Organizational Design.

Organizational Roles: Organizational Roles: The set of task related behaviors required of a person by his or her position in an organization. For example: In Restaurant, Waiter role is to provide customers with quick service & Chef’s role is to provide high-quality meals to customers consistently and Speedily.

Vertical & Horizontal Differentiation Meaning of Differentiation: Differentiation is the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals.

VERTICAL DIFFERENTIATION It establishes the distribution of authority between levels to give the organization more control over its activities and increase its ability to create value. The organization vertically differentiates organizational roles in terms of the authority that goes with each role.

HORIZONTAL DIFFERENTIATION It establishes the division of labour, which enables people in the organization to become more specialize and productive and increases the organizations ability to create value. The organizational chart horizontally differentiates roles according to main task responsibilities.

The Contingency Approach To Organizational Design A management approach in which the design of an organization’s structure is tailored to the sources of uncertainty facing an organization. The structure is designed to respond to various contingencies i.e. things that might happen & therefore must be planned for. One of the most important of these is the nature of the environment.

Poor Fit Organization Environment Close Fit Degree of fit The Fit between the Organization and its Environment

Why and how vertical differentiation occurs:? Why: For deciding how much authority to centralize at the top of the organizational hierarchy and how much authority to decentralize to middle and lover levels is to be given For organization decision making and communication system works How: designing number of levels of authority with in an organization Providing span of control at each level

Designing organizational structure Functional structure: the process of assignment of one person to a role is the start of specialization and horizontal differentiation continues The result is functional structure, a design that groups people on the basis of their common skills and expertise or because they use the same same resources It’s a bed rock of horizontal differentiation to achieve the principle goals of an organization

Functional Structure

Divisional structures It is most commonly adopt to solve the control problems that result from producing many different kind of products at many different location for many different types of clients The goal behind the change to a divisional structure is to create smaller more subunits within in an organization and to solve controlling problem in the organization Functioning :it functions according to specific demands of products, market or customers

divisional Structure.

Types of divisional structures Product structure: if the control problem is due to the number and complexity of the products, the organization will divide its activities by product and use a product structure It is a divisional structures in which products(goods or services)are grouped into separate divisions according to similarities or difefrences

Product Structure

Product division structure : it is a structure in which a centralized set of support functions service the needs of a number of different product lines This structure is commonly used by food processor, furniture makers, and the companies that make personal care products increases the horizontal differentiation with in the organization

Multidivisional structures: this structure is for the organization which produces a wide range of complex products, such as many car or truck models Managing complex and diverse value creation activities requires a multidivisional structures When divisions are self contained each division has its own set of support funtions and controls its own value creation activities

Multi-divisional Structure Manufacturing GoodsProductionFast Food

Product team structure: in a product team structure, members of support functions such as Marketing and R&D coordinates with different divisions as their services are needed, but heir main loyalty is to their function not to the division Geographic divisional structure: in which divisions are organized according to the requirements of the different location in which an organization operates,Is available

Geographic Structure.

Matrix Structure