Org.ppt.Types

BASIS OF STRUCTURAL CONFIGURATIONSTRATEGIC APEXTHE OPERATING CORETHE MIDDLE LINETHE TECHNOSTRUCTURETHE SUPPORT STAFF

Relationship between Co-ordinating mechanisms, Key parts of organization & org.configurationCo-ordinating Mechanism

Key Orgn.Parts

Configuration

Direct supervision Strategic Apex Simple structure

Standardized activities

Techno structure Machine bureaucracy

Standardized skillsOperating core Professional

bureaucracy

Standardized outputMiddle line Divisional form

Mutual adjustment Support staff Adhocracy

SIMPLE STRUCTURE

LOOSELY FORMEDPOWER CENTRALIZED WITH APEXFLAT & ORGANIC STRUCTURESNEGLIGIBLE FORMALIZATION

/SPECIALIZATIONEMPLOY FEW MIDDLE MANAGERSCOORDINATION ACHIEVED THRU DIRECT

SUPERVISION

MACHINE BUREAUCRACYWORK COORDINATED THRU HIGH

STANDARDIZATION.RESULT IN LOW SKILLED, HIGHLY

SPECIALIZED JOBSSTANDARDIZATION IS THRU XTNSV

FORMALIZATIONDIVISION OF LABOUR SHARP, ACTIVITIES

DIVIDED INTO FUNCTIONAL GROUPSDEVELOP ELABORATE MIDDLE MANAGERSSEEK STABLE ENVIRONMENT

PROFESSIONAL BUREAUCRACYDEVELOPED BY MINTZBERGSTANDARDIZATION OF SKILLSPERFORMANCE RELIABILITY THRU

PROFESSIONAL TRAININGSTRUCTURE – HIGHLY DECENTRALIZEDDECISIONS EMERGE OUT OF

INTERACTIONSUPPORT STAFF ON BUREAUCRATIC

LINES

DIVISIONALIZED FORM

RESULT OF GROWTH OF MACHINE BUREAUCRACY

APPROPRIATE WHEN ORGN.ENTERS NEW MARKETS / NEW PRODUCTS/NEW LOCATIONS ETC.

COORDINATION & CONTROL BY APEX THRU STANDARDIZATION OF OUTPUTS.

ADHOCRACY

CHARACTERIZED BY HIGH COMPLEXITY & NON STANDARDIZATIN OF PROCESS

EMPLOY HIGHLY SPECIALIZED & TRAINED EXPERTS, WITH LOW LEVEL OF FORMALIZATION.

HIGH RELIANCE ON INFORMAL COMMUNICATION

POWER WITHIN THE SYSTEM COMMENSURATE WITH NATURE OF PROBLEM

OPERATING ADHOCRACY

PROJECTS TAKEN ON BEHALF OF CLIENTS

NO DISTINCTION BETWEEN PROBLEM SOVLING AND OPERATING TEAM.

ADMINSTRATIVE ADHOCRACYPROJECT ON ONE’S OWN BEHALFDISTINCTION BETWEEN PROBLEM

SOLVING AND OPERATING TEAM MAINTAINED

INNOVATIVE WORK – PROJECT TEAMOPERATING COMPONENT – BY STAFF

EXPERTS

LINE ORGANIZATION

BOARD OF DIRECTORS

PURCHASE MANAGER PRODUCTN MANAGER SALES MANAGER

PURCHASE ASSAISTANTS

FINANCE MANAGER

FOREMAN SUPERVISOR SUPERINTENDENT

WORKERSWORKERS WORKERS WORKERS

GENEREL MANAGER

LINE ORGANIZATIONSCHARACTERISTICS

Direct vertical relationships Authority flows from top level to bottom level Departmental heads have given full freedom to control

their departments Each member knows whom to give orders and from

whom to get orders Operation of this system is easy Existence of direct relationship between seniors and

subordinates Superior takes decision with in the scope of his

authority

LINE ORGANISATIONADVANTAGES

SIMPLICITY DIVISION OF AUTHORITY AND RESPONSIBILITY UNITY OF CONTROL SPEEDY ACTION DISCIPLINE ECONOMICAL CO-ORDINATION DIRECT COMMUNICATION FLEXIBILITY

LINE ORGANIZATIONDISADVANTAGES

LACK OF SPECIALISATION OVER LOADING LACK OF INITIATIVES SCOPE OF FAVOURITISM DICTATORIAL LIMITED COMMUNICATION UNITARY ADMINISTRATION SUBJECTIVE APPROACH INSTABILITY LACK OF CO-ORDINATION UNSUITABILITY FOR LARGE ENTERPRISE

SUITABILITY SUITABLE TO SMALL SCALE BUSSINESS UNITS ACTIVITIES ARE OF ROUTINE NATURE AND

MACHINE BASED BUSSINESS OPERATION IS SIMPLE IN

NATURE,HAVING STRAIGHT METHODS OF OPERATION

Ex: Companies like Nirlep, FMCG companies

FUNCTIONAL ORGANIZATIONWORK

MANAGER

ENGINEERSUPERINTENDENT

CHEMIST

ROUTE CLERK

REPAIR BOSS

INSPECTORSPEED BOSS

GANG BOSS

DISCIPLINARIAN

TIME & COST

CLERK

INSTRUCTN CARD

CLERK

WORKERS

FUNCTIONAL ORGANISATIONCHARACTERISTICS

WORK DIVIDED ACCORDING TO SPECIFIED FUNCTIONS AUTHORITY IS GIVEN TO A SPECIALIST TO GIVE ORDERS

IN RELATION TO SPECIFIC FUNCTION DECISION IS MADE ONLY AFTER TAKING

CONSULTATIONS WITH THE FUNCTIONAL AUTHORITY RELATING TO SPECIALISED AREA

ADVANTAGES BENEFIT OF SPECIALISATION APPLICATION OF EXPERT KNOWLEDGE REDUCING THE WORK LOAD EFFICIENCY ADEQUATE SUPERVISION RELIEF TO LINE EXECUTIVES CO-OPERATION MASS PRODUCTION ECONOMY FLEXIBILITY

FUNCTIONAL ORGANISATION

DISADVANTAGES COMPLEX RELATIONSHIP DISCIPLINE OVER SPECIALISATION SPEED OF ACTION CENTRALISATION LACK OF RESPONSIBILTY INCREASING THE OVERHEAD EXPENSES POOR ADMINISTRATION

FUNCTIONAL ORGANISATION

SUITABILITY SUITABLE TO THE BUSSINESS UNITS WHICH IS

ENGAGED IN MANUFACTURING ACTIVITIES

LINE AND STAFF ORGANISATIONS

TYPES OF STAFF PERSONAL STAFF SPECIALISED STAFF GENERAL STAFF ASSISTANT

ADVANTAGES

Facilitates the workers to work faster and better Specialization is attained when the staff officers

concentrate on planning function and the line officers concentrate on execution function

Enables organization effectively utilize the staff officer’s experience and advice

line officers can take sound decisions with the advice of staff officers

New technology and new procedure may be introduced without any dislocation

New variety of responsible jobs can be given to the skilled workers

It promotes efficient working of line officers Principle of unity of command is followed hence

discipline is maintained Very good opportunity for the young persons to get

training

LINE AND STAFF ORGANISATIONS

DISADVANTAGES

powers of authority pertaining are not clearly defined difficult to control line officers when they reject the advice

of staff officers Line officers may reject the advice without assigning any

reasons for the action Staff officers may under estimate the line officers Staff officers are not involved in the actual implementation

of the program Staff officers are not responsible if favorable results are not

developed There is a communication gap between the line and staff

officers hence reduces the degree of coordination between them

Differences in opinion will defeat the very purpose of specialization

Line officers may misunderstand the advice of staff officers and proper results cannot be derived

Line officers blame staff officers for unfavorable results and want to get rewards for favorable results

LINE AND STAFF ORGANISATIONS

PROJECT ORGANISATIONFEATURES success of the project organization depends upon the co-

ordination of the activities grouping the activities leads to the introduction of new

line of authority responsibility is fixed to each group with regards to

respective projects ,it results in meaningful controlDRAWBACKS

there is no assurance for continuous work there is absence of proper communication and standards

for comparing the performance, It reduces motivation decision is taken under the pressure of top management

MATRIX ORGANISATION

MERITS Achievements of objectives best utilization of resources Appropriate structure flexibility motivation personal development Oriented towards end results Professional identification is maintained Pinpoints product-profit responsibility

MATRIX ORGANIZATION

DEMERITS complex relationships Struggle for power Excessive emphasis on group decision making Arising conflict resolution heterogeneous

Ex: Example:- manufacturing activities-aerospace, chemicals, electronics, pharmaceutical etc.

MATRIX ORGANIZATION

Flat Structure

 Advantages of flat Organisations Disadvantages of flat

Organisations

•More/Greater communication between management and workers.

•Workers may have more than one manager/boss.

•Better team sprit. •May limit/hinder the growth of the organisation.

•Less bureaucracy and easier decision making.

•Structure limited to small organisations such as partnerships, co-operatives and some private limited companies.

•Fewer levels of management which includes benefits such as lower costs as managers are generally paid more than worker.

•Function of each department/person could be blurred and merge into the job roles of others.

Organization structure based on free- Organization structure based on free- formform

Based on open systemTask to facilitate changeSuitable for industry:-In highly dynamic conditionEver changingQuick decisionFocus on equalityDe-emphasis on boss-subordinate relationships.Example:- electronics, software industry.

Organization structure based on Organization structure based on geography geography

ExplanationAdvantages:-Responsibility at lower levelFocus on local markets & problemsRegional coordinationEconomies of local operationBetter communication with local marketsEasy training Disadvantages:-Requirement of more persons with skillsMaintenance of economic central staff level difficultProblem of top management communication & coordinationExample:- Automobile assembling, LIC-east, west, north, south, central zones.

Geographical structureGeographical structure

Geographical structure

Organization structure based on Organization structure based on customercustomer

ExplanationAdvantages:-Encourages focus on customer needsFeeling of understanding supplierDevelop expertness in customer areaDisadvantage:-Competing customer demandsRequire expert in customer problemCustomer groups not definedExample:- Banking company

Customer based structure (banking Customer based structure (banking company)company)

Real estate & mortgage

loan

Agriculture banking

Organization structure based on Organization structure based on product product ExplainAdvantage:-Facilitates use of specialized skill, capital, knowledgePermits growth & delivery of product, services.Coordination improves.Responsibility at divisional level.Disadvantages:-Require more competent personResponsibility of top management increasesExample:- manufacturing, assembling, automobile industry

Manufacturing company (product structureManufacturing company (product structure

instrument

divisionengineerin

g

production

Indicator light

division

accounting

sales

Industrial tool

division

engineering

production

Electronic meter

division

accounting

sales

Organization structure based on processOrganization structure based on processExplanationAdvantages:-Achieves economic advantagesUses specialized technologyUtilizes skillsSimplify trainingDisadvantages:-Coordination is difficultLimits the scope for developmentExample:- Found in paint or electroplating process, textile etc.

Project Team StructureProject Team StructureProject Team StructureProject Team Structure

Project Directors

Steering Committee

Sponsors

Change Management

Team

FinancialsAdvisory

Group

Core Subject Matter Experts (SME’s)

Financials Team

Conversion Team

Technical Team

HRMSTeam

EPM Ad-Hoc Reporting

Team

Core Subject Matter Experts (SME’s)

ACCENTURE

Advisory Board

Executive Committee

Executive Director

Staff

BMA’s Organization Structure

ORGANISATIONAL SET UP OF BSNL

Finance

HRD

Marketing

NDC

O&M

Dir(Business I)

NP

Finance

HRD

Marketing

NDC

O&M

Dir(Business II)Basic Serv.

Finance

HRD

Marketing

NDC

O&M

Dir(Business III)(Value Added

Services

DirFinance

DirectorHRD

Legal

CompanySecretary

RegulationMgmt.

CorporateAffairs

DirMarketing

Vigilance

Mgmt.Audit

QA

Strategy &Technology

Planning

CMD

ONGC structureBoard of Directors

Managing Director Managing Director

Core operating committees

Overall mgt. responsibilit

y

Consensus on important

decisions

Pooling experience

& resources

Head - Shipping Head - Offshore

President–Corp & Co. Sec.

CFO CIO & Head-HR

Business segments of ONGCG.E. Shipping

SHIPPING OFFSHORE

Crude Product Dry bulk Gas Offshore services

Port support / Terminal services

• Suezmax• Aframax

• Medium range• General purpose

• Handymax• Handy size

Drilling services

Marine const. Proj & serv.

Offshore support / logistics

• Drilling rigs

• Construction barge

• Anchor handling tugs (AHT)• AHT supply vessels (AHTSV)• Dive support/supply vessels

• Harbour / terminal tugs

•

TCS structure