org structures

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.



` All businesses have to organise

what they do

` A clear structure makes it easier to see which part of the

business does what



Divides work to be done into specific jobs

and departments.

Assigns tasks and responsibilities associated

with individual jobs.

Coordinates diverse organizational tasks.



Clusters jobs into units.

Establishes relationships among individuals, groups,

and departments.

Establishes formal lines of authority.

Allocates and deploys organizational resources.



` Work specialisation

` Chain of command



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.



` 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



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.



The rights inherent in a managerial position to tell people

what to do and to expect them to do it.



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.



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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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



` · 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.



` 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



` Let¶s look at a functional structure:

Production Marketing Accounts Personnel IT

Board of Directors

Chief Executive



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



Imaging andPrinting Group

PersonalSystems Group

EnterpriseSystems Group

HP ServicesHP Financial

Services

Hewlett Packard



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



Hewlett-Packard¶s Headquarters

Worldwide

AmericasHouston, Texas

Europe, Middle East, AfricaGeneva, Switzerland

Asia PacificHong Kong

Hewlett Packard



Karishma yadav

Dipanshu Chaudhary

Sumit Sethi

Sahil Diwan Garg

org structures

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