week-11

It !nvolves
ass!gn!ng
and
group!ng
tasks !nto departments , delegat!ng
Organ!z!ng author!ty and allocat!ng resources across the
organ!zat!on .

Organ!zat!onal Structure :

The
organ!zat!on's act!v!t!es d!v!ded and coord!nated
.
·

way
!n wh!ch an are
,
organ!zed
1) Work Spec!al!zat!on : To what
degree are act!v!t!es subd!v!ded !nto separate jobs ?

2
Departmental!zat!on On what bas!s : w!ll jobs be grouped together ?
3) Cha!n of Command To do !nd!v!duals and ?
groups report
: whom

4)
Span of Control : How many
!nd!v!duals can a
manager eff!c!ently
and effect!vely
d!rect?
5) Centeral!zat!on and Decentral!zat!on Where does :
dec!s!on-mak!ng author!ty l!e?
6) Formal!zat!on To d!rect
: what
degree
and
w!ll there be rules and
regulat!ons to

employees managers.

Organ!zat!onal Chart

I !s formal
a
d!agram that represents
every job !n the
organ!zat!on and the
report!ng
relat!onsh!ps between those jobs .

It helps members and outs!ders to understand how work structured w!th!n the
organ!zat!onal
company .

u
 Departmental!zat!on :

It the
!s process wh!ch jobs are
grouped together.
Group!ng Act!v!t!es by :

Product
Funct!on
Geography
· · *

· Process ·
Customer

1) Funct!onal Departmental!zat!on :

Eff!c!enc!es from putt!ng together s!m!lar spec!alt!es and people w!th common sk!lls ,
knowledge
and or!entat!ons
.

Coord!nat!on w!th!n funct!onal departments

In-depth spec!al!zat!on .

Poor commun!cat!on across funct!onal departments.

L!m!ted of
v!ew
organ!zat!onal goals .

2) Product Departmental!zat!on :

Allows spec!al!zat!on !n part!cular products and serv!ces .

Speed and effect!veness of dec!s!on mak!ng .

Managers can become experts !n the!r !ndustry
Closer to customers

Dupl!cat!on of funct!ons
Products w!th each other
m!ght compete .
3)
Geograph!cal Departmental!zat!on :

More effect!ve and eff!c!ent handl!ng off spec!f!c reg!onal !ssues that ar!se .

Serve needs of un!que geograph!c markets better .

Dupl!cat!on of funct!ons
Can feel !solated from other
organ!zat!onal aneas .

4) Customer Departmental!zat!on :

Customers needs and problems can be met by spec!al!sts .

Dupl!cat!on of funct!ons .

A adm!n!strat!ve staff !s needed to !ntegrate of departments

large act!v!t!es var!ous

L!m!ted of
v!ew
organ!zat!onal goals.
5) Process Departmental!zat!on :

More eff!c!ent for of work act!v!t!es

Can only be used w!th certa!n types of products .
 Matr!x Structure A structure that crets dual l!nes of author!ty and comb!nes
funct!onal and product departmental!zat!on
(Fac!l!ates coord!na
.

t!on of complex and Ga!ns advantages of funct!onal and product departmental!zat!on wh!le
!nterpendent act!v!t!es .

S avo!d!ng the!r weaknesses .

* Breaks down un!ty of command concept.

Span of Control

The number of subord!nates a

manager
can eff!c!ently and effect!vely d!rect
·
W!de Span of Control .
·
Narrow Span of Control.
"W!de Span of Control

G!ves subord!nates the chance for more !ndependence

More appropr!ate!flaborcosts are s!gn!f!cantbecause!tneduesnumberofmanagerses and
they work!ng towards
ensure are same common
goal .

Increase the r!sk of

whong
dec!s!on be!ng made as subord!nates may be less tra!ned or

lack .
exper!ence

2) Narrow Span of Control

Allows for closer superv!s!on of employees .

Helps more effect!ve commun!cat!on.

Expense of add!t!onal layers of management .

Increased comlex!ty of vert!cal commun!cat!on

The added levels of h!erancy slow down dec!s!on mak!ng
Encouragement of overly t!ght superv!s!on and d!scouragement of employee autonomy