1. ORGANIZATION STRUCTURE

2. WHAT IS ORGANIZATIONAL STRUCTURE?
According to STEPHEN P ROBBINS “An organizational structure defines how job tasks are formally divided, grouped and coordinated.”
According to FRED LUTHANS “Organization structure represents the skeleton framework for organizational behavior.”
Organizational structure is defined as “the framework of tasks, reporting and authority relationships within which an organization functions.”

3. NEED FOR FORMAL ORGANIZATION STRUCTURE
Facilitating Management
Encouraging Growth
Optimum Use of Technological Improvement
Encouraging Human Use of Human Beings
Stimulating Creativity

4. Department- alization Chain of command Formalization Span of control
Elements of organization structure
Department- alization
Chain of command
Formalization
Span of control
Work specialisation
Centralization and De-centralization

5. Work Specialization
Work Specialization or Division Of Labor refers to the degree to which activities in an organization are subdivided into separate jobs. In essence, individuals specialize in doing part of an activity rather than the entire activity.

6. Departmentalization
The basis by which jobs are grouped together is called Departmentalization.
The various ways by which Departmentalization can be done are:-
Functional
Product
Customer
Geographic

7. Chain of Command
Who reports to whom?

8. How many people can a manager manage?
Span of Control
How many people can a manager manage?

9. Formalization
It refers to the degree to which the jobs within the organization are standardized. The degree of formalization can vary widely between organizations and within organizations.

10. The Degree of Formalization
Lower
Higher
Low
Formalization
Standardization
Employee Freedom
High
Formalization
Higher
Lower

11. Centralization and Decentralization
Formal decision making authority is held by a few people, usually at the top
Centralization
Decision making authority is dispersed throughout the organization
Decentralization

12. Making Decisions in Organizations
High
Managerial
Control
Employee
Empowerment
High
Centralized
Decision
Making
Decentralized
Decision
Making
Low
Employee
Empowerment
Managerial
Control
Low

13. FORMS OF ORGANIZATIONAL STUCTURES
The Line and Staff Organization Structure
The Functional Organization Structure
The Divisional Organization Structure
The Matrix Structure
The Project Organization Structure
Free form Organization Structure
Network Organization Structure

14. Line and Staff Organization Structure
Line Departments – Substantive (direct) in its contribution to organization’s overall objective
Staff Departments – Objective (indirect) in its contribution to organization’s overall objective
Line and Staff conflict
Reasons of conflict are:
Difference in view points
Lack of Demarcation between Line and Staff
Lack of proper understanding of authority
Different background

15. Functional Organization Structure
Traditional concept of organizing.
The basis of departmentation is the various functions to be performed by the organization.
Widely used in medium and large organizations.

16. Divisional Organization Structure
Also known as Profit Decentralization.
Organization is divided into fairly autonomous units.
Each unit is self contained and directly accountable to the organization.
Basis of Divisionalisation
Product Divisionalisation
Territorial Divisionalisation
Strategic Business Divisionalisation

17. Product Divisionalisation
Vice President
Sales and Marketing
Vice President Research and Development
Vice President Materials Management
CEO
Vice President Finance
Canned
Soups
Division
PDM
Frozen
Vegetable
Entrees
Baked
Goods
Centralized support functions
Divisions

18. Geographic Divisionalisation
Regional
Operations
CEO
Central Support
Functions
Individual
stores

19. Matrix Organization Structure
It is the realization of two dimensional structure which emanates directly from two dimensions of authority.

20. Matrix Structure CEO V ice President Engineering Finance Purchasing
Sales and
Marketing
Research and
Development
Product A
Manager
Product B
Product C
Product D
Product Team
Two-boss employee

21. Project Organization Structure

22. Free Form Organization
Also known as naturalistic, organic form of organization structure.
Free form structures reduce the emphasis on positions, departments and other formal units, and on the organizational hierarchy.
Free form organizations are suitable for those industries which have to work in highly dynamic environments.

23. Network organization structure
A recent innovation in organizational
architecture is the use of network structures.
A network structure is a cluster of different
organizations whose actions are
coordinated by contracts and agreements
rather than through a formal hierarchy.