Organization Structure and Design

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Organization Structure and Design Organizing: Arranging and structuring work to accomplish organizational goals. Organizational Structure is the formal arrangement of jobs within an organization. Organization chart: Organization structure shown visually in the form of a chart. Organizational Design: A process that involves decisions about six key elements : Work specialization, Departmentalization, Chain of command , Span of control, Centralization and decentralization and Formalization. Purpose of Organizing • Dividing work to be done into specific jobs and departments. • Assigning tasks and responsibilities associated with individual jobs • Coordinating diverse organizational tasks. • Clustering jobs into units • Establishing…show more content…
It involves three concepts : authority, responsibility and unity of command. Authority : refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Power vested in a position. Responsibility : Obligation to perform. Unity of Command : An employee should report to only one manager. Alternative People meet frequently at short intervals, may be twice a day to study problem and identify solutions. IT has also made things faster, through easier data availability. Span of Control Large or small depending on number of employees reporting to manager. The larger the span, the lesser will be the number of hierarchy. The smaller the span, the hierarchical levels will be more. Level 1 2 3 4 Total number of workers Total including managers Assuming span of 4 1 4 16 64 --------64 85 Span of 8 1 8 64 512 --------64 73 Factors Affecting Span of Control There is generally no agreed number. However, the following factors determine the span of control. 1. Skill and abilities of employees 2. Skill and abilities of manager 3. The nature of work – hazardous 4. Simple or complex task 5. Physical proximity to worker 6. Existence of standardized procedures 7. Organizational information systems 8. Strength of organizational culture 9. Preferred style of manager Current Trend: Increases flexibility and freedom to worker.
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