Departmentalization:
- It is the process of grouping jobs according to some logical arrangement.
- It is the process of logical grouping of similar nature of functions into manageable units for the purpose of overall coordination of resources.
- It facilitates to maintain coordination, communication and control among all the mechanisms of the enterprise.
- It also helps in expansion by supervising and maintaining control over all functional units.
- Its importance or advantages are as follows:
- Creates specialization: It leads to job specialization. When works are divided into departments the employees’ expertise and efficiency in a particular job increases.
- Helps to establish proper control: All the departments are made according to the plan. The entire departments have certain target to achieve which serves as the standard to reduce deviations.
- Division of responsibility: Department divides works into different units or jobs and entrusts responsibility accordingly. Manager is accountable to the work of the employees.
- Feeling of autonomy: The manager is given sufficient freedom to take decisions regarding the department activities.
- Helps in expansion: It provides organization with the basis for expansion of business into different areas where organization could do well through departmentation.
Types of departmentation:
- Departmentalization by functions: Formation of departments on the basis of function to be performed like production, finance, marketing, personnel etc.
- Departmentalization by Product or service: formation of department on the basis of single product or product line, e.g. product X, product Y, product Z etc.
- Departmentalization by customers: formation of departments on the basis of types of customers. e.g., industrial buyer and consumer product buyer.
- Departmentalization by territory: formation of department on the basis of territory or regional managers. E.g., eastern region, western region, central region etc.
- Departmentalization by process: formation of department s on the basis of groups of process e.g., spinning, weaving, dyeing, etc.
- Departmentalization by time: formation of departments on the basis of time shift e.g., day, morning and night.
Nature and type of organizational design:
- Line organization: In line organization there is direct flow of authority form the superior to the subordinate level through and continuous chain of command. There are two types of line organization. They are:
- Pure line organization: all the individuals perform same type of work.
- Departmental line organization: Business is divided into different departments on the basis of nature of work.
- The advantages of line organization are:
- Simple:
- Quick decisions and implementation:
- Maintains discipline:
- Fixed responsibility;
- Flexibility;
- Effective management:
- Economical:
- The disadvantage:
- Overload to managers:
- Lack of specialization;
- Autocratic leadership:
- Problems of coordination:
- Inefficiency:
- Lack of stability:
- Functional organization: In functional organization the functional specialist does not provide direct instruction or suggestion to another functional specialist. They interact with each other through the general manager.
- The advantages are:
- Benefits of specialization
- Increase efficiency:
- Healthy competition among experts:
- Relief to executives:
- Mass production:
- Facilitates growth and expansion:
- The disadvantages are:
- Multiple command system.
- Lack of coordination.
- High administrative cost.
- Delay in decision making.
- Spoils human relations.
- Narrow outlook of specialists.
- Shifting responsibility
- Line and staff organization: this type of organization establishes chain of commands as in line organization and besides there is a provision of functional specialists. It is combination of line and staff functions in organization.
- The advantages are:
- Managerial specialization.
- Better coordination.
- Limited functional authority.
- Practical decision.
- Facilitates growth.
- Better utilization of resources.
- Greater flexibility.
- The disadvantages are:
- Problem of conflict.
- Greater confusion.
- High cost structure.
- Over dependence on staff.
- Inefficient staff.
- Lack of responsibility.
- Complication of management.
- Committee organization: it is organization of groups of people with various kings of knowledge, which is formally constituted to solve specific problem.
- The advantages are:
- Quality decisions.
- Setting objectives, plan and policies.
- Participative management.
- Reduces bias and conflict.
- Dealing with complex problems.
- Commitment to implement.
- Pooling authorities.
- The disadvantages are:
- Creating conflict.
- Delay in decision.
- Probability of diversion.
- Tendency of shifting.
- Lack of secrecy.
- Distribution of responsibility.
- Splits accountancy.
- Matrix organization: it is formed to complete various types of projects of specific and unique nature. It integrates the efforts of functional and project authority.
- The advantages are:
- Better coordination and control
- Adaptable to dynamic environment.
- Maximum use of resources.
- Participative management.
- Sufficient time to top management.
- Specialization.
- Development of team work.
- The disadvantages are:
- Violation of unity of command.
- Costly structure.
- Problem of over specialization.
- Difficult to balance.
- Feeling of insecurity
- Lack of wide coordination.
- Lack of commitment.
Situational influence on organizational design
- The five factors affecting the organizational design are:
- Organizational size: large the organization more complicated will be its structure.
- Organization life cycle: design depends upon the stage of the firm, i.e. Establishment, growth, midlife, maturity.
- Strategy: How organization is going to position itself in the market in terms of its product is considered its strategy. Design depends upon the strategy.
- Environment: It is the influence of external environment which also determines the organizational design.
- Technology: it brings greater efficiency and lower costs for the firm. Adjusting to the changing technology also determine the type of organizational design adopted by the organization.
Informal organizations:
- An organization which is formed within the framework of the formal organization; due to social interactions and interpersonal relations.
- Feature of informal organization are:
- Build on basis of friendship and common interest.
- Determine human and social relationship among people.
- There are no described roles, responsibilities nor authority.
- The membership is voluntary.
- No formally written rules and regulations.
- It has its own leaders, goals and standards.
Objectives of informal organization.
- To socialize with others.
- To meet common interest.
- To develop a sense of belonging.
- To reduce monotony.
- To check on authority.
Advantage of informal organization:
- Develops a sense of belonging
- Less supervision
- Innovation and creativity
- Rapid communication
- Check on authority
advantage of line organazation are;
ReplyDelete-simple
-quick decision and implementation
-maintain discipline
-fixed responsibility
-flexibility
disadvantage of line organization are;
-overload on manager
-lack of specilization
-autocratic leadership
-problem of coordination
-lack of stability
Departmentalization is the manner or practice in which related individual tasks and their allocation to work groups is combined, to form a specialized functional area that is distinct from other functional areas in an organization.
ReplyDeleteTypes of departmentalization are:
Functional departmentalization - Grouping activities by functions performed. Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations.
Product departmentalization - Grouping activities by product line. Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line.
Customer departmentalization - Grouping activities on the basis of common customers or types of customers. Jobs may be grouped according to the type of customer served by the organization. The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists.
Geographic departmentalization - Grouping activities on the basis of territory. If an organization's customers are geographically dispersed, it can group jobs based on geography.
Process departmentalization - Grouping activities on the basis of product or service or customer flow. Because each process requires different skills, process departmentalization allows homogenous activities to be categorized.
Divisional departmentalization - When the firm develops independent lines of business that operate as separate companies, all contributing to the corporation profitability, the design is call divisional departmentalization.
Types of organizational design are:
ReplyDelete- Line organization: In this organization there is a flow of authority from higher level to lower level. there are two types of line organization they are pure line organization and departmental line organization.
-Functional organization :A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. The organizational structure determines how the organization performs or operates.
-Divisional organization:The Divisional structure or product structure is a configuration of an organization, which breaks down the company into divisions that are self-contained. A division is self-contained and consists of a collections of functions which work to produce a product.
-Matrix structure:The matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms.
Factors influencing organizational design are organizational size, organizational life cycle, strategy, environment and technology.
ReplyDeleteInformal organization is a network of personal and social relationships (alliances, cliques, friendships) that arise as people associate with other people in a work environment.
This comment has been removed by the author.
ReplyDeletedepartmentation fixes the responsibilities to the managers or in charge of the concern departments.
ReplyDeleteTypes/Forms/Methods of departmentation
There are different basis or methods of departmentation some of the importance methods are:-
I) Departmentation by functions/Functional department
II) Departmenation by product or product wise department
III) Departmentation by territory/Geography
IV) Departmentation by customers
V) Departmentation by time
VI) Departmentation by process
VII) Departmentation by sequence
VIII) Departmentation by numbers
(I) If the departments of an organization are formed or established on the basis of major functions to be conducted by the organization than such types of departmentation is known as functional departmenational. In this type the functions of an organization are monitors look and manage properly and e.g. of functional department
(II) If an organization produces or deals more than one product or a variety of products, in such cases product departmentation can be formed. It is popular and useful to diversify the products.
(III) If the operation of a business organization is spread over a large geographical or territorial reason or area than such business organization an make departments on the basis of territory or geography. This types of departmentation helps the organization to make closed relationship with the customers, to adjust local environment and to match with the local religions, language, tradition etc. e.g.
(IV) If an organization creates its department on the basis of customers to fulfill the demands, expectation or desire of customers more effectively and properly than such organization can formed customer wise departmentation. Since customer is regarded as the king of the business, customers should be focused properly present business era -o'u_ is customer centric era.
(V) If a business runs continuously or without only breaks then such organization can adopt time wise departmention. Manufacturing concerns, hospitals and nursing homes, utility service provides etc may establish their department on the basis of time.
(VI) If an organization established its departments on the basis of process or steps of activities than it is called process wise departmention. Generally manufacturing units adopt this types of departmentation.
(VII) A sequential departmentation adopts alphabetical or numerical sequence as the basis of departmentation. A commercial bank may adopt sequential departmentation in its deposit and without functions and e.g. is
This types of departmentation is followed by those organization where numbers of
members or employees or customers are in large numbers and personal business is
tried to be ignored
INFORMAL ORGANIZATION
ReplyDeleteInformal organization refers to the relationship between people in the organization based
on personal attitudes, emotions, prejudices, likes, dislikes etc. an informal organization is an
organization which is not established by any formal authority, but arises from the personal and
social relations of the people. These relations are not developed according to procedures and
regulations laid down in the formal organization structure; generally large formal groups give
rise to small informal or social groups. These groups may be based on same taste, language,
culture or some other factor. These groups are not pre-planned, but they develop automatically
within the organization according to its environment.
Characteristics features of informal organization
• Informal organization is not established by any formal authority. It is unplanned and arises
spontaneously.
• Informal organizations reflect human relationships. It arises from the personal and social
relations amongst the people working in the organization.
• Formation of informal organizations is a natural process. It is not based on rules, regulations
and procedures.
• The inter-relations amongst the people in an informal organization cannot be shown in an
organization chart.
• In the case of informal organization, the people cut across formal channels of
communications and communicate amongst themselves.
• The membership of informal organizations is voluntary. It arises spontaneously and not by
deliberate or conscious efforts.
• Membership of informal groups can be overlapping as a person may be member of a
number of informal groups.
• Informal organizations are based on common taste, problem, language, religion, culture, etc.
it is influenced by the personal attitudes, emotions, whims, likes and dislikes etc. of the
people in the organization.
Benefits of Informal organization
• It blends with the formal organization to make it more effective.
• Many things which cannot be achieved through formal organization can be achieved through
informal organization.
• The presence of informal organization in an enterprise makes the managers plan and act
more carefully.
• Informal organization acts as a means by which the workers achieve a sense of security and
belonging. It provides social satisfaction to group members.
• An informal organization has a powerful influence on productivity and job satisfaction.
• The informal leader lightens the burden of the formal manager and tries to fill in the gaps in
the manager's ability.
• Informal organization helps the group members to attain specific personal objectives.
• Informal organization is the best means of employee communication. It is very fast.
Organizational design is the creation or change of an organization’s structure. If you have a job, belong to a club, or participate in sports, then you belong to a type of organization. Imagine if your group had no structure — no organization. Things would get messed up pretty fast.
ReplyDeleteThe organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and allow flexibility.
Managers must make choices about how to group people together to perform their work. Five common approaches help managers determine departmental groupings (grouping of positions into departments).
The five structures are basic organizational structures, which are then adapted to an organization's needs:
Functional structure groups positions into work units based on similar activities, skills, expertise, and resources. Production, marketing, finance, and human resources are common groupings within a functional structure.
Divisional structure groups departments according to organizational outputs — by product type, customer, or geography.
Matrix structure combines functional specialization with the focus of divisional structure. This structure uses permanent cross-functional teams to integrate functional expertise with a divisional focus. Employees in a matrix structure belong to at least two formal groups at the same time — a functional group and a product, program, or project team.
Team structure organizes separate functions into a group based on one overall objective The intent is to break down functional barriers among departments and create a more effective relationship for solving ongoing problems.
Network structure relies on other organizations to perform critical functions on a contractual basis. That is, managers can contract out specific work to specialists.
Hi Upama, Very useful information why don't you create a separate post with these information. You could use these various examples of org chart structures created with Creately Org Chart Maker for references.
DeleteDepartmentalization involves the dividing of an organization into different departments, which perform tasks according to the departments' specializations in the organization. Departmentalization as a means of structuring an organization can be found in both public and private organizations.
ReplyDeleteTypes Of Departmentalization
An organization can structure itself into departments in the following ways:
Functional Departmentalization. An organization can be organized into departments based upon the respective functions each performs for the organization. For example, a manufacturing company may create a production department, sales and marketing department, an accounting department, and a human resources department. Functional departmentalization may be advantageous as it can increase efficiency and expertise because all related activities are performed in one place by one group of people that specialize in that activity.
Geographic Departmentalization. Organizing departments along geographic lines is often a good idea for large multinational firms with offices around the world. All activities related to the organization's activities in each region are handled by a department in that region. One advantage of this method is that it ensures the development of expertise specific to the political, social, and cultural needs of the region. Moreover, sending managers to work in each region provides excellent training for upper level management positions where a broad perspective is required for success.
Product Departmentalization. An organization can also divide itself by its product lines. It creates a department for each product and that department controls all activities related to the product including development, production, marketing, sales, and distribution. This structure provides the organization the advantage of developing personnel with a high level of expertise and specialization for each of its products.
Customer/Market Departmentalization. Each type of customer usually has different needs and organizations often departmentalize along differing customer types such as consumers, businesses, and governments. For example, think about an aerospace engineering firm and the different needs of their consumer, business and government clients. This structure may be advantageous because it allows its personnel to specialize in developing products and serving the needs of particular markets and classes of customers.
Type of organizational design:
ReplyDeleteOrganizational design involves shaping company positions and employees into various structures. Small companies may have little or no structure when starting out. But eventually company management must start forming various departments for greater efficiency and accountability. An organized design or structure also enhances communication and makes better use of company resources. Small business owners often develop the structures of their organization around company goals, competitors and government regulations.
Functional
A functional structure is one that is centered around basic functions, including accounting, marketing, engineering, finance and human resources. A small company executive may start out hiring managers in each of these functional areas. Managers may, in turn, hire analysts or coordinators under them. And as the companies grow, managers may become directors and vice presidents, overseeing large functional departments. The advantage of a functional structure is that it makes efficient use of human resources. Employees in each department specialize or have expertise in one area like marketing. Hence, they work together to synergistically develop the best marketing strategies. A downside to the functional structure is that department goals sometimes take priority over company goals.
Customer
The objective behind a customer structure is positioning employees or departments so they can best serve the customers. Some small companies may sell to a diverse customer base. This can be especially the case with companies who service other business customers. The company may serve the consumer market as well as different types of businesses: Consumer products companies, hospitals, schools or the government. The selling process may be diverse with each type of customer, requiring special expertise and knowledge. Therefore, departments may need to design their structures around customers to best meet their needs.
Related Reading: Mintzberg's Five Types of Organizational Structure
Matrix
Matrix structures are often a hybrid of two different structures. For example, a company may combine functional and customer structures to better meet the demands of the marketplace. Matrix structures are often temporary. A small company may use a matrix structure if it is introducing a new product for example. Marketing and finance people will be needed to develop promotional strategies and create a budget for the new product, respectively. However, marketing and finance people will need managers who have experience with specific customers. The disadvantage of a matrix structure is dual reporting, according to "Reference for Business" online. Employees may be reporting to two bosses, one in their department and one from the matrix project team.
Strategic Business Units
Sometimes company departments become almost like separate business units or SBUs, especially when the company grows. Management may then set up separate profit and loss centers for these departments. The company may assign specific executives to run each specific SBU. These types of structures are often product-based. For example, a consumer products company may sell many different products. Each product group would then become a separate SBU.
Factors influencing organizational design are organizational size, organizational life cycle, strategy, environment and technology.
ReplyDeleteDepartmentalization:
ReplyDeleteit is a process or the basis by which jobs are grouped together.
Types of departmentation:
-functional:-groups jobs by functions performed
-product:-groups jobs by product line
-geographical:-groups jobs on the basis of territory or geography
-process:-groups jobs on the basis of product or customer flow
-customer:-groups jobs on the basis of common customers
Nature and types of organization design:
Nuture:
-it can be either universal or situational
-it can be different according to the nature of organization
-it is reviewed continuously
-it is more important in bigger organization than in smaller
-it is means to get objectives
-it helps in getting synergy in activities by providing the framework of activities.
Types:
simple structure
functional structure
divisional structure
team structure
martrix structure
autonomous internal units
boudaryless organization
learning organization
Informal organization:
it is the interlocking social structure that control how people work together in practice.
Objectives of informal organization.
To socialize with others.
To meet common interest.
To develop a sense of belonging.
To reduce monotony.
To check on authority.
Advantage of informal organization:
Develops a sense of belonging
Less supervision
Innovation and creativity
Rapid communication
Check on authority
Departmentalization is the manner or practice in which related individual tasks and their allocation to work groups is combined, to form a specialized functional area that is distinct from other functional areas in an organization.
ReplyDeleteTypes of departmentalization are:
Functional departmentalization - Grouping activities by functions performed. Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations.
Product departmentalization - Grouping activities by product line. Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line.
Customer departmentalization - Grouping activities on the basis of common customers or types of customers. Jobs may be grouped according to the type of customer served by the organization. The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists.
Geographic departmentalization - Grouping activities on the basis of territory. If an organization's customers are geographically dispersed, it can group jobs based on geography.
Process departmentalization - Grouping activities on the basis of product or service or customer flow. Because each process requires different skills, process departmentalization allows homogenous activities to be categorized.
Divisional departmentalization - When the firm develops independent lines of business that operate as separate companies, all contributing to the corporation profitability, the design is call divisional departmentalization.
Types of organizational design are:
- Line organization: In this organization there is a flow of authority from higher level to lower level. there are two types of line organization they are pure line organization and departmental line organization.
-Functional organization :A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. The organizational structure determines how the organization performs or operates.
-Divisional organization:The Divisional structure or product structure is a configuration of an organization, which breaks down the company into divisions that are self-contained. A division is self-contained and consists of a collections of functions which work to produce a product.
-Matrix structure:The matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms.
•Departmentalization: The process of logical grouping of similar nature functions into manageable units for the purpose of overall coordination of organizational resources is called departmentalization.
ReplyDelete• Types of departmentalization:
1. Departmentalization by function: In this method, various departments are created on the basis of nature of function like production, finance, personnel, marketing etc.
2. Departmentalization by product/service: In this method, a separate department is created for a single product and all actions of one department are brought together.
3. Departmentalization by customers: In this method, types of customers are the key basis of departmentalization of the enterprise.
4. Departmentalization by territory/location: in this method, departments are formed on the basis of geographical locations of business.
5. Departmentalization by process: This method of departmentalization is used in large scale manufacturing enterprise such as textile, cement, chemicals, medicines etc.
6. Departmentalization by time: In this method, departments are formed on the basis of shifts such as day, evening and night.
•Nature and types of organizational design:
ReplyDelete-Line Organization: In line organization there is direct line of authority from top level to the subordinate level through unbroken chain. In other words, all managers have direct control over their respective subordinates through the chain of command. Line organization can be classified into two:
1. Pure Line Organization: In pure line organization, all the individuals perform same type of work. Line is divided into different groups for effective control and supervision.
2. Department line organization: In department line organization, the business is divided into three departments on the basis of nature of work. A department head is appointed in each department.
-Functional Organization: In functional organization, all business activities of an enterprise are divided into a number of functions and each function is entrusted to a specialist, they are called functional specialist and authority delegated to each specialist is known as hid functional authority.
-Line and staff Organization: In line and staff organization, there is the provision of chain of commands, and besides, there is the provision of functional specialist to provide suggestions to line managers in decision making. Works of the organization re broadly divided into two: line and staff. The staffs are responsible preparation of plans whereas line authorities are responsible for implementation of plans. This structure is suitable for medium and large scale organizations.
-Matrix structure: The matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms.
•Informal Organization: Informal organization refers to the relationship between people in the organization based on personal attitudes, emotions, prejudices, likes, dislikes etc. an informal organization is an organization which is not established by any formal authority, but arises from the personal and social relations of the people. These relations are not developed according to procedures and regulations laid down in the formal organization structure; generally large formal groups give
rise to small informal or social groups. These groups may be based on same taste, language,
culture or some other factor. These groups are not pre-planned, but they develop automatically
within the organization according to its environment.
•Organizational Design: Organizational design is the creation or change of an organization’s structure. If you have a job, belong to a club, or participate in sports, then you belong to a type of organization. Imagine if your group had no structure — no organization. Things would get messed up pretty fast .The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and allow flexibility. Managers must make choices about how to group people together to perform their work. Five common approaches help managers determine departmental groupings (grouping of positions into departments).
Departmentation is the process of logical grouping of similar nature of functions into manageable units for the purpose of overall coordination of resources.It facilitates to maintain coordination, communication and control among all the mechanisms of the enterprise.
ReplyDeleteTypes of departmentation:
-functional:-groups jobs by functions performed
-product:-groups jobs by product line
-geographical:-groups jobs on the basis of territory or geography
-process:-groups jobs on the basis of product or customer flow
-customer:-groups jobs on the basis of common customers
Nature and types of organization design:
Nuture:
-it can be either universal or situational
-it can be different according to the nature of organization
-it is reviewed continuously
-it is more important in bigger organization than in smaller
-it is means to get objectives
-it helps in getting synergy in activities by providing the framework of activities.
Types:
simple structure
functional structure
divisional structure
team structure
martrix structure
autonomous internal units
boudaryless organization
learning organization
Informal organization:
it is the interlocking social structure that control how people work together in practice.
Objectives of informal organization.
To socialize with others.
To meet common interest.
To develop a sense of belonging.
To reduce monotony.
To check on authority.
Advantage of informal organization:
Develops a sense of belonging
Less supervision
Innovation and creativity
Rapid communication
Check on authority
Departmentalization:
ReplyDeleteit is a process or the basis by which jobs are grouped together.
Types of departmentation:
-functional:-groups jobs by functions performed
-product:-groups jobs by product line
-geographical:-groups jobs on the basis of territory or geography
-process:-groups jobs on the basis of product or customer flow
-customer:-groups jobs on the basis of common customers
Nature and types of organization design:
Nuture:
-it can be either universal or situational
-it can be different according to the nature of organization
-it is reviewed continuously
-it is more important in bigger organization than in smaller
-it is means to get objectives
-it helps in getting synergy in activities by providing the framework of activities.
Types:
simple structure
functional structure
divisional structure
team structure
martrix structure
autonomous internal units
boudaryless organization
learning organization
Informal organization:
it is the interlocking social structure that control how people work together in practice.
Objectives of informal organization.
To socialize with others.
To meet common interest.
To develop a sense of belonging.
To reduce monotony.
To check on authority.
Advantage of informal organization:
Develops a sense of belonging
Less supervision
Innovation and creativity
Rapid communication
Check on authority
TYPES OF DEPARTMENTATION
ReplyDeleteI) Departmentation by functions/Functional department
II) Departmenation by product or product wise department
III) Departmentation by territory/Geography
IV) Departmentation by customers
V) Departmentation by time
VI) Departmentation by process
VII) Departmentation by sequence
VIII) Departmentation by numbers
Nature and types of organization design:
Nuture:
-it can be either universal or situational
-it can be different according to the nature of organization
-it is reviewed continuously
-it is more important in bigger organization than in smaller
-it is means to get objectives
-it helps in getting synergy in activities by providing the framework of activities.
Types:
simple structure
functional structure
divisional structure
team structure
martrix structure
autonomous internal units
boudaryless organization
learning organization
Objectives of informal organization.
To socialize with others.
To meet common interest.
To develop a sense of belonging.
To reduce monotony.
To check on authority.
Advantage of informal organization:
Develops a sense of belonging
Less supervision
Innovation and creativity
Rapid communication
Check on authority
The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.
ReplyDeleteA structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.
An organizational chart illustrates the organizational structure.
This comment has been removed by the author.
ReplyDeleteDepartmentalization:It is a process or the basis by which jobs are grouped together.
ReplyDeleteTypes of departmentalization:
-functional:-groups jobs by functions performed
-product:-groups jobs by product line
-geographical:-groups jobs on the basis of territory or geography
-process:-groups jobs on the basis of product or customer flow
-customer:-groups jobs on the basis of common customers
Nature and types of organization design:
-it can be either universal or situation
-it can be different according to the nature of organization
-it is reviewed continuously
-it is more important in bigger organization than in smaller
-it is means to get objectives
-it helps in getting synergy in activities by providing the framework of activities.
Types:
simple structure
functional structure
divisional structure
team structure
matrix structure
autonomous internal units
boudaryless organization
learning organization
Informal organization:
it is the interlocking social structure that control how people work together in practice.
Objectives of informal organization.
To socialize with others.
To meet common interest.
To develop a sense of belonging.
To reduce monotony.
To check on authority.
Advantage of informal organization:
Develops a sense of belonging
Less supervision
Innovation and creativity
Rapid communication
Check on authority
advantage of line organazation are;
ReplyDelete-simple
-quick decision and implementation
-maintain discipline
-fixed responsibility
-flexibility
disadvantage of line organization are;
-overload on manager
-lack of specilization
-autocratic leadership
-problem of coordination
-lack of stability