ORGANISATIONAL STRUCTURE

MADE BY:-
DASHMESH AULAKH
SHASHANK
KARAN UPPAL
ORGANIZATION =

is a social arrangement
which pursues collective
goals, controls its own
performance, and has a
boundary separating it from
its environment.
ORGANIZATIONAL STRUCTURE =

consists of activities such

as task allocation,
coordination and
supervision, which are
directed towards the
achievement of
organizational aims.
Organisational Design
 “In designing the organization, the leader
should focus on optimizing the response
time to changes in the external
environment.”
(Stata, 1989)
 “Competitiveness does not lie in
downsizing it lies in design” (Dodds,1993)
Types Of Organisations
 Functional Organisation
 Divisional Organisation
 Matrix Organisation
Functional Organisation
 Job specialisation in the horizontal
dimension … is an inherent part of
every organisation, indeed every
human activity. – Mintzberg, 1979
 Functional Org Structure

Chief Executive
Officer or President

Manager Manager Manager Manager Manager Manager

Production Engineering Marketing R&D Personnel Accounting

Lower-level managers, specialists, and operating personnel

Functional Organisation(Merits)
 Logical reflection of functions
 Maintains power-prestige of functions
 Occupational specialization
 Simplifies training & enables
professional development
 Tight control
Functional Organisation
(Demerits)
 Over specialisation-narrow viewpoints
 Reduces coordination between
functions
 De-emphasis of overall objectives
 Slow adaptation to environmental
changes
 Conflicts over which products have
priority
Divisional Organisation
 This type of structure occurs when
the organisation is arranged around
the main products or services.
 Specialisation by location divides the
organisation geographically usually
according to location of customers.
 Divisional Org Structure
Chief Executive
Officer or President

Corporate Staff

Division A Division B Division C

General Manager General Manager General Manager

Manager Manager Manager Manager Manager Manager

Production Engineering Marketing R&D Personnel Accounting

Lower-level managers, specialists, and operating personnel

Organized Organized
similarly to similarly to
Division 1 Division 1
Divisional Organisation(Merits)
 Focused on product line & customer needs
 Growth & diversity of products
 Improves coordination & response to
changes in demand pattern
 Responsibility of profits at divisional level
 Training ground for general managers
 
Divisional Organisation
(Demerits)

  Requires more persons with general

management capabilities
 Maintenance of central economical
services difficult
  Lesser control by top management
 May develop a product focus at
expense of wider company interests
Matrix Organisation
 Combination of functional and
product structures. It attempts to
capture the advantages of each of
these approaches.
 On one axis is a range of products or
projects, with a manager responsible
for each. On the other are the various
functional groups.
 Matrix Org Structure

Chief Executive
Officer or President

Corporate
Staff

Manager Manager Manager Manager Manager Manager Public

Administration Projects Manufacturing Engineering Marketing Relations
and Human
Resources
Project A

Project B

Project C

Project D
Matrix Organisation(Merits)
 More than one critical orientation to
the company operations
 Oriented toward end results
 Pinpoints responsibility
 Specialised knowledge is widely
shared but developed within the
functional group
Matrix Organisation(Demerits)
 Conflict in organizational authority
 Problem of defining the extent of
Project Manager’s authority.
 Functional groups may tend to
neglect their normal duties.
 Results in a complex structure and
difficult to manage
 E E S …
L IV P L
AM
E X
bharti airtel - organization structure
Organization Structure of an Government Org.