ORGANIZING

AND
ORGANIZATIONAL STRUCTURES

Susmit Kumar
MBA(FC)-1
 Organizing
In general organizing may be an activity that arranges things in
an order according to some fixed patterns so as to make
them relevant and meaningful.
From the point of view of management if we look at organizing
• It is a management process that comes after planning
• Since every work in an organization is done by a number of
persons organizing helps in deciding who will do the work,
what will be the conditions for doing the work and what shall
be the relationship among the various people performing the
tasks.
 Organization
• An organization is a social arrangement that pursues collective
goals, controls its own performance and has a boundary
separating it from its environment.

From a management perspective an organization may be looked

as:
• An Entity
• A group of people
• A Structure
• A Process
 Nature of Organization

• Composition of individuals and groups

• Orientation towards goals
• Division of work or specialization
• Differentiated Functions
• Continues Process
 Purpose and Importance of an
Organization
• Helps to achieve goals
• Optimum utilization of resources
• To perform managerial functions
• Facilitates growth and diversification
• Human treatment of employees
 Organizational Structure
• Is a basic frame work within which a manager has to take
decisions
• Basically deals with relationships
• Structure of an organization is the arrangement of its various
elements at a given point of time.
• It is abstract in nature it can be inferred from actual
operations and behaviour of the organization
• Allows expressed allocation of responsibilities for different
processes and functions to entities
• It does differentiate and integrate the various activities in the
organization
 Formal Organizations
• Is a structure deliberately designed to achieve some particular
objectives
• Has well defined jobs each with definite authority, responsibility
and accountability,
• It is mostly designed by top management and the emphasis is
more on performance of jobs than individuals performing the job.
• It is said that formal organization is built on four pillars
1.Division of labor
2.scalar and functional processes
3.Structure
4. Span of control
 INFORMAL ORGANIZATION
• They refer to groups of people naturally formed in
the organization.
• It is not designed or planned
• It is evolved on the basis of some similarity among
individuals
• A person can join or leave the organization according
to his wish.
• There are no defined rules or regulations in it.
 Features of a Good Organizational Structure

1. Simplicity
2. Flexibility
3. Clear line of Authority
4. Application of ultimate responsibility
5. Proper delegation of authority
6. Minimum Possible Managerial levels
7. Principles of unity of direction and command
8. Proper Emphasis on staff
9. Provision for top Management
 Tall and Flat Structures
• An organizational structure with a narrow
span of management i.e. less no of sub-
ordinates per head with more levels of
management and centralized decision making
is a tall structure
• A structure with wider span of management
lesser levels of management and more de-
centralized decision making is a flat structure.
 Various forms of Organizational
Structures

• Every organization is different

• So every organization needs a different
kind of Organization structure with a
different purpose , design and form
• So an organization has to decide its
structure with prudence
LINE ORGANIZATIONAL STRUCTURE
• Pure Line Organizational Structure
Under this form similar activities are performed at each level
and hence is group is self sufficient
• Departmental Line Organizational Structure
Under this form all similar activities are placed into one
department and all departments come under one head.

Thus line organizational structure is a simple and straight

system where there is a unity of command and the
authorities and responsibilities of each person is well defined
.
 Line and Staff Organizational Structure
• It is a system where staff specialists advice the managers to
perform their duty
• Such advice is generally given to line managers by staffs who
are experts in their fields
• The staff positions or departments are of advisory and not
enforcing nature
• To decide upon which departments are staff and which are
line the activities of organizations have to be divided into 2
types
1. Having direct role in organisation’s objectives
2.Having indirect effect on organization’s objectives
 Functional Structure
• Functional structure is created by grouping the activities on
the basis of functions to achieve organizational objectives
• For this purpose all functions are classified into basic,
secondary and supporting according to nature and
importance.
• There is an emphasis on sub goals to be achieved by the
organization
• There is a functional authority relationship among various
departments
• There is a pyramidal growth of organization
• It is a tall structure with narrow span of Management
Design of Functional Organization
Structure
 Divisional Structure
• It is also referred as profit de centralization
structure
• It is built around several autonomous business
units
• The basic parameters for division are:
1.Product
2.Territory
3.Strategic Business Unit
Design of Divisional Organization Structure
 Project Organization Structure
• It is a specific kind of organization structure that
comes into existence only once for a single specified
goals
• It is independent and unique to a great extent
• There is a high degree of stake involved in it as there
is a time constraint for successful completion of a
project
• It allows maximum use of available knowledge and
skills
Design of Project Organization Strucuture
 Matrix Organizational Structure
• It involves merging of project structure and functional
structure
• It also depicts that many a times various structures may have
to overlap with each other.
• Matrix structure comes into existence when an organization
has large no of small projects
• Matrix Organisation=Matrix Culture+Matrix Systems+Matrix
Structure + Matrix behaviour
• A matrix structures makes sure that all the organizational
resources are well co-ordinated and directed towards the
activities where they are required
Design of Matrix Organization Structure
 Team
• Small Number of People
• Complimentary Skills
• Common Purpose and performance of goals
• Common Approach
• Mutual Accountability
 Other forms of Organizational Structures

• Network
Here the activities are mostly outsourced so as to reduce
the price and get the task done effectively
• Boundary less
This structure goes beyond its physical and
Geographical boundaries
• Virtual
It’s a special form of boundary less marketing where even
though a company may have small core but it may be a
world leader in its niche.
Querries……..?