NOTE ON ORGANIZATION

STRUCTURE

Group 11
FT152013
FT152004
FT151038
FT151028
FT153039

NIRMAL RAJ SELVARAJU

APURV MISHRA
ANKIT SACHDEVA
RADHA NARAYANAN
MANISHA TANVI

ORGANIZATION STRUCTURECENTRAL CONCEPTS

Organization structure serves the following functions:
enables to undertake a wide variety of activities
enable to coordinate their activities through integrating mechanisms
defines the boundaries of the organization and
interfaces with the environment or the other organizations

In thinking about the structure of any organization, the following issues must be
addressed:
1. The division of labour
the extent of horizontal and vertical specialization of jobs
grouping of activities according to the goods and services
2. Coordination mechanisms
choice depends on the degree to which integration issues are routine (direct
supervision or standard operating procedures) versus exceptional (plans and budgets,
mutual negotiation, coordinating committees)
3. The distribution of decision rights
extent of goal congruence and the incentives of the various members of the
organization

ORGANIZATION STRUCTURE-CENTRAL
CONCEPTS
4. Organizational boundaries
defines how organization interacts with its environment
5. The informal structure
6. The Political Structure
7. The legitimate basis of authority
Rank and title do count
other sources one's expertise, charisma, and social status.
Strengths and weaknesses of different structures can be evaluated using
following important dimensions:
efficiency of resource utilization
efficiency of time utilization
responsiveness to the environment
adaptability over time
the ability to hold people accountable

ORGANIZATION STRUCTUREBASIC FORMS

The Functional Form

division of labour in terms of the main activities or functions that need to

be performed by the organization
weakness
inability to respond to environmental changes that require coordination
between departments
each employee has a restricted view of the overall goals of the organization

functional form is usually best suited for

small to medium-sized organizations and
when the dominant competitive issues and goals of the organization stress
functional expertise, efficiency, and quality

The Divisional Form

divisional structure is organized according to the various outputs of the
organization
Coordination across functions within each division is maximized
Promotion into higher management is typically on the basis of
management and integration skills
main issues - the degree of autonomy granted to the divisions in making
decisions that are strategic and involve significant resource
commitments.
works best in medium or large sized organizations that operate in
heterogeneous environments and have adopted a diversified strategy

ORGANIZATION STRUCTURE-HYBRID FORMS

The Matrix Form
both divisional and functional structures are implemented
simultaneously
it enables the organization to meet multiple demands
basic problem is determining the responsibility (can cause role
ambiguity) and authority relationships (can hamper career development)
Correct structure when the following conditions are met.
environmental pressures are from two or more critical dimensions
the task environment of the firm is both complex and uncertain.
economies of scale in the use of internal resources is needed

Fails when one side of the authority structure dominates, or employees

have not learned to work in a collaborative fashion
Network structure
division of labour is in terms of different types of "knowledge workers
coordination in a network structure takes place primarily through crossfunctional teams
decision rights in a network structure are pushed as far down as possible
authority is based minimally on formal position and is derived much
more from the expertise and resources one possesses
its adaptability but resources are often duplicated and accountability
can be diffuse and poorly defined
ideally suited for volatile environments

THANK
YOU!