Chapter 5

ORGANIZATIONAL
STRUCTURE

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 Learning Objectives
To understand what is meant by organizational
structure.
To comprehend different dimensions of organizational
structure.
To understand difference between job specialization
and differentiation
To understand what is meant by formalization
To understand difference between centralization and
decentralization.
To understand the use of different bases for
departmentation.
To understand the effect of size, environment and
technology on organizational structure.
To learn about Mintzbergs typology of organizational
configurations.

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 DIMENSIONS OF ORGANIZATIONAL
STRUCTURE

Job Specialization

Behaviour Formalization

Centralization

Management: Principles, Processes & Practices

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 JOB SPECIALIZATION

Division Of Labour
Job Specialization in horizontal and
vertical dimensions
Job Enlargement
Job Enrichment
When to go for job Enlargement?
When to go for Job Enrichment?

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 BEHAVIOUR FORMALIZATION
By Positions [Job Description].

By Work-Flow [Process Descriptions].

By Specifying Rules [Regulations,

Policy Manuals, Code and Conduct
Rules etc.]

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 CENTRALIZATION

Vertical Decentralization.

Horizontal Decentralization

Selective Decentralization.

Parallel Decentralization.

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 DEPARTMENTALIZATION Based
on..
Number
Function
Product-line
Territory
Customers
Processes
Matrix
Cross-functional team
Virtual Network

Management: Principles, Processes & Practices

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 SPAN OF MANAGEMENT

Tall Structure Vs. Flat

Structure.

Chain of Command.

Line and Staff Relationships.

Management: Principles, Processes & Practices

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ORGANIZATIONAL STRUCTURE
ORGANIZATION IS MADE OF ROLES AND
RELATIONSHIPS WHICH ARE THE BRICK
AND MORTAR OF ORGANIZATIONAL
STRUCTURE
ROLES ARE THE BRICKS WHICH ARE DEFINED
RELATIONSHIPS ARE THE MORTAR WHICH
BINDS THESE ROLES
RELATIONSHIPS ARE OF 4 TYPES OF WHICH
ONE GOES TO STAFFING FUNCTION
RELATIONSHIPS
1. FLOW OF NON HUMAN NON-
INFORMATIONAL MATERIAL
2. FLOW OF HUMAN (GOES TO STAFFING
INCLUDES TRANSFER PROMOTION ETC)
3. FLOW OF INFORMATION
(COMMUNICATION)
4. FLOW OF POWER (AUTHORITY
RELATIONSHIP- OFFICIAL RIGHT TO
MAKE AND EXECUTE DECISION)
DECISION MAKING
PROBLEM DEFINITION (BOTH LINE
AND STAFF)
ALTERNATIVES SEARCHED (BOTH
LINE AND STAFF)
EVALUATE ALTERNATIVES (BOTH
LINE AND STAFF)
SELECT THE BEST ALTERNATIVE
(ONLY LINE)
LINE AND STAFF
LINE WITHIN THE DEPARTMENT
FINAL DECISION MAKER
COMMAND IS DOWN THE LINE
STAFF CAN BE INTER DEPARTMENTAL
COMMAND IS NOT THERE
FUNCTIONAL COMMAND OUTSIDE
DEPT EG QUALITY FINANCE
 SITUATIONAL FACTORS AFFECTING
STRUCTURE
SIZE
ENVIRONMENT
STATIC VS. DYNAMIC
SIMPLE VS. COMPLEX
TECHNOLOGY
BATCH PRODUCTION
MASS PRODUCTION
PROCESS PRODUCTION

Management: Principles, Processes & Practices

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 MINTZBERGS TYPOLOGY
Key Parts Of an Organization:-
Operating Core
Strategic Apex
Middle Line
Techno-structure
Support Staff

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 MINTZBERGS TYPOLOGY.
Coordinating Mechanisms:-
Direct Supervision
Mutual Adjustment
Work-Process Standardization
Outputs Standardization
Skills or Knowledge
Standardization

Management: Principles, Processes & Practices

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 MINTZBERGS TYPOLOGY.

Simple Structure
Machine Bureaucracy
Professional Bureaucracy
Divisionalized Form
Adhocracy

Management: Principles, Processes & Practices

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