Is organizational design a process? Explain what factors influence the amount of centralization and decentralization(2007 P. U.

) Yes Discuss over the organizational design in brief Process; - Grouping the activities ( Departmentation) - Assigning duties - Allocating resources - Getting information from the environment - Redesigning the organization.

Factors That Influence the Amount of Centralization and Decentralization

More Centralization Organization is facing a crisis or the risk of company failure. Company is large. Effective implementation of company strategies depends on managers retaining say over what happens.

More Decentralization Corporate culture is open to allowing managers to have a say in what happens. Company is geographically dispersed. Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions.

More Centralization
Environment is stable.

More Decentralization

Environment is complex, Lower-level managers are uncertain. not as capable or Lower-level managers are experienced at making capable and experienced at decisions as upper-level making decisions. managers. Lower-level managers want Lower-level managers do a voice in decisions. not want to have a say in Decisions are relatively decisions. minor. Decisions are significant.

 With the availability of advance information technology that allows an organizations work to be done anywhere at any time , is organizing is still an important managerial function? Why or why not ? ( P.U. 2007) Yes Organizing refers to : - Determining what needs to be done ? - How it will be done ? - who is to do it ? Even though the information technology eased to the people or managers to get information regarding job but for the proper allocation of resources and assigning the job and

Responsibility has became a crucial task to the managers so, design of the organizations has been changed over the time due to the change in technological development like project structure , boundary less structure, learning organization but the essence of the organizing function of a manager is increasing rather decreasing.

Contemporary organizational structure

Matrix and project structure: - An organizational structure that assigns specialists fro different functional departments to work on one or more projects led by project manager is matrix structure. - Unique aspect of this structure is that it creates a dual chain of command and violates the principle of unity of command.

 How it works? - there are two managers i.e. functional departmental manager and their product or project manager, who share the authority. - Decisions related to promotions, salary recommendations and annual reviews are made by functional departmental managers. - Both of them requires to communicate regularly, coordinate related to work demand.

 Project structure: - It has no any formal departments that employee return to at the completion of a project but they perform work regularly. - Instead employees take their specific skill, abilities and experiences to other projects. - All works are performed in a team. - It is a flexible type and no rigid organizational hierarchy to slow down action. In such organization manager works as facilitator, mentor and coaches.

 Boundary less organization: - An organization whose design is not defined by or limit to , the horizontal, vertical or external boundaries imposed by a predefined structure. - It was developed by the former chairman of GE, Jack Welch to breakdown external barriers between the company and its customers and suppliers. - It seeks to eliminate the chain of command, limited span of control and to replace departments with empowered teams. - To eliminate the boundaries, manager might use:

* Virtual organization: An organization that consists of a small ore of full time employees and temporarily hires outside specialists on work on opportunities that arise. Like ; advertising agencies, Film industries. * Network organization: - An organization that has a small core organization that outsource major business functions. - This approach allows organizations to concentrate on what they do best and contract out other activities to those companies which complete activities best.

* - Modular organization: A manufacturing organization that uses outside suppliers to

provide product components or modules which are then assembled into final products.

- It can be redesigned when needed like GM

has a modular factory in Brazil and assembles final products by the small number of employees. The learning organization: - An organization that has developed the capacity to continuously learn, adapt and change.

- In such organization , employees practice knowledge management by continually acquiring and sharing new knowledge are willing to apply that knowledge in making decisions or performing their works. - It is difficult to share information but it can be done by minimizing or eliminating the existing structural and physical boundaries. - In this boundary less structure employees are free to work together and in collaboration. - Employee teams are empowered to make decisions regarding their works or resolving issues. But boss needs to direct and control.