PrinciplesandPracticeofManagement

Design of Organisation Structure

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Definition

Organisation structure refers to the differentiation and integration of activities and authority, role and relationships in the organisation.

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FormalOrganisation

It refers to the structure of well-defined jobs, each bearing a definite authority, responsibility, and accountability.

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InformalOrganisation

It refers to people in group associations at work, but these associations are not specified in the blueprint of the formal organisation.

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Diff.b/w.Formal&InformalOrganisations
Origin Purpose Size NatureandNumberofGroups Authority BehaviorofMembers Communication Abolition
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ReasonsforInformalOrganisation

Desiretosocialisewithothers Psychologicalfatigueofroutinetasks Hierarchicalcontrolandcommunication Variousfunctionsofinformalorganisation

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WorkingofInformalOrganisation

AuthorityStructure Leadership Communication

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Difficultiesduetoinformalorgn.

Resistancetochange Generationofrumour Roleconflict Conformity Socialcosts

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ManagingInformalOrganisation
StructuralApproach BehaviouralApproach

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NeedforFormalOrganisationstructure

Facilitatingmanagementaction Encouragingefficiency Communication Optimumuseoforganisationalresources Stimulatingcreativity Jobsatisfaction

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FeaturesofGoodOrganisationstrtucture
Simplicity Flexibility Clearlineofauthority Applicationofultimateresponsibility Properdelegationofauthority Minimumpossiblemanageriallevels

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 Principlesofunityofdirectionandcommand Properemphasisonstaff Provisionfortopmanagement

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ApproachesforOrganisationaldesign

ProcessApproach ResultApproach DecisionApproach

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Departmentation

The process of grouping the activities is commonly known as departmentation.

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Need&ImportanceofDepartmentation
Advantagesofspecialisation Fixationofresponsibility Developmentofmanagers Facilityinappraisal Feelingofautonomy

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Function Product

Basesofdepartmentation

Territory Process Customer Time Alphanumerical

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Specialisation Coordination Control Economy

Choiceofbasesofdepartmentation

Focusonresults Localconditions Humanconsideration

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Spanofmanagement

It refers to the number of subordinates who can be managed effectively by a superior.

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Determinationofspanofmanagement

Directsinglerelationships Directgrouprelationships Crossrelationships

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 Capacityofsuperior

Factorsaffectingspanofmanagement

Capacityofsubordinates Natureofwork Degreeofdecentralisation Degreeofplanning Communicationtechniques Useofstaffassistance Supervisionfromothers

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 WideorNarrowSpan TallorFlatStructure

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