1. Departmentation and Organization Structure
Chapter 6

2. Departmentation
Process of grouping activities into units for the purpose of effective management
Grouping of jobs, processes and resources into logical units to perform some organizational task

3. Importance of Departmentation
Specialization
Growth
Sovereignty
Performance appraisal easier
Boosts efficiency
Helps in coordination within departments
Defined responsibilities
Helps in control

4. Bases of Departmentation
By functions
By Area
By Product
By Customer
By Process
By Task Force
By time
By Numbers

5. Organization as a structure
Network of relationships among individuals and positions in the organization Relationships between positions on one hand and jobs on the other

6. Types of Organizational Structures
Line Organization
Functional Organization
Line and Staff Organization
Matrix Organization
Formal and Informal Organization

7. Line Organization Simplest and oldest form
Also called scalar or military type Organisation
Direct flow of authority
Unity of Command
Clear responsibility
Suitable to small Organisations
Lack of specialisation
Easy coordination
Better relationships
Quick decision making

8. Functional Organization
Introduced by Taylor
Each function managed by a functional expert
Each functional expert may serve the other functional experts also
Encourages specialization
Reduced pressure
Optimum use of resources
Higher efficiency
Lack of unity of command
Expensive

9. Line and Staff Organization
Combination of activities of line executives and staff experts
Line executives-decision makers, staff-advisors or planners
Line executives implement plans, staff engage in research and planning
Need for staff due to growth of organizations, technological developments and uncertainties
Suitable for large organizations
Conflicts between line and staff possible
Expensive

10. Conflicts between line and staff
Complaints of line against staff
Grabbing compliments
Unfamiliar with actual work
Interference
Superiority complex
Excessive paper work
Easy access to management
Complaints of staff against Line
Last minute advice
Irresponsible
Lack clarity
Shift responsibility
Reluctant to accept new ideas
Lack respect

11. Matrix Organization
Uses two or more co-existing structures-functional and project
Hybrid structure
In functional organization , the manager has absolute responsibility for the project and the resources required, in matrix organization the project manager shares resources with the rest of the organization.
Problem of unity of command
Suitable for multi projects organizations

12. Formal and Informal Organization
Two or more persons consciously coordinated towards a common objective
Informal:
A network of personal, and social relations not established or required by the formal organization but arising spontaneously as people associate with each other (through grapevine)

13. Features of Formal Organization
Specific Duties and responsibilities
Well defined goals
Clear superior- subordinate relationships
System of Authority and Coordination
Set of rules and regulations

14. Features of Informal Organization
No specific goals
No established superior subordinate relationships
No system of authority or coordination
Communication through grapevine
Develops social and personal ties

15. Differences between Formal and Informal Organizations
Authority
Flow of Communication
Creation
Stability
Importance of Rules

16. Thank You