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Presented By:
Abhinav Ramji Mishra - 11DM-005
Divyansh Aggarwal - 11IB-020
Nalla Srinath Reddy - 11DM-083
Sahil Gupta - 11IB-069
Simran Preet Kaur - 11FN-105
Sumit Kumar - 11DM-164
ORGANISATION
STRUCTURE
ORGANISATION BEHAVIOR - II
Group 9Section D
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INDEX
Executive Summary ............................................................ 2
Introduction ......................................................................... 3Levels Of Management ................................................................. 3
Traditional Structure Of An Organisation ................................... 4
Organisation Design............................................................ 5
Functional Structure ..................................................................... 5
Divisional Structure ...................................................................... 6
Geographic Structure .................................................................... 6
Matrix Structure ........................................................................... 7
Horizontal Structure ..................................................................... 8Hybrid Structure ......................................................................... 10
Virtual Structure ......................................................................... 10
Objective............................................................................. 11
Methodology ....................................................................... 11
Survey Results ................................................................... 12
Research and Analysis ...................................................... 17
References. ......................................................................... 20
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EXECUTIVE SUMMARY
With the help of inputs from various sources, we analyzed the organisational
structures at different organisations and how they work. A prominent part of
our analysis dealt with understanding the effectiveness of structures in an
organisation and in what way do those organisational structures help the
organisations in improving the productivity of their employees.
We were able to determine the following from the survey:
Which structure is commonly adapted by a particular industry? Which is the most employee-friendly structure? Which is the most preferred structure amongst all? Where are the pitfalls? What are the advantages of a particular structure? What are the disadvantages of a particular structure?
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INTRODUCTION
An organisation can be looked at in several ways. We can think of it as a
system that takes capital and labour as input and gives services or products
as output. Another way of looking at an organisation is to see it as a social
structure in which rules and procedures govern the way that the people
working in the organisation interact.
Any organisation must have some structure and in general this will be
hierarchical.
LEVELSOFMANAGEMENT
At each level of the organisation, employees have different responsibilities
and roles. At the bottom is the operational staff that is responsible forproducing the goods or delivering the services. There is some degree of
management at this level such as foreman or team leader. The next level
consists of middle managers, who are responsible for ensuring that the
operational tasks are carried out. Above the middle managers will be the
senior managers who will be responsible for planning and decision making.
At the very top of the hierarchy is the executive management which will be
responsible for long term planning and setting the overall goals for the
organisation.
The hierarchy may be organized according to function - e.g. Personnel,
Finance, and Marketing or, in a large organisation, it may be based on
divisions where each division replicates the hierarchical structure of other
divisions. The larger an organisation the more structured it is likely to be and
the more clearly defined will be the roles of individuals within the structure.
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TRADITIONALSTRUCTUREOFANORGANISATION
SENIOR
Senior people like Chief Executives, MDs, Marketing Directors, etc.
have to take strategic decisions.
TACTICAL
Middle management (e.g. Area Sales Director, Factory Manager) haveto take tactical decisions.
OPERATIONAL
Operational people (e.g. Foreman, shift leaders, the workforce) have to
take operational decisions.
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ORGANISATIONDESIGN
FUNCTIONALSTRUCTURE
Employees within the functional divisions of an organisation tend to performa specialized set of tasks, for instance the engineering department would be
staffed only with software engineers. This leads to operational efficiencies
within that group. However it could also lead to a lack of communication
between the functional groups within an organisation, making the
organisation slow and inflexible.
As a whole, a functional organisation is best suited as a producer of
standardized goods and services at large volume and low cost. Coordination
and specialization of tasks are centralized in a functional structure, which
makes producing a limited amount of products or services efficient and
predictable. Moreover, efficiencies can further be realized as functional
organisations integrate their activities vertically so that products are sold
and distributed quickly and at low cost. For instance, a small business could
make components used in production of its products instead of buying them.
This benefits the organisation and employees faiths.
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DIVISIONALSTRUCTURE
Also called a "product structure", the divisional structure groups each
organisational function into a division. Each division within a divisional
structure contains all the necessary resources and functions within it.
Divisions can be categorized from different points of view. One might makedistinctions on a geographical basis (a US division and an EU division, for
example) or on product/service basis (different products for different
customers: households or companies). In another example, an automobile
company with a divisional structure might have one division for SUVs,
another division for subcompact cars, and another division for sedans.
Each division may have its own sales, engineering and marketing
departments.
GEOGRAPHIC STRUCTURE
Geographic structure groups employees together based upon specific
geographic location. It clearly defines reporting relationships, decision-
making authority, and the physical location of employees from various
departments. The representatives are grouped from each functional
department into units formed to serve a specific market or region. This is
often used by large companies that operate in many areas throughout the
country or in both the home country and overseas. Geographical units can be
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highly effective if they are located within the regions they serve and employ
workers from the local labor pool.
MATRIXSTRUCTURE
The matrix structure groups employees by both function and product. This
structure can combine the best of both separate structures. A matrix
organisation frequently uses teams of employees to accomplish work, in order
to take advantage of the strengths, as well as make up for the weaknesses, of
functional and decentralized forms. An example would be a company that
produces two products, "product a" and "product b". Using the matrix
structure, this company would organize functions within the company as
follows: "product a" sales department, "product a" customer service
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department, "product a" accounting, "product b" sales department, "product
b" customer service department, "product b" accounting department. Matrix
structure is amongst the purest of organisational structures, a simple lattice
emulating order and regularity demonstrated in nature.
Weak/Functional Matrix: A project manager with only limitedauthority is assigned to oversee the cross- functional aspects of the
project. The functional managers maintain control over their resources
and project areas.
Balanced/Functional Matrix: A project manager is assigned to overseethe project. Power is shared equally between the project manager and
the functional managers. It brings the best aspects of functional and
projective organisations. However, this is the most difficult system to
maintain as the sharing power is delicate proposition.
Strong/Project Matrix: A project manager is primarily responsible forthe project. Functional managers provide technical expertise and
assign resources as needed.
HORIZONTALSTRUCTUREIt is an organisational structure with few or no levels of intervening
management between staff and managers. The idea is that well-trained
workers will be more productive when they are more directly involved in the
decision making process, rather than closely supervised by many layers of
management.
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This structure is generally possible only in smaller organisations or
individual units within larger organisations. When they reach a critical size,
organisations can retain a streamlined structure but cannot keep a
completely flat manager-to-staff relationship without impacting productivity.
Certain financial responsibilities may also require a more conventional
structure. Some theorize that flat organisations become more traditionally
hierarchical when they begin to be geared towards productivity.
This model promotes employee involvement through a decentralized decision-
making process. By elevating the level of responsibility of baseline employees
and eliminating layers of middle management, comments and feedback reach
all personnel involved in decisions more quickly. Expected response to
customer feedback becomes more rapid. Since the interaction between
workers is more frequent, this organisational structure generally depends
upon a much more personal relationship between workers and managers.
Hence the structure can be more time-consuming to build than a traditional
hierarchical model.
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HYBRID STRUCTURE
A hybrid organisational structure is a one in which more than one
organisational design is used. This allows a company more flexibility in
distributing work and assigning job roles. It can be especially beneficial in
small business, where there are fewer employees to manage daily operations.
A hybrid organisational structure creates a shared mission and allows for
employees to work on different projects and in different sectors. This
structure creates a unified team of individuals with a common goal and
different experience and interest levels. Each employee is able to perform
work in the areas he is best suited to, moving from project to project and
reporting to different individuals when necessary. Another benefit to the
hybrid organisational structure is the massive scale that can be reached by
its use.
VIRTUALSTRUCTURE
The virtual organisation exists within a network of alliances, using the
Internet. This means while the core of the organisation can be small but still
the company can operate globally.
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OBJECTIVE
The main objective of the project was to validate that "An organisational
structure affects employee retention in the organisation".
The objectives that were considered in arriving at the solution are :
To understand various organisational-structures Differentiate between various organisational-structures To study advantages and dis-advantages of different types of
organisational structure
METHODOLOGY
To assess different kinds of Organisational Structures and their impacts on
the working behavior of employees, a questionnaire had been floated to know
about kind of Organisation (Manufacturing, IT/ITES, Telecom), kind of
organisation structure like Functional, Divisional, etc. have been included
along with satisfaction levels. Questionnaire is floated over Internet to reach
maximum employees in diverse sectors.
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SURVEY RESULTS
We performed a survey with a sample size of 102 people. These individuals
have been working for at least 5 years. The sample was aware about their
organisation structure. We observed that the majority of individuals weresatisfied with the structure their organisation followed.
There were 15 questions in all where the first 3 were for classification
purposes, and the next 12 were related to the organisation structure and
their preferences. Please find the results of our findings below:
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RESEARCH ANDANALYSIS
We received 102 responses for the survey and we have analysed the following
from it:
Of the total sample, 27% respondents belonged to services sector,followed by 28% from the manufacturing sector.
The respondents were also asked about the present structure of theirorganisation. Maximum respondents are working in functional
structured organisation (29%) followed by matrix structured
organisation (20%).
After these preliminary questions, we asked questions to ascertain thesatisfaction levels with their current organisations structure.
A majority of respondents said that their organisations handledoperations in a cooperative manner.65% respondents said that its easy
for them to approach the top management in their organisation.
Majority (61%) of the respondents said that their organisations valuedtheir opinions.
We asked them whether the organisations had any mission plans andif the organisation was good at fulfilling the mission. Most of the
respondents in the Manufacturing, IT/ITES, Telecom and Services
sectors mentioned that their organisations had a mission plans and
were also good at fulfilling them. A few respondents in the others
category, who were self-employed answered this question negatively.
When enquired about the time taken for information to reach from thetop management, maximum respondents said 1 -2 days.
On the question whether the people liked starting a new day at work,the most number of negative responses were from the IT/ITES sector.
Of all the sectors, the maximum numbers of respondents are workingin the functional structured organisation and are satisfied with it.
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When asked for the most preferred structure they would like to workin, horizontal structured organisation scored the maximum score.
The above graph depicts the time to disseminate information for different
types of structure based on our survey.
The above graph shows that most people prefer the structure that they
currently work in over others.
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Thus, on the basis of the survey, we can say that the IT/ITES sector had the
weakest culture in comparison to the other sectors included in the survey. We
also searched the internet for the latest attrition rate across sectors. IT/ITES
sector had attrition rates of around 25%, compared to the Indian average of
18% (across all sectors).
This validates the fact that a good organisational culture facilitates employee
retention in an organisation.
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