Professional Documents
Culture Documents
Unit 1
Unit 1
An organization structure defines how jobs and tasks are formally divided, grouped and co-
ordinate.
• Departmentalization
• Chain of control
• Span of control
• Formalization
1) Work can be performed more efficiently if persons are allowed to specialize. This is also
known as division of labour.
2) Rather than the entire job, by one individual it is broken down into a number of steps, with
each step being computed by a separate individual. Individuals specialize in doing a part of
an activity.
3) Management saw this as a means of making the most efficient use of employee skills
.They felt that if all workers had to do all activities. They would have had to be trained in all
skills demanded by the job. The result is that except hen doing the most skilled or highly
complex task, employees would be working beyond their skill level. They would have to be
paid more as wages are determined by the highest level of skill.
4) Skill increases with repetition. Less time is spent in changing tasks, in putting away tools
and equipments of one job and getting ready for another. Its easier and less costly to train
workers to do highly repetitive work It increases productivity.
5. By the 1960s :- studies revealed that people suffered from boredom , fatigue, stress, low
productivity , poor quality , increased absenteeism &high turnover.
II Departmentalization:-
1. Once jobs have been divided as per speciation they are to be grouped together so that
common tasks can be co-ordinated. This is called departmentalization .it is process of .
2. The major benefit is that it provides for efficiency by putting specialists together
dividing the work of an organization into various departments
7. Type of customers: - this helps to solve problem of customers because generally they
tend to have similar type of problems & needs.
Each basis has its own advantages and limitation one basis may not beneficial for another.
Factors:-
1. Specialization:- The organization is merely division of work. Fayol said that the more an
organization structure reflect the economic division of work in an enterprise through grouping of
activities is a departmental form ,the more effective and efficient it is in attaining organization
goals. This is called specialization but if the work is over specialized, there is a loss of
motivation as well as accomplishment.
2. Coordination:- Every department has the same organization goal-there may be a difference
in departments, the nature of jobs and skills required. Therefore, there must be coordination and
cooperation. In order to make the best use, sometimes different jobs and skills are put under one
manager for better coordination.
3. Control:- Control means to ensure that work is going on as per plan, and to locate the point
of direction where there is a discrepancy. Departmental bifurcation helps not only in physical
control, but also control over production and ensure accountability.
6. Adequate Attention: - There should be adequate attention for each department so that work
goes on smoothly and no duplication of work .Future organization requirement should also be
kept under consideration.
7. Human consideration: - All aspects need not be considered mechanically human aspects
should also be paid to aspects like culture, tradition, value system, attitudes, etc.
4. Degree of Decentralization:-
5. Planning:-
If subordinates know their jobs & there is taken care well at planning stage
they need to consult the supervisor less frequently.
This helps to reduce the manager’s load and increases the span of
management.
7. Communication Technique:-
4. Manager cannot delegate authority which he himself does not possess or his entire
authority.
5. Can be specific/general- written/unwritten.
Structure is the arrangements of its subsystems and component at a given moment of time
this includes the structure as well as process.
Design involves
Need:-
2. Encouraging growth:- it is the framework with their which the organization this
requires a flexible structure.
There is no best way. That design is good which meets the requirements,
1. Simplicity
2. Flexibility
1. Process Approach:- identifying the sequence of events and there deciding the various
units of orgn Emphasizes on;
Advantages:-
Limitations:-
2. Result Approach:-
Steps:-
3) Determining the requirement for success and function skills to meet them.
3) Decision Approach:-
The answers would determined this degree of authority in a position, it interaction with other
positions and the placement of the position in the organization.
Process in Design:-
1) Identification of activities
2) Grouping of activities
3) Delegation in authority
- structure
- span of control
CHRACTERISTICS:
CHARACTERSTICS:
Behavior
1. Resistance to change – Every group promotes certain value and norms soon these become
law to those groups. Any change is ephemerally resisted. Modern organization requires many
changes.
2. Generation of ramous - They usually are the basis’s of release of tension. It may go against
directives.
4. Social conflict - Jokes, gossips, idle conversation at the cost organizational time is costly.
(1) Facilitating Management Action: There has been some sort of formal structure.
(3) Communication:
1. The organization structure should direct management attention to the companies’ sources
of competitive advantage.
The structure should distribute responsibilities in such a way that management attention is
focused on targeted customers. If no particular unit has the responsibility of the target market,
the organization structure should be revamped
2. The organization structure should enable the corporate parent to add value to the
organization.
The corporate head quarters have to do such functions as maintaining govt. relation, research,
coordination between units. Each assignment must have a manager with specific
assignments.
3. The structure reflects the strength, weakness and motivation of employees.
4. The company considers all the constraint that may impede the implementation of the
organization structure.
While designing, legal aspects have to be taken into consideration the interest of the stock
holders must also be taken care of.
5. The organization structure protects business units that need distinct cultures.
In some organization there are departments like research, product development units
which require specialist areas they should be insulted from other departments.
6. The organization structure provides coordination’s solutions for unit to unit link. It is
important for different unit to coordinate with each other .this kind of coordination helps
in total collaboration between units.
7. The organization structure does not have many parents’ level and units. Front line units
should be allowed to take decision and these decisions should be put up to upper level for
approval when those decision can add value unnecessary level should be removed.
9. The organization structure facilitated development of new strategies and provides the
flexibility to adopt to change. A good organization is fit for the present as well as flexible
for future.
1. Classical
2. Neo classical
3. Modern
c. Emphasis on the detection of errors and their correction after they have happened.
2. Administrative
Scientific management: - Tylors frank and Lillian gilbraith, henrey Gantt and Harrington
Emersson. Effective use of human beings in industrious have been investigated,
especially in routine tasks. There jobs are usually performed on the work floor operative
levels.
Tylor based on his studies in Midvale and Bethlehem perceived several new function of
manager.
Supervision of different areas by the some supervisors or job analysis used in time
motion and fatigue.
Critical analysis :-
To Max weber , Henry fayol, L Gulick, Oliver Sheldon, J.D. nooney and A.C. Reiley.
This theories views the central problem as being one where there must be
identification of tasks necessary for achieving the general purpose of the organization and
the grouping of people into department.
Max weber has emphasized that autocratic organization is the most rational means of
caring out total control over human being there most specialization hierarchy, authocity,
impersonal relation in a bureaucracy
The organization functioning from managements point to view and found the
activities of an organization to the divided into 6 group-
1. Technical
2. Financial
3. Accounting
4. Commercial
5. Security
6. Managerial
a. Planning
b. Controlling
c. Organizing
d. Commanding
e. controling
4. Unity of command.
5. Unity of direction.
7. Remuneration of personnel.
8. Centralization.
9. Scalar Chain:- ranging from highest to lowest. flowing through each position in the line
of authority.
11. Equity:-Combination of justice and kindness. good sense, experience and good nature.
SUMMARY
1. Division of work.
2. Departmentalisation.
3. Coordination.
Neo-Classical Theory:-
This has developed as a reaction to rationality and efficiency obsession of the classical theory
because it disregarded the impact of human beings on an organization. This theory started from
the findings of hawthorne Experiments.
Essence:-
1.Organisations started should be viewed not only as an organization of technical and economic
existences, but also as a social organization.
2. The social environment of the job affects people and also affects the department. It is not
affected by management alone.
3. Both informal as well as formal organizations exist within the organization.
4. Human beings are not totally rational0-behaviour can be predicted in terms of social and
psychological factors.
5. Human diverse motivational pattern and tries to fulfill different types of needs.
6. The integration between individuals and the organization is very important. Its
importance increases especially when there is a conflict between individuals and
organization.
7. Communication is necessary because it not only carries information necessary for the
functioning of the organ, it also coveys the feelings and sentiments of the people.
8. Team -work is essention –This does not come automatically, but through behavioural
approach.
The organization should be designed in such a way that meets the basic postulates. The
emphasis is on flat stretch and provision of informal organizations. There should be wide
span of control.
Essential factors:-
1. Flat structure:- Tall structures lead to increased difference between decision makers &
implementers, lack of motivation ,also expensive because of too many levels.
2 Decentralization:-
3. Informal organization:- this help the limitation of the formal system to meet the members
need. Especially the psychological needs.
Has given a new dimension to managed in an organization .the major problem are ,
1. Neo. Classical theory lack unified approach of organization theory this is merely a
modification of classical theory. It suffers from the same problem.
2. Host of the assumption on which the theory is based are not true. It is not true that
3. Various structures and designs gives by the neo classical theory are not applicable to
all situations. Consideration on for the people working in an organization is important but
it has the limitations .a suitable organization is which takes care of different variables and
factor. people may by fast one of the factors.
system approach:- an integrative system which deals with the organization is it’s
totality .it studies and analysis the mutually dependent variables is the organization. It
suggests 3 aspects of organization structure.
2:- lateral relationships:- emphasis is laid on the lateral approach and relationship among
people. This is in contrast to vertical relationship emphasized by classical theory. And
horizontal relationship of new- classic theory. Though both are important later
relationship achieves co-ordination more effectively by eliminating heirarchial control
ORGANISATIONAL EFFECTIVENESS
EFFICIENCY EFFECTIVENESS:
2) It may be inefficient but because of external enviornment it may earn profit & show
effectiveness.
3) Both efficient & effectiveness. This is required for long term survival.
MEASUREMENT OF EFFECTIVENESS:
REASONS:
1. Management must know whether things are being done rightly. what else?
2. Organisation must satisfy the needs of people by measuring the volumes of satisfaction
may be weighed.
I. GOAL APPROACH:-
--High productivity.
Factors-
Quality
Produtivity
Readiness
Effciency
Profit or return
Morale
Motivation
Satisfaction
Limitations:-
In this approach, organisation effectiveness is measured by taking into account the behaviour of
the people who make up the organisation.
Assumptions:- 1. Individuals have one knid of goal & collectively. They have other goals.
Alternatives:-
Limitations:-
This model emphasizes the distinctiveness of the organisation as an identifiable social structure
or entity & it emphasizes the interdependency of processes. This takes the form of INPUT –
OUTPUT transactions of various kinds relating to various things. These are scarce and valued
resources. They are generally means or facilities that are potentially controlled by social
organisation and are usable in relationship between an organisation and its enviornment.
Organisation effectiveness is defined in terms of bargaining position, as reflected in the ability of
the organisation, in either absolute or relative terms, to exploit its enviornment in the acquisition
of scarce and valued resources. It excludes any specific goal as the ultimate criterion of
organisation to generate its own resources. Specific goals may be incorporated in 2 ways:-
Thus the better the bargaining position of the organisation. The more capable it is in obtaining its
varied goals. It also becomes more capable of attaining the personal goals of its members.
Limitations:-
This approach considers only relevant environment of the organisation under reference and takes
into account those factors which have impact on the operation of the organisation.
This approach considers not only the inputs received from the environment, but also the exports
that are outputs to the environment. The organisation effectiveness depends on the degree to
which the organisation is able to satisfy the constituencies.
1. Identify the relevant 7 strategic constituencies & their impact on the organisation.
2. Identify the expectations of the constituencies & the way to meet lose expectations.