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1. Tuesday, April 29, 2014 hmftj 1 Group DetailsGroup Details Hmftj B-18298 Abdul Wahab B-18108 Usama Dar B-18347 Tariq Yaqoob B-18305 (A) Topic : An Organizational Structure & The Design To : Prof. Iqbal Shoukat 2. Tuesday, April 29, 2014 hmftj 2 3. Tuesday, April 29, 2014 hmftj 3 HistoryHistory Organizational structures developed from the ancient times of hunters and collectors in tribal organizations through highly royal and clerical power structures to industrial structures and today's post-industrial structures. 4. Tuesday, April 29, 2014 hmftj 4 Difference Between OrganizationalDifference Between Organizational Structure & DesignStructure & Design Organizational structure deals with the present while design is about the future. Everyone needs to know what they're doing. Organizational structure and design help companies to understand themselves and ideally to work together to accomplish all the tasks and achieve all the goals of an organization. 5. Tuesday, April 29, 2014 hmftj 5 ORG STRUCT&DESIGNORG STRUCT&DESIGN Often when a company is small and starting up, it neglects both of these concepts while it figures out its identity, tasks, functions and all of the things organizational structure and design help put in order. While structure and design are two parts of the same whole, they have some differences that managers must understand in order to best shape their businesses. 6. Tuesday, April 29, 2014 hmftj 6 Organizational StructureOrganizational Structure Organizational structure is the skeleton of an organization. It is an expression of who is performing the various functions and tasks of a company and how these people relate to one another. Organizational structure encompasses a list of the various job positions, titles and duties of a business, and the reporting structure or chain of command among them. Structure is a statement of the current state of affairs, not the ideals, intentions or betterment of an organizations. Organizational structure does not include "shoulds.shoulds." 7. Tuesday, April 29, 2014 hmftj 7 Organizational DesignOrganizational Design Design in an organization is much the same as for buildings, clothing and vehicles ; it's a plan. When a company's leaders develop plans for how their company should function or would perform better, they undertake the business of organizational design. Good design takes inventory of all the tasks, functions and goals of a business, and then develops groupings and orderings of job positions, departments and individuals to best and most efficiently achieve those ends. Usually, designs are expressed through an organizational chart, which helps players throughout an organization understand functions and power relationships. 8. Tuesday, April 29, 2014 hmftj 8 Organizational Structure and DesignOrganizational Structure and Design Have you ever wondered why some organizations are always at the top position while some others have to struggle even for their very existence? The answer is that, successful organizations have a solid organizational structure and design than the others. 9. Tuesday, April 29, 2014 hmftj 9 Organizational structure is the process of building a team of highly talented, professional, ambitious and enthusiastic individuals to achieve our set goals and targets. Effective employee management and business expansion are the main reasons for the necessity of a systematic organizational structure and design. You may face countless difficulties while starting your dream organization. The scope of the word 'organization' is very wide. An organization can be a company, a business or even a school or a college. A small business will need a simple structure, while large multinational companies or universities with several colleges under its control would need a large or complex one. Whether small or large, the first step in forming an organization is to set up a management team which will supervise the working of the entire organization. The management team includes the chairman/promoter of the organization, board of directors and non executive chairman. The mission and the vision of the organization should be defined by the management. Vision of the OrganizationVision of the Organization 10. Tuesday, April 29, 2014 hmftj 10 How to Design a GoodHow to Design a Good Organizational StructureOrganizational Structure Designing the structure of an organization needs extra-ordinary management skills, dedication and perseverance. The first step involves explaining each employee, what his role will be. Employees will not be able to deliver their best, unless they are completely aware of their work and expectations. Another important thing is a system of accurate evaluation of the employee performance without being partial or unjust to any employee. Favoring some employee over the other without authentic reasons can be harmful for the company's future. There should not be concentration of power in the hands of a few executives, as this may lead to grouping and reduced quality output. Decide the number of employees needed in a particular department and recruit only those many employees. Recruiting excess number of employees can affect the financial position of the company in a negative way while recruiting less staff may cause delay in the production and marketing tasks, thus causing loss of revenue. Transparency in promotions is the highlight of a good organizational structure and design. Promotions and increments should be made strictly on the basis of merit to keep the employee faith in the organization alive. Following the above suggestions mmight help your dream of becoming a successful entrepreneur come true. 11. Tuesday, April 29, 2014 hmftj 11 How to Design a GoodHow to Design a Good Organizational StructureOrganizational Structure Satisfying the needs of the employees is of prime importance as this retains the faith of the employees on the employers. The basic idea is to promote people with good leadership skills. Presence of employee grievance cell under the supervision of the human resource department can assure the employees of their security in terms of payment and position in the company. The rules and regulations set by the management should be followed by all the employees of all the departments. However, the departmental heads should have the freedom of taking certain decisions on their own and interference of people who are in no way connected to a particular decision-making process should be strictly prohibited. All departments like marketing, human resource management, accounts and finance, research and development should have independent directors, followed by assistant directors and general managers. Regional managers should be appointed for managing the affairs of a particular territory. As per the descending order, regional managers are followed by branch managers, clerks and assistant clerks. 12. Tuesday, April 29, 2014 hmftj 12 Simple Organizational StructureSimple Organizational Structure A primary school or a start-up private limited company is a good example of a simple organizational structure. Apart from the management, these organizations have fewer employees as compared to the big organizations. The main advantage of a simple organizational structure is the simplicity in caring out the day-to-day activities. In a primary school, the school head can personally take care of every student's needs due to less number of students. The boss of a small firm can solve his employee's problems immediately and can personally interact with him for performance related issues. Like large organizations, small companies also have marketing department, personnel department, legal advisors and accounts department. Generally, small organizations have few branches and less annual turnover than the large ones. The ultimate power is with the head, who has the final say on any matter related to the company. 13. Tuesday, April 29, 2014 hmftj 13 Types of Organizational StructuresTypes of Organizational Structures "Every company has two organizational structures: The formal one is written on the charts; the other is the everyday relationship of the men and women in the organization." - Harold S. Geneen 14. Tuesday, April 29, 2014 hmftj 14 Types of Organizational StructuresTypes of Organizational Structures Every organization, to be effective, must have a structure. Let us first understand what an organization structure is. It is the setup that determines the hierarchy and reporting structure in an organization. It is represented by a drawing known as an organizational chart. There are different types of organizational structures that companies follow, depending on a variety of factors like leadership style, type of organization, geographical regions, work flow and hierarchy. To put it simply, an organizational stru