structure of organisation
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TRANSCRIPT
STRUCTURE OF ORGANIZATION
Organization structure is the established pattern of relationship among various job positions of the enterprise.Organization structure is defined as “a system of job positions, the roles assigned to them and the authority relation among the various positions”.It provides framework for managers and other employees for performing their functions.
Elements in Organization Structure
Organizational
Structure
Job Design
DEPARTME-
NTATION
SPAN OF CONTROL
Delegation of
authority
1. JOB DESIGN
The various tasks to be accomplished under each job and the qualities, skills and qualifications required to undertake a particular job are specified in job design.
Job design helps in formulating organizational structure.
2. DEPARTMENTATION
Similar jobs are grouped together to form a department.
Co-ordination of different jobs becomes easy, when similar jobs are grouped under one department and under one manager.
3.SPAN OF CONTROL
The number of jobs a manager can effectively supervise and control are called span of control.
Span of control varies accordingly to the nature of industry, type of products, service and organization process involved.
4. DELEGATION OF AUTHORITY
After grouping the jobs into departments, the powers required to perform the jobs are determined.
Where the number of jobs in a department is large, and exercising authority may be difficult, part of the authority may be transferred to subordinates.
The transmission of decision making power to subordinates by superior is called delegation of authority.
Functional Structure
Function structure is formed by grouping together the entire work to be done into major functional departments.
In functional organizational structure. Each major function of business is organized as a separate department.
Functional organizational structure of small/ medium enterprise
Chairman /Managing Director
Manager Productio
n
Manager Marketin
g
Manager Finance
Manager Human
Resource
Functional organizational structure of large enterprise
Chairman /Managing Director
General Manager
Production
General Manager
Marketing
General Manager Finance
General Manager Human
Resource
Divisional Structure
o In large and diversified organizations, activities and personnel are grouped on the basis of different products manufactured.
o Divisional structure facilitates expertise in one product line.
o It becomes easy for the top management for easily Co-ordinate the activities of different product manufactured.
Functional organizational structure of large enterprise
Chairman /Managing Director
G.M Product
A division
Manager producti
on
Manager Personnel
G.M Product
B division
Manager Producti
on
Manager Personnel
G.M Product C division
Manager Producti
on
Manager Personnel
G.M Product
D division
Manager producti
on
Manager Personnel