5.3 Organisation Structure : XII Business Studies

This series include Organising function of management for XII Business Studies students for AISSCE preparation.

1. Organising XII Business Studies Organisation Structure : An Introduction Session : 3 Vikash Residential School General Manager

2. Organisation Structure Learning Objectives What is an Organisation Structure How an Organisation Structure evolved Why that much importance to Organisation Structure What is Span of Management Factor affecting Span of Management Span of Management & Organisation Structure Type of Organisation Structure Functional Structure Divisional Structure

3. Organisation Structure “Organisation structure is an indispensable means and the wrong structure will seriously impair business performance and even destroy it.” - Peter Drucker “ Father of Modern Management Studies” What is a structure? Structure is a pattern in which various parts or components are interrelated or interconnected. What is an Organisation Structure? The organisation structure can be defined as the framework within which managerial and operating tasks are performed. In other words, Organisation structure is the pattern or network of relationships among various components of organisation, i.e. creates a links among various activities and job positions. It specifies lines of authority and areas of responsibility of each individual.

4. General Manager Organisation Chart How an Organisation Structure evolved? Organisation structure is the outcome of the organising process. It is shown in an organisation chart . Organisation Structure

5. How an Organisation Structure evolved? Organisation structure is the outcome of the organising process. It is shown in an organisation chart . Why that much importance to Organisation Structure??   An effective structure will result in increased efficiency and profitability of the enterprise. Better Coordination , as it becomes difficult due to increase in structural hierarchies & functions. Organisations functions smoothly and face environmental changes effectively. Role is clarified as it specifies the relationships between people, work and resources. It allows correlation and coordinatio n among human, physical and financial resources to accomplish desired goals. Essential to ensure a smooth flow of communication and better control over the operations . Enables the enterprise to function as an integrated unit by regulating and coordinating the responsibilities of individuals and departments. Organisation Structure

6. Span of Management It refers to the number of subordinates that can be effectively controlled by a manager / superior. It gives shape to the organisational structure and determines levels of management. Factors affecting Span of Management Capacity of Superior Capacity of Subordinates Nature of Work Degree of decentralisation Span of Management & Organisation Structure Wider span of management results in Flat Structure Organisation Structure

7. Span of Management It refers to the number of subordinates that can be effectively controlled by a manager/ superior. It gives shape to the organisational structure and determines levels of management. Factors affecting Span of Management Capacity of Superior Capacity of Subordinates Nature of Work Degree of decentralisation Span of Management & Organisation Structure Wider span of management results in Flat Structure Narrow span of management results in Tall Structure Organisation Structure Flat Structure Tall Structure

8. Type of Organisation Structure 1. Functional Structure Grouping of jobs according to related function and organising these as separate departments is called Functional Structure.  Example Production, Purchase, Marketing, Finance, etc. 2. Divisional Structure Grouping of jobs according to product category or product divisions is called Divisional Structure. Each unit has a divisional manager responsible for performance and has complete authority over the unit.   Example Cosmetics, Textile, Skin Care, Electronics divisions Organisation Structure CEO CEO

9. Organisation Structure What is an Organisation Structure How an Organisation Structure evolved Significance of Organisation Structure Span of Management Factor affecting Span of Management Type of Organisation Structure Functional Structure Divisional Structure Recap

10. Session Complete Vikash Residential School XII Business Studies