STRUCTURE OF ORGANIZATION

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.

Elements in Organization Structure

Organizational

Structure

Job Design

DEPARTME-

NTATION

SPAN OF CONTROL

Delegation of

authority

1. JOB DESIGN

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.

2. DEPARTMENTATION

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.

3.SPAN OF CONTROL

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.

4. DELEGATION OF AUTHORITY

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.

Functional Structure

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.

Functional organizational structure of small/ medium enterprise

Chairman /Managing Director

Manager Productio

n

Manager Marketin

g

Manager Finance

Manager Human

Resource

Functional organizational structure of large enterprise

Chairman /Managing Director

General Manager

Production

General Manager

Marketing

General Manager Finance

General Manager Human

Resource

Divisional Structure

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.

Functional organizational structure of large enterprise

Chairman /Managing Director

G.M Product

A division

Manager producti

on

Manager Personnel

G.M Product

B division

Manager Producti

on

Manager Personnel

G.M Product C division

Manager Producti

on

Manager Personnel

G.M Product

D division

Manager producti

on

Manager Personnel

THE END……!