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

2. 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 /

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

4. 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 /

5. Organisational levels and the Span of management
16BA718 / OD / Types
Dr. S. Viniba /

6. 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 /

7. 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 /

8. The Structure and Process of Organising
16BA718 / OD / Types
Dr. S. Viniba /

9. 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 /

10. 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 /

11. 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 /

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

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

14. 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 /
16BA718 / OD / Types

15. 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 /

16. 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 /