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Org Structure

By

Prof Ravi

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Org Structure: Mintzberg Division of tasks andcoordinating them.

Approaches to Coordination

Mutual adjustment:- informal comm/small org

Direct Supervision:- Large org/ supvr coord

Standardization of employees skills

Standardization of Work Process

Standardization of outputs

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Forms of Organization:-

Simple Structure:- Applicable in Dynamic but

not complex sit, very few formal rules/policiesand centralization of auth and decision

making.

Machine Bureaucracy:- large org, simple and

stable environment. Main coord mechanism is

standardization of procedures.

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Professional Bureaucracy:- stable and dynamic

environment, main coord mechanism is

standardization of workers skills.

Professionalism and expertise of employees is

given importance. Univs/ prof firms.

Divisional forms:- Org has to cater for different

markets or clientele. Main coord mechanism is

the output of products and services.

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Adhocracy:- Org working in dynamic

environment and sit of high tech complexity.

Decision making is spread throughout the org.

Coord is through mutual adjustment and lot of

imp is given to personal communication.

Functions of Org Design:-

Leads to division and grouping of tasks.

Act as network to convey info.

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Structure for locating decision centers or

authority.

Link the work units with customers andsuppliers.

Structure of the Org:- Two Categories

Traditional org structure Modern Org Structure

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Traditional Org Structure: function, geography,

product and customer.

Functional Structure:- organizes employees

around specific functional areas. People with

specialized skills are grouped together. Sales,

finance, marketing etc.

Advantages:- fosters professional identity, highdegree of specialization, keep pace with latest

tech development, direct supervision, common

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Pool of talent, creates economies of scale.

Disadvantages:- focus on dept goals rather

than org goals, lacks overall connectivity withthe org, lack of coord with other units, tunnel

vision effect, adverse impact on quality of

products and customer satisfaction. Limits the

process of developing broad based general

managerial skills because of specialization.

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Geographical/ Territorial Structure:- As org growsin size it spreads to new region.

Advantages:- suits retail chain/ fast food,

promotes competitiveness and quality, createsmany profit centers, design is on decline due to e-business.

Disadvantages:- difficult to make consistency of

image, amount of cont to be given to localmanagers, imp of geographical design decreaseddue to free trade between countries.

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Customer or Market based :- with eachregional territory different types of product

lines may be required. Advantages: used in combination with other

designs, keeps focus on demand of customers,high employee involvement, customer focus

help to modify the behavior of the employees. Disadvantages: duplication of effort marketing

and sales, maintaining product expertise

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Product Based org design:- uniqueness of the

products rendered to customers.

Advantages:- generates entrepreneurialbehavior, product lines executive have profit

share responsibility.

Disadvantages:- difficulty in coordination,

conflict among colleagues, duplication of

specialization.