DESIGNING

ORGANISATION
 ORGANIZING
• Organizing is a systematic process of structuring , integrating ,
coordinating task goals and activities to resources in order to attain
objectives.
 ORGANIZATIONAL STRUCTURE
• An organizational structure defines how activities such as task
allocation , coordination and supervision are directed toward the
achievement of organizational aims.
 ORGANIZATIONAL DESIGN
• Organizational design is a step-by-step methodology which identifies
dysfunctional aspects of work flow , procedure, structures and
systems , realigns them to fit current goals and then develops plans to
implement the new changes.
 ORGANIZATIONAL DESIGNS
Organizational design have 6 key elements;
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization & Decenteralization
• Formalization.
 WORK SPECIALIZATION
Work specialization is dividing work activities into separate job tasks. Individual employees
specialize in doing part of an activity rather than the entire activity in order to increase work output.
It is also known as the division of labor.
Work specialization allows managers to break down complex tasks into smaller more specific tasks
that the workers or employees can complete. Every worker is trained specifically on how to perform
a small, particular task in the best way.
 DEPARTMENTALIZATION
Departmentalization is an aspect of organizational design that includes the
subdivision of a business into units based on their function or other criteria . Most
companies , including restuarents, are likely to use two or more types of
departmentalization
 TYPES OF DEPARTMENTALIZATION
 Functional
 Geographical
 Product
 Process
 Customer
 Functional departmentalization

In functional departmentalization , an organization is organized into

departments based upon the respective functions each performs for
the organization.
 Geographical departmentalization

Grouping jobs on the basis of territory or geography.

 Product departmentalization

Product departmentalization typically groups tasks related to a

particular product or product line under one senior manager who
specializes in that aspects of the company’s business.
 Process departmentalization

Grouping activities on the basis of product , services or customers .

Process departmentalization allows homogenous activities to be
categories in which each process requires different skills.
 CUSTOMER DEPARTMENTALIZATION

Grouping activities on the basis of common customers or types of

customer. Different departments are made to serve the common type
of customers. The assumption is that the customer of each department
have common problems or need which is fulfilled by the departments.
These departments are under supervision of the specialist who meet
the problems & needs of the customers.
 CHAIN OF COMMAND
Chain of command is the authority , communication & responsibility
along which orders are passed in the organization. We can say that the
order from top management to the lowest rank is the chain of
command.
 SPAN OF CONTROL
Span of control is that a manager can handle how many employes in
organization efficiently and effectively . Manager is how much capable
enough to direct the employees. Whether employees are following his
command or not.
 SPAN OF CONTROL
Skills and abilities of the manager
Employee characteristics
Characteristics of work being done
Similarity & complexity of task
Standardization of task
Strength of organization culture
Preferred style of the manager
 CENTRALIZATION &
DECENTRALIZATION
 CENTRALIZATION:
Centralization refers that decision making in the organization can be done by only
top management. It is formal authority that top management will give decisions
which will be followed by every one without any changes
.
 DECENTRALIZATION
DECENTALIZATION refers that decision making is not only restricted to top
management. Decision are also made by lower level employees because thy are
more towards the action of performance.
 Difference between Authority, Responsibility &
Accountability
• Authority , it is the right to give orders and the power to exact obedience.
• Responsibility , it is nothing but the duty that comes along with the job. It is
the obligation of the person to complete the task gi ven him/her
• Accountability, it is the obligation os an individual to report formally to his
superior about the work he has done to discharge the responsibility.
 FORMALIZATION
Standardization of job within the organization is called formalization.
The rules & regulation within the organization are strictly followed. It is
clear that what is to be done, when it is done and how it is to be done.

EXAMPLE : Every one should be on their desk 8:00 am sharp and salary will be
deducted RS. 200 on every absent who ever has more than 3 ab sent in a month.
 MECHANISTIC & ORGANIC
STRUCTURE
• Organizational Structure, The organizational structure refers to the type of
framework a company uses to distinguish power and authority, roles and
responsibilities, and the manner in which information flows through the
organization. An organization must choose a structure that is appropriate for its
individual needs and allows for the company to react and adapt to uncertainties
and changes in the internal and external environments.
• Mechanistic Structure, A mechanistic structure, also known as a 
bureaucratic structure, describes an organizational structure that is based on a
formal, centralized network. The mechanistic structure is best suited for
companies that operate in a stable and certain environment. In general, a
mechanistic structure is easy to maintain and rarely needs to be changed when
an organization operates in a stable environment.
THANK YOU……