Good Day

Design of Organization Structure

Submitted to: Prof. Drashti Shah

Topic Assigned:

 Features of Good Organization Structure

- Sonal Patel
 Need & Importance of Departmentation
- Viral Vaghani
 Bases Of Departmentation
- Mitul Sevak & Vaibhavi Randeria
 Span of Management
- Hitesh Rajvanshi
 Factors affecting Span of Management
- Rahul Rana
What is Organization Structure ?

 “Organization structure is a
pattern of relationships about
various components or parts of
the organization it prescribes
the relationships among
various activities and positions”
Features of Good organization Structure:

 Simplicity
 Flexibility
 Clear line of Authority
 Application of ultimate responsibility
 Proper delegation of Authority
 Minimum possible managerial levels
 Principals of unity of direction in Command
 Proper emphasis on staff
 Provision for top management
Departmentation:

 The first task in designing an organization

structure is the identification of activities and
a group them properly. The process of
grouping the activities is commonly known
as Departmentation
Need and importance of
Departmentation

 Advantages of specialization
 Fixation of responsibility
 Development of managers
 Facility of appraisal
 Feeling of autonomy
Bases of Departmentation
 Function
 Product
 Territory
 Process
 Customer
 Functional Departmentation
BOD

MD

Production Marketing Finance Personnel

MR

Sales

Advertising

News Paper

Radio

TV
 Product Departmentation

Chief executive

Mid Class Sedan Segment. SUV

Production Marketing Finance Personnel

 Territorial Departmentation of Nissan
Head office
(Mumbai)

Northern Zone
Eastern Zone Southern Zone Western Zone
(Delhi)

Jalandhar Roorki haridwar Meerut

Branch Branch
Process Departmentation

Manager
(production)

Structure assembling finishing

Customer Departmentation

Marketing Manager

Direct customer Corporate Customer Transport customer

Span of Management
 Span of management refers to the number
of subordinates who can be managed
effectively by superior’
 Soujanen has suggested that span of
management traditional concept and is not
valid because coordination and control can
be achieved through formal and informal
activity.
Determination of span of management

 Direct single relationship

 Direct group relationship
 Cross relationship
Factor affecting span of management

 Capacity of informal relation

 Capacity of subordinate
 Nature of work
 Degree of decentralization
 Degree of planning
 Communication techniques
 Use of staff assistance
 Supervision from others