Organizational Structures

1. The Simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization and is often used in the very early stages of a firm

Example for Simple Structure
M. S. Ramaiah School of Advanced Studies


Organizational Structures
2. In a Functional structure, common in both profit and nonprofit organizations, people with similar occupational specialties are put together in formal groups. President

VicePresident, Production

VicePresident, Marketing

VicePresident, Finance

VicePresident, Human Resources

Functional Structure: An Example
M. S. Ramaiah School of Advanced Studies


S. a Divisional structure is in place ‡Product divisions group activities around similar products or services ‡Customer divisions group activities around common customers or clients ‡Geographic divisions group activities around regional locations M.Organizational Structures 3. When people with diverse occupational specialties are put together in formal groups. Ramaiah School of Advanced Studies 3 .

Ramaiah School of Advanced Studies 4 . S.Divisional Structure: Examples Product Divisional Structure Motion Pictures & TV Division Music Division President Magazine & Book Division Internet Products Division Customer Divisional Structure Consumer Loans Mortgage Loans President Business Loans Agriculture Loans Geographic Divisional Structure Western Region Northern Region President Southern Region Eastern Region M.

Ramaiah School of Advanced Studies 5 . S.Conglomerate Structure Organizational Structures 4. The Conglomerate structure groups divisions or business units around similar businesses or industries President Electronics Fire & Security Healthcare Plastics & Adhesives Engineered Products & Services Conglomerate Structure: Typical example of the structure of Tyco International M.

Ramaiah School of Advanced Studies 6 . A Hybrid structure uses functional and divisional structures in different parts of the same organization Product Divisional Structure President Cadillac President Buick President President Pontiac VicePresident.Hybrid Structure Organizational Structures 5. Production VicePresident. Marketing VicePresident. Finance Functional divisional structure Manager Region I Manager Region II Manager Region III Manager Region IV Geographical divisional structure Hybrid Structure: An Ex. S. of Org St of General Motors M. Human Resources President Chevrolet VicePresident.

When an organization combines functional and divisional chains of command in a grid so that there a two command structures.Organizational Structures 6. a Matrix structure is used President Functional Structure Vice President. Taurus Project Manager. Production 7 . Engineering Vice President. Explorer Project Manager. Expedition Vice President. Finance Vice President. Ramaiah School of Advanced Studies Project structure Project Manager. Marketing Subordinate reports to Vice President of marketing & Project Manager for Mustang M. Mustang Project Manager. vertical and horizontal. S.

are used to improve horizontal relations and solve problems throughout the organization Functional Structure V President R&D Project Teams Product Team Mfg Light Truck Project Team members Product Team Mfg Sedans Product Team Mfg Sports Cars President V President Design V President Engineering V President Marketing M. S. teams.Organizational Structures 7. In a Team-based structure. Ramaiah School of Advanced Studies 8 . both temporary and permanent.

S. Asia Engineering Company Japan Distribution Company Accounting & Finance USA M. The Network structure or Virtual organization has a central core that is linked to outside independent firms by computer connections which are used to operate as if all were a single organization Design Studio Sweden Components Assembly Core Company USA Mexico. Ramaiah School of Advanced Studies Canada 9 .Organizational Structures 8.

Ramaiah School of Advanced Studies 10 . Leaders do the right things M. S.Leadership Styles Leadership is the art of motivating a group of people to act towards achieving a common goal Managers do the things right.

implementing plans. Ramaiah School of Advanced Studies 11 .Leadership Styles  Leadership style is the manner and approach of providing direction. and motivating people  Different leadership style will result in different impact to organization  The leader has to choose the most effective approach of leadership style depending on situation (because leadership style is crucial for a team success) M. S.

Leadership Styles Types of Leadership Styles:  Authoritarian or Autocratic Leadership  Democratic or Participative Leadership  Delegative or Laissez-faire Leadership M. Ramaiah School of Advanced Studies 12 . S.

Ramaiah School of Advanced Studies 13 .Leadership Styles Autocratic or Authoritarian Leadership Style:  Manager retains as much power and decision making authority as possible  Does not consult staff. S. nor allowed to give any input  Staff expected to obey orders without receiving any explanations  Greatly criticized during the past 30 years  Rely on threats and punishment to influence staff M.

Ramaiah School of Advanced Studies 14 . untrained staff do not know which tasks to perform or which procedures to follow  Effective supervision provided only through detailed orders and instructions  Staff do not respond to any other leadership style  Limited time in which to make a decision  A manager¶s power challenged by staff  Work needs to be coordinated with another department or organization M.Leadership Styles The Most Effective Style to use. When:  New. S.

Ramaiah School of Advanced Studies 15 .Leadership Styles Ineffective. fearful. S. or resentful  Staff expect their opinions heard  Staff depend on their manager to make all their decisions  Low staff morale. When :  Staff become tense. high turnover and absenteeism and work stoppage M.

S.Leadership Styles Democratic or Participative Leadership Style:  Encourages staff to be a part of the decision making  Keeps staff informed about everything that affects their work and shares decision making and problem solving responsibilities  Group members feel engaged in the process and are more motivated and creative  Participative leaders encourage group members to participate. but retain the final say over the decision-making process M. Ramaiah School of Advanced Studies 16 .

When :  Wants staff to share in decision-making and problem-solving duties.Leadership Styles Effective .  A large or complex problem that requires lots of input and feedbacks to solve  Want to encourage team building and participation M.  Wants to provide opportunities for staff to develop a high sense of personal growth and job satisfaction. Ramaiah School of Advanced Studies 17 . S.

S. When:  Not enough time to get everyone¶s input  Easier and more cost-effective for the manager to make the decision  Can¶t afford mistakes  Manager feels threatened by this type of leadership  Staff safety is a critical concern M.Leadership Styles Ineffective . Ramaiah School of Advanced Studies 18 .

but remains responsible for their decisions.Leadership Styles Delegative or Laissez-faire Leadership This Leadership style is a µhands off¶ approach in which a leader transfers decision making power to one or more employees. Ramaiah School of Advanced Studies 19 . M. S.

such as staff specialists or consultants used  Staff trustworthy and experienced M. S. and educated  Staff have pride in their work and the drive to do it successfully on their own  Outside experts.Leadership Styles Effective . When:  Staff highly skilled. experienced. Ramaiah School of Advanced Studies 20 .

Leadership Styles Ineffective . S. Ramaiah School of Advanced Studies 21 . When: Staff feel insecure at the unavailability of a manager The manager cannot provide regular feedback to staff on how well they are doing Managers unable to thank staff for their good work The manager doesn¶t understand his or her responsibilities and hoping the staff cover for him or her M.

Ramaiah School of Advanced Studies 22 . Productivity Press.G.S. Manufacturing Strategy: How to formulate and implement a winning plan. httpwww.worldbank. retrieved on 5th december 2010.incompaniesmaruti. New York. Mani. ACE designers logo.leanmachinetool. M S Ramaiah school of advanced studies. [2] John Miltenburg. httpwww. Maruti logo. 2005 [3] unknown. 2nd Edition. S. January 2010. Bangalore .topnews.aspx.htm#type of organizational structure http://gametlibrary. http://www.nwlink.comIndustry. retrieved on 5th december 2010. Manufacturing Strategy.pdf [4] unknown. [1] Prof V.html Module notes.

S. Ramaiah School of Advanced Studies 23 .M.

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