Organizational Structure and Design-Management Practices-Presentation, Slides of Management Fundamentals

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Organizational Structure & Design

Organizational Structure

 It’s a formal arrangement of jobs within an organization.

 When it is modified or altered in any way; it is termed as organizational design.

 Design consists of decision making regarding the following, specialization, departmentalization, chain of command, span of control, centralization and decentralization and formalization.

Departmentalization

 The basis by which jobs are grouped together.

 Its types are:

 Functional departmentalization

 Product departmentalization

 Geographical departmentalization

 Process departmentalization

 Customer departmentalization.

Chain of command

 The line of authority extending from upper organizational levels to the lowest levels, which clarifies who reports to whom.

 It has lost some of its rigidity with the passage of time but formal control exists in one form or another and so does the chain of command.

Centralization & Decentralization

 Centralization is the degree to which decision making is concentrated at upper levels of organization.

 Decentralization is the degree to which lower level employees provide input or actually make decisions.

Formalization

 How standardized an organizations job’s are and the extent to which employee behavior is guided by rules and procedures.

 Increased formalization spells loads of rules and procedures on how to do a job and no room for personal style to be followed.

Contingency Factors

 Contingency factors that affect decisions are:

 Strategy & structure

 Size & structure

 Technology & structure

 Environmental uncertainty & structure

Common organizational designs

 It has two basic types:

 Traditional organizational designs

 Contemporary organizational designs

Contemporary organizational designs

 Team structure

 Matrix & project structure

 Boundary less organization

Today’s organizational design

challenges

 Keeping employees connected

 Building a learning organization

 Managing global structural issues