ORGANISATION BEHAVIOUR PROJECT

NAME :- Preetam SalveSUBMITTED TO :- Prof. Dr. varsha SonawaneTOPIC NAME :- Organisational Structure CLASS :- M.COM-II (Sem. III)ROLL NO :- 27COLLEGE :- Bhavan`s H.S. College [Chowpatty]

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DECLARATION

Certified that Ms. Preetam Salve Master of Commerce (M.COM) Part II (Semester 3) have prepared titled topic name “Organizational structure “ under the guidance of Prof. Dr. varsha Sonawane-mallah of Commerce Bhavans Hazarimal Somani College, Chowpatty, Mumbai in partial fullfilment of the requirement for the degree of Master of Commerce (M.COM). Their by no part of this Project has ever been Submitted any other degree.

Preetam Salve Roll no:- 27 M.COM (Part II)

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CERTIFICATE

This is to certify that this Project report entitled topic name Organizational structure Submitted by Ms. Preetam Salve in partial fulfilment of the requirement for the degree of Master of Commerce (M.COM) Part II (Semester 3) is a bonafide research work completed under my guidance & supervision. no part of this Project has ever been Submitted any other degree. The assistant rendered during the course of the study has been duly acknowledged.

External Examiner Internal ExaminerDate :- Dr. Varsha Sonawane

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ACKNOWLEDGEMENT

I gratefully acknowledge and express deep appreciation to many people who have made this project possible and visible. Many thanks to our guide Prof. Dr Varsha Sonawane- Mallah seems pretty small compared to the months of tremendous support and indulgence she gave. Her review, comments, corrections and suggestions have enormously enriched my project.

Without cheerful support and motivation of my Family members & friends this project would not have seen the light of the day.

I am also grateful to our Principal name .It gives me immense pleasure to present this project in the course of financial market.

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INDEX

Name Page No.

Introduction 6-7

Review of literature 8-9

Objective Of Study 10

Research Methodology 11

Organization structure & its contents 12-20

Conclusion 21

Bibliography 22

INTRODUCTION5

Definition of company :-

A voluntary association formed and organized to carry on a business. Types of companies include sole proprietorship, partnership, limited liability, corporation, and public limited company

A company is any entity that engages in business.

Companies can be structured in different ways. For example, your company can be a sole proprietorship, a partnership, or a corporation. Depending on which different type of company you're dealing with, it may be owned by one person or a group of people. Liability in most types of company is assumed by the owners, and can either be limited or unlimited depending on the type.

Definition of Corporation :-

Corporations are different from other types of company in that they exist separately from their legal owners. That means that liability is separate as well. With corporations, liability is limited to the holding of shares. In fact, shareholding is a major difference between corporations and other types of companies. With corporations, the shareholders each own a small piece of the larger corporate structure. Most companies are typically owned by one or a small handful of people, while corporations can be owned by thousands of different individuals.

Definition of Organization Structure :-

A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.

An organization or economic system where goods and services are exchanged for one another or for money.

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Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.

Businesses can be privately owned, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise

The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.

A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence.

A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.

A specific result that a person or system aims to achieve within a time frame and with available resources.

In general, objectives are more specific and easier to measure than goals. Objectives are basic tools that underlie all planning and strategic activities. They serve as the basis for creating policy and evaluating performance. Some examples of business objectives include minimizing expenses, expanding internationally, or making a profit.

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REVIEW OF LITERATURE

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Armstrong and Stephens, (2008).

Organizations are entities that exist for a purpose, that is, to get things done. They are composed of people who ensure that such purpose is achieved. Task responsibility and decision making is given to individual members and teams and arrangements are made to plan, direct, coordinate, and control them organizations are open systems which transform inputs into outcomes and are continually dependent on and influenced by their environments. Basic issues faced by organizations are those relating to structure, relationships, and interdependence.

Lewin, ( 1951).

The socio-technical model developed by the researchers at the Tavistock Institute led to the development of basic open systems theory which states that in any organizational system, technical or task aspects are interrelated with the human or social aspects, focusing on the relationships between the technical processes of transformation within the organization as well as the organization of work groups and the management structure of the organization

Child (1977)

Defines organizational structures as comprising all the tangible and regularly occurring features which help to shape the behavior of its members.' According to Armstrong and Stephens, organizational structures provide the framework for the activities required to achieve organizational goals. Moreover, they 'define and clarify the manner by which the activities required are grouped together into units, functions, and departments, the lines of responsibility, power, and authority emanating from the top of the organization.'

Organizations consist of people working cooperatively together. Hence, it is inevitable that, at the managerial level, the organization may need to be adjusted to

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fit the strengths and attributes of the people available. Although the result may not conform to the ideal, it is more likely to work than a structure that ignores the human element. In addition, it is always desirable to have the ideal in mind, but it is equally desirable to to modify it to meet specific situations.

Allison Stokes

While there exists extensive research in the area of public relations roles, as well as the arena of organizational structure, little research focuses on the relationship between organizational structure and the role of the public relations practitioner in the organization. This study will provide a review of the different types of organizational structures, as well as a review of public relations practitioner roles. Organization theory literature supplies information on the characteristics of each structure, including levels of complexity and decentralization involved in each organizational type. Public relations literature includes research that aids in formulation of role classifications that may be assumed by the practitioner.

. J. Grunig (1992)

recognized that the behavior of the practitioner is essentially established according to organizational structure and the role of the public relations practitioner within that structure. Early research on roles provided little by way of specification and description about the detailed job responsibilities a public relations practitioner may hold.

OBJECTIVE OF STUDY

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To know the organization structure To know the Management & Micro environment To know the organization design To know the corporate strategies

RESEARCH METHODOLOGY

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SECONDARY DATA

Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process.The Secondary data consist of reality available compendices already complied statistical statements. Secondary data consists of not only published records and reports but also unpublished records.

ORGANIZATION STRUCTURE

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Functional Structure :-

The classic organizational structure where the employees are grouped hierarchically, managed through clear lines of authority, and report ultimately to one top person

A functional structure is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks.

Strength: Specialization

When companies use a functional organizational structure, people with similar knowledge and skills are grouped together. This makes it possible for employees to become specialists in their field. It requires a performance management system that allows for the promotion, development and visibility of individual skills within their functional area. The specialization that functional structures hone helps to bring about in-depth knowledge and skill development among the employees, and this can help you achieve your company's functional goals.

Strength: Productivity

Specialization leads to operational efficiencies and enhances productivity levels. Because of their expertise, workers with specialized skills can perform tasks quickly, efficiently and with more confidence, thus reducing the occurrence of work-related mistakes. In addition, the clear nature of the career path within the functional unit makes it possible for employees to be highly motivated to advance their careers as they move up within the hierarchy. The main goal of functional structures in organizations is to bring the entire human and informational resources together to meet the organization’s goals.

Weakness: Management Issues

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Communication in organizations with functional organizational structures can be rigid because of the standardized ways of operation and the high degree of formalization. This can further make the decision-making process slow and inflexible. Since it is more bureaucratic, functional units are often not accountable to each other, and poor horizontal coordination within the departments can occur. Lack of innovation and restricted views of organizational goals, along with too much focus, can affect employees' motivation. As your company grow and you create more functional units, the level of autonomy within units might increase, making it difficult for you to coordinate all the units efficiently.

Weakness: Unit Coordination

Even though functional units often perform with a high level of efficiency, their level of cooperation with each other is sometimes compromised. Such groups may have difficulty working well with each other as they may be territorial and unwilling to cooperate. The occurrence of infighting among units may cause delays, reduced commitment due to competing interests, and wasted time, making projects fall behind schedule. This ultimately can bring down production levels overall, and the company-wide employee commitment toward meeting organizational goals.

Corporate hierarchy :-

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The organizational structure of a company that delineates the relationships of power, responsibility and function among stakeholders, management and employees and generally reflects the style of management that permeates the organization. For example, a company with flat hierarchy in which a larger number of managers report directly to the CEO is considered to have a "partnership" approach to management and compensation

This type of a model makes sense for linear work where no brain power is required and where the people who work there are treated like expendable cogs. However, as the war for talent continues to become more fierce, organizations around the world are quickly trying to figure out alternatives to the hierarchy. In fact, every single organization I speak with, work with, and research, is looking to flatten out their structure. Nobody ever tells me they want more bureaucracy and more layers.

There are many challenges with this model but to name a few. Communication typically flows from the top to the bottom which means innovation stagnates, engagement suffers, and collaboration is virtually non-existent. This type of environment is riddled with bureaucracy and is extremely sluggish. This is why the hierarchy is perhaps the biggest vulnerability for any organization still employing it. It opens up the doors for competitors and new incumbents to quickly take over. There is also no focus on the employee experience in this type of a structure and as organizations around the world are exploring alternative organizational models, those still stuck with the hierarchy are going to have one heck of a time trying to attract and retain top talent.

Line structure :-

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A military-type organizational structure, commonly employed in large, centralized corporations. Line and staff management has two separate hierarchies: the line hierarchy in which the departments are revenue generators (manufacturing, selling), and their managers are responsible for achieving the organization's main objectives by executing the key functions (such as policy making, target setting, decision making.

A line organisation has only direct, vertical relationships between different levels in the firm. There are only line departments-departments directly involved in accomplishing the primary goal of the organisation. For example, in a typical firm, line departments include production and marketing. In a line organisation authority follows the chain of command

Advantages:

Tends to simplify and clarify authority, responsibility and accountability

relationships

Promotes fast decision making Simple to understand.

Disadvantages:

Neglects specialists in planning Overloads key persons

Financial Structure :-

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The planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization

Leadership :-

The process of using well considered tactics to communicate a vision for an organization or one of its parts. Strategic leadership typically manages, motivates and persuades staff to share that same vision, and can be an important tool for implementing change or creating organizational structure within a business.

MANAGEMENT & MICRO ENVIRONMENT

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The organization and co-ordination of the activities of a business in order to achieve defined objectives.

Management is often included as a factor of production along with? machines, materials, and money. According to the management guru Peter Drucker (1909-2005), the basic task of management includes both marketing and innovation. Practice of modern management originates from the 16th century study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More (1478-1535). Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization's resources in order to achieve the objectives of that policy.

The directors and managers who have the power and responsibility to make decisions and oversee an enterprise.

The size of management can range from one person in a small organization to hundreds or thousands of managers in multinational companies

In large organizations, the board of directors defines the policy which is then carried out by the chief executive officer, or CEO. Some people agree that in order to evaluate a company's current and future worth, the most important factors are the quality and experience of the managers.

Management structure refers to the organization of the hierarchy of authority, which defines accountability and communication channels within an organization and with its external environment.

Management structure refers to the organization of the hierarchy of authority, which defines accountability and communication channels within an organization and with its external environment. Each organization has its unique management structure based on its operations, but the common denominator present in every organization's management structure is that it defines the flow of responsibility within an organization. It also defines who is responsible for each role in an organization

MICRO ENVIRONMENT

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1. The major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces.

2. Specific examples of macro environment influences include competitors, changes in interest rates, changes in cultural tastes, disastrous weather, or government regulations.

ORGANIZATION DESIGN

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The manner in which a management achieves the right combination of differentiation and integration of the organization's operations, in response to the level of uncertainty in its external environment.

Differentiation refers to the subdivision of functional or departmental units, each concentrating on a particular aspect of the organization's operations. Integration refers to the linking of differentiated units to achieve unity of effort in working toward organization's goals. In times of high uncertainty, greater organizational effectiveness is achieved through high differentiation coupled with high integration.

CORPORATE STRATEGIES :-

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The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals

As corporations become very large they often restructure as a means of revitalizing the organization. Growth of a business often is accompanied by a growth in bureaucracy, as positions are created to facilitate developing needs or opportunities. Continued changes in the organization or in the external business environment may make this bureaucracy a hindrance rather than a help, not simply because of the size or complexity of the organization but also because of a sluggish bureaucratic way of thinking. One approach to encourage new ways of thinking and acting is to reorganize parts of the company into largely autonomous groups,

SBU Structure

called strategic business units (SBUs). Such units generally are set up like separate companies, with full profit and loss responsibility invested in the top management of the unit—often the president of the unit and/or a senior vice president of the larger corporation. This manager is responsible to the top management of the corporation. This arrangement can be seen as taking any of the aforementioned departmentalization schemes one step further. The SBUs might be based on product lines, geographic markets, or other differentiating factors. Figure 4 depicts SBUs organized by geographic area.

CONCLUSION

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From this study I get to know the

Organization structure. The management of organization Organization design Various corporate strategies.

Bibliography

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WEBSITES :-

http://www.businessweek.com

www.yourarticlelibrary.com

BOOKS :-

ORGANIZATION BEHAVIOUR

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