Organizations and

Structures

Dr C K Biswas
Dept of ME
NIT RKL

IM

content

What Is Organizing?
Organization Chart
What Determines Organization Structure
Types of organization structure
Departmentalization
Challenges in Organization

IM

What Is Organizing?
OrganizingArranging the
activities of the
enterprise in such a
way that they
systematically
contribute to the
enterprises goals.
3

IM

Depicting the Organization

Organization ChartA chart that shows the
structure of the
organization including the
title of each managers
position and, by means of
connecting lines, who is
accountable to whom and
who has authority for
each area.
4

IM
G.Dessler, 2003

Organization Chart
In f o r m a tio n S e r v ic e s G r o u p
K n o w le d g e A r c h i t e c t u r e M a n a g e r
K n o w le d g e A r c h i t e c t u r e L e a d
C u s to m e r L ia is o n
C a ta lo g e r
C a ta lo g e r
T a x o n o m y D e s ig n e r

IM

S e a r c h /S y s te m s L e a d
D e v e lo p e r
D e v e lo p e r
S y s t e m s A d m in

D e s ig n L e a d
A s s is ta n t D e s ig n e r

What Determines Organization Structure

Environment. Fast-changing environments
require organic structures; slowly changing
environments favor mechanistic structures.
Technology. Unit and continuous
production processes favor organic
structures. Mass production processes favor
mechanistic structures.
Goals. Ask, What are the main goals we
want to achieve via this organization?
Pros and cons. Each approach to
departmentalization has pros and cons.
Logic and common sense.
6

IM

Line/ military organization

IM

Staff/ functional organization

IM

Line & staff organization

IM

Departmentalization
Functional
The grouping of activities by functions performed

Product
The grouping of activities by product produced

Customer
The grouping of activities by common customers

Geographic
The grouping of activities by territory

Process
The grouping of activities by work or customer
flow

10

IM

Product Departmentalization

11

IM

Customer Departmentalization

12

IM

FIGURE 63

G.Dessler, 2003

Marketing Channel
Departmentalization

13

IM

FIGURE 64

G.Dessler, 2003

Facilitate Coordination

14

IM

Organization Design
A process in which managers develop or change their
organizations structure

Procedural steps
1. Understanding and formulate the objective of
organization
2. Determine the functions necessary to achieve
the objectives
3. Outline various functions and positions to be
filled up
4. Prepare job description, duties, responsibilities
15

IM

Managing Learning
Organizations

How to Streamline Organizational

Decision Making
Downsize
Reduce management layers
Establish mini units

How to Cultivate Employees Personal

Mastery

Provide continuous learning opportunities.

Foster inquiry and dialogue.
Establish mechanisms to ensure that the
organization is continuously aware of and
can interact with its environment.

16

IM

Challenges in Organization
Merging separate organizations with
different structures
Changing an existing organization to
meet external or internal changes in
conditions
Conflicts between departments or
groups
Interdependence between
organizational units
Centralization vs. decentralization
17

IM

Methods for Achieving Coordination

Mutual Adjustment
Achieving coordination
through face-to-face
interpersonal interaction.

Use Rules and

Procedures
Standardize
Exercise Direct
Supervision: Use the
Chain of Command
Divisionalize
18

IM

Appoint Staff
Assistants
Appoint Liaisons
Appoint Committees
Organize
Independent
Integrators
An individual or a group
that coordinates the
activities of several
interdependent
departments, but is
independent of them.

Managing Organizational Conflict

LineStaff Conflict
Disagreements between a line manager and
the staff manager who is giving him or her
advice.

How to Organize to Reduce Interunit

Conflict
Appeal to power and the chain of command
Reduce interdependence
Exchange personnel
19

IM

Types of Interdependence

20

IM

Centralization and Decentralization

Centralization
A function of how much decision-making
authority is pushed down to lower levels in an
organization; the more centralized an
organization, the higher the level at which
decisions are made

Decentralization
The pushing down of decision-making authority
to the lowest levels of an organization

21

IM

a
h
T
22

IM

k
n

u
o