BASIC CONCEPTS RELATED

TO ORGANISATION

JEWEL LANZ PATRICK

WAYNE C. TAACA
 OBJECTIVES
01 To know the basic concepts related to organisation

02 To differentiate Departmentation and

Decentralisation

03 To determine the different types of mechanistic and

organic structures of organisation
 WHAT IS AN
ORGANISATION?
ORGANISATION

It is an organized body of people with a particular

purpose, especially a business, society,
association, etc.
BASIC CONCEPTS RELATED
TO ORGANISATION
The term organization is used in the following ways:

Organization as Entity

Organization as Group of people

Organization as Structure

Organization as process
 DEPARTMENTATION

It is the process of grouping

related activities or functions into
specialized units or departments
within an organization
DECENTRALIZATION

In business is when daily operations

and decision- making power are
delegated by top management to
middle-and lower-level managers
and sometimes even team members.
TYPES OF MECHANISTIC AND
ORGANIC STRUCTURES OF
ORGANISATION
 MECHANISTIC VS ORGANIC
ORGANIZATION
MECHANISTIC ORGANIC

Mechanistic Organic organizations

organizations have have a low degree of
centralized decision formality, specialization
making and formal, and standardization.
standardized control Their decision making is
systems. Essentially, decentralized and their
they are bureaucracies. activities are well-
integrated.
 LINE ORGANISATION
STRUCTURE

Line Organisation is the

oldest and the simplest form
of internal
organisation structure.
 MERITS

Sets clearly the

Easy supervision direct lines of
Simple to Quick
and control authority and
understand decisions
responsibility of
line manager
 DEMERITS

Lack of Autocratic Overburden to

Low-morale managers
specializations approach
 LINE AND STAFF
ORGANISATION
Instead of one professional leading the
entire company alone, they appoint
qualified supervisors to manage
associates, which maintains the
authority of the leadership. They also
hire industry experts to complement
the work of the line managers.
 MERITS

Enhances the qualityGreater scope for

It relieves the Reduction of
of advancement
line managers burden
decisions
 DEMERITS

May create
friction or It is It creates
conflict expensive confusion
between line
and stafff
It is a team structure that groups employees into different departments based on areas of expertise.

FUNCTIONAL ORGANIZATION
A functional organizational
structure is a team structure that
groups employees into different
departments based on areas of
expertise. This type of structure is
one of the most common types in
business, especially in larger
companies, where groups of
employees are organized
according to the function they
perform.
 MERITS

Facilitates Disciplinary
Planned Offers clear
large scale controls are
specializations career paths
production well defined
 DEMERITS

Calls for more No clear line Slow decision Lack of

coordination of authority making responsibility
 COMMITTEE ORGANISATION
STRUCTURE
A committee may be
defined as a group of
people performing some
aspects of managerial
functions .
 MERITS

Pooling of knowledge Fear too much

Facility for
and experience Authority in
coordination
single person
 DEMERITS

Slow desicion Splitting of

High cost
Responsibility
 MATRIX ORGANISATION
STRUCTURE
Matrix structure is the
realization of two
dimensional structure which
emanates directly from two
dimensions of authority.
 MERITS

Top Management can

concentrate on
Sound Development
Strategic Planning Specialization
Decisions of Skills Responds to Changes
in Environment
 DEMERITS

Delay In
Increase in Economic Power
Decision-
work load Crunch Struggle
making
 VIRTUAL ORGANISATION
A virtual organization is an
operation where all members of the
company work in different
geographic locations while
appearing as a single unit.
 MERITS

No Healthy Work- Improved

Increased
Unnecessary Life Balance Employee
Productivity
Meetings Retention Rates
 DEMERITS

Reduced Team Potential

Social Hidden
Collaboration Security
Isolation Technological
Costs Risks
 CELLULAR ORGANISATION
In cellular organizations workers
manufacture total product or sub
assembles teams [cells]. Every team of
workers has the responsibility to improve
or maintain the quality and quality of its
products. Each team is free to reorganize
itself improve performance and product
quality. The cells comprise self managed
teams.
 MERITS

IMPROVEMENT
QUALITY UNDERSTAN-
IN
DING
PERFORMANCE
CAPACITY
 DEMERITS

PROBLEM TIME
INDIVISION CONSTRAINT
 TEAM STRUCTURE
It is an organizational
structure in which different
teams perform their
specialized tasks to
contribute to the common
goal of a company.
 MERITS

Teams Resolve
Flexible and
Better Problems
Empowered
Communication Quicker
Workforce
 DEMERITS

Some Under-
Potential for performing
People are
Conflict Employees
not Team
Players Hide Behind
the Team
 BOUNDARYLESS
ORGANIZATION
This term was coined by former General Electric
chairman Jack Welch because he wanted to
eliminate vertical and horizontal boundaries within
the company and break down external barriers
between the company and its customers and
suppliers.
 MERITS

QUICK
FLEXIBILITY DECISION- QUALITY TIMELINESS

MAKING
 DEMERITS

LACK
DIFFiCULT
OF COSTLIER
OF
PROPER
MAINTENANCE UNDERSTANDING
 INVERTED PYRAMID
STRUCTURE

It is an alternative to
the traditional chain
of command.
 MERITS

Span of control
Unity of command Effective
Decision-
making
 DEMERITS

Overlapping of Time
Conflicts
activities Constraint
LEAN ORGANIZATIONAL
STRUCTURE:
A lean organizational structure is characterized by a
minimal number of management layers, emphasizing
efficiency, and a focus on reducing waste. It often
involves removing unnecessary steps, roles, and
processes to increase responsiveness and reduce
costs.
 MERITS

Cost effective Improved

Efficiency
communication
 DEMERITS

Risk of
Limited career Overloaded
Centralization
advancement manager
 FLAT ORGANISATIONAL
STRUCTURE
A flat organizational structure is one with few or
no levels of middle management between staff
and leadership. It aims to create a more
egalitarian workplace and promote open
communication.
 MERITS

Enhanced Empowerment Quick Decision-

Communication Making
 DEMERITS

Conflict
Lack of Clear Limited Career
Resolution
Hierarchy Growth
Challenges
 TERMINOLOGIES

1. ORGANIZATION - Consists of a group of people collectively

working towards a common purpose.
2. MECHANISTIC STRUCTURE - is an organizational structure with
centralized authority.
3. ORGANIC STRUCTURE - is an organizational structure with
decentralized authority.
4. LOW- MORALE - staff isn’t feeling very positive about that work.
5. AUTOCRATIC - relating to a ruler who has absolute power.
 TERMINOLOGIES

6. INDECISION - the inability to make a decision quickly.

7. BOUNDARYLESS - Having no boundaries.

8. COSTLIER - costing a lot; expensive.

9. BUREAUCRATIC - relating to the business of running an

organization, or government.

10. SPECIALIZATIONS - the process of concentrating on and

becoming expert in a particular subject or skill.

SUMMARY
There are so many types of structures in an organisation ( line organization, line
and staff organization, functional organization, committe organizations, matrix
organizations, Virtual organization, cellular organisation team structure,
boundaryless org, inverted pyramid structure, and lean and flat structures).
Selecting the most suitable organizational structure depends on factors such as
company size, industry, goals, and culture. Organizations may also adopt hybrid
structures that combine elements from multiple types to suit their specific needs.
Adapting to changing circumstances and the evolving business landscape is
essential for long-term success.
ASSESSMENT
GUIDE QUESTIONS:
• What is an organisation?

• Explain the difference between the lean and flat organisation

structure.

• Why do you think that it is important for us to study the

different types of structures in an organisation?

• If you’re going to establish an organisation in the future, what

type of structure is it and why?

• Give atleast 3 types of structure in an organisation and explain

 REFERENCES
MS- UNIT 2, Krishna A.S.
https://www.slideshare.net/askrishna211/ms-unit-ii?
fbclid=IwAR1N6tURwze92y0vlhJZ8xif_-K3nKNv4spkS2BXdg0sjK6AqicYbtPls44

UNIT-2 Basic Concepts Related To Organization Nature and Process of Organisation

Meaning and Definition, Krishna Sai
https://www.scribd.com/document/121887014/MS-2nd-unit?
fbclid=IwAR0NA5yYeHEYXcb2_524uoPXD-kmZBA-j5lCBcbBJItBD41ehLvMDlvCF2g
THANK
YOU!!!