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4 - Org Structure

Introduction to managenment

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Mohsin Khan
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8 views26 pages

4 - Org Structure

Introduction to managenment

Uploaded by

Mohsin Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ORGANIZATIONAL

STRUCTURE

LEC BY
HASAN HASHMI
DIR DECENT INTERNATIONAL
TVF NUST,UOL,SU &AU
3455094374
[email protected]
MEANING OF ORGANIZATIONAL STRUCTURE:

AN ORGANIZATIONAL STRUCTURE IS A VISUAL DIAGRAM OF A COMPANY


THAT DESCRIBES WHAT EMPLOYEES DO, WHOM THEY REPORT TO, AND
HOW DECISIONS ARE MADE ACROSS THE BUSINESS. ORGANIZATIONAL
STRUCTURES CAN USE FUNCTIONS, MARKETS, PRODUCTS, GEOGRAPHIES,
OR PROCESSES AS THEIR GUIDE, AND CATER TO BUSINESSES OF SPECIFIC
SIZES AND INDUSTRIES.
THE 5 BUILDING BLOCKS OF ORGANIZATIONAL
STRUCTURE:

• CHAIN OF COMMAND
• SPAN OF CONTROL
• CENTRALIZATION
• SPECIALIZATION
• DEPARTMENTALIZATION
1. CHAIN OF COMMAND

• AN UNBROKEN LINE OF AUTHORITY


• CHAIN OF COMMAND CLARIFIES WHO REPORTS TO WHOM WITHIN THE
ORGANIZATION.
2. SPAN OF CONTROL
• SPAN OF CONTROL REFERS TO THE NUMBER OF SUBORDINATES A
SUPERIOR CAN EFFECTIVELY MANAGE.
• THE HIGHER THE RATIO OF SUBORDINATES TO SUPERIORS, THE WIDER
THE SPAN OF CONTROL.
3. CENTRALIZATION:
• WHO MAKES THE DECISIONS IN AN ORGANIZATION?
• AUTOCRAT DECISION MAKING
• DEMOCRATIC DECISION MAKING IN DECENTRALIZED SYSTEM
4. SPECIALIZATION:
• DIVISION OF LABOR
• HIGH AND LOW SPECIALISED ORGANIZATIONS
• INDVIDUAL AND TEAM SPECIALISATIONS
DEPARTMENTALIZATION

• PROCESS OF GROUPING JOBS TOGETHER


• RIGID AND LOOSE DEPARTMENTALIZATION
TYPES OF ORGANIZATIONAL STRUCTURE
EVERY COMPANY SHOULD CONSIDER:

• FUNCTIONAL ORGANIZATIONAL STRUCTURE


• PRODUCT-BASED DIVISIONAL STRUCTURE
• MARKET-BASED DIVISIONAL STRUCTURE
• GEOGRAPHICAL DIVISIONAL STRUCTURE
• PROCESS-BASED STRUCTURE
• MATRIX STRUCTURE
• CIRCULAR STRUCTURE
• FLAT STRUCTURE
• NETWORK STRUCTURE
FUNCTIONAL ORGANIZATIONAL STRUCTURE
FUNCTIONAL ORGANIZATIONAL STRUCTURE

• ONE OF THE MOST COMMON TYPES OF ORGANIZATIONAL STRUCTURES,


THE FUNCTIONAL STRUCTURE DEPARTMENTALIZES AN ORGANIZATION
BASED ON COMMON JOB FUNCTIONS.
• AN ORGANIZATION WITH A FUNCTIONAL ORG STRUCTURE, FOR
INSTANCE, WOULD GROUP ALL OF THE MARKETERS TOGETHER IN ONE
DEPARTMENT, GROUP ALL OF THE SALESPEOPLE TOGETHER IN A
SEPARATE DEPARTMENT, AND GROUP ALL OF THE CUSTOMER SERVICE
PEOPLE TOGETHER IN A THIRD DEPARTMENT.
PRODUCT-BASED DIVISIONAL STRUCTURE
FUNCTIONAL ORGANIZATIONAL STRUCTURE

• A DIVISIONAL ORGANIZATIONAL STRUCTURE IS COMPRISED OF MULTIPLE,


SMALLER FUNCTIONAL STRUCTURES (I.E. EACH DIVISION WITHIN A
DIVISIONAL STRUCTURE CAN HAVE ITS OWN MARKETING TEAM, ITS OWN
SALES TEAM, AND SO ON). IN THIS CASE -- A PRODUCT-BASED
DIVISIONAL STRUCTURE -- EACH DIVISION WITHIN THE ORGANIZATION IS
DEDICATED TO A PARTICULAR PRODUCT LINE.
MARKET-BASED DIVISIONAL STRUCTURE
MARKET-BASED DIVISIONAL STRUCTURE

• ANOTHER VARIETY OF THE DIVISIONAL ORGANIZATIONAL STRUCTURE IS


THE MARKET-BASED STRUCTURE, WHEREIN THE DIVISIONS OF AN
ORGANIZATION ARE BASED AROUND MARKETS, INDUSTRIES, OR
CUSTOMER TYPES.
• THIS ORGANIZATIONAL STRUCTURE ALSO KEEPS THE BUSINESS
CONSTANTLY AWARE OF DEMAND CHANGES AMONG ITS DIFFERENT
AUDIENCE SEGMENTS.
GEOGRAPHICAL DIVISIONAL STRUCTURE
GEOGRAPHICAL DIVISIONAL STRUCTURE

• THE GEOGRAPHICAL ORGANIZATIONAL STRUCTURE ESTABLISHES ITS


DIVISIONS BASED ON --- GEOGRAPHY.
• THE DIVISIONS OF A GEOGRAPHICAL STRUCTURE CAN INCLUDE
TERRITORIES, REGIONS, OR DISTRICTS.
• IT ALSO BRINGS TOGETHER MANY FORMS OF BUSINESS EXPERTISE,
ALLOWING EACH GEOGRAPHICAL DIVISION TO MAKE DECISIONS FROM
MORE DIVERSE POINTS OF VIEW.
PROCESS-BASED STRUCTURE
PROCESS-BASED STRUCTURE

• PROCESS-BASED ORGANIZATIONAL STRUCTURES ARE DESIGNED


AROUND THE END-TO-END FLOW OF DIFFERENT PROCESSES
• PROCESS-BASED ORGANIZATIONAL STRUCTURE IS IDEAL FOR IMPROVING
THE SPEED AND EFFICIENCY OF A BUSINESS, AND IS BEST-SUITED FOR
THOSE IN RAPIDLY CHANGING INDUSTRIES, AS IT IS EASILY ADAPTABLE.
MATRIX STRUCTURE
MATRIX STRUCTURE

• ALL EMPLOYEES (REPRESENTED BY THE GREEN BOXES) HAVE DUAL


REPORTING RELATIONSHIPS.
• TYPICALLY, THERE IS A FUNCTIONAL REPORTING LINE (SHOWN IN BLUE)
AS WELL AS A PRODUCT- BASED REPORTING LINE (SHOWN IN YELLOW).
• THE MAIN APPEAL OF THE MATRIX STRUCTURE IS THAT IT CAN PROVIDE
BOTH FLEXIBILITY AND MORE BALANCED DECISION-MAKING
CIRCULAR STRUCTURE
CIRCULAR STRUCTURE

• THAT BEING SAID, THE LEADERS OR EXECUTIVES IN A CIRCULAR


ORGANIZATION AREN'T SEEN AS SITTING ATOP THE ORGANIZATION,
SENDING DIRECTIVES DOWN THE CHAIN OF COMMAND. INSTEAD,
THEY'RE AT THE CENTER OF THE ORGANIZATION, SPREADING THEIR
VISION OUTWARD.
• FROM AN IDEOLOGICAL PERSPECTIVE, A CIRCULAR STRUCTURE IS MEANT
TO PROMOTE COMMUNICATION AND THE FREE FLOW OF INFORMATION
BETWEEN DIFFERENT PARTS OF THE ORGANIZATION.
FLAT STRUCTURE
FLAT STRUCTURE

• MULTIPLE TIERS OF SUPERVISORS, MANAGERS AND DIRECTORS


BETWEEN STAFF AND LEADERSHIP, THE FLAT STRUCTURE LIMITS THE
LEVELS OF MANAGEMENT SO ALL STAFF ARE ONLY A FEW STEPS AWAY
FROM LEADERSHIP.
• THIS STRUCTURE IS PROBABLY ONE OF THE MOST DETAILED, IT'S ALSO
THOUGHT THAT EMPLOYEES CAN BE MORE PRODUCTIVE IN AN
ENVIRONMENT WHERE THERE’S LESS HIERARCHY-RELATED PROBLEMS
NETWORK STRUCTURE

• THE STRUCTURE LOOKS NEARLY THE SAME AS THE DIVISIONAL


STRUCTURE, SHOWN ABOVE. HOWEVER, INSTEAD OF OFFICES, IT MIGHT
LIST OUTSOURCED SERVICES OR SATELLITE LOCATIONS OUTSIDE OF THE
OFFICE.
• A NETWORK STRUCTURE IS OFTEN CREATED WHEN ONE COMPANY
WORKS WITH ANOTHER TO SHARE RESOURCES
• YOU MIGHT ALSO USE THIS STRUCTURE TO EXPLAIN YOUR COMPANY
WORKFLOWS IF MUCH OF YOUR STAFFING OR SERVICES IS OUTSOURCED
TO FREELANCERS

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