org structures
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8/7/2019 org structures
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` An organizational structure consists of
activities such as task
` allocation,
` coordination and` supervision,
` which are directed towards the achievement
of organizational aims.
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` All businesses have to organise
what they do
` A clear structure makes it easier to see which part of the
business does what
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Divides work to be done into specific jobs
and departments.
Assigns tasks and responsibilities associated
with individual jobs.
Coordinates diverse organizational tasks.
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Clusters jobs into units.
Establishes relationships among individuals, groups,
and departments.
Establishes formal lines of authority.
Allocates and deploys organizational resources.
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` Work specialisation
` Chain of command
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The degree to which tasks in the organization are divided
into separate jobs with each step completed by a
different person.
Overspecialization can result in human diseconomiesfrom boredom, fatigue, stress, poor quality, increased
absenteeism, and higher turnover.
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` Functional Grouping jobs by functions performed
` Product Grouping jobs by product line
` Geographical Grouping jobs on the basis of territory or geography
` Process Grouping jobs on the basis of product or customer flow
` Customer Grouping jobs by type of customer and needs
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The continuous line of authority that extends from upper
levels of an organization to the lowest levels of the
organization and clarifies who reports to who.
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The rights inherent in a managerial position to tell people
what to do and to expect them to do it.
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The obligation or expectation to perform.
` Unity of Command
The concept that a person should have one boss and
should report only to that person.
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The number of employees who can be effectively and
efficiently supervised by a manager.
Width of span is affected by:
x Skills and abilities of the manager
x Employee characteristics
x Characteristics of the work being done
x Similarity of tasks
x Complexity of tasks
x Physical proximity of subordinates
x Standardization of tasks
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4 - 13
FUNCTION AL STRUCTURE
A functional structure is the bedrock of horizontaldifferentiation. It is the first ³structure´ that
organizations adapt as they grow.
Research and
Development
Sales and
Marketing
Manufacturing Materials
Management
Finance
CEOFunctional Structure
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` · Functional structures typically work well for
smaller and less complex organizations dealing
with only one or a few products or services.· Also
work best in relatively stable environments thatallow organizations to pursue consistent
strategies.
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` By function: arranging the business according towhat each sectionor department does
` By product or activity: organising according tothe different products made
` By area: geographical or regional structure
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` Let¶s look at a functional structure:
Production Marketing Accounts Personnel IT
Board of Directors
Chief Executive
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Advantages
` Specialisation ± each
department focuses onits own work
` Accountability ±someone is responsiblefor the section
` Clarity ± know your andothers¶ roles
Disadvantages
` Closed communicationcould lead to lackof focus
` Departments canbecome resistantto change
` Coordinationmay take too long
` Gap between top andbottom
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Imaging andPrinting Group
PersonalSystems Group
EnterpriseSystems Group
HP ServicesHP Financial
Services
Hewlett Packard
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Advantages
` Clear focus on market
segment helps meetcustomers¶ needs
` Positive competitionbetween divisions
` Better control as each
division can act asseparate profit centre
Disadvantages
` Duplication of functions
(e.g. different salesforce for each division)
` Negative effects of
competition
` Lack of central controlover each separate
division
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Hewlett-Packard¶s Headquarters
Worldwide
AmericasHouston, Texas
Europe, Middle East, AfricaGeneva, Switzerland
Asia PacificHong Kong
Hewlett Packard
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Karishma yadav
Dipanshu Chaudhary
Sumit Sethi
Sahil Diwan Garg
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