Organizational Structure PDF

ORGANIZATIONAL STRUCTURE Explaining the foundations of organizational structure Lesson Objectives: 1. Discuss the basic elements of organizational structure 2. Describe different organizational design options WHAT IS ORGANIZATION An organization is a goal-...

ORGANIZATIONAL STRUCTURE Explaining the foundations of organizational structure Lesson Objectives: 1. Discuss the basic elements of organizational structure 2. Describe different organizational design options WHAT IS ORGANIZATION An organization is a goal-directed social entity with ORGANIZATIONAL deliberate processes and systems. STRUCTURE? STRUCTURE An arrangement and organization of interrelated elements in a system. ORGANIZATIONAL STRUCTURE Refers to the formal pattern how people and jobs are grouped in an organization. It outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. ORGANIZATIONAL Write the STRUCTURE department Research and name here Development Provide a brief introduction Purchasing Accounting Department Department Human Sassa Malin Sales and Resources Chief Executive it is often illustrated by an organizational Officer Marketing chart, who reports to whom. Organizational structure defines how job tasks are formally divided, grouped and coordinated. Production An organizations internal structure contributes to explaining and predicting behavior, it reducues ambiguity for employees. WHAT IS THE RELEVANCE OF ORGANIZATIONAL STRUCTURE TO HUMAN BEHAVIOR? BASIC ELEMENTS OF ORGANIZATIONAL STRUCTURE WORK SPECIALIZATION ADVANTAGES Refers to the degree to which tasks in the organization are subdivided into separate jobs. it creates productivity The trend towards Simplified tasks can The availability of and efficiency, but can specialization has been be learned in a variety of jobs makes it also result in boredom, altered by the realization realatively short time possible for people to fatigue, stress, and that productivity maybe choose or be assigned and be completed poor quality, increased by enlarging to positions they enjoy quickly. the scope of job and for which they are activities. well suited. DEPARTMENTALIZATION REFERS TO THE GROUPINGS OF JOBS UNDER THE AUTHORITY OF A SINGLE MANAGER ACCORDING TO SOME RATIONAL BASIS FOR THE PURPOSE OF PLANNING, COORDINATION, AND CONTROL. THE BASIS FOR GROUPING JOBS: KNOWLEDEGE AND SKILLS TIME CUSTOMER LOCATION WORK PROCESS AND FUNCTION PRODUCT  PATTERNS OF SPAN OF AUTHORITY CONTROL Patterns of authority refers to the extent by which Span of control refers to the number of organization members are allowed to make decisions without subordinates reporting to a single getting the approval of another member. It may either be: supervisor. Narrow spans of control allow for CENTRALIZED close control, while wider spans of control reduce costs, speed decision making, when decision making is concentrated on increase flexibility, and empower employees. the hands of high-level managers The ideal span of control will depend upon DECENTRALIZED the situation. when decision-making authority is granted to middle and lower management. The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest level and clarifies who reports to whom. NARROW WIDE SPAN OF CONTROL SPAN OF CONTROL SIMPLE STRUCTURES OWNER/ MANAGER Characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization are typically us used in small SALES SERVICE ADMIN businesses. BUREAUCRACY STRUCTURE TOP LEVEL MANAGERS MIDDLE LEVEL Highly routine operating tasks, very formalized rules, tasks that are MANAGERS grouped into functional departments, centralized authority, and narrow spans of control. The primary advantage of the bureaucracy is its ability to perform FIRST LEVEL MANAGERS standardized activities in a highly efficient manner. In spite of these strengths, functional unit goals may eventually override the overall goals of the organization and programmed decisions may eventually become ineffective. OPERATIVE EMPLOYEES MATRIX STRUCTURE The matrix structure, used in advertising agencies, universities, and laboratories combine two forms of departmentalization: functional and product. The direct and frequent contact between different specialties can make better communication and flexibility which are often lost in the multiple layers of bureaucracy. Matrix structures facilitate coordination when the organization has many complex and interdependent activities. In addition, matrix structures facilitate the efficent allocation of specialists. The major disadvantages of the matrix structure are confusion, propensity for power struggles, and stress on individuals. WHAT IS THE IMPORTANCE OF ORGANIZATIONAL STRUCTURE? ORGANIZATIONAL STRUCTURES ARE IMPORTANT BECAUSE THEY HELP BUSINESSES IMPLEMENT EFFICIENT DECISION-MAKING PROCESSES. BY ASSIGNING SPECIALIZED ROLES TO LOWER-LEVEL EMPLOYEES, BUSINESSES CAN MAKE BETTER DECISIONS FASTER. ADDITIONALLY, ORGANIZATIONAL STRUCTURES PROVIDE A CLEAR ORGANIZATIONAL CHART THAT HELPS BUSINESSES KEEP TRACK OF THEIR HUMAN RESOURCES. THANK \ YOU FOR LISTENING! TOPIC EXERCISES WRITE “PERFIK” IF THE STATEMENT IS CORRECT AND WRITE “BOOGSH” IF THE STATEMENT IS WRONG. 1. NO SINGLE PATTERN OF AUTHORITY IS APPROPRIATE FOR ALL ORGANIZATIONS BECAUSE ENVIRONMENTS OF ORGANIZATIONS DIFFER. 2. SPAN OF CONTROL IS WIDE IF THERE IS CLOSER RELATIONSHIP BETWEEN MANAGER AND SUBORDINATES. 3. EMPLOYEES WORK IN LESSER SUPERVISION WITH WIDE SPAN OF CONTROL RATHER THAN IN NARROW SPAN OF CONTROL. 4. DESPITE OF THE ADVANTAGES OF WORK SPECIALIZATION, IT IS NOT APPLICABLE TO ALL JOBS AND SOME CAUTION MUST BE UNDERTAKEN IN ADAPTING IT. 5. ONE SINGLE PATTERN OF AUTHORITY IS APPROPRIATE FOR ALL ORGANIZATIONS BECAUSE ALL ORGANIZATIONS ARE STRUCTURED THE SAME. TOPIC EXERCISES CHOOSE THE LETTER OF THE CORRECT ANSWER 1. IT IS A BASIC ELEMENT OF ORGANIZATIONAL STRUCTURE THAT REFERS TO THE GROUPING OF JOBS UNDER THE AUTHORITY OF A SINGLE MANAGER ACCORDING TO SOME COMMON, RATIONAL BASIS, FOR THE PURPOSE OF PLANNING, COORDINATION, AND CONTROL. A. WORK SPECIALIZATION B. DEPARTMENTALIZATION C. PATTERN OF AUTHORITY D. SPAN OF CONTROL TOPIC EXERCISES CHOOSE THE LETTER OF THE CORRECT ANSWER 2. AN ADVANTAGE OF DECENTRALIZED AUTHORITY INDICATING THAT MANAGERS CAN COPE WITH SITUATIONS AS THEY COME. A. EFFICIENCY B. FLEXIBILITY C. INITIATIVE D. DEVELOPMENT TOPIC EXERCISES CHOOSE THE LETTER OF THE CORRECT ANSWER 3. THIS REFERS TO THE DEGREE TO WHICH TASKS IN THE ORGANIZATION ARE SUBDIVIDED INTO SEPARATE JOBS. A. WORK SPECIALIZATION B. DEPARTMENTALIZATION C. PATTERN OF AUTHORITY D. SPAN OF CONTROL TOPIC EXERCISES CHOOSE THE LETTER OF THE CORRECT ANSWER 3. THIS REFERS TO THE DEGREE TO WHICH TASKS IN THE ORGANIZATION ARE SUBDIVIDED INTO SEPARATE JOBS. A. WORK SPECIALIZATION B. DEPARTMENTALIZATION C. PATTERN OF AUTHORITY D. SPAN OF CONTROL TOPIC EXERCISES CHOOSE THE LETTER OF THE CORRECT ANSWER 4. THIS REFERS TO THE LINKAGE OF ACTIVITIES IN THE ORGANIZATION THAT SERVE ACHIEVE A COMMON GOAL OR OBJECTIVE. A. DEPARIMENTALIZATION B. PATTERN OF AUTHORITY C. SPAN OF CONTROL D. COORDINATION TOPIC EXERCISES CHOOSE THE LETTER OF THE CORRECT ANSWER 5. A BASIS OF GROUPING WHEREIN EFFICIENCIES ARE OBTAINED WHEN SPECIALISTS ARE GROUPED TOGETHER. A. KNOWLEDGE AND SKILLS B. WORK PROCESS AND FUNCTION C. TIME D. PRODUCT  ANSWERS TRUE OR FALSE. MULTIPLE CHOICE 1. PERFIK 1. B 2. BOOGSH 2. B 3. PERFIK 3. A 4. PERFIK 4. D 5. BOOGSH 5. A