ORGANIZATIONAL STRUCTURE BY AKSHATA, JYOTHI, PAVAN, MANOJ, SHANMUKHA MP BIRLA INSTITUTE OF MANAGEMENT
Agenda Introduction types importance Elements Objectives advantage
Introduction 3 Organizational structure refers to the framework that outlines how activities are organized, coordinated, and supervised to achieve organizational goals. It defines the hierarchy, roles, responsibilities, and relationships within an organization. And job tasks are formally divided, grouped and coordinated.
Elements of Organizational Structure Work specialization. Departmentation. Chain of command. Span of control. Centralization/Decentralization. Formalization
1.Work specializations 5 It define how responsibilities are split between employees based on the job description. It’s used to split projects into smaller work activities and assign tasks to individual employees. The most common results of improper specialization are low efficiency and burnout. 2.Departmentalization Departmentalization is a grouping of jobs according to some logical arrangement It refers to the formal structure of the organization, composed of various departments and managerial positions and their relationships with each other.
3.Chain of command 6 The chain of command of a company describes the business' hierarchy and can affect workplace culture and the efficiency of work production. An organizational chart can visually portray each employee's place in the company hierarchy, and the company may have a strict or flexible chain of command. 4.Span of control it accounts for the number of people and a leader supervises and the tasks they handle. it can depend on a variety of factors including: Workplace size Manager abilities Company goals Company structure Leadership style
5.Centralization and decentralization 7 Centralization and decentralization refer to the senior levels of employees who can influence company decisions. Each company rests somewhere on a scale of centralization 6 .Formalization of elements specifies the relationships and roles within a company. Larger companies often have a more distinct formalization of primary roles than smaller companies. This is because employees may fill multiple roles in a smaller company.
Functional structure Presentation Title 11 A functional structure groups employees into different departments by work specialization. Each department has a designated leader highly experienced in the job functions of each employee supervised by them
Divisional structure Presentation Title 12 A divisional structure organizes employees around a common product or geographical location. Divisional organizations have teams focused on a specific market or product line.
Matrix structure Presentation Title 13 Having multiple supervisors allows for company-wide interaction and faster project delivery. For instance, when answering to functional managers and project managers, employees have a chance to collect experience outside their team.
Team structure Presentation Title 14 A team-based organizational structure creates small teams that focus on delivering one product or service. These teams are capable of solving problems and making decisions without bringing in third parties.
Network structure Presentation Title 15 It’s an act of joining the efforts of two or more organizations with the goal of delivering one product or service. Typically, a network organization outsources independent contractors or vendors to complete the work.
Hierarchical structure Presentation Title 16 It’s the most common organizational structure type that follows a direct chain of command. A chain of command, in this case, goes from senior management to general employees through a range of executives on the departmental and team level. The highest-level executive has the highest power over the decision-making process.
Flat organization structure Presentation Title 17 In a flat organizational structure, there are few middle managers between employees and top managers. The structure requires less supervision, increases employee involvement, and boosts trust in the workplace.
Objectives of organizational structure 18 To remain adaptable to organizational changes To incorporate new aspects To ensure collaborations with the components To promote flexibility To supply required information Determinants of organizational structure Environment Strategy Size of organisation Organisational lifecycle Technology Organizational culture
Importance Presentation Title 19 Handling contingencies Competitive advantage Meaning diversity Efficiency and innovation Provides clarity Higher gr owth opportunity Motivates employees
Advantages Decision making communication Self deve lopment Efficiency Clarity Accountability Efficient communication Enhance employee skills Minimized cost Speed operations specialization
Limitations Rigidity Communication barriers Slow decision-making Lack of innovation Employee dissatisfaction Difficulty in collaboration Resistance to change Limited scalability