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Structure
PROCESS OF ORGANISING
Identification of Activities Division of Work
Decentralization
Delegation of Authority
Factors Affecting Organizational
Design
Environment
Determine design
Strategy or organizational Technology
structure
Human
Resources (Size)
Determinants of Structure
■ The environment: The quicker the environment
changes, the more problems face managers.
Structure must be more flexible when environmental
change is rapid.
Foreman
i. Simplicity
ii. Clear-cut division of authority and responsibility.
iii. Strong discipline
iv. Unified control
v. Prompt decisions
vi. Flexibility
Industrial. Product
Industrial Relations Manager manager
Consumer Product
Training manager manager
Marketing Research
Employ service manager manager
1. Specialization
2. Encouragement to research and development
programmes
3. Balanced decisions
4. Less burden on line managers
1. Confusion
2. Ineffectiveness of the staff
3. Conflict between the line and staff.
Functional Organisation
Members of the organization are grouped according
to the particular function that they perform within the
organization.
Appropriate when an organization’s greatest source of
complexity comes from the diverse tasks that must be
performed rather than from its products, geographic
markets, or consumer groups.
People with similar skills and performing similar
tasks are grouped together into formal work units.
Members work in their functional areas of expertise.
Are not limited to businesses.
Work well for small organizations producing few
products or services.
Potential Advantages of functional
structures:
Economies of scale.
Task assignments consistent with expertise and training.
High-quality technical problem solving, In-depth training and skill
development.
Clear career paths within functions.
CEO
C o r p o r a tio n
C o rp o ra te
M a n a g e rs
W a s h in g M a c h in e L ig h tin g T e le v is io n
D iv is io n D iv is io n D iv is io n
Geographic Structure
CEO
C o r p o r a tio n
C o rp o ra te
M a n a g e rs
N o rth e rn W e s te rn S o u th e rn E a s te rn
R e g io n R e g io n R e g io n R e g io n
Market Structure
CEO
C o r p o r a tio n
C o rp o ra te
M a n a g e rs
L a r g e B u s in e s s S m a ll B u s in e s s E d u c a tio n a l In d iv id u a l
C u s to m e rs C u s to m e rs In s titu tio n s C u s to m e rs
Matrix Organisation
A structure in which the tasks of the
organization are grouped along two
organizational dimensions simultaneously.
Examples include:
Product/function
Product/geographic region