org. structure & hrm
TRANSCRIPT
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Organisational Structure
&
HRM
• Formal & Informal Organisation
• Tall & Flat Organisation structure
• Responsibility , Authority and Accountability
• Line & Staff Functions
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Organisational Design & Organisational Structures
• Organisational Design : The determination of
organisational structure that is appropriate for
the strategy, people, technology and task of the organisation.
• Organisational Structures : The way in which
an organisation’s activities are divided,organised and coordinated.
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Organizational Design
1. The Classical Approach – • Fredrick Taylor- (1911)
• “One Best Way to Accomplish the task”
• Henry Fayol – Principles of Management
• Max Webber- Bureaucracy
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2. The Task-Technology Approach
Woodwards‟ Research :Classified org.
based on mode of technology
1. Unit
2. Mass3. Process
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Woodwards’ Research
1. Unit:
• Manufactures custom made
products –
• Tailor made suit, turbine or
Avanti cars
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The Task-Technology Approach
2. Mass:
• Manufactures would make
large-batch or mass produced products
• Refrigerator, TV, Fans
• Ford Motors
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The Task-Technology Approach
3. Process production:
• Heavily Automated Continuous
process providers
• Oils & Chemical refiners
• Reliance petrochemicals
AL JUBAIL
PETROCHEMICAL PLANT,
SAUDI ARABIA
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3. The Environmental Approach
• Burns and Stalker Studied 20 org. to determine how their
org. structure & managerial practices
might differ based on differentenvironmental conditions.
• They found org. structure found indynamic environment is very different
from org. structure found in static
environment.
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The Environmental Approach
Mechanistic structures - a form of organization that
seeks to maximize internal efficiency• They performed – routine task
• Slow in responding to unfamiliar
Organic structure – an organization form thatemphasizes flexibility & adaptiveness
• people work more as teammates than assubordinates
• Influence based on knowledge than authority• Loosely defined responsibilities
• Emphasis on exchanging information than givingdirections
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Comparing Mechanist & organic structure
Characteristics Mechanist Organic
Task Definition Rigid Flexible
Communication Vertical Lateral
Formalization High Low
Influence Authority Expertise
Control Centralized Diverse
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Formal & Informal Organisations
1. Formal Organisation:
• Set-up of roles for the achievement of organisationgoals
• Reporting channels and job description is rigid
• Accountability and responsibility are fixed
2. Informal Organizations• Formation is ad-hoc and follows no structure
• They generally share same interest, ideas or
information.
• They donot contribute directly to organisationsgoals.
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Span of Control of 4:Total employees = 4096
Managers at levels 1-6 = 1365
Span of Control of 8:Total employees = 4096Managers at levels 1-4 = 585
Difference in managers equals 780.
1
8
64
512
4096
1
4
16
64
256
4096
1024
Span of Control
Defines the number of people that one person willsupervise. There may be a narrow span or a wide span of
control.
Tall & Flat Org. Structure
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Span of Control
1
4
16
64
256
1024
4096
1
8
64
512
4096
Span of 8
Span of 4
Members at each level
Managers = 1365
Managers = 585
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Matrix Structure
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Network Structure
• Workers or worker groups contribute tomultiple organizationaltasks
• Work groups are
reconfigured when thetasks change
• Relationships amonggroups are governedby the requirements of
the task
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Responsibility, Authority & Accountability
• Responsibility: One’s obligation to perform the
function assigned to the best of one’s ability inaccordance with directions received.
• Key principles to be considered :
• Delegation should improve org. working
• No two employees should be assigned the sameresponsibility
• The boundaries of the responsibility should be
fixed.
• Org. cannot afford gap in the delegation chain.
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Authority
• Authority:• It refers to the right to give orders
and the power to exact obedience
from others in the process of
discharging duties
• It enables managers to act, exert
influence and make decisions in
carrying out their responsibilities.
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Accountability
• An employee‟s answerability on
using the authority in discharging a
responsibility is termed as
accountability.
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Line & Staff Functions
• Line function: The department or
employees of the firm that performscore activity that contributes to its
business directly.
• Staff Functions: The department or
employees of the firm that performs
a support function that contributes toits business indirectly.
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Line & Staff Conflict• Expectations & complaints from line :
1. HR staff don't see the whole picture2. HR Staff try to steal the lime light
3. HR doesn‟t provide the right support.
• Expectations & complaints from staff :
1. Line function is prejudiced & biased
2. Doesn‟t understand importance of developing the employees
3. Doesn‟t value contribution of HRD
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The role of HRD in an organisation
Specialist
Controller
Change
Agent
Facilitator
HRD
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HRM & other Org. Functions
Products
Techn-
ology
Marketing
Production
HRM
S
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HR Strategy ABB
To build value,
performance and
leadership into ABB,responsibility, respect and
determination are key
Assuming responsibility, and acting with respect and determination
makes it possible to nurture
ABB‟s traditional strengths – our technology leadership, our
pioneering spirit and our ability to be at home everywhere. That is our
legacy, and our future.
„3S‟ (System, Speed, Spirit) Management Philosophy at ABB India.
Café – HR part of SAP HR module, serves as an employee self service
portal:
• Payroll management, Leave & Attendance management etc