MS Unit-II

7/31/2019 MS Unit-II

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UNIT-II

DesigningOrganizationalStructures


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Organization

Organization refers to the institution where in

the management functions are performed

Organizing : is one of the functions ofmanagement means to achieve the plans.


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INDEXUNIT 2 PPT SLIDES

S.NO. TOPIC LECTURE NO .1. Designing Organisational Structures L12. Basic Concepts L23. Types of Mechanistic and Organic L34. Line and Staff Organization L45. Committee Organization L56. Virtual Organisation L67. Boundaryless organizatrion L78. Organization Structure L8


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Basics concepts related to the

organization

Organizational Hierarchy

Authority and ResponsibilityAuthority is the power to give commands and

to use discertion vested in that particular positionor Job.

Responsibility is the obligation on the part ofthe subordinate to complete the given job.


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organization

Delegation of AuthorityThe process of transferring authority from top to the lower

levels in the organization is called delegation.Two types of Delegation

1. Centralized2. De-centralized

Span of Management

Number of all kinds of relationships (N)=n(2n-1+n-1)Where n=number of subordinates reporting to a manager


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organization

Flat and Tall organizationsFlat organization:-Which have relatively few or even

one level of management.Flat is also known as wider span of control

Flat organization

Managing Director

Manager(sales) Manager(production)

Manager(personnel)


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organization

Tall organization:-have many levels ofmanagement

-involves narrow span of managementTall organization

MD/ADDITIONAL MD

Manager(sales)

Manager(production) Manager(personnel)


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Types of Organizations

1.Line organizations :- is also called military or scalarorganization. is said to be the oldest and most traditional type oforganizations. Managers in this organizations have directresponsibility for the results.

Line organization

Engineer

Draughtsman1(Design & Drawings)

Draughtsman 2(plans)

Draughtsman 3(specifications)


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2.Line and Staff Organization:-

Drawn from earlier civilisation and armies.Staff managers support the functions of the linemanagers.Line and staff organization is a service organization.Line and staff organization in a manufacturing unit.

Line and staff in the armed forces.Line relationships in staff positions.


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3.Functional organization:-

F.W.Taylor suggested functional organizationin his theory of Scientific management insupport of his one best way of doing things. The planning and implementation tasks aredivided to ensure the division of labour.

The foremen involved in the planning task.


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4.Committee Organization:-

A committee is formed when two or morepersons are appointed to work as a team toarrive at a decision on the matters referred to it.


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Merits:-

Pools up the organization resources in terms ofknowledge, skills and experience.Represents groups, facilitates group decisionsIt yields good resultsIt reduces the fear of two much authority

It motivates all the concerned


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Demerits:-

Responsibility for decisions cannot be fixed

on a particular person.It calls for high degree of coordination.It involves high cost in terms of time andmoney.


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5.Matrix organization:-

Also called Project organization.

It is a combination of all relationships in theorganization vertical, horizontal and diagonal.It is mostly used in complex projects.It provides a high degree of operationalfreedom.


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Merits:-

Offers operational freedom and flexibility.

Seeks to optimize the utilization of resources.It focus on end results.It maintains professional identity.

It holds an employee responsible formanagement of resources.


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Demerits:-

Very complex to manage.

Violates unity of command.Employee may find it frustrating to work withtwo bosses.Requires too much time for meeting andcollaboration.


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6.Virtual Organization:-

Virtual organization structure does not physicallyexist, but its effect is felt.Example: Bata Shoes

Merits:-Enable for doing business with less capital, less HRand other inputs.Provide flexibility of operations.React to the environment demands most efficiently.


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Demerits:-

Companies do not have strong foundations

or strengths in their operations.Organizations have to heavily depend on outsourcing.Failure in network results in the failure of theentire organization.


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7.Team Organization Structure:-

Team structure takes three forms

1. Project team2. The task force team3. Venture team

Documents

MS Unit-II