organisational structure

1. ORGANISATIONAL BEHAVIOUR
PROJECT
TOPIC - DIFFERENT
ORGANISATIONAL STRUCTURE
CLASS -- SYBFM

2. GROUP MEMBERS
1. AAMISH PANDOH 21
2. UDESH POOJARY 22
3. APURVA PALANGE 23
4. ISHITA JOSHI 24
5. FAIMIDA SAYYED 25

4. >> An organizational structure consists of activities such as task
allocation, coordination and supervision, which are directed towards the
achievement of organizational aims.
>> It can also be considered as the viewing glass or perspective through
which individuals see their organization and its environment.
>> An organization can be structured in many different ways, depending
on their objectives.
>> Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entities
such as the branch, department, workgroup and individual.
>> Organizational structure affects organizational action in two big ways.
>> First, it provides the foundation on which standard operating
procedures and routines rest.
>> Second, it determines which individuals get to participate in which
decision-making processes, and thus to what extent their views shape the
organization’s actions.
Furtherly it is of TWO types
INTRODUCTION

5. Organisational structure
FORMAL
ORGANISATIO
N
INFORMAL
ORGANISATIO
N
FUNCTIONAL
ORGANISATION
DIVISIONAL
ORGANISATION
MATRIX
ORGANISATION

7. WHAT IS FUNCTIONAL ORGANISATIONAL STRUCTURE ?
The functional structure groups positions into work units
based on similar activities, skills, expertise, and resources

8. PRODUCTION
DEPARTMENT
MARKETTING
DEPARTMENT
FINANCE
DEPARTMENT
PERSONEL
DEPARTMENT
HUMAN
RESOURCE
DEPARTMENT
DIAGRAMATIC PRESENTATION OF FUNCTIONAL ORGANISATIONDIAGRAMATIC PRESENTATION OF FUNCTIONAL ORGANISATION
STRUCTURESTRUCTURE

9. By doing the same work for a longer period of
time the organization gets the Benefit of
specialization.
knows their work very well so it is easy to
control and coordinate the employees.
By doing the work for a longer period of time
Both manager and employee gets experience thus
they will give maximum contriBution with minimum
cost.
each individual has a fixed joB and department
so the employee are required to concentrate on
their own work which avoid duplication of work
there is a very clear chain of command in this
structure, so everyone knows which decisions they
are allowed to make, and which ones to hand off to
their supervisors.
ADVANTAGES OF FUNCTIONAL ORGANISATION

10.  Work is connected with one department to another department.
 If size of organisation become big employee start working on their
on wish so difficult in coordination.
 Development of employee is not there as there is a lack of
knowledge of the work in the organistion apart of their work.
 More weightage to departmental objective by departmental head.
 Suffers organization objective.
 On the failure of the organistional objective each department
holding other department responsible for failure.
 As the work of one department is connected with the work of
another department it is very difficult to make on department
accountable for failure.
 Conflict also arises when interest of one department is contrary to
each other.
 For example: (sales department insists in a customer friendly
design but this may not be accepted by the production department as it
will create difficulty in achieving their targets).
DISADVANTAGES OF FUNCTIONAL
ORGANISATIONAL

11. ABC International has just passed $10 million in sales, and its
president believes that this is a good time to restructure the business
to improve efficiencies through job specialization. Accordingly, he
clusters employees into the following functional areas:
 Accounting department
 Corporate department
 Engineering department
 Facilities department
 Human resources department
 Investor relations department
 Legal department
 Production department
 Public relations department
 Purchasing department
 Sales and marketing department
Examples of functional organisational structure

13. WHAT IS DIVISIONAL ORGANISATION STRUCTURE ?
Managers in large companies may have difficulty keeping
track of all their company's products and activities,
specialized departments may develop. These departments
are divided according to their organizational outputs.

14. Diagrametic presentation of divisional organisation structure

15. >> This approach makes it much easier to assign responsibility for actions and
results.
>> The divisional structure works well in markets where there is a great deal of
competition, where local managers can quickly shift the direction of their
businesses.
>> You can use this structure to create a culture at the divisional level that
most closely meets the needs of the local market.
>> The divisional structure allows decision-making to be shifted downward in
the organization, which may improve the company's ability to respond to local
market conditions.
>> When a company has a large number of product offerings, or different
markets that it services, and they are not similar, it makes more sense to adopt
the divisional structure.
>> This approach tends to yield faster responses to local market conditions.
ADVANTAGES OF DIVISIONAL ORGANISATIONAL
STRUCTURE

16.  When you set up a complete set of functions within each division,
there are likely to be more employees in total than would be the case if the
business had instead been organized under a purely functional structure.
Also, there must still be a corporate organization, which adds more
overhead cost to the business.
 The company as a whole may not be able to take advantage of
economies of scale, unless purchases are integrated across the entire
organization.
 When there are a number of functional areas spread among many
divisions, no one functional area will be as efficient as would have been
the case if there had instead been one central organization for each
function.
 Each division will tend to have its own strategic direction, which may
differ from the strategic direction of the company as a whole.
DISADVANTAGES OF DIVISIONAL
ORGANISATIONAL STRUCTURE

17. ABC International has just passed $250 million in sales, and
its president decides to adopt a divisional organizational
structure in order to better service its customers. Accordingly,
he adopts the following structure:
 Commercial division. Focuses on all commercial
customers, and has its own product development, production,
accounting, and sales employees.
 Retail division. Focuses on all retail customers in the
United States, and has its own product development,
production, accounting, and sales employees.
 International division. Focuses on all retail customers
outside of the United States. It shares product development
and production facilities with the retail division, and has its
own accounting and sales employees.

18. ORGANISATION CHART OF WALL
MART

20. WHAT IS MATRIX ORGANISATION ?
The employee has to work under two authorities
(bosses). The authority of the Functional Manager
flows downwards while the authority of the Project
Manager flows across (side wards). So, the authority
flows downwards and across. Therefore, it is called
"Matrix Organisation".

21. DIAGRAMATIC PRESENTATION OF MATRIX ORGANISATIONDIAGRAMATIC PRESENTATION OF MATRIX ORGANISATION
STRUCTURESTRUCTURE

22. Specularities of matrix
organisation
 Matrix organisation is a hybrid structure. This is so, because it is a
combination of two or more organisation structures. It combines functional
organisation with a project organisation. Therefore, it has the merits and
demerits of both these organisation structures.
 The Project manager has authority over the administrative aspects of the
project. He has full authority over the financial and physical resources which he
can use for completing the project.
 In a matrix organisation, there is a problem of the unity of command. This is
so, because the subordinates receive orders from two bosses viz., the Project
Manager and the Functional Manager.results in confusion.
 In a Matrix organisation, there is a specialisation. The project manager
concentrates on the administrative aspects of the project while the functional
manager concentrates on the technical aspects of the project.
 Matrix organisation is suitable for multi-project organisations. It is mainly
used by large construction companies, that construct huge residential and
commercial projects in different places at the same time

23. Example of matrix organisation

25. What is informal organisation
??
The informal organization is the interlocking social structure that
governs how people work together in practice. It is the aggregate of,
norms, personal and professional connections through which work
gets done and relationships are built among people who share a
common organizational affiliation or cluster of affiliations

26. Informal organisational
structure

27. If managers can work with the informal groups within their department,
there should be higher levels of motivation and productivity.
Interdivisional communication should be better through the informal network.
This could lead to increased innovation which should help the company
succeed.
Managers are less inclined to check up on workers when they know the informal
organization is cooperating with them
Managers who comprehend the power of the informal organization recognize
that it is a "check and balance" on their use of authority
. The informal group provides a means for relieving these emotional and
psychological pressures by allowing a person to discuss them among friends
openly and candidly.
Advantages of informal
organisation

28. DISADVANTAGES OF INFORMAL
ORGANISATION
Perpetuation of values and lifestyle causes informal groups to become overly
protective of their "culture" and therefore resist change.
Employees' desire to fulfill the requirements and services of both the informal
group and management results in role conflict.
The grapevine dispenses truth and rumor with equal vengeance. Ill-informed
employees communicate unverified and untrue information that can create a
devastating effect on employees.
Social control promotes and encourages conformity among informal group
members, thereby making them reluctant to act too aggressively or perform at too
high a level.
This can harm the formal organization by stifling initiative, creativity, and diversity
of performance.

29. EXAMPLES OF INFORMAL ORGANISATION
FACEBOOK INFORMAL ORGANISATION