ORGANISATIONAL BEHAVIOUR PROJECT

TOPIC - DIFFERENT ORGANISATIONAL STRUCTURE

CLASS -- SYBFM

GROUP MEMBERS

1. AAMISH PANDOH 212. UDESH POOJARY 223. APURVA PALANGE 234. ISHITA JOSHI 245. FAIMIDA SAYYED 25

>> An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.>> It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.>> An organization can be structured in many different ways, depending on their objectives.>> Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual.>> Organizational structure affects organizational action in two big ways. >> First, it provides the foundation on which standard operating procedures and routines rest.>> Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.Furtherly it is of TWO types

INTRODUCTION

Organisational structure

FORMAL ORGANISATION

INFORMAL ORGANISATION

FUNCTIONAL ORGANISATION

DIVISIONAL ORGANISATION

MATRIX ORGANISATION

WHAT IS FUNCTIONAL ORGANISATIONAL STRUCTURE ?

The functional structure groups positions into work units based on similar activities, skills, expertise, and resources

PRODUCTION DEPARTMENT

MARKETTING DEPARTMENT

FINANCE DEPARTMENT

PERSONEL DEPARTMENT

HUMANRESOURCE

DEPARTMENT

DIAGRAMATIC PRESENTATION OF FUNCTIONAL ORGANISATION DIAGRAMATIC PRESENTATION OF FUNCTIONAL ORGANISATION STRUCTURESTRUCTURE

By doing the same work for a longer period of time the organization gets the benefit of specialization.

Knows their work very well so it is easy to control and coordinate the employees.

By doing the work for a longer period of time both manager and employee gets experience thus they will give maximum contribution with minimum cost.

Each individual has a fixed joB and department so the employee are required to concentrate on their own work which avoid duplication of work

There is a very clear chain of command in this structure, so everyone knows which decisions they are allowed to make, and which ones to hand off to their supervisors.

ADVANTAGES OF FUNCTIONAL ORGANISATION

Work is connected with one department to another department. If size of organisation become big employee start working on their on wish so difficult in coordination. Development of employee is not there as there is a lack of knowledge of the work in the organistion apart of their work. More weightage to departmental objective by departmental head. Suffers organization objective. On the failure of the organistional objective each department holding other department responsible for failure. As the work of one department is connected with the work of another department it is very difficult to make on department accountable for failure. Conflict also arises when interest of one department is contrary to each other. For example: (sales department insists in a customer friendly design but this may not be accepted by the production department as it will create difficulty in achieving their targets).

DISADVANTAGES OF FUNCTIONAL ORGANISATIONAL

ABC International has just passed $10 million in sales, and its president believes that this is a good time to restructure the business to improve efficiencies through job specialization. Accordingly, he clusters employees into the following functional areas: Accounting department Corporate department Engineering department Facilities department Human resources department Investor relations department Legal department Production department Public relations department Purchasing department Sales and marketing department

Examples of functional organisational structure

WHAT IS DIVISIONAL ORGANISATION STRUCTURE ?

Managers in large companies may have difficulty keeping track of all their company's products and activities, specialized departments may develop. These departments are divided according to their organizational outputs.

Diagrametic presentation of divisional organisation structure

>> This approach makes it much easier to assign responsibility for actions and results.>> The divisional structure works well in markets where there is a great deal of competition, where local managers can quickly shift the direction of their businesses.>> You can use this structure to create a culture at the divisional level that most closely meets the needs of the local market.>> The divisional structure allows decision-making to be shifted downward in the organization, which may improve the company's ability to respond to local market conditions.>> When a company has a large number of product offerings, or different markets that it services, and they are not similar, it makes more sense to adopt the divisional structure.>> This approach tends to yield faster responses to local market conditions.

ADVANTAGES OF DIVISIONAL ORGANISATIONAL STRUCTURE

When you set up a complete set of functions within each division, there are likely to be more employees in total than would be the case if the business had instead been organized under a purely functional structure. Also, there must still be a corporate organization, which adds more overhead cost to the business. The company as a whole may not be able to take advantage of economies of scale, unless purchases are integrated across the entire organization. When there are a number of functional areas spread among many divisions, no one functional area will be as efficient as would have been the case if there had instead been one central organization for each function. Each division will tend to have its own strategic direction, which may differ from the strategic direction of the company as a whole.

DISADVANTAGES OF DIVISIONAL ORGANISATIONAL STRUCTURE

ABC International has just passed $250 million in sales, and its president decides to adopt a divisional organizational structure in order to better service its customers. Accordingly, he adopts the following structure: Commercial division. Focuses on all commercial customers, and has its own product development, production, accounting, and sales employees. Retail division. Focuses on all retail customers in the United States, and has its own product development, production, accounting, and sales employees. International division. Focuses on all retail customers outside of the United States. It shares product development and production facilities with the retail division, and has its own accounting and sales employees.

ORGANISATION CHART OF WALL MART

WHAT IS MATRIX ORGANISATION ?

The employee has to work under two authorities (bosses). The authority of the Functional Manager flows downwards while the authority of the Project Manager flows across (side wards). So, the authority flows downwards and across. Therefore, it is called "Matrix Organisation".

DIAGRAMATIC PRESENTATION OF MATRIX ORGANISATION DIAGRAMATIC PRESENTATION OF MATRIX ORGANISATION STRUCTURESTRUCTURE

Specularities of matrix organisation

Matrix organisation is a hybrid structure. This is so, because it is a combination of two or more organisation structures. It combines functional organisation with a project organisation. Therefore, it has the merits and demerits of both these organisation structures. The Project manager has authority over the administrative aspects of the project. He has full authority over the financial and physical resources which he can use for completing the project. In a matrix organisation, there is a problem of the unity of command. This is so, because the subordinates receive orders from two bosses viz., the Project Manager and the Functional Manager.results in confusion. In a Matrix organisation, there is a specialisation. The project manager concentrates on the administrative aspects of the project while the functional manager concentrates on the technical aspects of the project. Matrix organisation is suitable for multi-project organisations. It is mainly used by large construction companies, that construct huge residential and commercial projects in different places at the same time

Example of matrix organisation

What is informal organisation ??

The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of, norms, personal and professional connections through which work gets done and relationships are built among people who share a common organizational affiliation or cluster of affiliations

Informal organisational structure

If managers can work with the informal groups within their department, there should be higher levels of motivation and productivity.

Interdivisional communication should be better through the informal network. This could lead to increased innovation which should help the company

succeed.Managers are less inclined to check up on workers when they know the informal

organization is cooperating with themManagers who comprehend the power of the informal organization recognize

that it is a "check and balance" on their use of authority. The informal group provides a means for relieving these emotional and

psychological pressures by allowing a person to discuss them among friends openly and candidly.

Advantages of informal organisation

DISADVANTAGES OF INFORMAL ORGANISATION

Perpetuation of values and lifestyle causes informal groups to become overly protective of their "culture" and therefore resist change.

Employees' desire to fulfill the requirements and services of both the informal group and management results in role conflict.

The grapevine dispenses truth and rumor with equal vengeance. Ill-informed employees communicate unverified and untrue information that can create a devastating effect on employees.

Social control promotes and encourages conformity among informal group members, thereby making them reluctant to act too aggressively or perform at too high a level.

This can harm the formal organization by stifling initiative, creativity, and diversity of performance.

EXAMPLES OF INFORMAL ORGANISATION

FACEBOOK INFORMAL ORGANISATION