Organisational Theory, Design and Development Determinants & Components of OD Presented by Dr. S. Viniba, AP/MBA, SNSCT

Learning Objectives Mechanistic vs organic structures Formal and Informal Organisation Organisational levels and the Span of management The Structure and Process of Organising Break Mechanistic vs organic structures Functional organisational structure Divisional Structure Matrix Structure Team Based Organisational Structure Network Structure 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

ORGANISATION Organisation is a formalised intentional structure of roles or positions. 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Formal and Informal Organisation President Formal Organisation Informal Organisation: Morning-Coffee regulars Bowling Team Chess Group Etc. Vice-Presidents Division Managers Department Managers 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Organisational levels and the Span of management 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Organisation with Narrow Span Advantages Close Supervision Close Control Fast communication between subordinate and supervisors Disadvantages Superiors tend to get too involved in subordinate’s work Many levels of management High costs due to many levels Excessive distance between lowest level and top level 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Organisation with Wide Span Advantages Superiors are forced to delegate Clear policies must be made Subordinates must be carefully selected Disadvantages Tendency of overloaded superiors to become decision bottlenecks Danger of superior’s loss of control Requires exceptional quality of managers 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

The Structure and Process of Organising 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Reenergizing the System Information Handling System Transformation Process Inputs Human Capital Technology Others Goal inputs of stakeholders Outputs Products Services Profits Satisfaction Goal Integration Others Information Handling System Enterprise Boundary Stakeholders or Claimants Employees Governments Customers Shareholders Suppliers Others External Variables Opportunities Constraints Others 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Mechanistic vs organic structures High formalisation Narrow span of control High centralisation Organic Low formalisation Wide span of control Low centralisation 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Effects of departmentalisation Establishes work teams and supervision structure Creates common resources, measures of performance, etc Encourages informal communication among people and subunits 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Functional organisational structure Organises employees around skills or other resources (marketing, production) Chief Executive Finance Production Marketing 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Divisionalised structure Organises employees around geographic areas, products or clients Chief Executive Enterprise systems Laserjet solutions Consumer products 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Project-based matrix structure Employees are temporarily assigned to a specific project team and have a permanent functional unit Chief Executive Engineering Manager Marketing Manager Software Manager Project A Manager Project B Manager Project C Manager Dr. S. Viniba / 04-07-2017 16BA718 / OD / Types

Features of team-based structures Self-directed work teams Teams organised around work processes Very flat span of control Very little formalisation Usually found within divisionalised structure 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017

Network organisational structure Product Development Company (Australia) Call Centre Company (NZ) Core Company Accounting Company (Australia) Manufacturing Company (Malaysia) Distribution Company (Singapore) 16BA718 / OD / Types Dr. S. Viniba / 04-07-2017