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Organizational

Structure

Group No. 3

Contributed by
Priya Koli Deepali Nalawade 125 132

Harshada Paradkar
Jayati Sharma Tasneem Taj

137
148 150

Meaning
The term organization structure, refers to the way, various parts of an organization fit together into relatively fixed relationship.

Elements of Organizational Structure


Work specialization

Departmentalization

Chain-of-command

Span of control

Formalization

Centralization and De-centralization

Line versus Staff position

Definition

WORK SPECIALIZATION

Contd...
Definition
The term work specialization is used to describe the degree to which task in the organization are sub-divided into separate jobs.

Depends on the size of the organization. Increased work specialization leads to increased effectiveness.

The process of breaking up of organizations into coherent units.

DEPARTMENTALIZATION

Functional Organizations
Departmentalize individuals according to the nature of the functions they perform,with people who perform similar functions assigned to the same department. Benefits Limitations

Product Organization
Creates self-contained divisions,each of which is responsible for everything to do with a certain product or group of products. Benefits Limitations

Matrix Organization
Organisation in which an employee is required to report to both a functional manager as well as the product manager. Benefits Limitations

Authority Unity-of-command

CHAIN OF COMMAND

Chain of command @
Managing Director Executive Director

Senior Sales Manager

General Manager

Joint General Manager

Deputy General Manager

Assistant General Manager

Chief Manager

Manager

Senior Officer

Officer

Concept
Advancements in computer technology. Organizations are restructuring their workforce. It has been estimated that, during the 1980s,one-forth of the middle management jobs were eliminated in American companies.

Assumption

To make better decisions Greater profitability For example:


Automobile industry:
General Motors 22 Layers of management Ford 17 Layers of management Toyota 7 Layers of management

SPAN-OF-CONTROL

Contd
Origination

Meaning

Hierarchy

Flat Organization
CEO Human Resource

Finance

Marketing

Operations

System

Administration

Tall Organization

CEO

VP (Marketing)

VP (Finance)

Factors influencing span-of-control


Job complexity Similarity of sub-ordinates job

Abilities of managers
Abilities of employees Technology

FORMALIZATION

Contd
Meaning Degree of Formalization

Decentralization

Centralization

Contd
Top level and lower level management Meaning of centralization Meaning of de-centralization Optimum balance between centralization and de-centralization

LINE VERSUS STAFF POSITIONS

Line position

Staff position

Smart Work Research

Confidence

Good Presentation

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