MITCON INSTITUTE OF MANAGEMENTISO : 9001 : 2008 CERTIFIED

PRESENTED BY:Rahul TodurRamesh KumarRuchi KhadtaleShabana Yasmin

ORGANIZATIONAL STRUCTURE

WHAT IS AN ORGANIZATIONAL STRUCTUREThe organizational structure defines the organization’s hierarchy of people and departments as well as how information flows within the organization.

The organizational structure determines how and when information is distributed as well as who makes what decisions based on the information available.

How job tasks are formally divided, grouped and coordinated.

THE IMPORTANCE OF THE ORGANIZATIONAL STRUCTURE

The organizational Structure is important because it ensures that there is an efficient operation of a business and it clearly defines its workers and their functions.

The organizational structure also helps define the hierarchy and the chain of command.

THE CONCEPT OF ORGANIZATIONAL STRUCTURE

Structure helps influence behavior and relationships of jobs and functions

Structure defines recurring activities and processes.

Structure provides a purposeful and goal-oriented behavior.

ELEMENTS OF STRUCTURE While the need for structure is clear, the best structure for a particular

coalition is harder to determine. The best structure for any organization will depend upon who its members are, what the setting is, and how far the organization has come in its development.

Regardless of what type of structure your organization decides upon, three elements will always be there. They are inherent in the very idea of an organizational structure.

They are: Some kind of governance

Rules by which the organization operates

A distribution of work

THE EFFECTS OF STRUCTURE ON INDIVIDUAL AND GROUPThe structure of any organization will affect the following:-

1. Behavior of how people act and work

2. Motivation of workers

3. Performance

4. Teamwork and cooperation

5. Intergroup and interdepartmental relationships

TYPES OF STRUCTURES

Functional structure

Line and Staff Structure

Market Structure

Geographic structure

Matrix Structures

FUNCTIONAL STRUCTURE

STAFF AND LINE STRUCTURE

MARKET BASED STRUCTUREEarthmoving Equipment Division

Mining Marketing Unit

ConstructionMarketing Unit

Mining Dealers

Direct Sales

Construction Dealers

End-User Market

Mining

End-User Market

Construction

GEOGRAPHIC STRUCTURETimothy Cook

MATRIX STRUCTURE

COMPONENTS OF ORGANIZATIONAL STRUCTURE

Organizational Design

Management decisions and actions that result in a specific organization structure and work specification including:-

1. Work Specification: Specify to what degree the tasks are subdivided into separate jobs.

2. Departmentalization: The basis in which jobs will be grouped together.

3. Chain of Command: To whom do individuals and groups report to.

4. Span of Control: The number of people that a manager can efficiently and effectively direct.

DELEGATION OF AUTHORITY Process of distributing authority downward in an organization. Whether an organization chooses to centralize or decentralize will be guided by:

1. How routine and straightforward are the job’s required decisions?

2. Are individuals competent to make decisions?

3. Are individuals motivated to make the decisions?

REASONS TO CENTRALIZE AND DECENTRALIZE AUTHORITY

Reasons to Centralize Authority:-

1. When the managers are not skilled enough and would need further training which can be expensive.

2. When there are new administrative costs because new divisions need to be formed.

3. Decentralization can mean duplication of functions.

Reasons to Decentralize Authority:-

It encourages the development of professional managers.

Managers are able to exercise more autonomy but it can lead to a competitive climate.

DEPARTMENTAL BASES

The process of grouping jobs into logical units.

The process in which an organization is structurally divided by combining jobs in departments according to some shared characteristics:

1. Functional Departmentalization

2. Geographical

3. Product

Training ProductsMarketing ProductsIndustrial ProductsConsumer Products

Functional Departmentalization

Geographical Departmentalization

Product Departmentalization