ORGANIZATIONAL STRUCTURE AND ITS

ENVIRONMENT

INTRODUCTIONOrganizational define how job tasks are

formally divided, grouped and coordinated.A good organizational structure helps to

improve communication, increase productivity and inspire innovation.

Create an environment where people can work effectively.

Organization bring people together and resources to produce product and services.

Basically, organization exist to create value.

FORCES AFFECTING ORGANIZATION

1.PEOPLE People make up the internal social system of the organization. That system consists of individuals and groups and groups may

be large and small, formal and informal.2. STRUCTURE : Structure defines the formal relationship and use of people in

organization. There are managers and employees, accounts assemblers in

order to accomplish different kind activities.3. TECHNOLOGY : Technology provides the resources with which people work. Technology decrease per unit cost and improve quality of the

products and services.

NATURE OF MEDIA ORGANIZATIONSASSEMBLY LINE• Media organization resembles like the assembly line

of any typical manufacturing company.• Work is repetitive in nature that needs to be

completed with speed and order.• Media organization is similar to a well-oiled machine.HUB OF CREATIVITY Talented and educated employees use their mental

abilities to develop highly creative and original work. Employees constantly need to make judgments. People working in media organizational do not view

themselves as employees but as professionals who are making their services available for free.

ORGANIZATIONAL STRUCTURE

Organizations establish a structure based on specific set of expectations, needs and values that are expected to hold for all its members.

Pattern of inter-relationship existing between the various units of an organizational.

The formal configuration between individuals and groups with respect to the allocation of tasks, responsibilities, and authorities within the organization.

It is an abstract concept and cannot be seen but can be studied through organizational charts.

ELEMENTS OF ORGANIZATIONAL STRUCTURE Organizational structure determines corporate communication. creates a plan for efficient growth for the future.1. WORK SPECIALIZATION

Division of labour   divides individual tasks into separate jobs. Each step completed by different person. Train workers to do specific and repetitive task. Employees become bored and tired.2. DEPARTMENTALIZATION Jobs are grouped together so that common task can be

coordinated.A. FUNCTIONAL DEPARTMENTALIZATION: Jobs are grouped by

functions performed. E.g. Marketing, finance, human resources, etc

B. PRODUCT DEPARTMENTALIZATION: Jobs are grouped on the type of product the organization produces.

C. GEOGRAPHICAL DEPARTMENTALIZATION: Department is formed on the basis of area, territory or region. E.g. Eastern, western, northern and southern divisions.

D. PROCESS DEPARTMENTALIZATION: Department specializes in one specific phase of production.

E. CUSTOMER DEPARTMENTALIZATION: Jobs are grouped on the basis of common customers who have common needs or problems that can best be met by having specialists for each.

3. CHAIN OF COMMAND An unbroken line of authority that extends from the top of the organization to the lowest employee.

Clarifies who reports to whom within the organization.

4. SPAN OF CONTROL Number of subordinates a superior can effectively

manage. Higher the ratio of subordinates to superiors, the

wider the span of control5. CENTALIZATION AND DECENTRALIZATION CENTRALIZATION- Decision- making power is concentrated at a single point. DECENTRALIZATION- Decision-making process is spread out.6.FORMALIZATION Task is already decided. Very little freedom at work. Where formalization is low, employees have freedom

and flexibility to do their work.

COMMON ORGANISATIONAL DESIGNS1. THE SIMPLE STRUCTURE A Small informal organization where there is a

single individual with unlimited power. Examples: retail store in our neighborhood, a

newly started entrepreneurial venture CHARACTERISITICS: Low degree Authority is centralized Flat organization Little of specialization

2. THE BUREAUCRACY Very popular Looked upon as a dirty word but it still

continues to exist in most organizations.CHARACTERISTICS:Employees perform highly routine task High level of specialization Many formalized rules and regulations Authority is centralized Span of control is narrow Decision making follows a chain of command.

3. THE MATRIX STRUCTURE 2 forms of departmentalization: product and

functional. Commonly found in hospitals, management

consulting firms, universities. Attempts to gain from the strengths of

functional and product department while avoiding their weakness.ADVANTAGE DISADVANTAGE

FACILITATES COORDINATION

POWER STRUGGLE

FLEXIBILITY AMBIGUITY

BETTER COMMUNICATION FRUSTRATION AND STRESS

NEW ORGANIZATIONAL DESIGNS The 1980s saw the emergence of new Organizational

Designs. These designs emerged as managers felt the need for new

structural options to compete effectively in a changing environment.

1. THE TEAM STRUCTURE : Organizations with team structures use team as the central device to coordinate work activities.

2. THE VIRTUAL ORGANIZATION : Virtual organization is a small, core organization the outsources major business function. For example:- Nike, Reebok, Dell etc.

3. THE BOUNDARYLESS ORGANIZATION : The term ‘boundaryless’ was coined by Jack Welch, Chairmen of General Electric. The boundaryless organization attempts to eliminate vertical and horizontal boundaries and breakdown external barriers.

FACTORS INFLUENCING ORGANIZATIONAL STRUCTURE

MECHANISTIC ORGANIC

CAUSES OF ORGANISATIONAL STRUCTURE1. ORGANISATION SIZE Small organizations Big Organizations 2. STRATEGY Position in market in terms of product is STRATEGY Differential strategy Cost-leadership strategy 3. ENVIRONMENT Stable and dynamic environment Dynamic environment

4. ORGANISATIONAL LIFE CYCLE Like human tend to progress through stages

organization also pass through certain changes. a) BIRTHb) YOUTH c) MIDLIFE d) MATURITY

5. TECHNOLOGY Transfers its input into output. ROUTINE NON ROUTINE

ORGANIZATIONAL STRUCTURE AND ITS IMPACT ON EMPLOYEE BEHAVIOR Extremely difficult to ascertain the exact impact of organizational structure on employee behavior.

Because of individual differences and cultural differences

Some prefer jobs that are highly specialized and have minimum intellectual demands.

Some employees like to be left alone while others prefer to have the security of a boss whom they can consult

Employees from high power distances cultures such as GREECE AND FRANCE prefer mechanistic structures.

GROUP MEMBERS 39 KAJOL KHOT 15 TEJASHREE DESHMUKH 50 SAYLI SHAH 48 NEERJA SACHAN 52 AKSHATA SHINDE 10 UDAI CHAUHAN

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