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    Organisations Structures and Systems: Ashutosh Murti

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    Amit Admune
    The document discusses different aspects of organizational structure such as mechanistic versus organic structures, elements of organizational structure including departmentalization and span of control, factors affecting organizational structure, and mechanisms for integrating different parts of an organization such as hierarchy, liaison roles, and teams. It also compares centralization and decentralization and discusses benefits of different levels of decentralization.

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    Organisations Structures and Systems: Ashutosh Murti

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    Amit Admune
    33 views19 pages
    The document discusses different aspects of organizational structure such as mechanistic versus organic structures, elements of organizational structure including departmentalization and span of control, factors affecting organizational structure, and mechanisms for integrating different parts of an organization such as hierarchy, liaison roles, and teams. It also compares centralization and decentralization and discusses benefits of different levels of decentralization.

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    The document discusses different aspects of organizational structure such as mechanistic versus organic structures, elements of organizational structure including departmentalization and span of control, factors affecting organizational structure, and mechanisms for integrating different parts of an organization such as hierarchy, liaison roles, and teams. It also compares centralization and decentralization and discusses benefits of different levels of decentralization.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views19 pages

    Organisations Structures and Systems: Ashutosh Murti

    Uploaded by

    Amit Admune
    The document discusses different aspects of organizational structure such as mechanistic versus organic structures, elements of organizational structure including departmentalization and span of control, factors affecting organizational structure, and mechanisms for integrating different parts of an organization such as hierarchy, liaison roles, and teams. It also compares centralization and decentralization and discusses benefits of different levels of decentralization.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 19

    Organisations Structures

    and Systems
    Ashutosh Murti
    ashutosh@iimshillong.ac.in
    Figure 4.1 - Design Challenge

    4-6
    Figure 4.1 - Design Challenge
    (cont.)

    4-7
    Figure 4.1: Design Challenge
    (cont.)

    4-8
    Figure 4.1 - Design Challenge
    (cont.)

    4-9
    Figure 4.1 - Design Challenge
    (cont.)

    4-10
    Figure 4.2 - Building Blocks of
    Differentiation

    4-14
    Figure 4.3 - Organizational
    Chart of the B.A.R. and Grille

    4-20
    Mechanistic Vs. Organic Structures

    Mechanistic Organic

    • High formalization • Low formalization

    • Narrow span of control • Wide span of control

    • High centralization • Low centralization


    MECHANISTIC VERSUS ORGANIC DESIGNS:
    A bird’s eye view

    Structure
    Dimension Mechanistic Organic

    Stability Change unlikely Change likely

    Specialization Many specialists Many generalists

    Formal rules Rigid rules Considerable flexibility

    Authority Centralized in Decentralized, diffused


    few top people throughout the
    organization
    Elements of Organizational Structure

    Department- Span of
    alization Control

    Organizational
    Structure
    Elements

    Formalization Centralization
    The Four Key Design Decisions

    Specialization
    Division of Labor:
    High Low

    Basis
    Departmentalization:
    Homogeneous Heterogeneous

    Number
    Span of Control:
    Few Many

    Delegation
    Authority:
    High Low
    Factors Affecting Organizational Structure
    Formal and Informal Organisations

    • Both Formal and informal organizations co-exist in any


    organizational structure. They basically define the path of
    communication and mode of information sharing and are part
    of a whole organization. They may share common or divergent
    goals.
    • The formal organization is the defined set-up of roles for the
    achievement of organizational goals and objectives.
    • Informal organizations are formed by employees, without any
    formal goals or objectives.
    Tall versus Flat Organizations: Comparison
    Chief
    Executive
    Tall hierarchy

    Relatively narrow
    Chief span of control
    Executive
    Flat hierarchy

    Relatively wide
    span of control
    Forces For (De)centralization

    Centralization

    • Organizational crises
    • Management desire for control
    • Increase consistency, reduce costs

    • Complexity — size, diversity


    • Desire for empowerment

    Decentralization
    Decentralization: Benefits
    When Low And When High

    Low Decentralization High decentralization


    (High centralization) (low centralization)
    Eliminates the additional respon- Can eliminate levels of management,
    sibility not desired by people making a leaner organization
    performing routine jobs

    Permits crucial decisions to be Promotes greater opportunities for


    made by individuals who have decisions to be made by people closest
    the “big picture” to problems
    Integrating Mechanisms

    Simple 1.Hierarchy of authority specifies reporting relationships.


    2.Direct contact requires managers from different functions to meet
    to coordinate activities.
    3.Liaison role requires a manager to coordinate with other subunit
    managers.
    4.Task forces create a temporary cross-functional committee.
    5.Teams require different functional managers to coordinate
    activities.
    6.Integrating roles coordinate two or more functions or divisions.
    Complex 7.Integrating departments coordinate functions or divisions.
    4 Organizational Design Challenges That
    Most Leaders Misdiagnose

    • Symptom: Competing priorities


    Common Design Challenge: Poor governance

    • Symptom: Unwanted turnover


    Common Design Challenge: Bad role design

    • Symptom: Inaccessible bosses


    Common Design Challenge: Excessive spans of control

    • Symptom: Cross-functional rivalry


    Common design challenge: Misaligned incentives or metrics

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