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is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently"
is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently"
Organizing
It means that an organization is composed of units that work on specialized tasks using different work methods and requiring employees with unique competencies.
It means that an organization is composed of units that work on specialized tasks using different work methods and requiring employees with unique competencies.
Differentation
It means that the various units must be put back together so that work is coordinated.
It means that the various units must be put back together so that work is coordinated.
Integration
An organization is a system of cooperative relationships of two or more persons.
An organization is a system of cooperative relationships of two or more persons.
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Every organization has a common objective distinct from personal objectives of the members.
Every organization has a common objective distinct from personal objectives of the members.
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An organization comes into existence when the total task is divided into the members of the group.
An organization comes into existence when the total task is divided into the members of the group.
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The members of an organization are willing to help each other for the achievement of desired goals.
The members of an organization are willing to help each other for the achievement of desired goals.
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People who form an organization communicates with each other in order to integrate or coordinate their efforts. The structure must be such that people can perform together efficiently.
People who form an organization communicates with each other in order to integrate or coordinate their efforts. The structure must be such that people can perform together efficiently.
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In an organization, there is a central directing authority which controls the concerted efforts of the group. The chain of authority- responsibility relationships is known as the chain of command.
In an organization, there is a central directing authority which controls the concerted efforts of the group. The chain of authority- responsibility relationships is known as the chain of command.
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For the orderly and systematic working of the members, rules and regulations are laid down and enforced by the central authority.
For the orderly and systematic working of the members, rules and regulations are laid down and enforced by the central authority.
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An organization is not a mere mechanical structure but a living organism arising out of the sentiments, attitudes, and behaviour of people.
An organization is not a mere mechanical structure but a living organism arising out of the sentiments, attitudes, and behaviour of people.
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is a system made up of tasks to be accomplished, work movements from one work level to other levels in the system, reporting relationships, and communication
is a system made up of tasks to be accomplished, work movements from one work level to other levels in the system, reporting relationships, and communication
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This refers to the hierarchical arrangement of positions and roles within an organization, where there are clear levels of authority and a chain of command from top to bottom.
This refers to the hierarchical arrangement of positions and roles within an organization, where there are clear levels of authority and a chain of command from top to bottom.
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Lines of authority flow directly from the top (Investor) to the bottom (employees).
Lines of authority flow directly from the top (Investor) to the bottom (employees).
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Decisions are typically made at the top and then communicated down the chain of command
Decisions are typically made at the top and then communicated down the chain of command
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Employees have specific roles and responsibilities within their departments.
Employees have specific roles and responsibilities within their departments.
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Communication typically flows through formal channels, such as memos, emails, and meetings.
Communication typically flows through formal channels, such as memos, emails, and meetings.
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refers to the departmentalization of an organization into smaller work units as tasks become increasingly varied and numerous.
refers to the departmentalization of an organization into smaller work units as tasks become increasingly varied and numerous.
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deal directly with the firm's primary goods and services.
deal directly with the firm's primary goods and services.
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support the activities of the line departments by doing research, attending legal matters, performing public relations duties.
support the activities of the line departments by doing research, attending legal matters, performing public relations duties.
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where the subdivisions are formed based on specialized activities such as marketing, production, financial management, and human resources management.
where the subdivisions are formed based on specialized activities such as marketing, production, financial management, and human resources management.
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This type of structure groups employees based on their specific functions or areas of expertise
This type of structure groups employees based on their specific functions or areas of expertise
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In a functional structure, decision-making authority is typically centralized at the top level of the organization.
In a functional structure, decision-making authority is typically centralized at the top level of the organization.
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This structure promotes efficiency and specialization within each functional area
This structure promotes efficiency and specialization within each functional area
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It can sometimes lead to a siloed approach where departments may not communicate effectively and focus on their own goals rather than the overall objectives of the organization.
It can sometimes lead to a siloed approach where departments may not communicate effectively and focus on their own goals rather than the overall objectives of the organization.
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where departments are formed based on management of their products, customers, or geographic areas covered.
where departments are formed based on management of their products, customers, or geographic areas covered.
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is a hybrid form of departmentalization where managers and staff personnel report to the superiors, the functional manager and the divisional manager
is a hybrid form of departmentalization where managers and staff personnel report to the superiors, the functional manager and the divisional manager
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Employees have two bosses: a functional manager and a project manager. This can lead to potential conflicts and confusion if not managed carefully.
Employees have two bosses: a functional manager and a project manager. This can lead to potential conflicts and confusion if not managed carefully.
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Resources (personnel, equipment, budget) are shared between different projects, often leading to resource constraints and scheduling challenges.
Resources (personnel, equipment, budget) are shared between different projects, often leading to resource constraints and scheduling challenges.
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Project teams are typically composed of members from various functional departments, fostering collaboration and knowledge sharing.
Project teams are typically composed of members from various functional departments, fostering collaboration and knowledge sharing.
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This structure is highly adaptable and can respond quickly to changing priorities and market conditions.
This structure is highly adaptable and can respond quickly to changing priorities and market conditions.
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is a collection of independent, usually single function organizations/companies that work together to produce a product or service.
is a collection of independent, usually single function organizations/companies that work together to produce a product or service.
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Decision-making power is distributed across various units or teams.
Decision-making power is distributed across various units or teams.
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Individual units have the freedom to operate independently.
Individual units have the freedom to operate independently.
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Units work together on shared goals, often through partnerships and alliances
Units work together on shared goals, often through partnerships and alliances
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The structure can adapt quickly to changing market conditions
The structure can adapt quickly to changing market conditions
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A decentralized approach can foster creativity and innovation.
A decentralized approach can foster creativity and innovation.
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occurs when some people ask others to perform tasks on their behalf
occurs when some people ask others to perform tasks on their behalf
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is the obligation of a subordinate to properly perform the assigned duty. When a superior assigns a job to his subordinate it becomes the responsibility of the subordinate to complete the job.
is the obligation of a subordinate to properly perform the assigned duty. When a superior assigns a job to his subordinate it becomes the responsibility of the subordinate to complete the job.
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It means the power to take decisions. To carry on the responsibilities every employee need to have some authority.
It means the power to take decisions. To carry on the responsibilities every employee need to have some authority.
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Accountability means the answerability of the subordinate to his superior for his work performance.
Accountability means the answerability of the subordinate to his superior for his work performance.
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Study Notes
Organizational Structure
- Organizational Structure is the process of identifying and grouping work, assigning responsibility and authority, and establishing relationships to achieve efficient work.
- Division of Labor: Organizations are composed of units with specialized tasks, work methods, and employee competencies.
- Coordination: Various units must be coordinated to ensure the organization functions as a whole.
- Cooperative Relationships: Organizations are systems of relationships between two or more people.
- Common Objectives: Organizations have a common goal that is distinct from the personal objectives of its members.
- Task Division: Organizations emerge when a task is divided among members.
- Mutual Assistance: Members of an organization support each other to achieve goals.
- Communication: Members of an organization communicate to integrate and coordinate their efforts.
- Efficiency: Organizational structure should enable efficient collaboration among members.
- Central Authority: Organizations have a central authority that directs and controls collective efforts.
- Chain of Command: The hierarchy of authority and responsibility relationships within an organization.
- Rules and Regulations: Organizations establish and enforce rules to maintain order and system.
- Living Organism: An organization is not just a structure, but a dynamic entity shaped by the people within it.
Types of Organizational Structures
- Line Structure: Hierarchical arrangement of positions with clear levels of authority, a chain of command, and top-down decision-making.
- Line and Staff Structure: Combines line departments that deal with core goods and services with staff departments that provide support functions.
- Functional Structure: Departments are organized based on specialized areas like marketing, production, finance, and human resources.
- Divisional Structure: Departments are formed based on product lines, customer segments, or geographical areas.
- Matrix Structure: A hybrid structure that combines functional and divisional approaches. Employees report to both a functional manager and a divisional manager.
- Network Structure: A collection of independent organizations or companies that collaborate to produce goods or services.
Key Concepts
- Delegation: Assigning tasks to subordinates.
- Responsibility: The obligation of a subordinate to perform an assigned task properly.
- Authority: The power to make decisions.
- Accountability: The answerability of a subordinate to their superior for their work performance.
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