Organisational Structure & Design and Organisational Culture. Prof. Jasneet Soni

ORGANISATIONAL STRUCTURE & DESIGN AND ORGANISATIONAL CULTURE.
Prof. JASNEET SONI
Powerpoint Templates
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Organization is the form of every human association for the attainment of a common purpose - Mooney and Reiley.
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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 which tasks 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 of authority 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 a subordinate 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 which decision 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. Powerpoint Templates
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Fact ors affecting organizational structure

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 systems and the condition and use of information) and its unique skills and abilities.
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Organizational Design - Basic Structure

Structure Criteria for Organizational Design
Structure is conducive to strategy Structure is based on strategic need, not "inhouse" politics Structure facilitates a "value chain" approach Promotes collaboration between departments
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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 is dependent upon:

The kind and quality of information it gathers 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 structures

a. 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 mirror information 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)
e. Not being able to keep up with customer demands f. 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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ORGANISATIONAL STRUCTURE & DESIGN AND ORGANISATIONAL CULTURE.

Prof. JASNEET SONI

Properties of Modern Organizations:

Departmentalization: The basis by which jobs are grouped together.

Fact ors affecting organizational structure

Organizational Design - Basic Structure

Designing an organizational structure is dependent upon:

How this information flows through the organizational structures

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