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Understanding Organizational Structure Elements

The document outlines key elements of organizational structure, including work specialization, departmentalization, chain of command, span of control, centralization vs. decentralization, and formalization. It discusses various departmentalization methods such as functional, geographical, product, process, and customer-based approaches, along with the implications of each. Additionally, it highlights different organizational structures like simple, bureaucratic, and matrix structures, emphasizing their characteristics and suitability for different types of organizations.

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0% found this document useful (0 votes)
7 views7 pages

Understanding Organizational Structure Elements

The document outlines key elements of organizational structure, including work specialization, departmentalization, chain of command, span of control, centralization vs. decentralization, and formalization. It discusses various departmentalization methods such as functional, geographical, product, process, and customer-based approaches, along with the implications of each. Additionally, it highlights different organizational structures like simple, bureaucratic, and matrix structures, emphasizing their characteristics and suitability for different types of organizations.

Uploaded by

rajeshviswa
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1

Org Structure
Orgstructurecanbedefinedastheframeworkoftasks,reporting&authorityrelationshipswithinwhich [Link].

Work Specialization
Workspecializationordivisionoflaborreferstothedegreetowhichactivitiesintheorgaresubdivided [Link] individual,itisbrokendownintoanumberofstepswitheachstepbeingcompletedbyaseparate [Link],individualsspecializeindoingpartofanactivityratherthantheentireactivity. Improvesemployeeproductivityandspeeduptheprocessofproductioninanorg. Costeffectivetotrainemployeesinasinglesubtask. [Link] employeeproductivityandefficiencyinorg. Beyondacertainpoint,workspecializationsleadstoadeclineinproductivityandefficiencysince employeesgetboredandexperiencefatigueandstresswhentheyperformrepetitivetasksforan extendedperiodoftime. Orgtoprovideemployeestheopportunitytoperformavarietyofactivitiestoavoidthemonotonythat [Link] throughjobrotation.

Departmentalization
Theprocessinwhichjobsaregroupedtogethertobringcoordinationamongtheorgtasksiscalled [Link],product,process,geographyor customer.

FunctionalDepartmentalization Groupsjobsaccordingtofunction. Efficienciesfromputtingtogethersimilarspecialitiesandpeoplewithcommonknowledgeand orientation. Indepthspecialization. Poorcommunicationacrossfunctionalteams. Limitedviewoforggoals. GeographicalDepartmentalization Groupsjobsaccordingtogeographicregion. Moreeffectiveandefficienthandlingofspecificregionalissues. Servesneedsofuniquegeographicmarketsbetter. Duplicationoffunctions. Canfeelisolatedfromotherorgareas. ProductDepartmentalization Groupsjobsbyproductline. Allowspecializationinparticularproduct&services. Managerscanbecomeexpertsintheirindustry. Closertocustomers. Duplicationoffunctions. Limitedviewoforggoals. ProcessDepartmentalization Groupsjobsonthebasisofproductorcustomerflow. Moreefficientflowofworkactivities. Canonlybeusedwithcertaintypesofproductsorservices. CustomerDepartmentalization Groupsjobsonthebasisofspecificanduniquecustomerswhohavecommonneeds. Customersneedsandproblemscanbemetbythespecialists. Limitedviewoforggoals. [Link] gettingandkeepingcustomersisessentialforsuccess,thisapproachworkswellbecauseitemphasizes monitoringandrespondingtochangesincustomersneeds. Anotherpopulartrendistheuseofteams,especiallyasworktaskshavebecomemorecomplexand [Link] usingisacrossfunctionalteam,whichisaworkteamcomposedofindividualsfromvariousfunctional specialties.

Chain of Command
Thechainofcommandisthelineofauthorityextendingfromupperorglevelstolowerlevels,which [Link], responsibilityandunityofcommand. Asuperiorsrighttogiveorderstohissubordinatesandtheobligationsofthesubordinatestoactaccording [Link] carryouttheresponsibilitiesentrustedtothembytheorg. Accordingtotheconceptofunityofcommand,anemployeeshouldreporttonotmorethanonesuperior. Theviolationofthisrulecanleadtoconfusionandconflictinorg. Whenmanagersusetheirauthoritytoassignworktoemployees,thoseemployeestakeonanobligationto [Link]. Assigningworkauthoritywithoutresponsibilityandaccountabilitycancreateopportunitiesforabuse. However,[Link],anemployeeatthe [Link],employeesneed nolongerwaitfortheirsuperiorstogivetheminstructionssincetheyareempoweredtotakedecisions wheredelayindecisionmakingcouldaffecttheorginterests.

Span of Control
[Link] whoaredirectlyunderthecontrolofamanagerdiffersfromorgtoorg. Inorghavingtallstructures Spanofcontrolisverysmall. Thisallowsmanagerstoexercisetightcontrolovertheirsubordinates. Butthenumberoflayersofmanagementissohighthatitleadstoacomplexorgstructure. Ascommunicationpassthroughseverallayers,themessagegetdistortedandthechancesof employeereceivingaccurateinformationislow. Decisionmakingisverylowinorgwithtallstructures. Tallstructureprovidesanopportunityforhighlevelofinteractionbetweenthemanagerand subordinates. Foraflatstructureorg Largespanofcontrol Largenumberofsubordinatesunderamanagermakemanagementmoredifficult. Simpleorgstructure. Smoothflowofcommunicationthatenableemployeetoreceiveinformationquicklyand accurately. Fastdecisionmakingduetolimitednumberoflayers.

[Link] [Link] includetheskillsandabilitiesofthemanagerandtheemployees,andthecharacteristicsoftheworkbeing [Link],managerswithwelltrainedandexperiencedemployeescanfunctionwellwithawider [Link] employeetasks,thephysicalproximityofsubordinates,thedegreetowhichstandardizedproceduresarein place,thesophisticationoftheorganizationsinformationsystem,thestrengthoftheorganizationsculture, andthepreferredstyleofthemanager. Thetrendinrecentyearshasbeentowardlargerspansofcontrol,whichisconsistentwithmanagers effortstospeedupdecisionmaking,increaseflexibility,getclosertocustomers,empoweremployees,and reducecosts.

Centralization / Decentralization
Thetermcentralizationreferstothedegreetowhichdecisionmakingisconcentratedatasinglepointin [Link],itissaidthatiftopmanagementmakestheorgkeydecisionswithlittleornoinputfrom lowerlevelpersonnel,[Link],themorethatthelowerlevelpersonnel provideinputoractuallygiventhediscretiontomakedecisions,themoredecentralizationthereis. Inadecentralizedorg,actioncanbetakenmorequicklytosolveproblems,morepeopleprovideinputsinto decisions,andemployeesarelesslikelytofeelalienatedfromthosewhomakethedecisionsthataffect theirworklives. Tomakeorgmoreflexible&responsive,therehasbeenamarkedtrendtowarddecentralizingdecision [Link],lowerlevelmanagersareclosertotheactionandtypicallyhavemore detailedknowledgeaboutproblemsthantopmanagers.

Formalization
[Link] formalized,thenthejobincumbenthasaminimumamountofdiscretionoverwhatistobedone,whenisto [Link]

[Link],lotsoforg rulesandclearlydefinedprocedurescoveringworkprocessinorginwhichthereishighformalization. Standardizationnotonlyeliminatesthepossibilityofemployeesengaginginalternativebehaviorsbutit evenremovestheneedforemployeestoconsideralternatives. [Link] havelittleformalization. Althoughsomeformalizationisnecessaryforconsistencyandcontrol,manyorganizationstodayrelyless onstrictrulesandstandardizationtoguideandregulateemployeebehavior.

Simple Structure
Afirmwithasimpleorgstructurehasawidespanofcontrol,fewdepartments,centralizedauthorityanda [Link] [Link],thedecisionmakingpowerfortheentireorgisvestedinoneperson. Thesimplestructureisaflatorgitusuallyhasonly2or3verticallevels,aloosebodyofemployeesand oneindividualinwhomthedecisionmakingauthorityiscentralized. [Link], employeeshaveclearreportingrelationships,decisionmakingisfast,maintenancecostsarelowandrules [Link]. Moreover,astheentirepowerandauthorityisconcentratedinasinglepersonatthetop,deathordisability ofthepersonislikelytohaveanegativeimpactonthebusiness.

Bureaucracy
Thisisastructurewithhighlyroutineoperatingtasksachievedthroughspecialization,veryformalizedrules [Link],tasksaregroupedunderfunctionaldepartmentswithcentralized authorityandnarrowspanofcontrol. Theprimarystrengthofbureaucracyliesinitsabilitytoperformstandardizedactivitiesinahighlyefficient [Link]&lowerlevel [Link] [Link] innovativeandexperienceddecisionmakersbelowthelevelofseniorexecutives. Themajordrawbackofthisstructureistheobsessiveconcernwithfollowingtherules.

Matrix Structure
Matrixisastructurethatassignsspecialistsfromdifferentfunctionalareastoworkonprojectswhothen

[Link] [Link],employeesmoveontothenextproject. Themainadvantagesarefluidandflexibledesignthatcanrespondtoenvchangesandfasterdecision making. Majordisadvantagesarecomplexityofassigningpeopletoprojects,task&personalityconflicts.

Team Structure
[Link] thatitbreaksdowndepartmentalbarriersanddecentralizesdecisionmakingtothelevelofthework [Link]. Underthisstructure,[Link] [Link].

Virtual Organization
Virtualorghavecreatednetworksofrelationshipsthatallowthemtocontractoutmanufacturing, distribution,marketingoranyotherbusinessfunctionforwhichmanagersfeelthatotherscandobetteror [Link] structureisthatitreducesmanagementscontroloverkeypartsofitsbusiness.

Boundaryless Organization
Anorgthatseekstoeliminatethechainofcommand,havelimitlessspanofcontrolandreplace departmentswithempoweredteams. Byremovingverticalboundaries,[Link]. Crosshierarchicalteams,participativedecisionmakingpracticesanduseof360degreeperformance appraisalsarecommoninsuchorganizations. Horizontalboundariescanbeeliminatedbyreplacingfunctionaldepartmentswithcrossfunctionalteams [Link] transfers,[Link] generalists. Whenfullyfunctional,theboundarylessorgalsobreaksdownbarrierstoexternalconstituentslike suppliers,customers,[Link],strategicalliances, telecommutingetcareexamplesofpracticesthatreduceexternalboundaries.

Why Do Structures Differ?

StrategyThepurposeoforgstructureistomeetorgobjectives,whicharederivedfromoverall [Link],thestructurewillalsoneedtobe [Link] orgstructurewhereascostminimizationstrategydemandaamechanisticstructure. OrgSizeLargeorgtendtohavemorespecialization,moredepartmentalization,morevertical levelsandmorerules&regulationsthanasmallorg. [Link] usuallyassociatedwithtallerandmoredepartmentalizedstructures. EnvironmentThemorescarce,dynamicandcomplextheenv,themoreorganicastructure [Link],stableandsimpletheenv,themoremechanisticstructurewillbe preferred.

Implication For Managers

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