NOTE ON ORGANIZATION STRUCTURE

Group 11FT152013 NIRMAL RAJ SELVARAJUFT152004 APURV MISHRAFT151038 ANKIT SACHDEVAFT151028 RADHA NARAYANANFT153039 MANISHA TANVI

ORGANIZATION STRUCTURE-CENTRAL 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 STRUCTURE-BASIC 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 FORMSThe 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

cross-functional 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

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