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ORGANISATIONAL

THEORY,

STRUCTURE AND DESIGN.

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CONCEPT OF ORGANISATION

Organization is

A consciously coordinated social entity

With a relatively identifiable boundary

That functions on a relatively continuous basis

To achieve a common goal or set of goals

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V ALUE CREATION

A THREE STAGE P ROCESS

Inputs Conversion Outputs

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ORGANISATION THEORY

Organization Theory has two aims:

- Understand how organization operates

- To develop conceptual tools to influence

organizational situations in which you will findyourself.

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TAYLORS SCIENTIFICMANAGEMENT: KEY CONCEPTS

Scientific Task Planning.

Time and Motion Studies.

Standardization.

Differential Piece Rate System.

Functional Foremanship.

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WEBERS BUREAUCRATIC THEORY:ELEMENTS

Hierarchy.

Division of Work.

Records.

Impersonal Relationship.

Administrative Class.

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FAYOLS ADMINISTRATI V ETHEORY:PRINCIPLES

Division of Work. Authority and Responsibility.Discipline.Unity of Command.Subordination of Individual Interest.Remuneration.Order.Centralization.

Scalar Chain.Equity.Stability of Tenure.Initiative.Esprit de corps.

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HUMAN RELATIONS THEORY: IDEAS

Individual.

Work Group.

Work Environment.

Leader.

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ORGANIZATIONAL STRUCTURE:CONCEPT

The organizational structure is designed to preventchaos through an orderly set of reportingrelationships and communication.

Organizational Structure, according to John Child,consists mainly of four elements:

1. The assignment of tasks and responsibilities.2. The clustering of positions.3. V arious mechanisms to facilitate vertical

coordination.4. V arious mechanisms to foster horizontal

coordination.

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ORGANIZATIONAL CHART

ManagingDirector

GeneralManager R &

D Division

Chief Scientist, New

Materials

MaterialScientist

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TYPES OF DEPARTMENTALIZATION

Departmentalization

Functional Divisional Hybrid Matrix

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MANAGING COMPLEX STRUCTURES

ManagingComplex

Structures

V erticalCoordination.

HorizontalCoordination.

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METHODS OF V ERTICALCOORDINATION

Formalization.

Span of Management.

Centralization and Decentralization

Delegation of Authority.

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METHODS OF HORIZONTALCOORDINATION

Lateral Relations.Direct

ContactLiaisonRoles

Task Forceand Teams

IntegratingManager

Information System.

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SYSTEMS APPROACH TOORGANIZATION

Nature of System

Katz and Kahn have described the following

characteristics of a system:

Input-throughput-output mechanism.

Delineation by boundary.

Purposes and goals.

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SYSTEMS V OCABULARY

System.

Sub-System.

Synergy.

Open and Closed System.

System Boundary.

Flow.

Feedback

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ORGANIZATIONAL DESIGN: ANINTRODUCTION

The outcome of the process of developing anorganizational structure is an organizationaldesign.

An organizational design is how anorganizational structure looks like.

The process of constructing and adjusting anorganizations structure to achieve its goalsresults into formation of an organizationaldesign.

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FACTORS INFLUENCINGORGANIZATIONAL DESIGN

Technology.

The Organizations Size.

Organizational Goals.

Environment.

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PROBLEMS IN ORGANIZATIONALDESIGN

Differentiation.

Integration.

Balancing centralization and decentralization.

Balancing standardization and mutualadjustment.

Formalization vs. Socialization.

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ORGANIZATIOANL DESIGN ANDFLEXIBILITY

FORCES FOR CHANGE IN ORGANIZATION

ExternalTechnologicalChange.GlobalizationSocial & PoliticalChange.

WorkforceDiversity.Managing EthicalBehavior.

InternalChanges inManagerialPersonnel.DecliningEffectiveness.

Changes in WorkClimate.Crisis.EmployeeExpectations.

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FLEXIBILITY MODEL: B UILDINGBLOCKS .

Managerial Capabilities.

Organizational Design.

Changing Competitive Forces.

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EN V IRONMENTAL AND RESOURCECONTEXT IN ORGANIZATION: SPECIFIC

EN V IRONMENT

ORGANIZATION

Customers

Suppliers

CompetitorsDealers

Unions

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GENERAL EN V IRONMENT

ORGANIZATION

Economic

Techno-Logical

Legal &Regulato

ry

NaturalFactorsPolitical

Socio-Cultur

al

Inter-National

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SOURCES OF UNCERTAINTY

Environmental Complexity.

Environmental Dynamism.

Environmental Richness.

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ORGANIZATIONAL LIFE CYCLE

Start-upStage

GrowthStage

MaturityStage

DeclineStage

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V IRTUAL ORGANIZATION

V O is viewed as an organization consisting of independent partners, who try to combine theirstrengths, skills, resources, risks and finances in

order to produce ideas or products.

Members of the V O are often geographicallydispersed and communicate with the help of

information technology.

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CHARACTERISTICS OF A V IRTUALORGANIZATION

Represents structures that are motivated byspecific market opportunities.

Each partner contributes a world class corecompetence.

IT an important element.

Creates a network of interdependentrelationships.

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V IRTUAL ORGANIZATIONS MODELS

Co-alliance model.

Star alliance model.