You are on page 1of 27

BY OM SWARUP BINDHANI 10908756 BBA-MBA

ORGANIZING: Arranging and structuring work to accomplish the organizational goals. ORGANIZATIONAL STRUCTURE: The formal arrangement of jobs within an organization. ORGANIZATION DESIGN: Developing or changing an organizations structure. WORK SPECIALIZATION: Dividing work activities into separate job tasks.

It helps an organization take advantage of functional specialization. It defines the role of each individual and helps to know the part to play in the organization. It facilitates, control, coordination and communication. It provides the platform to build loyalty among members. It helps manager identify and locate sources of skills, information and competence to take vital decisions.

FOUR MAJOR TYPES: FUNCTIONAL STRUCTURE DIVISIONAL STRUCTURE HYBRID STRUCTURE MATRIX STRUCTURE

1. 2. 3. 4.


1. 2.

ADVANTAGES:
Structure is logical and had the test of time. Helps the organization employ a great variety of skills and utilize Clarity about clear paths Specialization Coordination In-depth skill development Power and prestige Makes training programmees simple and top level to have control and responsible.


1.

DISADVANTAGES

Boredom and monotony 2. Poor decision making 3. Sub units conflicts 4. Managerial vacuum USES It can be used in small and medium sized organization. It require a formal structure. For eg. Dominos pizza inc.

1.

2.
3.

It is a type of departmentation in which positions are grouped according to similarity of products , services or markets Process of dividing large functional pyramids into smaller, flexible and administrative units. It is designed to promote independent and selfcontained units. Three major structure of divisional on basis of Product Geographic Customer

Concentrated on single products or service Suitable for large multi product organization The large units are divided into small divisions and each division is responsible for its performance and profitability. Emphasis on results and performance. The divisional head is responsible for the performance and holds complete strategic and operating decision-making authority. Is also responsible for product modifications and new product development. Each department is having its own functional specialties departments.


1.
2. 3. 4.

ADVANTAGES
Facilitates the growth and diversified of products and services. The performance can be compare and analyzed. Dropping of unprofitable to profitable products. Basic functions are performed by department, this facilitate better timing and customer service. Organizing by product and product lines is an important basis of departmentation. DISADVANTAGES Product divisions require with general managerial abilities. Increase the problem of control at top level Problems in coordination, decision making, and control.

1. 2. 3.

USES

1.

2.

3.

Organizations that required specialized knowledge for selling and marketing different products. To reduce the cost by improving the decentralization in the product division which is high. Organization combine two organizational structure to facilitate better control.

Designed to serve different geographic areas. These are mainly in organization which operate over wide geographic areas. For eg. Banking, insurance, transportation firms. Each units self-sufficient in manufacturing, marketing and sales to grab the local market. Adopted by the organization that provide products and services customized to the different regions. Activities are grouped area wise into zones, divisions, sections, and branches on basis of need, tastes and facilities.

Business firms adopt this when similar options undertaken in different areas, chain retailing, wholesaling, automobile assembling.

1.

2.

3.

4. 5.

ADVANTAGES To pay special attention to the needs and problems of local markets. Same kind of work is performed in different manner in different locations. This provide opportunities for local talents to be utilized where recruitments can be done from that local area. Organizations can follow this to reduce the cost of transportation of the finished goods or minimize the delivery time. Advantage for lower labor rates in certain regions by creating employments. This increases the image and develop the good will.

1.

2.

1.

2.
3. 4.

Improve organizational relationships with customers and avoid delays in customers problems. Help managers to gain extensive knowledge of diversified activities. DISADVANTAGES Requires more managers which can hampers the growth. Communication problem which has been replaced by optical medium of communication. Cost of operation is high due to duplication of same tasks. Top managers at head quarters finds its difficult to control and supervise the activities at department level in different regions.

To serve particular type of customers and clients. These focused to different needs of various segments of customers. ADVANTAGES 1. Can address different needs of customers. 2. Specialized persons who can understand the consumer behavior which is very important to follow.

DISADVANTAGES 1. Coordination between sales and other functions become difficult as the customer division is a part of marketing. 2. Customers may put pressure on the management to get their needs.

This adopts both functional and divisional structure. Many organizations follow this structure as to utilize the benefits from both the structures For eg., I.B.M, TATA, RELIANCE and many more. ADVANTAGES 1. By these the organizations can achieve the competency on prime functional areas as well as on products section. 2. This helps to have balance between divisional and corporate goals.

DISADVANTAGES 1. They grew huge, developing large staffs which exercise greater control over the divisions which lead to discord.

MATRIX STRUCTURE
A matrix structure of organization helps the organization run smoothly according to the projects that have to be completed by the employees at a given point of time. It starts from the general manager of the company at the top, and then goes down to the heads of the production, research and development and marketing departments, besides all the heads of the other departments in the organization.

ADVANTAGES 1. Its facilitates decentralization of decisions, so that the decisions can be taken by functional or project manager. Its help to focus on strategic issues. 2. Chances of success in projects are higher. 3. This acts according to the environment conditions with respect to both projects and functional areas. 4. Effective use of human resource is there.

DISADVANTAGES 1. Administration costs are higher because of additional hierarchy of project managers and immediate support staff. 2. Individuals working under two bosses, they are unclear about who is having authority and responsibility.

HYBRID STRUCTURE A hybrid organization structure is one that combines the characteristics of both a product structure and a functional structure. In this structure, functions important to each product or market are decentralized, whereas other functions are centralized. MATRIX STRUCTURE Horizontally, a team based structure that crosses the traditional, functional boundaries is developed. This team based structure focuses on ongoing , major imperatives for re- creating the organization through reengineering.