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7/30/2019 Ogr Struct.
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Powerpoint Templates
Page 1Powerpoint Templates
ORGANISATIONAL STRUCTURE
& DESIGN ANDORGANISATIONAL CULTURE.
Prof. JASNEET SONI
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In common parlance:
Organization is a process of identifying and
grouping the work to be performed,
defining and delegating responsibility and
authority and establishing relationships for
the purpose of enabling people to work
most effectively together in accomplishing
objectives.
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Properties of Modern Organizations:
Social entities
Goal directed
Relatively permanent
Structure
Openness
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Importance of Organization:
Facilitates administration
Facilitates growth and diversification
Permits optimum use of resources
Stimulates creativity
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Organization Structure:
An Organizational structure defines how job
tasks are formally divided, grouped, and
coordinated.
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There are six key elements that managers
need to address while they design their
organization structure. They are:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
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Work specialization: The degree to whichtasks in the organization are subdivided
into separate jobs.
Departmentalization: The basis by which
jobs are grouped together.
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Chain of command: The unbroken line ofauthority that extends from the top of the
organization to the lowest echelon and
clarifies who reports to whom.
Authority: The rights inherent in a
managerial position to give orders and to
expect the orders to be obeyed.
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Unity of command: The idea that asubordinate should have only one superior
to whom he or she is directly responsible.
Span of control: The number of
subordinated a manage can efficiently and
effectively direct.
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Centralization: The degree to whichdecision making is concentrated at a
single point in the organization.
Decentralization: The degree to which any
task is passed on to the subordinates in
the organization.
Formalization: The degree to which jobs
within the organization are standardized.
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Fact ors affecting organizationalstructure
Organization size
Organization life cycle
Strategy
Environment
Technology
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Organizational design assesses the internal
structure and systems of the family
business, its organization (including
staffing structure, internal control systemsand the condition and use of information)
and its unique skills and abilities.
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Structure Evolution
Structure adapts quickly to change
Supporting innovation and change
Willing to reorganize, when necessary
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Designing an organizational structure isdependent upon:
The kind and quality of information itgathers from its customers, suppliers and
partners
How the company gathers the information How it interacts with each of these
constituents
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How this information flows through the
organizational structuresa. Who has access to it and who doesn't
b. How is the information utilized in making
decisions
c. How the information is stored for ease of use
and analyzed
Whether both the organizational
processes and systems reflect and mirrorinformation flow
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The typical organization structure results
in many of the problems with which we are
asked to deal, such as:a.Conflict between departments (e.g., the
perennial one between Sales and
Operations)b.Long lead times in developing new
products and services
c.Quality problems, billing inaccuracies, etc.d.Inefficiencies (which are usually blamed
on individuals)
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e. Not being able to keep up with customer
demandsf. Low employee morale (often related to
staff not being empowered to make
decisions)g. Departmental goals and performance
measures not being cascaded down
through the entire organization (goals
stop at the top of the hierarchy without a
real appreciation of how "it all fits
together")
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