1. Organization Design & StructureOrganization Design & Structure

2. Organizational structureOrganizational structure
 The formal configuration between individuals and
groups with respect to the allocation of tasks,
responsibilities, and authorities within organizations.
 The pattern of jobs and groups of jobs in an
organization.
 A diagram representing the connections between the
various departments within an organization: a graphic
representation of organizational design –
 Organizational Chart

3. Organizational DesignOrganizational Design
 The process of coordinating the structural
elements of an organization in the most
appropriate manner.
 The process by which managers create a specific
type of organizational structure and culture so
that a company can operate in the most efficient
and effective way.

4. Factors affecting OrganizationalFactors affecting Organizational
StructureStructure
Organizational
Structure
Environment
Technology
Strategy
Human
Resources

5. Key Design DecisionsKey Design Decisions
Division of Labor - Low
- High
Departmentalization - Homogeneous
- Heterogeneous
Span of Control - Less
- More
Authority - High
-Low

6. DIFFERENTIATIONDIFFERENTIATION
 Process of deciding how to divide the work in an organization.
Ensures that essential tasks are assigned to one or more jobs.
 Four Dimensions of Differentiation by Lawrence and Lorsch
1.Manager’s goal orientation
2.Time orientation
3.Interpersonal orientation
4.Formality of struscture
FORMS OF DIFFERENTIATION:
Horizontal Differentiation
 Vertical Differentiation
 Spatial Differentiation

7. HORIZONTAL DIFFERENTIATIONHORIZONTAL DIFFERENTIATION
 Differentiation between organizational subunits
 Based on employees’ specialization
 Increases with specialization and departmentalization
DEPARTMENTALIZATION
The process of breaking up organizations into coherent units.
 Functional OrganizationFunctional Organization: The type of departmentalization based
on the activities or functions performed (e.g., sales, finance).
 Product OrganizationProduct Organization: The type of departmentalization based on
the products (or product lines) produced.
 Matrix OrganizationMatrix Organization: The type of departmentalization in which a
product or project form is superimposed on a functional form.

8. VERTICAL DIFFERENTIATIONVERTICAL DIFFERENTIATION
 Difference in authority and responsibility in
organizational hierarchy
 Tall, narrow organizations-greater vertical
differentiation
 Flat, wide organizations-less vertical
differentiation
Tall structures have many levels of authority
relative to the organization’s size.
Flat structures have few levels but wide
spans of control.

10. SPATIALSPATIAL
DIFFERENTIATIONDIFFERENTIATION
 Geographic dispersion of offices, plants and
personnel
 Increase in no. of locations-increases complexity
but necessary
 May give organization political and legal
advantages in a country
 Horizontal, vertical and spatial differentiation
indicate the width, height and breadth of an
organizational structural needs

11. INTEGRATIONINTEGRATION
Definition- The process of coordinating the
different parts of an organization.
Designed to achieve unity among individuals and
groups .
Supports a state of dynamic equilibrium - elements
of organization are integrated, balanced.

12. VERTICAL INTEGRATIONVERTICAL INTEGRATION
Hierarchical referral
Rules and procedures
Plans and schedules
Positions add to the organization structure
Management information system
HORIZONTAL INTEGRATIONHORIZONTAL INTEGRATION
Liaison roles
Task forces
Integrator positions
Teams

13. DESIGN DIMENSIONSDESIGN DIMENSIONS

14. Guide to designing structuresGuide to designing structures
 How many tasks should a position contain?
 How specialized should each task be?
 Skills, ability, knowledge and training needed
for work?
 Basis for grouping positions?
 What should be the span of control?
 How centralized or de-centralized should the
decision making power be?
 How standardized should the work content be?
 How large should each unit be?

15. ORGANIZATION IMPLICATIONSORGANIZATION IMPLICATIONS
 External environment
Dynamic vs Stable environments
Complex vs Simple environments
Diverse vs Integrated environments
Hostile vs Munificent environments
 Organizational size
 Technology
 Organizational Strategy

16. MINTZBERG’S MODEL – ORGANISATIONALMINTZBERG’S MODEL – ORGANISATIONAL
STRUCTURESTRUCTURE

17. 5 Generic Structures – Simple5 Generic Structures – Simple
StructureStructure
Little or no techno structure
Few support staffers
Loose division of Labor
Minimal differentiation among its units
Small managerial hierarchy

18. MACHINE BUREAUCRACYMACHINE BUREAUCRACY
 Highly specialized, routine operating tasks
 Very formalized procedures in the operating core
 Proliferation of rules, regulations, & formalized
communication
 Reliance on the functional basis for grouping tasks
 Relatively centralized power for decision making
 Elaborate administrative structure with sharp
distinctions
between line and staff.

19. PROFESSIONAL BUREAUCRACYPROFESSIONAL BUREAUCRACY
Relies for Coordination on
 Standardization of Skills
 Professionals are hired for the operating core.
 Coordination between operating professionals is
handled by standardardization of skills and
knowledge.

20. DIVISIONALISED FORMDIVISIONALISED FORM
Semi Autonomous units
 Horizontally Diversified Products and Services
 In a straight forward, stable environment
 Where Large economies of Scale do not apply

21. ADHOCRACYADHOCRACY
Highly Organised structure with,
 Little formalization of Behaviour
 Job Specialization
 Group the Specialists into functional units
 Reliance on liaison devices to encourage mutual
adjustment

22. THANK YOU.THANK YOU.