ORGANIZATION STRUCTURE &DESIGN - Copy.pptx

7/28/2019 ORGANIZATION STRUCTURE &DESIGN - Copy.pptx

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Organization structure is an establishedpattern of relationships among the

component part of an organization.


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COMPLEXITY

FORMALISATION

CENTALISATION


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It refers to horizontal differentiation, Verticaldifferentiation and locational differentiation.

HORIZONTAL DIFFERENTIATION: is horizontalseparation between unit based on

occupations and specializations VERTICAL DIFFERENTIATION: is the potential

for communication distortion. LOCATIONAL DIFFERNTIATION: Degree to

which the location of an organizationsoffices, plants and personnel andgeographically send


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It refers to the degree to which the jobs within the organization are standardized .Highstandardization of jobs result in less freedomand discretion.


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It refers to the degree to which decisionmaking is concentrated at a single point in anorganization.


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The design process deals to the developmentof an organization structure consisting ofunits and positions.


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There are nine approaches towards the structureof an organization

Entrepreneurial Structure

Functional organization structure

Product organization structure Geographical organization structure

Decentralized business devisions

Strategic business units

Matrix organization structure Team structure

Virtual structure


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This is the initial stage of an enterprise,Organization structure is fluid with eachemployee often knowing how to perform morethan one task and with owner-managerinvolved in all aspects /areas of business

OWNER-CUM-MANAGER

EMPLOYEES


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Entrepreneurial organization structure withexpansion

OWNER-MANAGER

Manufacturingmanager

Marketingmanager

Employees Employees


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Organizes employees around skills or other

resources (marketing, production, Finance,human resources, Research and developmentand engineering)


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Managing Director

General Manager

Chief

production manager

Chief

marketingmanager

nager

duction

Chief

financemanager

Chiefresearch

anddevelopme

nt

Chief

humanresourcemanager

Managerengineeri

ng

Manager

qualitycontrol

Manageremploym

ent

Managertraining

anddevelop

ment

Manager

salaryadministration

Manager

industrialrelations

New product

Laboratoryresearch


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Managing director

Managermotorcycle

General manager

ManagerBicycles

ManagerScooters

Managercars

ManagerVans


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Managing director

ManagerNorthernregion

General manager

Corporate managersProduction, Marketing, finance, Human resource

and research and development

ManagerEasternRegion

ManagerWesternregion

Managercentralregion

Managersouthernregion


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MD

GM

Corporate level managers,Marketing,production, finance,

HR, R&d

GroupManager

SBU 1

Groupmanager

SBU 3

Groupmanager

SBU 2

Finance

manager

Marketing

manager

Production

manager

HR

manager

R&D

manager


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MD

GM

Corporate level managers,Marketing,Production, finance,

HR, R&d

Chiefmanagerbusiness

A


C


B

Strategicallyrelated

business Units


businessUnits


business Units


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In this structure possess dual chain ofcommand. Both functional and projectmanagers exercise authority overorganizational activities


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ORGANIZATION STRUCTURE &DESIGN - Copy.pptx