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What is an Organization ?
A social unit of people, systematically structured and managed to meet a need or to pursue
collective goals on a continuing basis.
Organizational Structure:
It is a framework within which an Organization arranges its lines of authorities and
communications and allocates rights and duties.
Work specialization:
Work specialization also called division of labor or job specialization is the degree to which
organizational tasks are sub-divided into individual jobs. It may increase the efficiency of
workers.
Example: In a bakery that uses batch production , one semi skilled individual prepares the
dough, the other cuts the dough into pieces followed by a worker who prepares the bread or cake
and the other who decorates it and still others that deliver the cake. The same workers do the
same task for each batch of bread cake or other desserts.
Departmentalization:
It is the basis on which the jobs that are divided due to work specialization are grouped together
into logical units. the grouping is based on common aspects of the jobs that can be coordinated
and evaluated. there are different techniques of departmentalization:
Functional departmentalization:
It is when jobs are grouped according to activities or its functions. It is a very common form of
departmentalization. Functional departments usually include marketing , sales, human resource,
finance departments respectively. The advantage is that workers specializing in the tasks are put
together.
Wide span of control: With a larger number of subordinates working under one manager.
Employees are more jobs specialized and placed into certain departments
Organic Structures:
Organic Structure is decentralized and has low complexity and formalization. It has an extensive
information system, and employees rarely participate in decision making. It tends to be flexible
and adaptive.
Example: Google Corporation is a great example of an Organic structure based business. Their
employees are encouraged to use creative problem solving skills and develop new products.
General Motors (GM), The Salvation Army, and the Minnesota Mining and Manufacturing
Company (more commonly known as 3M).
Organic Structures Include:
Contingency factors:
Contingency factors play an important role in contingency planning within an organization. They
are what makes a company more prepared for the unexpected situations that can arise all too
often within the corporate world. Having a good contingency plan may be what makes the
difference between a company coming through a difficult trading period and not making it.
simplicity
fast and flexible
inexpensive to maintain
clear accountability
Weaknesses:
difficult to maintain
creates information overload at top
b) Functional Structure:
A functional structure is defined as a design that groups similar or related
occupational specialties together. It is the functional approach to
departmentalization applied to the entire organization.
Departmentalization by function
Operations, finance, human resources, and product research and
development
c) Divisional structure:
Composed of separate business units or divisions with limited autonomy under the
coordination and control the parent corporation.
II.
Team structures:
A structure in which the entire organization is made up of work groups or teams.
Advantages: Employees are more involved and empowered. Reduced barriers
among functional areas.
Disadvantages: No clear chain of command. Pressure on teams to
perform.
The entire organization is made up of work groups or self-managed teams of empowered
employees.
An flexible and unstructured organizational design that is intended to break down external
barriers between the organization and its customers and suppliers.