Date post: | 01-Jun-2018 |
Category: |
Documents |
Upload: | popat-vishal |
View: | 221 times |
Download: | 0 times |
of 8
8/9/2019 Structural Consideration & Type of Structure
1/19
Structural Consideration &
Type of Structure
8/9/2019 Structural Consideration & Type of Structure
2/19
What is Organization Structure?
A organization structure is the way how tasks andsub-tasks reuired to i!ple!ent a strategy arearranged"
Organization structure is the for!al syste! of tasksand authority relationship that control how peoplecoordinate their actions and use resources to achie#eorganizational goals"
Structure balances the need for specialization withthe need for integration"
8/9/2019 Structural Consideration & Type of Structure
3/19
Type of Structure
Si!ple
$unctional
%i#isional
Strategic usiness 'nit(atri)
8/9/2019 Structural Consideration & Type of Structure
4/19
Si!ple Organizational Structure
An organizational for! in which the owner-!anager!akes all !a*or decision directly and !onitors allacti#ities while the staff ser#es as an e)tension of the
!anager+s super#isory authority",n the s!allest business enterprise the si!ple
structure pre#ails"
All strategic and operating decisions are centralized
in the owner-!anager+s do!ain"
8/9/2019 Structural Consideration & Type of Structure
5/19
A si!ple structure
Owner-(anager
.!ployees
8/9/2019 Structural Consideration & Type of Structure
6/19
Ad#antages
$acilitates control of all the business+s acti#ities"
/apid decision !aking andability to change with
!arket signals"Si!ple and infor!al
!oti#ation 0 reward 0control syste!s
1ery de!anding on theowner-!anager"
,ncreasingly inadeuate as #olu!e e)pands"
%oes not facilitatede#elop!ent of future!anager"
Tends to focus owner-
!anager on day to day!atters and not on futurestrategy"
%isad#antages
8/9/2019 Structural Consideration & Type of Structure
7/19
$unctional Organizational Structure
$unctional organization is a type of organizationstructure that uses the principle of specialization
based on function or role it allows decision to be
decentralized since issue are delegated to specializedpersons or units lea#ing the! the responsibility ofi!ple!enting e#aluating or controlling the gi#enprocedures or goals"
8/9/2019 Structural Consideration & Type of Structure
8/19
$unctional Structure
Chief .)ecuti#e officer
Staff $unction
$inance0personnel
Line functions
2roduction (arketing .ngineering
8/9/2019 Structural Consideration & Type of Structure
9/19
Ad#antages
.fficiency throughspecialization
,!pro#ed de#elop!ent offunctional e)pertise"
%ifferentiates and delegatesday to day operatingdecisions"
/etain centralized control ofstrategic decisions"
2ro!otes narrowspecialization and potentialfunctional ri#alry or conflict"
%ifficulty in functional
coordination and inter-functional decision !aking"
Staff-line conflict"
3i!its internal de#elop!entof general !anagers"
%isad#antages
8/9/2019 Structural Consideration & Type of Structure
10/19
%i#isional Organizational Structure
A di#isional structure di#ides the co!pany intodi#ision that bring together those e!ployeesin#ol#ed with a certain type of product or !arket
ser#ice" A type of organizational configuration that groups
together those e!ployees who are responsible for aparticular product type or !arket ser#ice accordingly
to workflow" The di#isional structure of a business ofa business tends to increase fle)ibility and it can also
be broken down further into product !arket andgeographic structure"
8/9/2019 Structural Consideration & Type of Structure
11/19
%i#isional Organization Structure
Chief .)ecuti#e Officer
Vice President
Administrative Services
Vice President
Operating Support
4eneral !anager%i#ision A
4eneral !anager%i#ision
4eneral !anager%i#ision C
2roduction0Operation 2roduction0Operation 2roduction0Operation
(arketing (arketing (arketing
Personnel
Accounting/Control
Division Planning
Personnel Personnel
Accounting/Control Accounting/Control
Division Planning Division Planning
8/9/2019 Structural Consideration & Type of Structure
12/19
Ad#antages
$orces coordination andnecessary authority down tothe appropriate le#el for rapidresponse"
Sharply focuses accountabilityfor perfor!ance"
/etain functionalspecialization within eachdi#ision
4ood training ground forstrategic !anagers"
$osters potentiallydysfunctional co!petitionfor corporate le#elresources"
2roble! with the e)tent ofauthority gi#en to di#ision!anagers"
2otential for policy
inconsistencies betweendi#isions"
%isad#antages
8/9/2019 Structural Consideration & Type of Structure
13/19
Strategic usiness 'nit
A strategic business unit is a profit centre whichfocuses on product offering and !arket seg!entS's typically ha#e a discrete !arketing plananalysis of co!petition and !arketing ca!paigne#en though they !ay be part of a large businessentity"
8/9/2019 Structural Consideration & Type of Structure
14/19
S' Organization Structure
Chief .)ecuti#e Officer
Vice President
Administrative Services
Vice President
Operating Support
4roup 1ice 2residentS'5
4roup 1ice 2residentS'6
4roup 1ice 2residentS'7
Divisions Divisions Divisions
A B C A B BC C A
8/9/2019 Structural Consideration & Type of Structure
15/19
Ad#antages
,!pro#es coordination between di#ision with si!ilarstrategic concerns andproduct0!arket en#iron!ent"
$acilitates distinct and in-depth business planning atthe corporate and businessle#els"
Channels accountability to
distinct business units"
2laces another layer of!anage!ent between thedi#isional and corporate!anage!ent"
%ysfunctional co!petition forcorporate resources !ayincrease"
The role of the group #icepresident can be difficult to
define"
%isad#antages
8/9/2019 Structural Consideration & Type of Structure
16/19
(atri) Organization Structure
An organization structure that facilitates thehorizontal flow of skill and infor!ation" ,t is used!ainly in the !anage!ent of large pro*ects orproduct de#elop!ent processes drawing e!ployeesfro! different functional disciplines for assign!entto a tea! without re!o#ing the! fro! theirrespecti#e positions"
8/9/2019 Structural Consideration & Type of Structure
17/19
(atri) Organizational Structure
Chief .)ecuti#e Officer
2ro*ect
(anagerC
2ro*ect(anager
2ro*ect(anager
A
1ice 2resident
.ngineering
1ice 2resident
.ngineering
1ice 2resident
.ngineering
1ice 2resident
.ngineering
Engineering
Staff
Engineering
Staff
Engineering
Staff
Production
Staff
Production
Staff
Production
Staff
Purchasing
Agent
Purchasing
Agent
Purchasing
Agent
Administration
Coordination
Administration
Coordination
Administration
Coordination
8/9/2019 Structural Consideration & Type of Structure
18/19
Ad#antages
Acco!!odates a wide #arietyof pro*ect oriented businessacti#ity"
4ood training ground for
strategic !anagers"(a)i!ize efficient use of
functional !anagers"
$osters creati#ity and!ultiple sources of di#ersity"
%ual accountability can createconfusion and contradictorypolicies"
8ecessitates tre!endous
horizontal and #erticalcoordination"
%isad#antages
8/9/2019 Structural Consideration & Type of Structure
19/19
Thank You…