Types of organisation structure and its advantages and disadvantages.

2. ORGANISATION STRUCTURE
Structural
dimensions
Mintzberg’s
effective
organisation
Organisational
forms and
boundaries
Types of
structure

3. • Mintzberg’s effective organisation
Ideology
Strategic apex
Operating core
Middle line
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4. SIMPLE
STRUCTURE
PROFESSIONAL
BUREAUCRACY
ADHOCRACY
MISSIONARY
MACHINE
BUREAUCRACY
DIVISIONALISED
FORM
MINTZBERG’S
TYPES OF
STRUCTURE

5. TYPES OF STRUCTURE
ETREPRENEURIAL
STRUCTURE
FUNCTIONAL
STRUCTURE
MATRIX STRUCTURE
DIVISIONAL
STRUCTURE

6. 1. ENTREPRENEURIAL STRUCTURE
ENTREPRENEURIAL
EMPLOYEES
ADVANTAGES DISADVANTAGES
• Fast decision making
• More responsive to market
• Goal congruence
• Good control
• Close bond to workforce
• Lack of career structure
• Dependent on the capabilities
of the managers
• Cannot cope with
diversification

7. 2. FUNCTIONAL STRUCTURE
(DEPARTMENTAL)
Eg: marketing, production, finance,
personnel department.
ADVANTAGES DISADVANTAGES
• Economies of scale
• Standardisation
• Specialists more comfortable
• Career opportunities
• Empire building
• Slow
• Conflicts between functions
• Cannot cope with diversification

8. 3. DIVISIONAL STRUCTURE
Division 3Division 1 Division 2

9. •B
ADVANTAGES DISADVANTAGES
• Enables growth
• Clear responsibility for
product division
• Training of general manager
• Easily adapted for further
diversification
• Top management free to
concentrate on strategic
matters
• Duplication
• Sub-optimisation
• Potential loss of control
• Allocation of central cost can
be a problem
• Specialists may feel isolated

10. 4.GEOGRAPHICAL BASED DIVISIONAL STRUCTURE
BOARD OF
DIRECTORS
NORTHEN
DIVISION
EASTERN
DIVISION
FUNCTION
SOUTHERN
DIVISION

11. ADVANTAGES DISADVANTAGES
•Enables geographic
growth.
•Allows local decision
making.
•Clear responsibility for
areas.
•Training of general
manager.
•Top management free to
concentrate on strategic
matters.
•As for divisional structure
above.

12. 5.MATRIX STRUCTURE
FUNCTIONAL DIVISIONAL
SENIOR
MANAGEMENT
PRODUCTION
MANAGER = A
SALES
DEPARTMENT
PRODUCTION
MANAGER = C
R&D
DEPARTMENT
PRODUCTION
DEPARTMENT
PRODUCTION
MANAGER = B
FINANCE
DEPARTMENT
FUNCTIONAL
STRUCTURE

13. ADVANTAGES DISADVANTAGES
•Advantages of both
functional and divisional
structure.
•Flexibility.
•Customer orientation.
•Encourage teamwork
and the exchange of
opinions and expertise
•Dual command and
conflict.
•Dilution of functional
authority.
•Time consuming
meetings.
•Higher admin cost.

14. Organisational forms and boundaries
1. Closed system
2. Open system
1. Hollow organisation
2. Virtual organisation
3. Modular organisation

15. Business process
outsourcing
Threshold
competencies
Core
competencies

16. TALL
Many managerial
level
Narrow span of control
FLAT
Few managerial level
Wide span of control

17. THANKYOU