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Organisational Structure

&
HRM
Formal

& Informal Organisation


Tall & Flat Organisation structure
Responsibility , Authority and Accountability
Line & Staff Functions
1

Organisational Design & Organisational Structures


Organisational Design : The determination of
organisational structure that is appropriate for
the strategy, people, technology and task of
the organisation.
Organisational Structures : The way in which
an organisations activities are divided,
organised and coordinated.

Organizational Design
1. The Classical Approach
Fredrick Taylor- (1911)
One Best Way to Accomplish the task

Henry Fayol Principles of


Management
Max Webber- Bureaucracy

2. The Task-Technology Approach


Woodwards Research :Classified org.
based on mode of technology
1. Unit
2. Mass
3. Process

Woodwards Research

1. Unit:

Manufactures custom made


products
Tailor made suit, turbine or
Avanti cars

The Task-Technology Approach


2. Mass:

Manufactures would make


large-batch or mass produced products
Refrigerator, TV, Fans
Ford Motors

The Task-Technology Approach


3. Process production:

Heavily Automated Continuous


process providers
Oils & Chemical refiners
Reliance petrochemicals

AL JUBAIL
PETROCHEMICAL PLANT,
SAUDI ARABIA

3. The Environmental Approach


Burns and Stalker
Studied 20 org. to determine how their
org. structure & managerial practices
might differ based on different
environmental conditions.
They found org. structure found in
dynamic environment is very different
from org. structure found in static
environment.

The Environmental Approach


Mechanistic structures - a form of organization that
seeks to maximize internal efficiency
They performed routine task
Slow in responding to unfamiliar
Organic structure an organization form that
emphasizes flexibility & adaptiveness
people work more as teammates than as
subordinates
Influence based on knowledge than authority
Loosely defined responsibilities
Emphasis on exchanging information than giving
directions

Comparing Mechanist & organic structure

Characteristics Mechanist

Organic

Task Definition Rigid

Flexible

Communicatio Vertical
n

Lateral

Formalization

High

Low

Influence

Authority

Expertise

Control

Centralized

Diverse

Formal & Informal Organisations


1. Formal Organisation:

Set-up of roles for the achievement of organisation


goals
Reporting channels and job description is rigid
Accountability and responsibility are fixed

2. Informal Organizations

Formation is ad-hoc and follows no structure


They generally share same interest, ideas or
information.
They donot contribute directly to organisations
goals.

Tall & Flat Org. Structure


Span of Control

Defines the number of people that one person will


supervise. There may be a narrow span or a wide span of
control.

Span of Control of 4:
Total employees = 4096
Managers at levels 1-6 = 1365

Span of Control of 8:
Total employees = 4096
Managers at levels 1-4 =
585

Difference in managers equals 780.

Span of Control

Span of 4

Members at each level


1
1
8
4
64
16
Span of 8
512
64
256
1024
4096

Managers = 1365

4096
Managers = 585

Matrix Structure

Network Structure
Workers or worker
groups contribute to
multiple organizational
tasks
Work groups are
reconfigured when the
tasks change
Relationships among
groups are governed
by the requirements of
the task

Responsibility, Authority & Accountability


Responsibility: Ones obligation to perform the
function assigned to the best of ones ability in
accordance with directions received.
Key principles to be considered :
Delegation should improve org. working
No two employees should be assigned the same
responsibility
The boundaries of the responsibility should be
fixed.
Org. cannot afford gap in the delegation chain.

Authority
Authority:
It refers to the right to give orders
and the power to exact obedience
from others in the process of
discharging duties
It enables managers to act, exert
influence and make decisions in
carrying out their responsibilities.

Accountability
An employees answerability on
using the authority in discharging a
responsibility is termed as
accountability.

Line & Staff Functions


Line function: The department or
employees of the firm that performs
core activity that contributes to its
business directly.
Staff Functions: The department or
employees of the firm that performs
a support function that contributes
to its business indirectly.

Line & Staff Conflict

1.
2.
3.

Expectations & complaints from line :


HR staff don't see the whole picture
HR Staff try to steal the lime light
HR doesnt provide the right support.

Expectations & complaints from staff:


1. Line function is prejudiced & biased
2. Doesnt understand importance of
developing the employees
3. Doesnt value contribution of HRD

The role of HRD in an organisation


Facilitator

Specialist

HRD

Controller

Change
Agent

HRM & other Org. Functions


Production

Products

HRM

Technology

Marketing

HR Strategy ABB
To build value,
performance and
leadership into ABB,
responsibility, respect and
determination are key
Assuming responsibility, and acting with respect and determination
makes it possible to nurture
ABBs traditional strengths our technology leadership, our
pioneering spirit and our ability to be at home everywhere. That is our
legacy, and our future.
3S (System, Speed, Spirit) Management Philosophy at ABB India.
Caf HR part of SAP HR module, serves as an employee self service
portal:
Payroll management, Leave & Attendance management etc

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