6 Elements of Organizational structure

An organization structure defines how job tasks are formally divided, grouped and coordinated. There are six elements that mangers need to address when they design their organization s structure are:a) Work specialization: Describes the degree to which tasks in an organization are divided into separate jobs. The entire job being done by one individual, it is broken down into a number of steps, with each step being completed by a separate individual. When work is divided into groups and assigned to different people as per their specialisation, it can be done more efficiently and also gives a quality output. b) Departmentalisation: Once the jobs have been divided through work specialization, these jobs have to be grouped together so that common tasks can be coordinated. The basis by which jobs are grouped together is called departmentalization. There are five common forms of departmentalization. 1) Functional Departmentalization: The activities that can be grouped by functions performed. An organisation has many functions such as accounting, production, maintenance, administration and as per the specialisation of an individual he contributes his knowledge to that particular department of an organisation. 2) Product Departmentalization: Each organisation may be producing a major product or wide segments of products, when a individual is made responsible for the output he becomes accountable for it and gives in more efforts thus increasing the productivity. 3) Geographical Departmentalization: This type of departmentalisation is mostly used but service industries or even the marking department of a company can be made responsible to handle sales of a particular territory. Regional departmentalisation becomes more sales efficient instead of a centralised marketing force. 4) Process Departmentalization: A product becomes a final product when it goes through different phases or many components which are manufactured separately but are assembled together to form a final product. 5) Customer Departmentalization: A company can form its department s on the basis of which categories of customer groups they are catering to like corporate, retail, government etc. c) Chain of command: It is a hierarchy which start from the top level to the bottom level, according to which each employees has to report to his senior. There are three important concepts attached to this theory: 1) Authority: Authority refers to the rights an individual inherits as a manager, which gives him right to direct his subordinates to achieve the common goals of an organisation. 2) Responsibility: That individual has the bear the responsibility of the work he has done. 3) Unity of command: Each individual as a manager or an employee has to only one senior.

Mahesh D. But in the case of decentralisation the rights to take decision are given to the employees so that there is no delay in the decision making process which ultimately affects the productivity of the company. By: . e) Centralisation and Decentralisation: Centralisation means all the decision of the decisions of organisations are taken by one central authority with little inputs from the subordinates. Shenvi Narvekar .d) Span of Control: Span of control mean how many people a manager can handle efficiently & effectively. And also the employees are given the sense of satisfaction that they are also involved in the decision making process o n the company they are working in. It forms a very important part in determining the organisation structure of a company. f) Formalization : It refers to the extent to which the employees and the management follow the rules & regulation laid down by the organisation.

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