ORGANISATION

“ It is the grouping of activities necessary

to attain the goals of the enterprise and
assignment of each grouping to a manager
with authority necessary to supervise it”
 organisation

process structure

• As a process
organization • As a structure
 Text 1

• List the products

Text 1 Text 2
and features, and
how each addresses Text 2 Text 3
a specific need or
solves a specific Text 3

problem Text 4
Text 1

• This section may

Text 2
require multiple
slides Text 3

Text 4

Text 5
Cost Analysis
• PointFunctional
out financialDepartmentalization
benefits to the
customer
• Compare cost- President
President
benefits between
you and your
competitors
Research
Researchand
and
Production
Production Marketing
Marketing Finance
Finance Distribution
Distribution Development
Development
Department
Department Department
Department Department
Department Department
Department Department
Department
 Nature & Elements of
organization
» Common purpose

» Division of Labour
» Authority Structure
» People
» Communication
» Coordination
» Environment
» Rules & regulations
 Process of organisation
• Determining the activities
• Grouping the activities
• Assignment of duties
• Delegation of authority
• Defining authority relationship
 Pros and Cons of Different Structures

• This depends on the business type, size

and structure used
• Let’s look at a functional structure:
c Chief Executive

Board of Directors

Production Marketing finance Personnel IT

Functional Structure
Advantages Disadvantages
• Specialisation – each • Closed communication
department focuses on could lead to lack
its own work of focus
• Accountability – • Departments can
become resistant
someone is responsible
to change
for the section
• Coordination
• Clarity – know your and may take too long
others’ roles • Gap between top and
bottom
 Line Structure

Convenience Store

Assistant Hourly
Owner Manager
Manager Employee
Line structure
• Advantages • Disadvantages
• Simple • Lack of
• Authority specialisation
,responsibility clear • Overburdened
• Prompt decision • Autocratic control
• Unity of command • Little upward
• Better discipline command
• Accountable for • Instability
results
 Line-and-Staff Structure

Line relationship
Plant
Manager Staff relationship

Human
Engineering
Resources
Production
Manager

Supervisor Supervisor Supervisor Supervisor

Employees Employees Employees Employees

Line and staff structure
• Advantages • Disadvantages
• Expert advice • Line and staff
• Relief to top conflict
executive • Confusion
• Quick decision • No accountability of
• Training of personal results
• Flexibility
 The Matrix Structure

General
Manager

Sales
Manufacturing personal Marketing Finance
Project
Manager Manager Manager Manager
Manager

Manager
Project A

Manager
Project B

Manager
Project C
Matrix organisation
• Advantages • Disadvantages
• Optimum • No unity of
development command
• Experts advice
• High flexibility
• economical
COMMITTEE ORGANISATION
• Group judgement • Expensive
• Effective • Slow decisions
coordination • Divided
• Motivation thr’ responsibility
participation
• Effective
communication
COMMITTEE ORGANISATION
• GROUP OF PEOPLE FORMED TO
DISCUSS AND DELIBRATE ON
PROBLEMS TO GET THE SOLUTIONS
Project organisation
• Semi-autonomous project division
• Consists of specialists in diff field
• Once the project over, undertake new
projects