Organizational structure refers to the way tasks are divided up, how the work flows, how this

flow is coordinated and the forces and mechanisms that allow this coordination to occur. Organization structure is an established pattern of relationships among the component part of an organization.

COMPLEXITY FORMALISATION

CENTALISATION

It refers to horizontal differentiation, Vertical differentiation and locational differentiation. HORIZONTAL DIFFERENTIATION: is horizontal separation between unit based on occupations and specializations VERTICAL DIFFERENTIATION: is the potential for communication distortion. LOCATIONAL DIFFERNTIATION: Degree to which the location of an organizations offices, plants and personnel and geographically send

It refers to the degree to which the jobs with in the organization are standardized .High standardization of jobs result in less freedom and discretion.

It refers to the degree to which decision making is concentrated at a single point in an organization.

The design process deals to the development of an organization structure consisting of units and positions. Organizational design is the process of systematic and logical grouping of activates , delegation of authority and responsibility and establishing working relationships that will enable both the company and employee to realize their mutual objectives.

There are nine approaches towards the structure of an organization Entrepreneurial Structure Functional organization structure Product organization structure Geographical organization structure Decentralized business devisions Strategic business units Matrix organization structure Team structure Virtual structure

OWNER-CUM-MANAGER

EMPLOYEES

This is the initial stage of an enterprise, Organization structure is fluid with each employee often knowing how to perform more than one task and with owner-manager involved in all aspects /areas of business

Entrepreneurial organization structure with expansion

OWNER-MANAGER

Manufacturing manager Employees

Marketing manager Employees

Organizes employees around skills or other resources (marketing, production, Finance, human resources, Research and development and engineering)

Managing Director General Manager Chief productio n manager Manage r producti on Mana ger engin eerin g Chief marketin g manager Manage r quality control Chief finance manager Manager employm ent Chief human resource manager Manager training and develop ment Manager salary administ ration Chief research and developme nt Manager industria l relations

Laboratory research New product

Managing director

General manager

Manager Bicycles

Manager motor cycle

Manager Scooters

Manager cars

Manager Vans

Managing director

General manager Corporate managers Production, Marketing, finance, Human resource and research and development

Manager Northern region

Manager southern region

Manager central region

Manager Western region

Manager Eastern Region