Organization structure is an established pattern of relationships among the component part of an organization.

COMPLEXITY FORMALISATION

CENTALISATION

It refers to horizontal differentiation, Vertical differentiation and locational differentiation. HORIZONTAL DIFFERENTIATION: is horizontal separation between unit based on occupations and specializations VERTICAL DIFFERENTIATION: is the potential for communication distortion. LOCATIONAL DIFFERNTIATION: Degree to which the location of an organizations offices, plants and personnel and geographically send

It refers to the degree to which the jobs with in the organization are standardized .High standardization of jobs result in less freedom and discretion.

It refers to the degree to which decision making is concentrated at a single point in an organization.

The design process deals to the development of an organization structure consisting of units and positions.

There are nine approaches towards the structure of an organization Entrepreneurial Structure Functional organization structure Product organization structure Geographical organization structure Decentralized business devisions Strategic business units Matrix organization structure Team structure Virtual structure

OWNER-CUM-MANAGER

EMPLOYEES

This is the initial stage of an enterprise, Organization structure is fluid with each employee often knowing how to perform more than one task and with owner-manager involved in all aspects /areas of business

Entrepreneurial organization structure with expansion

OWNER-MANAGER

Manufacturing manager Employees

Marketing manager Employees

Organizes employees around skills or other resources (marketing, production, Finance, human resources, Research and development and engineering)

Managing Director General Manager

Chief productio n manager

Chief marketing manager Manage r quality control

Chief finance manager Manager employm ent

Chief human resource manager Manager salary administ ration

Chief research and developme nt Manager industria l relations

anager ductio n

Manager engineeri ng

Laboratory research New product

Manager training and develop ment

Managing director

General manager

Manager Bicycles

Manager motor cycle

Manager Scooters

Manager cars

Manager Vans

Managing director

General manager Corporate managers Production, Marketing, finance, Human resource and research and development

Manager Northern region

Manager southern region

Manager central region

Manager Western region

Manager Eastern Region

MD
GM Corporate level managers, Marketing,production, finance, HR, R&d

Group Manager SBU 1

Group manager SBU 2

Group manager SBU 3

Marketing manager

Finance manager

Producti on manager

HR manager

R&D manager

MD
GM Corporate level managers, Marketing,Production, finance, HR, R&d

Chief manager business A

Chief manager business B

Chief manager business C

Strategically related business Units

Strategically related business Units

Strategically related business Units

In this structure possess dual chain of command. Both functional and project managers exercise authority over organizational activities