ORGANIZATIOINAL

STRUCTURE AND PROCESS

Prepared By:
Name: Roll No
Kumar Aditya 140018
Priyanka Srivastava 140028
Shikha 140036 ASSIGNED BY: Prof.Sayan Banerjee
 EXTERNALITY: When there is an economic transaction between the two parties and its effect will be on the
other party.

 SOCIAL STRATIFICATION: Where there would be a socially unequal distribution of demographic

characteristics.

 BUREAUCRACY- MAX WEBER

 All types of companies have the same structures as the organization.

INDUSTRIALIZATION PROCESS

Pre Industrialization Post Industrialization

• Work from home
• Customized product
• Generation of professionals
• Less efficient
• Separation of work from home
• Jobs were delineated
• No Customization
• More efficient
• Hierarchy was developed
Contingency theory
It is said that as technological advancement increases it affects the types
of organizations that require different types of organizational structure.

It has three types of production systems:

Continuous Production System

Bulk Production System

Customized Production System

 • DIMENSION OF FORMAL STRUCTURE
Complexity
• Horizontal Complexity
Formalization Centralization • Vertical Complexity
• Spatial Complexity
I. Functional
Formalization
II. Manufacturing
III. Standardized
1. Rule observation
 Extent to which any kind of deviation from the job
1. Job codification
 Details pertaining to do job .
 More job details are defined, and the more the organisation is formally graded
Centralization
1. Frequency of Participation in decision making process
2. Level of autonomy granted to an individual by their superior to do their job
 Director

Marketing Finance Production

department department department

Figure: Horizontal complexity Figure: Vertical Complexity

 Types of Organization

Mechanistic Organization Organic Organization

Mechanistic structures strengths

 They are stable

 Employees specialize at what they do best

 There is clear accountability for the work getting done

Organic structures strengths:

 Unstable environment

 Higher Flexibility
Extrinsic Factors in Organization
Size
 Correlate size with the no. of job heads

Technology

Related with sequence of activities which is related to the organization

TYPES of Task Independence:-

• Uncertainty factors-
X Y X Y
1. Knowledge of means and end

The extent to which we know that by doing “x” we will reach “y”

1. Variability in Input

Variability in input increases as technology complexity rises

When work is more certain, “x” work results in “Y”

The uncertainty factor will be higher when there is a blurred relationship between
“x” and “y”.
 Relation between organic and mechanistic structures

ORGANIC MECHANISTIC

PROJECT Champion
ORGANIC
SSS
Integrate the organization's organistic

and mechanistic phases

Cross-functional team

Coordination between the two organisations must

be found by the cross-sectional team.

 Different types of organization

1) Multi national corporation

MNC businesses have diversified portfolios based on their respective nations

MNC used to cater the local according to their needs

2) Global organization

Not much bifurcation needed from the customer irrespective of the country

Demand tends to be same throughout the world

Per capita cost of production is less in global sector

Sequence of activities :-

UPSTREAM(Organic Structure) DOWNSTREAM(Mechanistic Structure)

The flow will be basically from upstream to downstream

(Modified Version)

Definition- Bringing something fresh to the organisation

Mechanistic in nature

Impetus- strategy wise thinking

Organic in nature

Implementation-executing the large scale manufacturing of the item

Mechanistic in nature
 Technological Innovation

Exploitative Explorative

Exploitative

 New features are added to an existing product.

Explorative

 New discoveries and innovations appear.