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 A consciously coordinated social unit composed of people having resources at their command functioning on a continuous basis to achieve common goal.

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Presentation on theme: " A consciously coordinated social unit composed of people having resources at their command functioning on a continuous basis to achieve common goal."— Presentation transcript:


2  A consciously coordinated social unit composed of people having resources at their command functioning on a continuous basis to achieve common goal or set of goals.

3  Organizational structure is a system used to define a hierarchy within an organization.  It identifies each job, its function and where it reports to within the organization.

4 1. Line structure 2. Line & Staff structure 3. Function structure 4. Product structure 5. Geographic structure 6. Matrix structure 7. Bureaucratic structure 8. Network structure

5  This is the kind of structure that has a specific line of command.  Hence it is known as a line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices.

6 ✔ It is the simplest kind of organizational structure. ✔ Strict authority results in a stronger discipline.

7 ✗ There are chances of the department head being biased. ✗ The department head may be burdened with lots of work.

8  Line and staff structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization.

9 ✔ It enables the employees to perform at a faster rate. ✔ It helps employees to accept responsible jobs and specialize in a particular area.

10 ✗ Confusion may be created among employees. ✗ There are too many levels of hierarchy.

11  This kind of organizational structure classifies people according to the function they perform in the organization.


13 ✔ It has high degrees of specialization. ✔ It has clear lines of authority.

14 ✗ The decisions taken by a single person may not always work in favor of the organization.

15  A product structure is based on organizing employees and work on the basis of the different products. Merits ✔ It accords rapid and easy decision-making. Demerits ✗ As each unit operates on its own, organizational goals may not be achieved.

16  Large organizations have offices at different places, for example, there could be a north zone, south zone, west zone and east zone. Merits ✔ There is better communication among the employees at the same location. Demerits ✗ There may be unhealthy competition among different zones.

17  This structure is a combination of function and product structures.  This structure is the most complex structure. Merits ✔ Employees are not attached to temporary work. ✔ The functional manager controls the project. Demerits ✗ The project manager does not have complete authority.

18  This type of structure is suitable for huge enterprises that involve complex operations and require smooth administration of the same.  It is highly recommended for industries like food, beverage, etc. Merits ✔ It is easy to achieve organizational goals. ✔ It helps in easy cooperation and coordination Demerits ✗ It does not encourage innovative ideas.

19  In this structure, organization managers are required to maintain and coordinate business/professional relations with third parties such as clients, vendors and associates in order to achieve a collective goal of profitability and growth.  Merits ✔ There is a certain level of flexibility for the employees. Demerits ✗ As a formal hierarchy is missing, it can lead to conflicts.

20  Every organization has its own specific way of classifying and grouping work activities.  It is a process which is consist of 1. Grouping of operating tasks into jobs. 2. The combining of jobs into effective work group. 3. The combining of groups into divisions called departments

21  Advantages of specialization.  Control facilities  Coordinating facilities.  Sale-service requirement  Requirement of staff and staffing pattern.

22 The following are the methods with the help of which departments are created by the organization. 1. By Number 2. By Function 3. By Location 4. By Customer 5. By Time 6. By Process

23  According to this group workers are divided into groups consisting of fixed number; say a group of 10, 15 or 20.  Ex: In Military organization this method is adopted.

24  It groups jobs by functions performed.  It can be used in all kinds of organizations;  It depends on the goals each of them wants to achieve.

25  It groups jobs on the basis of territory or geography.  Departmentation may also be done on the basis of work carried on also be done on particular locality.  Ex: LIC of India.

26  It groups jobs on the basis of common customers  Departmentation by customer may be done in an enterprise which manufactures product for ultimate consumers and sales of its product and services depends more on the nature, habits, age, status, liking etc of customers.  Ex: Let in a Cycle manufacturing company departments are 1. Children Cycle department 2. Sports Cycle department (Ladies/ Gents) 3. Adult Cycle department

27  Departmentation by time is popular in the concerns where work is carried on in shifts.  Ex: Day shift Night Shift

28  It groups on the basis of product or customer flow Positive AspectsNegative Aspects o More efficient flow of work activities o Can only be used with certain types of products

29  It is defined as a continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom.  There are three important concepts attached to this theory: 1. Authority: Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. 2. Responsibility: The obligation to perform any assigned duties. 3. Unity of command: The management principle that each person should report to only one manager.

30 Merits:  Increased Efficiency  Structured Grouping  Organized Communication  Complaint Resolution Demerit:  Delay in Decision Making  Delay in Communication  Costly

31  It is important to a large degree because it determines the number of levels and managers an organization has.  Also, determines the number of employees a manager can efficiently and effectively manage.

32 The effective span of control is dependant on the following factors  Is the work clearly defined.  Are sub-ordinates highly trained and do they have access to information  Is the manager highly capable and supportive  Are jobs similar and performance measures comparable.  Do sub-ordinate prefer autonomy to close supervisory control

33  Organizations in which high-level executives make most decisions and pass them down to lower levels for implementation are known as Centralized organizations.  Decentralized organizations allow lower level managers to make important decisions.

34 More Centralization 1. Environment is stable 2. Lower-level managers are not as capable or experienced at making decisions as upper- level managers. 3. Lower-level managers do not want to have say in decisions 4. Decisions are significant. 5. Organization is facing a crisis or the risk of company failure. 6. Company is large. 7. Effective implementation of company strategies depends on managers retaining say over what happens. More Decentralization 1. Environment is complex, uncertain. 2. Lower-level managers are capable and experienced at making decisions. 3. Lower-level managers want a voice in decisions. 4. Decisions are relatively minor. 5. Corporate culture is open to allowing managers to have a say in what happens. 6. Company is geographically dispersed. 7. Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions

35  It refers to the degree to which jobs within the organization are standardized and the extent to which employee behaviour is guided by rules and procedures.

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