Organization structure is the established pattern of

relationship among various job positions of the

enterprise.

Organization structure is defined as “a system of

job positions, the roles assigned to them and the

authority relation among the various positions”.

It provides framework for managers and other

employees for performing their functions.

Organizational Structure

Job Design

DEPARTME-NTATION

SPAN OF CONTROL

Delegation of authority

The various tasks to be accomplished under

each job and the qualities, skills and

qualifications required to undertake a particular

job are specified in job design.

Job design helps in formulating organizational

structure.

Similar jobs are grouped together to form a

department.

Co-ordination of different jobs becomes easy,

when similar jobs are grouped under one

department and under one manager.

The number of jobs a manager can effectively

supervise and control are called span of

control.

Span of control varies accordingly to the nature

of industry, type of products, service and

organization process involved.

After grouping the jobs into departments, the

powers required to perform the jobs are

determined.

Where the number of jobs in a department is

large, and exercising authority may be difficult,

part of the authority may be transferred to

subordinates.

The transmission of decision making power to

subordinates by superior is called delegation of

authority.

Function structure is formed by grouping

together the entire work to be done into major

functional departments.

In functional organizational structure. Each

major function of business is organized as a

separate department.

Chairman /Managing Director

Manager Production

Manager Marketing

Manager Finance

Manager Human

Resource

Chairman /Managing Director

General Manager

Production

General Manager

Marketing

General Manager Finance

General Manager Human

Resource

o In large and diversified organizations,

activities and personnel are grouped on the

basis of different products manufactured.

o Divisional structure facilitates expertise in one

product line.

o It becomes easy for the top management for

easily Co-ordinate the activities of different

product manufactured.

Chairman /Managing

Director

G.M Product

A division

Manager production Manager

Personnel

G.M Product B division

Manager Production

Manager Personnel

G.M Product C division

Manager Production

Manager Personnel

G.M Product

D division

Manager production

Manager Personnel