Elements of organisational structure Work Specialization

Work specialization ensures that each employee has a set of specific duties they're expected to perform based on their work experience, education and skills. It prevents employees from being expected to perform tasks for which they have no previous experience or training.

Departmentalization

The departmentalization element breaks down how jobs are grouped together to create departments. Departments are created based on the types of jobs employees perform, the products or brands they're assigned to, geographical locations or customer needs.

Chain of Command

In a company, each employee is expected to report to one manager, rather than to several. Mangers are responsible for assigning tasks, informing employees of expectations and deadlines and offering motivation. Managers are also available to answer job-related questions from employees and handle conflicts within their departments. Employees are responsible for completing duties assigned to them by their manager accurately and in a timely fashion.

Span of Control

Span of control suggests how many employees each manager can handle within an organization. This element of organizational structure also outlines the number of mangers an organization needs, which is typically determined based on the number of employees and departments a company has.

Centralization and Decentralization

In a centralized organization, all decisions are made by c-level managers such as the chief executive officer, chief operating officer and chief marketing officer. Centralization leaves department managers with little to no input. This system is typical in larger, corporate organizations. A decentralized system affords all managers the opportunity to give input, while bigger decisions are still made by c-level managers.

Formalization

Formalization is the element that outlines employee roles within a workplace, as defined by the rules and guidelines developed by management. Formalization determines whether employees have to sign in and out upon arriving and exiting the office, frequency and length of breaks, computer usage and dress code.

Factor effecting organisational structure

Organizational size
The larger an organization becomes, the more complicated its structure. When an organization is small such as a single retail store, a two-person consulting firm, or a restaurant its structure can be simple. In reality, if the organization is very small, it may not even have a formal structure. Instead of following an organizational chart or specified job functions, individuals simply perform tasks based on their likes, dislikes, ability, and/or need. Rules and guidelines are not prevalent and may exist only to provide the parameters within which organizational members can make decisions. Small organizations are very often organic systems.

Organization life cycle

Organizations, like humans, tend to progress through stages known as a life cycle. Like humans, most organizations go through the following four stages: birth, youth, midlife, and maturity. Each stage has characteristics that have implications for the structure of the firm.

Birth: In the birth state, a firm is just beginning. An organization in the birth stage does not yet have a formal structure. In a young organization, there is not much delegation of authority. The founder usually calls the shots. Youth: In this phase, the organization is trying to grow. The emphasis in this stage is on becoming larger. The company shifts its attention from the wishes of the founder to the wishes of the customer. The organization becomes more organic in structure during this phase. It is during this phase that the formal structure is designed, and some delegation of authority occurs. Midlife: This phase occurs when the organization has achieved a high level of success. An organization in midlife is larger, with a more complex and increasingly formal structure. More levels appear in the chain of command, and the founder may have difficulty remaining in control. As the organization becomes older, it may also become more mechanistic in structure.

Maturity: Once a firm has reached the maturity phase, it tends to become less innovative, less interested in expanding, and more interested in maintaining itself in a stable, secure environment. The emphasis is on improving efficiency and profitability. However, in an attempt to improve efficiency and profitability, the firm often tends to become less innovative. Stale products result in sales declines and reduced profitability. Organizations in this stage are slowly dying. However, maturity is not an inevitable stage. Firms experiencing the decline of maturity may institute the changes necessary to revitalize.

Strategy
How an organization is going to position itself in the market in terms of its product is considered its strategy. A company may decide to be always the first on the market with the newest and best product (differentiation strategy), or it may decide that it will produce a product already on the market more efficiently and more cost effectively (cost-leadership strategy). Each of these strategies requires a structure that helps the organization reach its objectives. In other words, the structure must fit the strategy. Companies that want to be the first on the market with the newest and best product probably are organic, because organic structures permit organizations to respond quickly to changes. Companies that elect to produce the same products more efficiently and effectively will probably be mechanistic.

Environment
The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legalpolitical, technological, and natural environment conditions. Environments are often described as either stable or dynamic.

In a stable environment, the customers' desires are well understood and probably will remain consistent for a relatively long time. Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. In a dynamic environment, the customers' desires are continuously changingthe opposite of a stable environment. This condition is often thought of as turbulent. In addition, the technology that a company uses while in this environment may need to be continuously improved and updated. An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers.

Technology

Advances in technology are the most frequent cause of change in organizations since they generally result in greater efficiency and lower costs for the firm. Technology is the way tasks are accomplished using tools, equipment, techniques, and human know-how. In the early 1960s, Joan Woodward found that the right combination of structure and technology were critical to organizational success. She conducted a study of technology and structure in more than 100 English manufacturing firms, which she classified into three categories of core-manufacturing technology:

Small-batch production is used to manufacture a variety of custom, madeto-order goods. Each item is made somewhat differently to meet a customer's specifications. A print shop is an example of a business that uses small-batch production. Mass production is used to create a large number of uniform goods in an assembly-line system. Workers are highly dependent on one another, as the product passes from stage to stage until completion. Equipment may be sophisticated, and workers often follow detailed instructions while performing simplified jobs. A company that bottles soda pop is an example of an organization that utilizes mass production. Organizations using continuous-process production create goods by continuously feeding raw materials, such as liquid, solids, and gases, through a highly automated system. Such systems are equipment intensive, but can often be operated by a relatively small labor force. Classic examples are automated chemical plants and oil refineries.

Steps of changing organisational structure

Identify and Understand the Current Structure

Before an organization makes changes, it must first understand the way things work in the present. Review the business plan, including the mission, vision and goals, and determine the changes that need to be made. Take a closer look at the organization chart and carefully analyze if the company has enough management to supervise plenty of workers, or too many managerial positions and too few workers.

Preparing Employees
Gaining buy-in from employees at all levels of your organization is crucial to success in a transition as overarching as a change in organizational structure. Seek input from employees through formal feedback systems and informal conversations before beginning the planning process. Take employees' ideas seriously, and invite innovative idea-generators to participate in planning meetings. Clearly explain the need for the change in structure to all employees. Explain the need in terms that relate to each employees' individual roles, as well as how the change will benefit the organization as a whole. Also explain how the change will positively affect each employee and enhance their positions in the company. Send regular updates on the planning process to all employees via email, company newsletters, company meetings and informal conversations. Always be open to feedback when sending updates.

Planning And Implementation

Take the time to create thorough, formal plans to implement the transition from your old organizational structure to your new structure. Map out how physical workspaces and work groups will be moved or reorganized. Create plans to transition managerial information and duties among employees, and to ensure that all department-relevant information is preserved and reorganized according to the new structure. Implement the transition one step at a time rather than throwing the entire package into the works all at once. As an example, consider that you wish to transition from a tall organizational structure to a flatter structure where front-line employees are empowered to make managerial decisions. It would be a good idea to make the transition in one department at a time, first putting employees through training sessions to give them the information and skills required in their new roles, then formally moving line managers into other positions in the company.

Monitoring
Keep feedback mechanisms in place after implementing the transition. Rather than viewing the transition as a finished project, consider it a work in progress; use feedback from employees to finetune or alter specific aspects of the new structure. Allowing employees a voice after the transition can add uniqueness to the structure, bringing it closer to a structure that is best suited to maximize the efficiency and effectiveness of your operations while keeping employees satisfied.

Cross culture dimentions :hosfede analysis

According to Geert Hofstede, there is no such thing as a universal management method or management theory, valid across the whole world. Even the word 'management' has different origins and meanings in countries throughout the world. Management is not a phenomenon that can be isolated from other processes taking place in society. It interacts with what happens in the family, at school, in politics, and government. It is obviously also related to religion and to beliefs about science.

The five Cultural Dimensions of Hofstede

The cultural dimensions model of Geert Hofstede is a framework that describes five sorts (dimensions) of differences / value perspectives between national cultures:

Power distance. The degree of inequality among people which the population of a country considers as normal. Individualism versus collectivism. The extent to which people feel they are supposed to take care for, or to be cared for by themselves, their families or organizations they belong to. Masculinity versus femininity. The extent to which a culture is conducive to dominance, assertiveness and acquisition of things. Versus a culture which is more conducive to people, feelings and the quality of life. Uncertainty avoidance. The degree to which people in a country prefer structured over unstructured situations. Long-term versus short-term orientation. Long-term: values oriented towards the future, like saving and persistence. Short-term: values oriented towards the past and present, like respect for tradition and fulfilling social obligations.

To understand management in a country, one should have both knowledge and empathy with the entire local scene. However, the scores of the unique statistical survey that Hofstede carried out should make everybody aware that people in other countries may think, feel, and act very differently from yourself, even when confronted with basic problems of society. Any person dealing with Management or Strategy is well advised to constantly remember the lessons from Hofstede's Cultural Dimensions Theory. Human beings have a deceiving tendency to think and feel and act from their own experiences, especially when they work internationally.