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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.