Presentation on Basic forms of Organizations Design

1. Presented by
Pretam Laha
Pousali Mukherjee
Nayan saha
Sourav Tibrewal
Pankaj Agarwal

2.  The members and units in the organization are
grouped into functional departments such as
marketing and production.
 There should be coordination across the
departments to make the organization work
efficiently.
 Design approach shares the basic advantages and
disadvantages of functional departmentalization.

3. CEO
Vice
president,
operation
Vice
president,
marketing
Vice President,
finance
Vice President,
human resource
Vice
President,
R & D
Plant
managers
Regional sales
managers
Controller
Labour relations
director
Scientific
director
Shift
supervisors
District sales
managers
Accounting
supervisor
Plant human
resource
manager
Lab
manager

4.  The organization is made up of a set of
unrelated business.
 Each business is operated by a general
manager.
 Corporate staff allocates corporate resources
across companies.
 Organizations following this approach
achieve only average to weak financial
performance.

5. CEO
Semiconductor Telecommunications Appliances Media

6.  It is based on multiple businesses in related
areas.
 The design results from a strategy of related
diversification.
 Some activities are extremely decentralized
down to the divisional level; others are
centralized at the corporate level.
 Opportunities of coordination and shared
resources are the advantages of this design.

7. CEO
The Limited Express Intimate brands Slatkin & Co
Henri
Bendel
Victoria’s secret Bath and Body
works
White Barn Candle
co.

8.  It is based on two overlapping bases of
departmentalization.( e.g., Functional departments and
product categories).
 A set of product groups or temporary departments are
superimposed across the functional departments.
 The project groups, or teams are assigned to designated
projects or programs.
 A matrix design is useful when
 There is strong pressure from the environment.
 When large amount of information needs to be processed.
 When there is a pressure for shared resources.

9. ◦ Provides an efficient way for the organization to use
its human resources.
◦ Team members serve as bridges to their
departments for the team.
◦ Useful as a vehicle for decentralization.
◦ Enhances organizational flexibility.
◦ Involvement creates high motivation and increased
organizational commitment.
◦ Team members have the opportunity to learn new
skills.

10. Employees
CEO
Project
manager B
Project
manager C
Vice president,
engineering
Vice president,
production
Vice president,
finance
Vice president,
marketing
Project
manager A

11.  It represents hybrid of two or more of the
common forms of organization.
 An organization may have a mixture of
related divisions and a single unrelated
division.
 Most organizations use a modified form of
organization design that permits it to have
sufficient flexibility to make adjustments
for strategic purposes

12.  The Team Organization
◦ An approach to organizational design that relies almost
exclusively on project-type teams, with little or no
underlying functional hierarchy.
 The Virtual Organization
◦ An organizational design that has little or no format
structure with few permanent employees, leased
facilities, and outsourced basic support services.
◦ It may conduct its business entirely on-line and exists
only to meet for a specific and present need.
 The Learning Organization
◦ An organization that works to facilitate the lifelong
learning and development of its employees while
transforming itself to respond to changing demands and
needs

13.  The trend toward internationalization of
business
 How to design a firm to deal most effectively
with international forces and to compete in
global markets:
◦ Create an international division?
◦ Establish an international operating group?
◦ Make international operations an autonomous
subunit?

14. THANK YOU

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