into departmentsand departments into the total organization.and departments into the total organization.

Internal Operations OrientedInternal Operations Oriented +unctional+unctional

5etwork 8/irtual95etwork 8/irtual9

Output OrientedOutput Oriented DivisionalDivisionalro&uctro&uct

!eographic!eographic

Customer Customer

4eam 8Cluster94eam 8Cluster9

CombinationsCombinations #ybri& 8&ifferent types at#ybri& 8&ifferent types at &ifferent&ifferent places inplaces in

an org$9an org$9

Matri: 8&ifferent types at simultaneous atMatri: 8&ifferent types at simultaneous atthethe samesame places in an org$9places in an org$9


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http://www.bized.co.uk

Copyright 2006 – Biz/ed

Ways to Structure a Business


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$epartmentation by !nctional

!epartmentalization rouping together people and jobs into one unit

Functional tructures group together people using similar skills to perform similar activities.

Potential )dvantages of 0unctional Structures

/ 3conomies of scale make efficient use of human resources./ 0unctional e4perts are good at solving technical problems./ Training within functions promotes skill development./ #areer paths are available within each function.

(isadvantages

(ifficult for departments to communicate with others.

Preoccupation with own department and losing sight of

organi!ational goals.


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Functional Approach Functional Approach

Departments based on similar actiities!Departments based on similar actiities!skills and resource use"skills and resource use"

+dvantages'+dvantages'

)6cient use of)6cient use ofresourcesresources

)conomies of)conomies of

calecale

In:depth s1illIn:depth s1illspecializationspecialization

!isadvantages'!isadvantages';oor communication;oor communication

among departmentsamong departmentslow response tolow response to

e7ternal changese7ternal changes

Lo4alt4 more toLo4alt4 more to

function thanfunction thancustomer or thecustomer or the

whole organizationwhole organization


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*he*he

FunctionFunction

alal

tructurtructur

e of ;iere of ;ier


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!nctional Str!ct!res


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Functional Chimne4s ;roblem

) lack of communication and coordinationacross functional organi!ations


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#epartmentation by $roduct or#epartmentation by $roduct or

erviceservices

/ Product StructureProduct StructureCustomers are served by sel%&containedCustomers are served by sel%&contained

divisions that handle a specic type o%divisions that handle a specic type o%

product or service.product or service.

/ )llows functional managers to speciali!e in one )llows functional managers to speciali!e in oneproduct area.product area.

/ (ivision managers become e4perts in their area.(ivision managers become e4perts in their area.

/ 5emoves need for direct supervision of division by5emoves need for direct supervision of division by

corporate managers.corporate managers./ (ivisional management improves the use of(ivisional management improves the use of

resources.resources.


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(iacom=s(iacom=s

>????<

;roduct;roduct

tructuretructure

+igure '$;


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;roduct&;roduct&

8ar1et&8ar1et&

andand

9eographi9eographi

cctructurestructures

+igure '$


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#epartmentation by Territory#epartmentation by Territory

/ eographic Structureeographic Structure'ach regional or a country or area "ith'ach regional or a country or area "ith

customers "ith di(ering needs is served by acustomers "ith di(ering needs is served by a

local sel%&contained division producinglocal sel%&contained division producing

products that best meet those needs.products that best meet those needs.)lobal geographic structure)lobal geographic structure

/ (ifferent divisions serve each world region when(ifferent divisions serve each world region when

managers find different problems or demands acrossmanagers find different problems or demands across

the globe.the globe./ enerally this structure is adopted when managersenerally this structure is adopted when managers

are pursuing a multidomestic strategy.are pursuing a multidomestic strategy.


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;roduct&;roduct&

8ar1et&8ar1et&

andand

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#epartmentation by Customer or#epartmentation by Customer or

*arket*arket

/ *arket "#ustomer+ Structure*arket "#ustomer+ Structure)roups together people and +obs that serve)roups together people and +obs that serve

the same customers or clientsthe same customers or clients

)lobal market customer- structure)lobal market customer- structure

/ #ustomers in different regions buy similar products so#ustomers in different regions buy similar products so

firms can locate manufacturing facilities and productfirms can locate manufacturing facilities and product

distribution networks where they decide is best.distribution networks where they decide is best.

/ 0irms pursuing a global strategy will use this type of0irms pursuing a global strategy will use this type of

structure.structure.

d


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;roduct&;roduct&

8ar1et&8ar1et&

andand

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$epartmentation by %rocess orE&!ipment

- Separated based on their role in a production process.6est e4ample of process departmentali!ation can be seen

in a te4tile mill where we may have a spinning department

weaving department dyeing department printing

department etc.

#artridge #olor 0illersPrinters

http://lh3.googleusercontent.com/-UU13fsh2IX4/TzNhCt6xbPI/AAAAAAAAFxY/aYsEykwNO1s/s800/Process-Departmentalization.png


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4ime &epartmentali=ation n time departmentali!ation departments are separated based on the

division of their working time or job shifts.

0or an e4ample departments can be made based on night shift morning or

regular shift evening shift etc.

5umber &epartmentali=ation

n number departmentali!ation separate departments are made after

analy!ing and judging the ma4imum limit up to which number of persons can

be managed or educated or supervised or taken care of.

0or e4ample students having numbers from 1 to 78 are made to sit in )

division of their class and so on. *ilitary forces also use this method.(epartmentali!ation by numbers is depicted in the image given below.

number departmentali!ation.


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orms o" Organization Str!ct!res

. Line and ta# Organization

@. Functional OrganizationA. ;ro5ect Organization

B. 8atri7 Organization

. Committee Organization

Li i ti


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Line organi=ation- Simplest and oldest type of 'rgani!ation- )lso known as *ilitary organi!ation and was used first by 5oman army.- Lines of authority flows from top to bottom in more less straight line

so it gives the name 9 Line 'rgani!ation:

Types of Line 'rgani!ation

1. Pure line organi!ation

- the activities at any one

level are the same and all

individuals perform the

same type of work.

2. (epartmental Line

organi!ation - the firm is

broadly divided intodepartments


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*erits of Line 'rgani!ationSimplest-&nity of #ommand "scalar chain +.

6etter discipline-0i4ed responsibility- 0le4ibility- Prompt decision

(emerits of Line 'rgani!ation'ver reliance- The line e4ecutive,s decisions are implemented to the

bottom. This results in over-relying on the line officials.

Lack of speciali!ation- nade;uate communication- Lack of #o-ordination

- )uthority leadership- The line officials have tendency to misuse their

authority positions. This leads to autocratic leadership and monopoly in the

concern.


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Line an& Staff .rgani=ation

Line and staff management has two separate hierarchies<

8)94he line hierarchy in which the departments are revenue generators

"manufacturing selling+ and their managers are responsible for achieving the

organi!ation=s main objectives by e4ecuting the key functions "such as policy

making target setting decision making+> (oes actual e4ecution of the work

and has direct line authority.

"2+ 4he staff hierarchy> in which the departments are revenue consumers

and their managers are responsible for activities that support line functions

"such as accounting maintenance personnel management+. While both

hierarchies have their own chains of command a line manager may have

direct control over staff employees but a staff manager may have no such

power over the line employees. n modern practice however the difference in

the two hierarchies is not so clear-cut and jobs often have elements of the

both types of functions. Staff or specialists attached to the line manager to

advice them on important matters. Staff relationship is purely advisory.

3g. )ssistant to president ?5 *gr.


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- - - - -

Line

)uthorit

Staff

)uthori


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%ros and Cons o" 'ine ( Sta"" Org)

;ros

pecialization: 'pert Advice / 0elie%to 1ine 'ecutives

& Fleibility2 ta( can be added to line"ithout disturbing the line procedures.

Cons

& Con%usion , Con3ict , 'pensive

l


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!nctional Organization

A %unctional organization structure is ahierarchical type o% organization structure"herein people are grouped as per their area o%specialization. 4t allo"s decisions to be

decentralized since issues are delegated tospecialized persons or units, leaving them theresponsibility o% implementing, evaluating, orcontrolling the given procedures or goals.

F.6 Taylor coined term 7FunctionalForemanship8

to provide specialized skills at superior level.

F W # l d d i h b i l k i i d

http://en.wikipedia.org/wiki/Decentralisationhttp://en.wikipedia.org/wiki/Delegationhttp://en.wikipedia.org/wiki/Delegationhttp://en.wikipedia.org/wiki/Decentralisation


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F"W" #aylor recommended eight bosses i"e" route clerk! instruction cardclerk! time $ cost clerk and disciplinarian for the office and

%ang boss! speed boss! inspector and repair boss for the factory"


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&nder 0unctional org. the entire work is divided intomajor functions. 3very function is placed under the

charge of a specialist.

) functional specialists directs all the subordinateslower to his line for all the works of his function. n

other words all the lower level subordinates are to

report to every functional manager regarding for

performance of related functions under every

functional manager.


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%ros and Cons o" !nctional Org

;ros D pecialization , 'fciency and$roductivity,

'pansion94t o(ers a greater scope %or epansion ascompared to line organization : #oesn;t %ace the problem o% limitedcapabilities o% a %e" line managers.

Cons &


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Committee Organization

+ committee is a group of peoplewho

meet to plan& to discuss or ma1e a

decision for a particular sub5ect.


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4n pro+ectized organizations, the pro+ect manager is in chargeo% his pro+ect, and he has %ull authority over it. 'veryone inhis team reports to him. The pro+ected organization structureis opposite to the %unctional organization structure. @ere,either there "ill be no %unctional manager, or i% he eists, he

"ill have a very limited role and authority. Advantages o% a $ro+ectized Organized tructure & clear line

o% authority & shorter lines o% communication "hich createsstrong and e(ective communication & less time is consumedin communication, and response to stakeholders; concerns is%ast.

#isadvantages o% a $ro+ectized Organization tructure & "orkenvironment stress%ul & sense o% insecurity & cost o%employees and e!uipment can be higher

roject .rgani=ation

#emporary organisation designed to achiee specific

http://pmstudycircle.com/2012/08/what-is-a-functional-organization-structure/http://pmstudycircle.com/2012/08/what-is-a-functional-organization-structure/


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%ro*ect Org) results by using teams of specialists from differentfunctional areas in the organisation)

M t i St t


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Matri+ Str!ct!res

8atri7 tructureuses permanent cross functional

teams to try to gain the advantages of

both the functional and divisionalapproaches.

8atri7 forms are h4brids

ome h4brids combine a mostl4

functional structure with one or more important

products or mar1ets& e.g.& 0orth +merica

ome h4brids combine a mostl4 divisionalstructure with one or more important functions&e.g.& mar1eting



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Matri+ Str!ct!res

;otential +dvantages of 8atri7 tructures

;erformance accountabilit4 rests with program& product& or pro5ectmanagers.

*eams enable better communication and cooperation across functions. *eams ma1e more decisions and solve more problems at their levels. *op managers spend more time on strategic issues. + cross:functional team brings together members from di#erent

functional departments.

*he “ 8r G 8rs %ightH Organizational


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*he “ 8r. G 8rs. %ightH OrganizationalForm

There is no 7 right 8 "ay to organize

Organization are not 7 $ure8 but mied

#epartmentation is never permanent

Team Str!ct!res


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Team Str!ct!res *eam tructures ;roduct *eam tructure

The members are permanently assigned to the team and empowered to bring a product to market.

)voids problems of two-way communication and the conflicting demands of functional and product team bosses.

#ross-functional team is composed of a group of managers from different departments working together to perform

organi!ational tasks.make e4tensive use of permanent and temporary teams often cross functional to improve

communication cooperation and problem solving.

Potential )dvantages of Team Structures

/Team assignments improve communication cooperation anddecision-making./Team members get to know each other as persons not just job

titles./Team memberships boost morale and increase enthusiasm and

task involvement.


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!ivisionalOrganization

al tructure' 4n this type o% structure,

the organisation canhave di(erent basis on"hich departments are

%ormed. They are2 i- Function,

ii- $roduct,

iii- )eographicterritory,

iv- $ro+ect and iv- Combination

approach.


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Net,or- Str!ct!res

0etwor1 structures maintain a sta# of corefulltime emplo4ees and use contractedservices and strategic alliances to accomplishman4 business needs.



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.irt!al Str!ct!res

(irtual tructure&ses information technologies to operate as a

shifting network of alliances.

*)@)3*3@T TPSSeven deadly sins of outsourcing<

1. 'utsourcing activities that are part of the core competency

2. 'utsourcing to untrustworthy vendors

A. )greeing to unfavorable contracts with the vendor

B. 'verlooking impact on e4isting employees

7. @ot maintaining oversight> losing control to vendorsC. 'verlooking hidden costs of managing contracts

D. 0ailing to anticipate need to change vendors or cease outsourcing

trategic business unit "-,$ is a unit o%


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trategic business unit "-,$ is a unit o%the company that has a separate mission andob+ectives that can be planned separately %romother company businesses

Company division $roduct line "ithin a division ingle product or brand

Growth share matrix is a portfolio planning method thatevaluates a company’s strategic business units in termsof their market growth rate and relative share

Strategic business units are classified as:•

Stars• Cash Cows• Question marks• Dogs

&C% % h Sh M i


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&C% %ro'th(Share Matri)

5elative market share

* a r k e t g r o w t h

r a t e

L o w

?

i g h

Low?igh

Star Euestion mark

#ash cow (og

©2006 Pearson Education, Inc. Marketing for Hospitality and Touris, !t" edition

#pper $addle %i&er, '( 0)!*+ otler, -oen, and Makens


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5elative *arket share $ ) method of measuring market share. ) company will measure its own market share comparing with market shares

of its competitors.

*arket growth rate $ increase in si!e or sales observed within a given consumer

roup over a specified time frame.


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+ contingenc4 theor4 is anorganizational theor4 that claimsthat there is no best wa4 toorganize a corporation& to lead acompan4& or to ma1e decisions.

Instead& the optimal course ofaction is contingent "dependent$upon the internal and e7ternal

situation

/Which contingenc4 factorsinuence organizational


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gdesign2 )nvironment& strateg4&technolog4& size& andpeople are all contingency%actors in3uencingorganizational design./ Technology && Best use o%technical kno"ledge,e!uipment, and "ork methodsin the trans%ormation process,is an important considerationin organizational design./'nvironments 2 Change in thebusiness environment a(ectsorg. structures. *icro : *acro

'nvironment./ize 2 ize a(ectsorganizational design. 1argeorganization have complestructures./trategic Choice 2 When

strategy changes structures mustchan e.

Et/ical Iss!es and


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Et/ical Iss!es and Organizational $esign 0Cont)1

)thical issues about reducing thesize of an organization andincreasing its e6cienc4. +utilitarian anal4sis loo1s at the

net bene3ts of management=sactions

igh conict and ambiguit4 ofmatri7 organizations can act as a

signi3cant stressor8oving to the alternative forms is

large:scale organizational changeand stress for man4 people


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0emales are very much interested to

work in 6anks." Sheikh 5ayeem


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(pt


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Fey Points <

*otivation< ates uses stock options to attract and retain employees

3mployees have become millionaires.

Staffing < Gery 3ffective ?uman 5esource Talents selecting Process Selection of 5ight kind of employee

0le4ible Working ?ours

Stress *gt < 34ercise 5ooms

Simple Structure with easy flow of nformation among product teams.

or $e2elopment o" 3in Operating


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or $e2elopment o" 3in OperatingSystem

-g$ #ybri& 6 4eam .rgani=ation Structure i$e roject .rg

with effective cor&ination ? flow of Communication

ates

Prjct *gr- raphics

0inance (pt*ktg (ept

Person 6

Prjct *gr- )pps

Person #

Person 3

Person (

Person )

Case

Leo arris one of 4our assistants in a 3re insurance compan4 is in charge of a


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Leo arris& one of 4our assistants in a 3re insurance compan4& is in charge of agroup of

clerical wor1ers who review changed policies& calculate commissions& andmaintain records.

e is ver4 hard wor1ing and ever4thing coming out of his group is perfect. e

does not delegate authorit4 and responsibilit4 but rechec1s in detail all the wor1turned out b4 his group.

e 1eeps turning bac1 to them careless and inaccurate wor1 until it is perfect.+s a

result he is bus4 from earl4 morning until late at night doing detail wor1 andneglecting his

role as supervisor. is wor1ers have 3gured him out and are ta1ing it eas4. *he4

do slap:dash wor1 and correct it as often as he returns it. You are afraid that arris is overwor1ing and heading for a nervous brea1down. You have

told him in general terms to delegate authorit4 and responsibilit4 and todiscipline his group.

e sa4s that 4ou 5ust can=t 3nd people an4 more who have pride in their wor1 orconcern for

the compan4 and that if he 3res an4 of his people or the4 uit the replacementswould

probabl4 be worse.

. ow should he go about delegating authorit4 to them2@. What are some of ualities that arris lac1s2


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g g &

!on=t want to compromise in ualit4&

0o con3dence on subordinates J others.

>. a. tart selecting capable wor1er and teach them tomentor others. 9ive them some responsibilit4 of thewor1.

b. 8otivate good wor1ers.

c. Wor1ers with minimum faults can be given someincentives

for motivation.

@. a. Leadership ualities b. *eam ma1er

A. tart with selection of s1illed and meritoriouswor1ers& ma1e

them foremanGsupervisor& cordial relationship with all &motivate them for better wor1s with some rewards.


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Wednesday *arch H 281C (rafted by Sheikh @ayeem IA

@ueries A


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84 name is hei1h 0a4eem

J m4 blood group is -e;ositive

Documents

Organization Structures for Slide Show