organisation structure-definition,determinents,importance and types.pptx

organisation structure

1. ORGANIZATIONAL STRUCTURE & DESIGN

2. A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis.

3. Organisation Design Organization Design  refers to the process of creating hierarchy in the organization structure and determining the flow of responsibility and authority within the structure in an organization.

4. All Organizations have a management structure that determines the relationships b/w functions and positions and subdivides and delegates roles , responsibilities and authority to carry out defined tasks.

5. It is a framework within which an Organization arranges i ts lines of authorities and communications and allocates rights and duties.

6. The importance of the O rganizational Structure □ □ The Organisational Structure is important because it ensures that there is an efficient operation of a business and it clearly defines its workers and their functions. The organisational structure also helps define the hierarchy and the chain of command.

7. The Concept of Organisation Structure ❑ ❑ ❑ Structure helps influence behaviour and relationships of jobs and functions Structure defines recurring activities and processes. Structure provides a purposeful and goal- oriented behaviour.

8. Determinants of Organisation Structure: 1.Objectives and Strategy : Design of structure begins with the identification of organisational objectives. There is no way of devising what the main structure of an organisation should be, without an understating of what the organisation is for and what it is trying to achieve.

9. Since an organisation is a goal-oriented system, it is quite legitimate that its goals have decisive role in designing its structure. The goals determine its tasks and strategies. If management makes a significant change in its strategy, the structure will need to be modified to accommodate and support such change.

10. 2.Environment : Organisation is a system and every system has its boundaries. Beyond the boundaries, there exists external environment which affects not only the formation and functioning of the organisation but also its structure. To cope with  changing environment , among other things, organisational process, goals and structure are changed and made in line with changes .

11. Added to it, organisation being a sub-system of environment interacts with the environment on regular basis for getting inputs and supplying output. Environment includes all those economic, social, cultural, political, legal and technological factors which directly or indirectly affect the functioning of the organisation . Therefore, the structure of the organisation is to be designed in view of changes likely to take place in environment.

12. 3. Technology: The organisation structure of an enterprise depends upon the type and nature of technological process adopted for the production. Therefore, technology is a factor for consideration in determining the structure of an organisation.

13. 4. People : Organisations are formed by and operated through people. Large number of people are employed for both managerial and non-managerial jobs and various activities are assigned to them and finally they are put in authority relationships. These people carry some goals, values, perceptions, beliefs and attitudes which have direct reflection on the structure of organisation.

14. Therefore, these factors must be taken care of at the time of designing the organisational structure. Indeed , the tasks, activities, goals and technology will gain more meaning if they are built around the people.

15. 5. Size : There are several criteria to determine size of an organisation such as number of persons employed, amount of capital invested, volume of turnover, and physical capacity. However , ‘size’ has generally been used to refer to the number of employees or members of an organisation. Thus organisations could be small or large depending upon the number of their employees.

16. As an organisation grows in size, its structure naturally becomes more complex or complicated . Jobs that could once be handled by a single person are split and split again; new layers of supervision are inserted between the top executive and the rank and file. An organisation is forced, it its size increases, to realign duties and responsibilities and more often than not, to add new integrating units.

17. 6.  Social Needs: The social needs of an individual such as—status, recognition, sense of belonging, opportunity for development of abilities or the satisfaction of ego need—require that they should be given due weight for their fulfilment within the organisation. The structure of an organisation cannot ignore these social needs.

18. The effects of structure on individual and group The structure of any organisation will affect the following:- Behaviour of how people act and work Motivation of workers Performance Teamwork and cooperation Intergroup and interdepartmental relationships

19. TYPES OF STRUCTURES Functional structure – this kind of organisational structure classifies people according to the function they perform in the organization. The organisation chart for a functional based organisation consists of: Vice President, Sales department, Customer Service Department, Engineering or production department, Accounting department and Administrative department.

20. Functional Structure Cont. □ Product structure – a product structure is based on organizing employees and work on the basis of the different types of products. If the company produces three different types of products, they will have three different divisions for these products.

21. Line Structure: This has a very specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line . Hence the name line structure. This kind of structure is suitable for smaller organizations . This is the sort of structure allows for easy decision making, and is very informal in nature .

22. Line and Staff Structure Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized . In the line and staff organisation , line executives and staff (specialists) are combined together. The line executives are ‘doers’ whereas staff refers to experts and act as ‘thinkers’.

23. Line & Staff Structure □ Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision making process becomes slower in this type of organizational structure because of the layers and guidelines that are typical to it, and the formality involved.

24. Market Structure □ Marketing organization structures distribute and oversee(run) marketing operations, procedures and strategies within a business. These structures define and organize employee job roles, including who they report to, and outline the processes a business can use to achieve success. An effective marketing organization structure can support business objectives and give employees a clear understanding of the objectives they are working to achieve.

25. Geographic Structure □ Geographic structure – large organizations have offices at different place, for example there could be a north zone, south zone, west and east zone. The organizational structure would then follow a zonal region structure.

26. Matrix Structures A matrix organisation , also referred to as the “multiple command system” has two chains of command. One chain of command is functional in which the flow of authority is vertical. The second chain is horizontal depicted by a project team, which is led by the project, or group manager who is an expert in his team’s assigned area of specialization.

27. Matrix Structure The organisation is divided into different functions, e.g. Purchase, Production, R&D, etc. Each function has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc. The organisation is also divided on the basis of projects e.g. Project A, Project B, etc. Each Project has a Project Manager e.g. Project A Manager, Project B Manager.

28. In this structure, employees usually have  dual reporting relationships  - generally to their functional manager as well as the project manager. Typically, one reporting line will take priority over the other ( eg staff may have to report to their functional manager before reporting to the project manager).

29. It can be applicable where there is a pressure for dual focus, pressure for high information processing and pressure for shred resources. This structure is widely used both by companies that are constantly launching new products and  marketing campaigns , for example, and by companies that have project-based structures, but also believe that functional supervision is necessary and important.

30. Manufacturing activities- aerospace, chemicals, electronics, heavy equipment, industrial product and pharmaceuticals; Service activities- banking, brokerage, construction, insurance and retailing Professional activities-accounting, advertising, consulting and law Non-profit organisations - Govt. agencies, hospital, United Nations and universities.

31. Highly dynamic and creative companies – such as software developers,  architecture  firms, special industrial equipment installation projects and event organization companies – typically use this structure. It’s characterized by a series of specialized employees, ready to compose a work team as needed. In each project, these collaborators report to a different  leader . Once they complete the project, a manager assigns them a new project and leader. Project Structure

32. A virtual organization is an operation where all members of the company work in different geographic locations while appearing as a single unit. It uses computers, software, phones and other technology to work together and converse in real-time, despite any physical distance. It's important for virtual organizations to establish detailed procedures that ensure consistency in employee performance and provide employees with the ample resources and support they need to conduct their responsibilities in a remote work environment. Virtual Structure

33. Virtual organization can be thought of as a way in which an organization uses information and communication technologies to replace or augment (enhance) some aspect of the organization . People who are virtually organized primarily interact by electronic means. For example, many customer help desks link customers and consultants together via telephone or the Internet and problems may be solved without ever bringing people together face-to-face.