Professional Documents
Culture Documents
• Organizational structure
• Organizational theories
• Why organizational structure
• Dimensions of organizational structure
• Success factors
• Types of organizational structure
• Strategies of organizational structure
• Organizational culture & dimensions
Topics
• Organizational structure
• Organizational theories
• Why organizational structure?
• Dimensions
• Success factors
ORGANIZATION
An organization is a system of“
consciously coordinated activities or
.”forces of two or more persons
Characteristics common to all
organizations
Coordination of effort
Common goal
Division of labor
Hierarchy of authority
ORGANIZATIONAL
STRUCTURE
Responsibility Departmen-
And Authority talization
Dimensions of
Organizational
structure
Span of
formalization
control
Centralization
And
decentralization
DIVISION OF LABOR
• Job is broken down into a number of
steps
• Each step is completed by a separate
individual
• Makes efficient use of the diversity
of skills that workers have
DEPARTMENTALIZATI
ON
• Function
• Process
• Geography
• Product
• Customer
:By Business Function
President
Vice President
Manufacturing
Heat treatment
Drill press group Milling group Painting group Assembly group
group
:By product
Intel
Intel
Marketing
division
Beauty Care,
Feminine Care Country
Country
Managers
Managersin in
Spain, UAE,
Spain, UAE,
Kenya,
Kenya,etc.
etc.
Fabric & Home
Country
Country
Care
Managers
Managersin in
India,
India,South
SouthKorea,
Korea,
Australia,
Australia, etc.
etc.
Snacks &
Beverages
SPAN OF CONTROL
Supervisor
Supervisor Supervisor
Supervisor
Small Span Of Control
Department Manager
Department Manager
Group Manager
Group Manager Group MANAGER
Group MANAGER
Employee Empowerment
Top Management Control
Centralization
Higher Lower
FORMALIZATION
AUTHORITY
It is a power that has been legitimized
within a particular social context.
Success Factors
• Decentralized reporting
• Flat hierarchy
• High transient speed
• High transparency
• Permanent monitoring
• Rapid response
• Shared reliability
Tayyaba
Tayyaba Iqbal
Iqbal
Roll # 108
Outline
• Theory of Mechanistic & Organic organization
system
• Humanistic organization systems
• Types of Organizational Structures
• Benefits
• Effects of organizational structures on behavior
• Charts (diagrammatical form)
Theory
Theory ofof
Mechanistic
Mechanistic &
& Organic
Organic
Organization
Organization System
System
Mechanistic Theory
• Matrix • Virtual
Types of Organizational Structures
Pre-bureaucratic:
• Common in smaller organizations
• centralized
• Strategic manager makes all key decisions
• Useful for new business
• No standardization
Types of Organizational Structures
Bureaucratic:
• Having certain degree of standardization
• for more complex or large organizations
• Adopt tall structure
• Downward communication & authority
Benefits
• Implementing a tightly focused set of policies and guidelines
• Supervising activities for a specific and predictable outcome.
.. Types Contd
Post-bureaucratic:
• Weber's ideal type bureaucracy (since 1980s)
• Charles Heckscher theory:
– decisions are based on dialogue and consensus
– organization is a network
.. Types Contd
Functional:
• classifies people by the functions they perform
• operational efficiencies within that group
• Coordination and specialization of tasks are centralized in a
functional structure,
• Best for large volume, low cost goods producer
Benefits:
• best utilization of employees talent
• Better communication between specialists,
• Increased teamwork and shared knowledge,
• quick decision making
Functional Organizational Structure
.. Types Contd
Divisional / Product:
• groups each organizational function into divisions
• contains all the necessary resources and functions within it.
• Can be categorized on geographical or product/ services basis
• have its own sales, engineering and marketing departments.
Benefits:
• Higher quality products and customer service
• Facilitates communication and teamwork
• easier for upper management to evaluate and reward employees
• Encourage hands-on problem solving
Divisional Organizational Structure
.. Types Contd
Matrix:
• groups employees by both function and division
• employees having multiple bosses
• uses teams of employees to accomplish work
• a simple network
Benefits:
• Recruiting and isolating talent into particular groups
• innovation and creativity
• Improves communication and teamwork
• Increases responsibility and freedom of employees
Matrix Organizational Structure
.. Types Contd
Horizontal:
• with few or no levels of intervening management
• common for smaller, start-up companies
• focused on creativity and innovation
• But can be more time-consuming to built
Benefits:
• promotes employee involvement
• Communication and decision making is more efficient and quicker
• greater job responsibility and motivation
Horizontal Organizational Structure
.. Types Contd
Team:
• developed in the 20th century
• small businesses, can define the entire organization
• Xerox, Motorola, and DaimlerChrysler are all among the
companies that actively use teams to perform tasks.
DaimlerChrysler Motorola
.. Types Contd
Network:
• contract out any business function, which can be done better or
more cheaply
• managers spend most of their time coordinating and controlling
external relations, by electronic means
• H&M is outsourcing its clothing to a network of 700 suppliers
.. Types Contd
Boundaryless:
• overcomes traditional boundaries between layers of
management functional areas, as well as geographic
boundaries.
• combination of team and network structures
• Ikea, the world's largest furniture manufacture,
Virtual:
• works in a network of external alliances
• using the Internet.
• Amazon.com
Effect of Organizational Structure on
Behavior
• Exporting
• Licensing (includes franchising)
• Joint Venture
• Foreign Direct Investment
Types of International
:Strategy
• Multi-domestic
• Global
Multi-domestic Strategy
o HRM
o CRM
o TQM
o MIS
o KNOWLEDGE MANAGEMENT
o SOCIETAL MANAGEMENT
Human Resource
Management
It has led homogenization and
convergence in
organization strategies
structures
processes
consumer choice.
HR development
People Excellence
• achieving a high performance culture
• increasing the global talent pool
• strengthening expert careers
• Siemens Leadership Excellence Programme (SLE).
Talent management
• job enrichment
• job enlargement
Customer Relationship
Management
Case Studies
• SHELL
• Vodafone
SHELL
Balancing stakeholders and resolving
conflicts