Org Structure

By Prof Ravi

 Org Structure: Mintzberg Division of tasks and coordinating them. Approaches to Coordination Mutual adjustment:- informal comm/small org Direct Supervision:- Large org/ supvr coord Standardization of employees skills Standardization of Work Process Standardization of outputs

 Forms of Organization: Simple Structure:- Applicable in Dynamic but not complex sit, very few formal rules/policies and centralization of auth and decision making. Machine Bureaucracy:- large org, simple and stable environment. Main coord mechanism is standardization of procedures.

 Professional Bureaucracy:- stable and dynamic environment, main coord mechanism is standardization of workers skills. Professionalism and expertise of employees is given importance. Univs/ prof firms. Divisional forms:- Org has to cater for different markets or clientele. Main coord mechanism is the output of products and services.

 Adhocracy:- Org working in dynamic environment and sit of high tech complexity. Decision making is spread throughout the org. Coord is through mutual adjustment and lot of imp is given to personal communication. Functions of Org Design: Leads to division and grouping of tasks. Act as network to convey info.

 Structure for locating decision centers or authority. Link the work units with customers and suppliers. Structure of the Org:- Two Categories Traditional org structure Modern Org Structure

Traditional Org Structure: function, geography, product and customer. Functional Structure:- organizes employees around specific functional areas. People with specialized skills are grouped together. Sales, finance, marketing etc. Advantages:- fosters professional identity, high degree of specialization, keep pace with latest tech development, direct supervision, common

 Pool of talent, creates economies of scale. Disadvantages:- focus on dept goals rather than org goals, lacks overall connectivity with the org, lack of coord with other units, tunnel vision effect, adverse impact on quality of products and customer satisfaction. Limits the process of developing broad based general managerial skills because of specialization.

 Geographical/ Territorial Structure:- As org grows in size it spreads to new region. Advantages:- suits retail chain/ fast food, promotes competitiveness and quality, creates many profit centers, design is on decline due to ebusiness. Disadvantages:- difficult to make consistency of image, amount of cont to be given to local managers, imp of geographical design decreased due to free trade between countries.

 Customer or Market based :- with each regional territory different types of product lines may be required. Advantages: used in combination with other designs, keeps focus on demand of customers, high employee involvement, customer focus help to modify the behavior of the employees. Disadvantages: duplication of effort marketing and sales, maintaining product expertise

 Product Based org design:- uniqueness of the products rendered to customers. Advantages:- generates entrepreneurial behavior, product lines executive have profit share responsibility. Disadvantages:- difficulty in coordination, conflict among colleagues, duplication of specialization.