organization new design

8/14/2019 Organization New Design

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Organisation StructuresAnd Departmentation

Presented by:

ARLEEN

BRYCIE

CLARIESON

MELITA

PREETHAM

RAMEEZ


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Organisation Structure

Meaning:

An organisation structure shows theauthority and responsibility relationships

between the various positions in the

organisation by showing who reports to

whom.


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Types of Organisation Structure

Line Organisation

Line and Staff Organisation

Functional Organisation

Committee Organisation

Project Organisation

Matrix Organisation


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Line Organisation


Presented by:-

BRYCIE


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Line Organisation

Direct vertical relationship

Simplest form

Scalar or Military organisation Authority flows downward

Highest authority at the top


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Line Organisation

General Manager

Production Manager Finance Manager Marketing Manager

Superintendent Asst. Finance Manager Asst. Marketing Manger

Foremen Accountants Sale Supervisors

Workers Clerks Salesmen


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Advantages

Easy to establish and understand

Facilitates unity of command

Clear cut identification of authority and

responsibility

Ensures excellent discipline

Facilitates prompt decision making


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Disadvantages

Superiors overloaded with work

Concentration of authority at the top

Not suitable to big organisations

No communication from bottom upwards


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Line And Staff Organisation

Line Authority remains the same

Specialists are attached to line managers to

advise them on important matters

Staff officers do not have any power of command

Staff helps in handling details, gathering data for

decision making and offers advise on specific

managerial problems


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BOARD OF DIRECTORS

MANGING

DIRECTOR

MANGER

DIVISION A

MANAGER

DIVISION B

MANAGER

DIVISION C

CONTROLLER

OF FINANCE

ASSISTANT TO

MANGING DIRECTOR

EXECUTIVE

COMMITEE


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Advantages

Specialised knowledge

Reduction of burden

Proper wieghtage Better decisions

Flexibility

Unity of command


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Disadvantages

Conflict between line and staff executives

No clear allocation of duties

Staff not accountable for results

Difference between orientation of line and

staff men


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Functional Organisation

F.W. Taylor evolved functional organisation Means of putting the specialists in the top

positions throughout the enterprise

Activities classified according to functions likeproduction, marketing, finance, personnel etc

Subordinates receives orders and instructions

not from one superior but several functional

specialists


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Managing

director

Production

Director

Finance

Director

Marketing

Director

Personnel

Director

General ManagerDivision Y

General ManagerDivision X

General ManagerDivision Z


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Advantages

Specialisation of work

Executive Development

Reduction of workload

Scope for expansion

Better Control


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Disadvantages

Violates the principle of unity of command

Complicated operation creates confusion

Develops specialists rather than generalists

Loss of overall perspective in dealing with

business problems Lack of coordination and delay in decision

making


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Committee Organisation

Project Organisation

Matrix Organisation

Presented by:-

MELITA


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Committee Organization

Definition

A committee is a body of personsappointed or elected to meet on an

organized basis for the consideration of

matters brought before it.- Louis A. Ellen


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Types of committees

Line and Staff committee

Formal and Informal committee

Standing and Ad hoc committees Executive committee

Coordinating committee


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Pooled knowledge and experience

Wider participation

Tools of co ordination

Overcoming resistance

Check against misuse of powers

Advantages


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Evasion of decision-making responsibility

Slow decision-making

Costly device

Lack of definite decision

Source of misunderstanding

Disadvantages


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Project Organization

Structured to facilitate planning and designing of the

product, completion of the assigned task and phasing out

of the project.

Advantages

Concentrated attention Maximum use of specialized knowledge


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Uncertainty

Lack of clearly defined responsibility

Pressures

Motivation of specialists

Disadvantages


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Matrix Organization

DIVISION X

production engineering finance personnel

Project

manager 1

Project

manager 2

Prod

group

Prod

group

Engg

group

Engg

group

Fin

group

Fin

group

Pres

group

Pres

group


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Better planning and control

Flexible

Provides motivation

Better utilization of services

Disadvantages Violates principle of unity of command

Problem of coordination

Conflicts

Lack of commitment

Advantages


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Meaning, objectives and

merits of departmentation

Presented by: Preetham


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Departmentation

Meaning

The process of division of the enterprise into

different parts is broadly called

departmentation.

A department is a work group combined

together for performing certain functions of

simple nature.


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Objectives

1. Specialize activities

2. Simplify managerial tasks

3. Maintain control


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Methods of departmentation

Presented by: Rameez and Clarieson


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METHODS OF DEPARTMENTATION

DEPARTMENTATION BY NUMBERS

DEPARTMENTATION BY FUNCTION

DEPARTMENTATION BY TIME

DEPARTMENTATION BY PRODUCT


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CONTD

DEPARTMENTATION BY CUSTOMER

DEPARTMENTATION BY TERRITORY

DEPARTMENTATION BY PROCESS OR EQUIPMENT

MIXED OR HYBRID DEPARTMENTATION


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CONCLUSION


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organization new design

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