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In the Name of Allah, The Most Beneficent, The Most Merciful
Welcome to
Chapter 10
Class Timings : 02:00 pm to 05:00 pm (Sharp)
By:
Khurram Khan
Designing Organizational
Structure
 Organizing - arranging and
structuring work to accomplish
an organizations goals.
 Organizational Structure -
the formal arrangement of
jobs within an organization.
Designing Organizational Structure
 Organizational Design - a process
involving decisions about six key
elements:
1. Work specialization
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralization and decentralization
6. Formalization
Exhibit 10-1: Purposes of
Organizing
Organizational Structure
Work Specialization
 The degree to which tasks in the organization are
divided into separate jobs with each step
completed by a different person.
 Overspecialization can result in human
diseconomies such as boredom, fatigue, stress,
poor quality, increased absenteeism, and higher
turnover.
Exhibit 10-2: Economies and
Diseconomies of Work Specialization
Departmentalization by Type
 Functional
 Grouping jobs by
functions performed
 Product
 Grouping jobs by
product line
 Geographical
 Grouping jobs on
the basis of territory
or geography
 Process
 Grouping jobs on
the basis of product
or customer flow
 Customer
 Grouping jobs by
type of customer
and needs
Organizational Structure (cont.)
 Chain of Command - the
continuous line of authority that
extends from upper levels of an
organization to the lowest levels
of the organizationclarifies
who reports to whom.
Organizational Structure (cont.)
 Authority - the rights inherent in a
managerial position to tell people what
to do and to expect them to do it.
 Responsibility - the obligation or
expectation to perform.
 Unity of Command - the concept that
a person should have one boss and
should report only to that person.
Exhibit 10-3: The Five Common
Forms of Departmentalization
Exhibit 10-3: The Five Common
Forms of Departmentalization (cont.)
Exhibit 10-3: The Five Common
Forms of Departmentalization (cont.)
Exhibit 10-4: Chain of Command
and Line Authority
Exhibit 10-5: Line vs. Staff Authority
Span of Control
 It is the number of employees
who can be effectively and
efficiently supervised by a
manager.
Width of span is affected by:
 Skills and abilities of the manager
 Employee characteristics
 Characteristics of the work being done
 Similarity of tasks
 Complexity of tasks
 Physical proximity of subordinates
 Standardization of tasks
 Sophistication of the organizations information system
 Strength of the organizations culture
 Preferred style of the manager
Exhibit 10-6: Contrasting Spans
of Control
Centralization
 Centralization - the degree to which decision
making is concentrated at upper levels in the
organization.
 This is common in organizations in which top
managers make all the decisions and lower-level
employees simply carry out those orders.
Decentralization
 Decentralization - when an organization
relegates decision making to managers who
are closest to the action.
 Employee Empowerment
 Increasing the decision-making authority (power)
of employees
Exhibit 10-7: Centralization or
Decentralization
Management-Chapter10-Students
Thank you for your Time & Patience
Please spread these words & do visit
My Company
Learning the Art of Intelligent Living
www.cometowisdom.com

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Management-Chapter10-Students

  • 1. In the Name of Allah, The Most Beneficent, The Most Merciful
  • 2. Welcome to Chapter 10 Class Timings : 02:00 pm to 05:00 pm (Sharp) By: Khurram Khan
  • 3. Designing Organizational Structure Organizing - arranging and structuring work to accomplish an organizations goals. Organizational Structure - the formal arrangement of jobs within an organization.
  • 4. Designing Organizational Structure Organizational Design - a process involving decisions about six key elements: 1. Work specialization 2. Departmentalization 3. Chain of command 4. Span of control 5. Centralization and decentralization 6. Formalization
  • 5. Exhibit 10-1: Purposes of Organizing
  • 6. Organizational Structure Work Specialization The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person. Overspecialization can result in human diseconomies such as boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.
  • 7. Exhibit 10-2: Economies and Diseconomies of Work Specialization
  • 8. Departmentalization by Type Functional Grouping jobs by functions performed Product Grouping jobs by product line Geographical Grouping jobs on the basis of territory or geography Process Grouping jobs on the basis of product or customer flow Customer Grouping jobs by type of customer and needs
  • 9. Organizational Structure (cont.) Chain of Command - the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organizationclarifies who reports to whom.
  • 10. Organizational Structure (cont.) Authority - the rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility - the obligation or expectation to perform. Unity of Command - the concept that a person should have one boss and should report only to that person.
  • 11. Exhibit 10-3: The Five Common Forms of Departmentalization
  • 12. Exhibit 10-3: The Five Common Forms of Departmentalization (cont.)
  • 13. Exhibit 10-3: The Five Common Forms of Departmentalization (cont.)
  • 14. Exhibit 10-4: Chain of Command and Line Authority
  • 15. Exhibit 10-5: Line vs. Staff Authority
  • 16. Span of Control It is the number of employees who can be effectively and efficiently supervised by a manager.
  • 17. Width of span is affected by: Skills and abilities of the manager Employee characteristics Characteristics of the work being done Similarity of tasks Complexity of tasks Physical proximity of subordinates Standardization of tasks Sophistication of the organizations information system Strength of the organizations culture Preferred style of the manager
  • 18. Exhibit 10-6: Contrasting Spans of Control
  • 19. Centralization Centralization - the degree to which decision making is concentrated at upper levels in the organization. This is common in organizations in which top managers make all the decisions and lower-level employees simply carry out those orders.
  • 20. Decentralization Decentralization - when an organization relegates decision making to managers who are closest to the action. Employee Empowerment Increasing the decision-making authority (power) of employees
  • 21. Exhibit 10-7: Centralization or Decentralization
  • 23. Thank you for your Time & Patience Please spread these words & do visit
  • 24. My Company Learning the Art of Intelligent Living www.cometowisdom.com