ob organisational design

8/6/2019 OB Organisational Design

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An organisation(organization) is a social arrangement whichpursues collective goals, controls its own performance, andhas a boundary separating it from its environment.

In other words,A group of people who work together

orOrganisation is the structure or mechanism that enables livingthings to work together.



"Organization design" can be defined as the process of reshaping organization structure and roles.

Or

As the alignment of structure, process, rewards,metrics and talent with the strategy of the business

Types of Organisational Design

Traditional

Organisational Design

Contemporary

Organisational Design



A simple organisationis defined as a design with lowdepartmentalization, wide span of control, centralizedauthority, and little formalization

Eg. A start up Business

A functional organisation is defined as that design inwhich groups of similar or related occupationalspecialties are together.

Eg. Revlon Inc.

Simple

Functional

DIVISIONAL

A divisional design is made up of separate, semi-autonomousunits or divisions. Within one corporation there may e manydifferent divisions and each division has its own goals toaccomplish.

Eg. WalMart



Team

A team is a design in which an organization is made up of teams, and each team works towards a common goal.

Eg. hole Foods arket Inc.

atrix

A matrix is one that assigns specialists from different functionaldepartments to work on one or more projects.

Project

A project is an organizational design in which employees continuouslywork on projects. This is like the matrix structure; however when theproject ends the employees dont go back to their departments.

Eg. illiam Demant Holding



Autonomous

The organization is comprised of many independent decentralizedbusiness units, each with its own products, clients, competitors, and profitgoals. There is no centralized control or resource allocation.

ABB

Boundaryless

A boundary less organization is one in which its design is not defined by, orlimited to, the horizontal, vertical, or external boundaries imposed by apredefined structure. In other words it is an unstructured design.

Eg. ChevronTexaco

Learning

A learning organization is defined as an organization that has developedthe capacity to continuously learn, adapt, and change.



� Division of ork

� Coordination

� Division of Responsibility� Planning and Controlling

� Relationships

� Optimum use of Resources



� Structure

� Size

� Environment

Technology



The formal arrangement of jobs within anorganisation

Key Elements in Organizational structure� Work Specialization� Span of control� Chain of command� Departmentalisation� Centralization� Decentralization� Formilization



� Work Specialization� The degree to which tasks in the organisation are divided into separate

jobs with each step completed by a different person� Individual employees specialize in doing part of an activity rather than

the entire activity.� Overspecialization can result in human diseconomies like fatigue, stress,

poor quality, increased absenteeism, and higher turnover.

� Span of control:determines the number of levels and managers an organization has.determines the number of employees a manager can efficiently and

effectively manage.� Chain of Command:

The continuous line of authority that extends from upper levels of anorganisation to the lowest levels of the organisation and clarifies whoreports to who



� It is the basis by which jobs are grouped together.

Importance-

� Establishes work teams and supervision structure� Creates common resources, measures of performance, etc� Encourages informal communication among people and subunits

Types

� Functional-Grouping jobs by functions performed� Product-Grouping jobs by product line� Process-Grouping jobs on the basis of product or customer flow� Customers-Grouping jobs by type of customer and needs� Geographical-Grouping jobs on thebasis of territory or geography



Board of Directors

MANAGINGDIRECTOR

PRODUCTION MARKETING FINANCE PERSONNEL

MARKET RESEARCH ADVERTISING SALES

INDOOR ADVERTISING OUTDOOR ADVRTISING



� organisations in which topmanagers make all the decisions and lower-levelemployees simply carry outthose

� Environment is stable� Company is large� Decisions are significant.� Eff ective implementation of

company strategies dependson managers retaining say overwhathappens.

� Organization is facing a crisis orthe risk of company failure

organisations in which

decision-making is pushed

down to the managers who are

closest to the action. Environment is uncertain Company is geographically

dispersed Decisions are relativelyminor. Eff ective implementation of

company strategies dependson managers havinginvolvement and flexibility tomake decisions

Corporate culture is open to

allowing managers to have asa in what ha ens.

CENTRALISATION DECENTRALISATION



� The degree to which jobs within the

organization are standardized and the extent

to which employee behavior is guided byrules and procedures.

� Highly formalized jobs offer little discretionover what is to be done.

� Low formalization means fewer constraintson how employees do their work



� The most obvious and most easily

recognised factor in designing an

organisation is the company's size.

� As an organisation grow larger it's formalstructure , Specialisation,

Departmentalisation, Centralisation



� How an organisation is going to position itself in themarket in terms of it's product is consider it's strategy.

� ost current strategy frameworks focus on three

strategy dimensions -� Innovation strategy:A strategy that emphasizes the

introduction of major new products & services.� Cost-minimization strategy:A strategy that emphasizes

tight cost controls, avoidance of unnecessary innovationor marketing expenses & price cutting.� Imitation strategy A strategy that seeks to move into

new products or new markets only after their viability

has already been proven.



� Internal factors.

� External factors.



� Management philosophy.

� Goal .

� Plans & policies.

� Mission and objective of the firm.



� Customers.

� Competitors.

� Suppliers.

� Channel intermediaries.

� Legal.

� Technological.

� Social.



� Definition

µTechnology is usage and knowledge of tools,techniques, craft, systems or methods of

organization¶



� Accurate Result

� Save Time

� Make Task Easier

�

Any time any where

� connect Globally



Computer

� Telephones

� FaxMachine

� Internet

� Security Systems



The framework

for dividing,

assigning, and

coordinatingwork

Organization

Structure

Organization

Design

Development

in or changes

to the

structure of anorganization



Organization

size

Organization

technology

Depending

upon the

work, size is

determined.

Right and

correct use of

technology.



� www.wikipedia.com

� www.images/google.com

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