2. “The process of identifying & grouping the work is to be
performed ,defining & delegating responsibility &
authority & establishing relationship for the purpose of
enabling people to work most effectively together in
accomplishing objectives”
-
3. 1. Deliberate & conscious creation
Orgenisation is a deliberately & consciously created human group.
Orgenisation can also recombine its personnel through promotion ,demotion
& transfer
2. Purposive creation
All the orgenisation have some objectives
The objectives are mutually agreed upon the members of the groups.
3. Coordination of activities
Coordination is necessary because all the members contribute to commonly
agreed goal
4. Structure
Structure provides power centers which co-ordinate & control concerted
effort of the orgenisation & direct towards its goals.
5. Rationality
Every orgenisation has some specified norms & standards of behaviour
Every individuals & every member should behave according to these norms
4. Organizational structure is the pattern of relationship
among various components or parts of the orgenisation.
Organization structure refers to the differentiation &
integration of activities & authorities ,role & relationship
in the orgenisation
5. Features of good organization structure.
o Clear line of authority.
o Adequate delegation of authority.
o Application of ultimate responsibility.
o Minimum managerial levels.
o Unity of direction.
o Proper emphasis on staff activities.
o Simplicity.
o Flexibility.
6. The process of grouping the activities known as
departmentation
Departmentation means the process by which similar
activities of the business are grouped into units for the
purpose of facilitating smooth administration at all levels
According koontz & O,Donnell a departmentation is process
of dividing the large functional orgenisation into small &
flexible & administrative unit.
Choosing basis for departmentation
Specialization
Coordination
Control
Economy
Recognition of local condition
Adequate attention
Human consideration
7. Types of departmentation/ways to structure the
business
1. Departmentation by product
2. Departmentation by function
3. Departmentation by region or territory
4. Departmentation by customer
5. Departmentation by process
8. Grouping of activities according to products or
product lines , especially in multiline, large
enterprises.
10. Advantages
Clear focus on market segment helps meet customers’ needs
Positive competition between divisions
Better control as each division can act as separate profit
centre
Improve coordination of functional activities.
Places responsibility for profit at division level.
Places attention & effort on product line.
11. Duplication of functions (e.g. different sales
force for each division)
Negative effects of competition
Lack of central control over each separate
division.
Require more personal with general manager
abilities .
Trend to make maintained of economical
central services difficult
12. 2.Functional departmentation
The grouping of common & homogeneous activities to form
an organizational unit is known as functional orgenisation
Function are two types basic function & secondary function
basic function can be divided into sub-function
Each department have a head with the title departmental
manager
The functional departmentation will include both line
function as well as staff function
Production Marketing Accounts Personnel IT
Managing Director
Board of Director
13. Advantages
Specialisation – each department focuses on its own work
Accountability – someone is responsible for the section
Clarity – know your and others’ roles
Simplifies training
14. Closed communication could lead to lack of
focus
Departments can become resistant to change
Reduce Coordination between function
Gap between top and bottom
16. Territorial Orgenisation is especially attractive to large
scale firms or rather enterprises whose activities are
physically or geographically dispersed.
All the activities of given area of operation are grouped
into zone ,division ,branches
This structure is suitable for large scale orgenisation or
whose activities are physically or geographically spread.
This structure is most often used in sales & in production
18. Place responsibility at lower level
Place emphasis on local market & problem
Take advantage of economic of local operations
Better face to face communication with local
interest
Improve coordination in a region
Serve local needs better
19. Require more person wit general manager
abilities .
increases problem of top management control
Require good caliber managers
Increase problems of control
20. Customer based departmentation is basically market –
oriented in which department are created around the
market served or around marketing channel
CUSTOMERS ARE THE KEY TO THE WAY
ACTIVITIES ARE GROUPED
wholesale Retail Hire purchase
export
Marketing Manager
21. It fulfills the expectation & needs of customer
Better service to customer
Fully focus on customer
Disadvantage
Their may be duplication of activities
Co-ordination is difficult
Conflict
22. When production activities involve the use of
several distinctive process ,these can be used as
the base for grouping of activities
spinning dyeing Weaving Packaging
Production Manager
23. Advantage
Machine can be used effectively
Economy in operation
No duplication of activities
Principle of specialization & division of labor is followed
Disadvantages
Heavy cost of operation
More specialist are essential
24. COMMONLY CALLED THE “GRID” ORG.
Matrix orgenisation structure is the realization of two
dimensional structure
Matrix structure applied when the orgenisation has large
number of smaller projects so that when one project is
completed it resources are directed to other project
Project manager is appointed to coordinate the activities of the
Personal are drawn from their respective functional
departments
Employee should receive instruction from two boss
Application:-insurance & retailing , manufacturing electronics
equipment ,industrial product
25. • MANA
GER
Producti
on
Marketin
g
Finance personnel
• PROJEC
T A
• prod • Mktg • Finance • pers
• PROJEC
T B
• prod • Mktg • Finance • pers
• PROJEC
T C
• prod • Mktg • Finance • pers
• PROJEC
T D
• prod • Mktg • Finance • pers
DIRECTOR-ENGG. **
Project authority
Line authority
26. Matrix structure focuses resources on single project ,
permitting better planning & control
Flexible structure compared to traditional hierarchical
structure
It improves motivation because people can focus more
on completion of one project than they can in the
traditional functional structure
27. People have to work under multiple command
Delay in decision making process
28. Companies have been using an organizational
device generally referred to as a strategic
Business unit (SBU).
Distinct businesses set up as units in a larger
company to ensure that certain product or
product lines are promoted and handled as
though each were an independent business.
29. The virtual organization is a rather loose
concept of a group of independent firms or
people that are connected through, usually,
information technology.
This firms may be suppliers, customers, and
even competing companies.
30. The aim of virtual organization is to gain access
to another firms competence, to gain flexibility,
to reduce risk, or to respond rapidly to market
needs.