Organization chart and organization structure types

This presentation discusses about organization chart and organization structure types in Principles of Management

1. ORGANIZATION CHART,
ORGANIZATION STRUCTURE
TYPES
R.Arun Kumar, AP/Mech, RIT

2. WORK SPECIALIZATION :
Dividing work activities into separate job tasks.
Individual employees specialize in doing part of activity
rather than the entire activity in order to increase work output.
R.Arun Kumar, AP/Mech, RIT

3. ORGANIZATION CHART:
Organization chart is the visual representation of an
organization’s structure.
It shows the organizational relationships and activities
within an organization.
R.Arun Kumar, AP/Mech, RIT

4. PURPOSE OF ORGANIZATION CHART:
Divides work to be done into specific jobs and departments.
Assigns task and responsibilities associated with individual
jobs.
Coordinates jobs into units.
Establishes relationship among individuals, groups and
departments.
Establishes formal line of authority.
Allocates and deploys organizational resources.
R.Arun Kumar, AP/Mech, RIT

5. TYPES OF ORGANIZATION CHART:
1. Top – down chart / Vertical chart:
Structure will be in form of pyramid.
R.Arun Kumar, AP/Mech, RIT

6. TYPES OF ORGANIZATION CHART:
2. Left to right / Horizontal chart:
Lines of command flows horizontally.
R.Arun Kumar, AP/Mech, RIT

7. TYPES OF ORGANIZATION CHART:
3. Circular / Concentric chart:
Top executive of organization is located at centre of the chart.
Subordinates are located outside.
R.Arun Kumar, AP/Mech, RIT

8. ADVANTAGES OF ORGANIZATION CHART:
Defines relationship.
Dual reporting relationship and overlapping positions come to
light.
Helps to identify the limit of authority.
Improves communication.
Provides clue to lines of promotions.
Outsiders can easily identify and understand the structure of
organization.
Guides every new employee in understanding how their
positions fit to the organization.
R.Arun Kumar, AP/Mech, RIT

9. DISADVANTAGES OF ORGANIZATION CHART:
Avoids informal relationships.
If not clearly defined, may lead to misleading inferences.
Fails to show how much authority an individual can exercise
and how far he is responsible.
R.Arun Kumar, AP/Mech, RIT

10. ORGANIZATION STRUCUTRE :
Organization structure is a flow chart which defines, the formal
arrangement of jobs within and organization.
An organization structure is designed both from mechanistic
and humanistic point of view.
R.Arun Kumar, AP/Mech, RIT

11. TYPES OF ORGANIZATION STRUCUTRE :
1. Based on the flow of power
Bureaucratic structure
Adaptive structure
R.Arun Kumar, AP/Mech, RIT

12. TYPES OF ORGANIZATION STRUCUTRE :
1. Based on the flow of power
1.1 Bureaucratic structure:
Structures are formed based on the formal authority.
Includes hierarchy of authority, promotion based competency.
College / university environment.

R.Arun Kumar, AP/Mech, RIT

13. TYPES OF ORGANIZATION STRUCUTRE :
1. Based on the flow of power
Characteristics of Bureaucratic structure:
Uses division of labour principle.
Ensures coordination among employees.
Organization is governed by clearly defined rules.
Defines the hierarchy of the organization.
States the rights of every employee.
R.Arun Kumar, AP/Mech, RIT

14. TYPES OF ORGANIZATION STRUCUTRE :
1. Based on the flow of power
Drawbacks of Bureaucratic structure:
Lack of flexibility
Lack of humanity.
May lead to conflict.
R.Arun Kumar, AP/Mech, RIT

15. TYPES OF ORGANIZATION STRUCUTRE :
1. Based on the flow of power
1.2 Adaptive structure:
Maintains high degree of openness to input from internal and
external environment.
Framed based on knowledge based authority and cooperation.
More flexible.
R.Arun Kumar, AP/Mech, RIT

16. TYPES OF ORGANIZATION STRUCUTRE :
1. Based on the flow of power
Characteristics of Adaptive structure:
Roles are not highly defined.tin
Tasks are continuously redefined.
Decentralization of control.
Quick decision making.
Little reliance on formal authority.
R.Arun Kumar, AP/Mech, RIT

17. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
2.1 Functional structure:
Groups the people / employee based on similarity in work
nature.
R.Arun Kumar, AP/Mech, RIT

18. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
Advantages of Functional structure:
High degree of control and communication o functions.
Makes employee to feel comfort.
Helps to improve productivity.
Disadvantages of Functional structure:
Isolation leads to narrowed perspectives.
Inter – departmental contradiction.
Lack of proper communication with other departments.
R.Arun Kumar, AP/Mech, RIT

19. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
2.2 Divisional structure:
Divisions are based on the output of the organization.
Each division has its own functional departments.
R.Arun Kumar, AP/Mech, RIT

20. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
Advantages of Divisional structure:
Size of organization can be increased without problem.
Improves ability of organization to respond to customer.
Enhances the efficiency of organization.
Disadvantages of Divisional structure:
Competition may lead to conflicts.
Formulation is expensive.
Control system is complicated.
R.Arun Kumar, AP/Mech, RIT

21. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
2.3 Matrix structure:
It is the combination of both functional and divisional
structure.
Resources will be directed to other project when one is completed.

R.Arun Kumar, AP/Mech, RIT

22. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
Advantages of Matrix structure:
Facilitates better planning.
More flexible.
Ensures better use of resources, enhances skills of an employee.
Disadvantages of Matrix structure:
Multiple projects at a time will lead to complex control.
Relationship is complicated.
Decisions are usually delayed.
R.Arun Kumar, AP/Mech, RIT

23. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
2.4 Team structure:
Comprises members of various departments who work together.
E.g. Shift employees.
R.Arun Kumar, AP/Mech, RIT

24. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
Advantages of Team structure:
Reduces interdepartmental conflicts.
Administrative cost is low.
Employee learns the function of various departments.
Disadvantages of Team structure:
Conflict in loyalties.
Increased time spent in meetings.
R.Arun Kumar, AP/Mech, RIT

25. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
2.5 Network structure:
Relies on other organization.
Permits outsourcing.
R.Arun Kumar, AP/Mech, RIT

26. TYPES OF ORGANIZATION STRUCUTRE :
2. Based on formation of group:
Advantages of Team structure:
Provides flexibility.
Improves quality.
Reduces cost.
Disadvantages of Team structure:
Unpredictability in supply.
R.Arun Kumar, AP/Mech, RIT