Organization Structure and Design
Organization Structure and Design
Organizing: Arranging and structuring work to accomplish organizational goals. Organizational Structure is the formal arrangement of jobs within an organization. Organization chart: Organization structure shown visually in the form of a chart. Organizational Design: A process that involves decisions about six key elements : Work specialization, Departmentalization, Chain of command , Span of control, Centralization and decentralization and Formalization.
Purpose of Organizing
• Dividing work to be done into specific jobs and departments. • Assigning tasks and responsibilities associated with individual jobs • Coordinating diverse organizational tasks. • Clustering jobs into units • Establishing relationships among individuals, groups and departments • Establishing formal lines of authority • Allocating and deploys organizational resources.
Work Specialization which is dividing work activities into separate jobs tasks. Individual employees specialize in doing part of an activity rather than the entire activity in order to increase work output. It is also known as division of labour.
Problems with work specialization when stretched to an extreme: Boredom Fatigue Stress Poor Quality Increased absenteeism Reduced performance Increased turnover Some companies, due to these problems, use job enrichment multi skilling and broadening job range to sustain the worker’s interest in work.
Five Departmentalization : A system of grouping together the jobs. There are ways of departmentation. 1. Functional Departmentalization – Groups jobs According to Function
President
Manager, Marketing
Manager, Finance
Manager, Manager, Manufacturing Human Resource
Manager, RED
+ Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientation. + Coordination with functional area + In-depth specialization - Poor communication across functional areas - Limited view of
Organizing: Arranging and structuring work to accomplish organizational goals. Organizational Structure is the formal arrangement of jobs within an organization. Organization chart: Organization structure shown visually in the form of a chart. Organizational Design: A process that involves decisions about six key elements : Work specialization, Departmentalization, Chain of command , Span of control, Centralization and decentralization and Formalization.
Purpose of Organizing
• Dividing work to be done into specific jobs and departments. • Assigning tasks and responsibilities associated with individual jobs • Coordinating diverse organizational tasks. • Clustering jobs into units • Establishing relationships among individuals, groups and departments • Establishing formal lines of authority • Allocating and deploys organizational resources.
Work Specialization which is dividing work activities into separate jobs tasks. Individual employees specialize in doing part of an activity rather than the entire activity in order to increase work output. It is also known as division of labour.
Problems with work specialization when stretched to an extreme: Boredom Fatigue Stress Poor Quality Increased absenteeism Reduced performance Increased turnover Some companies, due to these problems, use job enrichment multi skilling and broadening job range to sustain the worker’s interest in work.
Five Departmentalization : A system of grouping together the jobs. There are ways of departmentation. 1. Functional Departmentalization – Groups jobs According to Function
President
Manager, Marketing
Manager, Finance
Manager, Manager, Manufacturing Human Resource
Manager, RED
+ Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientation. + Coordination with functional area + In-depth specialization - Poor communication across functional areas - Limited view of