Professional Documents
Culture Documents
(How to do)
The term organisation is used in many ways.
organisation as an activity refers to an
important function of management use The
term organisation is used to refer a group of
people united & working for a common
purpose. It also refers to the structure of a
business unit.
In other words it may be said that
the term organisation is used both in
structural & functional sense .
as a structure it refers to various levels
created, maintained & operated to achieve the
goals determined.
As a function it refers to establish relationship
between activities & authority pertaining to an
enterprise.
Meaning
Centralization
Decentralization
Departmentalization
1.Traditional Structures
Traditional organizational
structures focus on the
functions, or departments,
within an organization, closely
following the organization's
customs and bureaucratic
procedures. These structures
have clearly defined lines of
authority for all levels of
management.
Two traditional structures are:
line
line-and-staff
Line Structure
The line structure is defined by its
clear chain of command, with
final approval on decisions
affecting the operations of the
company still coming from the top
down. Because the line structure
is most often used in small
organizations
such as small accounting offices
and law firms, hair salons, and
Line Structure
Line-And-Staff Structure
While the line structure would not be
appropriate for larger companies, the
line-and-staff structure is applicable
because it helps to identify a set of
guidelines for the people directly
involved in completing the
organization's work.
This type of structure combines the flow
of information from the line structure
with the staff departments.
Line-And-Staff Structure
2.Matrix Structure
A variation of the line-and-staff
organizational structure is the
matrix structure. In today's
workplace, employees are hired
into a functional department (a
department that performs a
specific type of work, such as
marketing, finance, accounting,
and human resource) but may
find themselves working on
projects managed by members of
another department.
.
Organizations arranged according to
project are referred to as matrix
organizations.
"Workers are accountable to two
supervisorsone functional manger in
the department where the employee
regularly works and one special project
manager who uses the employee's
services for a varying period of time"
Since employees report to two separate managers,
this type of organizational structure is difficult to
manageespecially because of conflicting roles and
shared authority.
3.Centralisation
Centralisation refers to the retention of control
by the top management in the area of decision-
making.
Acc to Allen Centralisation is the systematic
and consistent reservation of authority at
central points within an organisation
Centralization
4. Decentralisation
Decentralisation applies to a systematic
delegation of authority in an organisation
wide context.
Decentralisation is granting of decision
making by management to lower level.
Decentralization
Advantages of Decentralisation
Decisions can be taken by lower level managers
Facilitates fast decision making
Decisions can be quickly adapted
Increases self-confidence and motivates employees
Highly effective in large complex organisation.
Frees the top management from decisions related to
day to-day operation.
Disadvantages of Decentralisation
Coordination of decentralized units is very
difficult.
Policies can not be applied uniformly across
all units
Misunderstanding between top managers and
unit managers can lead to conflict.
The success of unit will depend on efficiency
and capability of its head.
5.Departmentalization
Organizations can be divided into
various departments, or units,
with individuals who specialize
in a given area. Having each unit
perform specialized jobs is
known as departmentalization.
Departmentalization
Departmentalization is done according to
five major categories :
(1) product, which requires each
department to be responsible for the
product being manufactured;
(2) geographic, which divides the
organization based on the location of
stores and offices;
(3) customer, which separates
departments by customer
(4) functional, which breaks departments
into specialty areas; and
(5) process, which creates departments
responsible for various steps in the
production process
Types of Organisation
Formal Organisation
Informal Organisation
Formal Organisation
A formal Organisation means the
intentional structure of roles in a formally
organized enterprise.
It is a system of well defined jobs ,each
bearing a definite measure of authority ,
responsibility & Accountability.
Informal Organisation
An informal organisation is a network of
personal and social relations not
established or required by formal
organisation but arising spontaneously
as people associate with one another.
Formal VS Informal Organisation
Formal informal
Officially formed Unofficial
Emphasis on position Emphasis on people and
and Authority relationship
Power is delegated Power is given by group
Small in size
Large in size
Delegation Of authority.
Job of manager is to get the work
done by other. this is possible when
he delegates certain tasks or duties
with sufficient authority.
Delegation is necessary for an
organisation to exist. it is impossible
for a single person to do all tasks for
accomplishing group purpose.
Meaning
The delegation of authority is the
right to act, to make decisions, to
requisition and to perform other
tasks in order to fulfill job
responsibilities
Art of Delegation