monday morning ppt

8/2/2019 MOnday Morning PPT

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Organizational StructureDefines the primary reporting relationshipsthat exist within an organization.

The chain of command and hierarchy ofresponsibility, authority, and accountability are

established through organizational structure.Common Forms of OrganizationalStructure

Functional structure

Divisional structureMatrix structure

Network structure


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Functional Structure:

Specialization and EfficiencyMembers of the organization are groupedaccording to the particular function that theyperform within the organization.

Appropriate when an organizations greatestsource of complexity comes from the diversetasks that must be performed rather than from itsproducts, geographic markets, or consumergroups.


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Functional Structure


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Functional StructureAdvantages

FacilitatesspecializationConsistent workgroupsImproved operationalefficiency

DisadvantagesFocus ondepartmental versusorganizational issuesDifficult to developgeneralists neededfor top-levelmanagement

Only top-levelmanagement heldaccountable forprofitability


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Divisional Structures: ProvidingFocus

Members of the organization aregrouped on the basis of:

Common products

Geographic markets

Customers served


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Types of DivisionalStructure

Product DivisionsFor organizations with relatively diverse productlines that require specialized efforts to achievehigh product quality.

Geographic DivisionsFor organizations with limited product lines thateither have wide geographic coverage or desireto grow through geographic expansion.

Customer DivisionsFor organizations that have separate customergroups with very specific and distinct needs.


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Product Divisional Structure


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Product Divisional StructureAdvantages

Enhanced coordination.

Better assessment of manager performance andresponsibility.Development of generalist managers.

Disadvantages

Managers may lack expertise to operate in widegeographic areas.

Duplication of resources.


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Geographic Divisional Structure

Mastermind

Gujarat

Surat Rajkot Ahmedabad

Hydrabad


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Geographic DivisionalAdvantages

Allows for focus on specific new markets.

Good structure for growth along geographic

lines.Adaptable to local needs.

DisadvantagesDuplication of product or product/technologyefforts.Coordination and integration are difficult.

May be difficult to manage diverse product lines.


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Matrix Structure: A Dual Focus

A structure in which the tasks of theorganization are grouped along twoorganizational dimensionssimultaneously.Examples include:

Product/function

Product/geographic region


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Matrix Structure


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Matrix Structure (contd)

DisadvantagesComplex, leading to difficulties inimplementation

Behavioral difficulties from two bosses

Time consuming from a planning/coordinationperspective

Advantages

Can achieve real-time objectivesManagers focus on two organizationaldimensions, resulting in more specific job skills


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Network Structures:Flexibility

An organizationalstructure that is foundedon a set of alliances withother organizations thatserve a wide variety offunctions.

An organization that has acore coordinating withother organizations ororganizational units.


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Network Structure (Building Contractor)


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Types of Network StructureInternal Network (MM)

A network structure that relies on internallydeveloped units to provide services to a coreorganizational unit.

Stable Network (ATS)A network structure that utilizes externalalliances selectively as a mechanism for gainingstrategic flexibility.

Dynamic Network (Contract work Viken)A network structure that makes extensive use ofoutsourcing through alliances with outsideorganizations.


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Network Structure (contd)

AdvantagesMaximizes the effectiveness of the core unit

Do more with less resources

FlexibilityDisadvantages

Fragmentation makes it difficult to developcontrol systems

Success is dependent on ability to locatesources

Difficult to develop employee loyalty


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Potential Advantages and Disadvantages of Organizational Structures

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