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ORGANIZATIONAL STRUCTURE AND DESIGN Presentation Transcript
1.ORGANIZATIONAL STRUCTURE,DESIGN, CULTURE
2.Topics covered in this session:
Meaning, factors affecting, and elements of organizational structure
Organizational design structures
High performance systems
Meaning, functions, types, descriptions
Management of organizational structure
Changing organizational structure
International comparisons
Cross cultural dimensions: Hofsteed’s analysis
Meaning, factors affecting, and elements of organizational structure
Organizational design structures
High performance systems
Meaning, functions, types, descriptions
Management of organizational structure
Changing organizational structure
International comparisons
Cross cultural dimensions: Hofsteed’s analysis
3.Human resources can be viewed as the sum of knowledge,skills,attitudes,commitment values and the likes of the people of an organisation .Development is acquisition of capabilities that are needed to do the present job or the future expected job. Human resource development is a positive concept in human resources management.
4.MEANING
Human resource management is a process of bringing people and organisations together so that the goals of each are met. It is that part of management process which is concerned with the management of human resources in an organisation it tries to secure the best from people by winning their wholehearted cooperation
Human resource management is a process of bringing people and organisations together so that the goals of each are met. It is that part of management process which is concerned with the management of human resources in an organisation it tries to secure the best from people by winning their wholehearted cooperation
5.ORGANIZATIONAL STRUCTURE
An organizational structure is a description of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.
An organizational structure is a description of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.
6.Factors Affecting Organizational Structure
Organization size
Strategy
Environment
Technology
Organization size
Strategy
Environment
Technology
7.Elements of organizational structure
Work Specialization
Departmentalization
Chain of Command
Span of Control
Centralization and Decentralization
Formalization
Work Specialization
Departmentalization
Chain of Command
Span of Control
Centralization and Decentralization
Formalization
8.Work specialization
It is based on the right person on the right job. Give the work to employee on the basis of their skill.
It is based on the right person on the right job. Give the work to employee on the basis of their skill.
9.Departmentalization
Grouping the jobs together so that common task can be coordinated is called departmentalization .The plus point of this action is obtaining efficiencies from putting like specialists together. Manager advantage is increased due to the accountability performance under single manger.
Grouping the jobs together so that common task can be coordinated is called departmentalization .The plus point of this action is obtaining efficiencies from putting like specialists together. Manager advantage is increased due to the accountability performance under single manger.
10.Chain of command
An unbroken line of authority that extends from the top of the organization to the lowest that who report to whom.
An unbroken line of authority that extends from the top of the organization to the lowest that who report to whom.
11. Formalization
It refers to the degree to which jobs within the organization are standardized. In formalization employee can be expected always to handle the same input in exactly the same way.
It refers to the degree to which jobs within the organization are standardized. In formalization employee can be expected always to handle the same input in exactly the same way.
12.Span of control
The maximum number of sub ordinates a manager can effectively direct.
The maximum number of sub ordinates a manager can effectively direct.
13.Centralization and Decentralization
Centralization refer to the degree to which decision making is concentrated at a single point. Top management make the organization key decision with little or not input from low level
Decentralization refer to the degree to which action can be take more quickly to solve problem. More people input to make a decision
Centralization refer to the degree to which decision making is concentrated at a single point. Top management make the organization key decision with little or not input from low level
Decentralization refer to the degree to which action can be take more quickly to solve problem. More people input to make a decision
14.Basic Organizational Structures
Global Structural Arrangements
Global Product Division
Global Area Division
Global Functional Division
Matrix Organization Structure
Global Structural Arrangements
Global Product Division
Global Area Division
Global Functional Division
Matrix Organization Structure
15. Global product division
Dividing your products according to different people there will be different product for each country. For ex. Automobile design are launched at different time.
Dividing your products according to different people there will be different product for each country. For ex. Automobile design are launched at different time.
16.Global Area Division
Setting up its office area wise helps a lot, they have local people working along with the organization knowing the markets well and achieving the targets easily.
Setting up its office area wise helps a lot, they have local people working along with the organization knowing the markets well and achieving the targets easily.
17. Global Functional Division Functions are divided according to the work load.
18.Matrix Organization Structure
This has been the part of any organization which leads to success, where there is a project under there department.
This has been the part of any organization which leads to success, where there is a project under there department.
19.SIMPLE STRUCTURE
20. Functional Structure
21.Advantages
Enhanced coordination and control
Centralized decision making
Enhanced organizational-level perspective
More efficient use of managerial and technical talent
Facilitated career paths and development in specialized areas
Enhanced coordination and control
Centralized decision making
Enhanced organizational-level perspective
More efficient use of managerial and technical talent
Facilitated career paths and development in specialized areas
22.Disadvantages
Impeded communication and coordination due to differences in values and orientations
May lead to short-term thinking (functions vs. organization as a whole)
Difficult to establish uniform performance standards
Impeded communication and coordination due to differences in values and orientations
May lead to short-term thinking (functions vs. organization as a whole)
Difficult to establish uniform performance standards
23.Divisional Structure
24.Divisional Structure
Divisional organizational structure
An organizational form in which products, projects, or product markets are grouped internally.
Also called multidivisional structure or M-Form
Divisional organizational structure
An organizational form in which products, projects, or product markets are grouped internally.
Also called multidivisional structure or M-Form
25.Strategic Business Unit
SBU is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. The unique small business unit benefits that a firm aggressively promotes in a consistent manner. When companies become really large, they are best thought of as being composed of a number of businesses (or SBUs).
In the broader domain of strategic management, the phrase "Strategic Business Unit" came into use in the 1960s, largely as a result of general electric’s many units.
26.SBU Structure
Advantages
task of planning and control by the corporate office more manageable
individual businesses can react more quickly to important changes
SBU is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. The unique small business unit benefits that a firm aggressively promotes in a consistent manner. When companies become really large, they are best thought of as being composed of a number of businesses (or SBUs).
In the broader domain of strategic management, the phrase "Strategic Business Unit" came into use in the 1960s, largely as a result of general electric’s many units.
26.SBU Structure
Advantages
task of planning and control by the corporate office more manageable
individual businesses can react more quickly to important changes
27.Disadvantages
may become difficult to achieve synergies
additional level of management increases overhead expenses
may become difficult to achieve synergies
additional level of management increases overhead expenses
28.Holding Company Structure
Holding company structure
An organizational form in which the divisions have a high degree of autonomy both from other divisions and from corporate headquarters.
Holding company structure
An organizational form in which the divisions have a high degree of autonomy both from other divisions and from corporate headquarters.
29.Advantages
cost savings associated with lower overhead
autonomy increases the motivational level of divisional executives
cost savings associated with lower overhead
autonomy increases the motivational level of divisional executives
30.Holding Company Structure
Disadvantages
inherent lack of control and dependence
limited staff support
Disadvantages
inherent lack of control and dependence
limited staff support
31.International Comparison
International competition
Domestic market saturation
Desire for expansion
New markets
Diversification
International competition
Domestic market saturation
Desire for expansion
New markets
Diversification
32.International competition
Realizing the competition before its comes and effect our business, that it’s a story to history and written the name in golden words they know “what next”
Realizing the competition before its comes and effect our business, that it’s a story to history and written the name in golden words they know “what next”
33.Domestic market saturation
Taking out your product from the market or pumping in the some new product before its demand reduces in the market. Every product or a human has a life , so before its reaches its saturation points its necessary to change.
Taking out your product from the market or pumping in the some new product before its demand reduces in the market. Every product or a human has a life , so before its reaches its saturation points its necessary to change.
34.Desire for expansion
HRM plays a important role, where its give freedom to express its thoughts and appreciate the creations or innovations.
Ex:-“Infosys was the 1st company in 1999 which had a desire to expand.
HRM plays a important role, where its give freedom to express its thoughts and appreciate the creations or innovations.
Ex:-“Infosys was the 1st company in 1999 which had a desire to expand.
35.New markets
MNC companies realized the potential and profitable work in India, every MNC want to establish its business in India( a growing economy) in order to earn profits n capture new markets.
For ex.:- OBAMA came recently along with top CEO to get order form India the whole trip was planed and manage by HR department where they co-ordinate with them
MNC companies realized the potential and profitable work in India, every MNC want to establish its business in India( a growing economy) in order to earn profits n capture new markets.
For ex.:- OBAMA came recently along with top CEO to get order form India the whole trip was planed and manage by HR department where they co-ordinate with them
36.Diversification
Is the process of spreading the total investment money available across different asset classes, countries, industries, and individual companies. Diversification also entails choosing investments that are, as far as possible, uncorrelated, which means that when investment A is performing poorly, investment B is likely to be performing well. A prudent investor diversifies their holdings in a diversified portfolio of assets.
Is the process of spreading the total investment money available across different asset classes, countries, industries, and individual companies. Diversification also entails choosing investments that are, as far as possible, uncorrelated, which means that when investment A is performing poorly, investment B is likely to be performing well. A prudent investor diversifies their holdings in a diversified portfolio of assets.
37.Changing organizational structures
Flatter Structures
Knowledge workers
Team working
Use of technology
Flexible working
Flatter Structures
Knowledge workers
Team working
Use of technology
Flexible working
38.Flatter Structures
A flat organization will have relatively few layers or just one layer of management. This means that the “Chain of Command” from top to bottom is short and the “span of control is wide”. Due to the small number of management layers, flat organisations are often small organisation
A flat organization will have relatively few layers or just one layer of management. This means that the “Chain of Command” from top to bottom is short and the “span of control is wide”. Due to the small number of management layers, flat organisations are often small organisation
39.Knowledge workers
Knowledge workers in today's workforce are individuals who are valued for their ability to act and communicate with knowledge within a specific subject area. They will often advance the overall understanding of that subject through focused analysis, design and/or development. They use research skills to define problems and to identify alternatives. Fueled by their expertise and insight, they work to solve those problems, in an effort to influence company decisions, priorities and strategies.
Knowledge workers in today's workforce are individuals who are valued for their ability to act and communicate with knowledge within a specific subject area. They will often advance the overall understanding of that subject through focused analysis, design and/or development. They use research skills to define problems and to identify alternatives. Fueled by their expertise and insight, they work to solve those problems, in an effort to influence company decisions, priorities and strategies.
40.Team working
A joint action by a group of people, in which each person subordinates his or her individual interests and opinions to the unity and efficiency of the group.
A joint action by a group of people, in which each person subordinates his or her individual interests and opinions to the unity and efficiency of the group.
41. Use of technology
It provides the tools and functions on which almost all companies throughout the world run. With the advent of new communication technologies, the common use of computers and the boom of the Internet, practically all business activities use some form of technology. It can be said that without technology, many businesses would no longer be able to function.
It provides the tools and functions on which almost all companies throughout the world run. With the advent of new communication technologies, the common use of computers and the boom of the Internet, practically all business activities use some form of technology. It can be said that without technology, many businesses would no longer be able to function.
42.Flexible working
A system of flexible working hours gives employees some choice over the actual times they work their contracted hours. Such a system can be a good way of recruiting and retaining staff - since it provides an opportunity for employees to work hours consistent with their other commitments (e.g. child care).
A system of flexible working hours gives employees some choice over the actual times they work their contracted hours. Such a system can be a good way of recruiting and retaining staff - since it provides an opportunity for employees to work hours consistent with their other commitments (e.g. child care).
43.HIGH PERFORMANCE SYSTEMS
The right combination of people , technology , and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goals .
The right combination of people , technology , and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goals .
44.Four Principles of High Performance systems
Shared Information
Knowledge Development
Performance Reward-Linkage
Egalitarianism
Shared Information
Knowledge Development
Performance Reward-Linkage
Egalitarianism
45.Elements of High Performance systems
Organisational Structure
Task Design
People
Reward systems
Organisational Structure
Task Design
People
Reward systems
46.Outcomes of High Performance Systems
Higher productivity and Efficiency
Higher profits
Other outcomes include :
High product quality
Great Customer satisfaction
Low Employee turnover
Higher productivity and Efficiency
Higher profits
Other outcomes include :
High product quality
Great Customer satisfaction
Low Employee turnover
47.“If you misjudge the market , you are wrong in 15 countries rather than only in one.”
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