1. ORGANISATION STRUCTURE
An organisation structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organisational aims.
It can also be considered as viewing glass or perspective through which individual see their organisation and its environment.

3. Determine the design of organisation structure
Organisational environment
Human resource
strategy
technology

4. DETERMINING THE KIND OF STRUCTURE
RELATIONS ANALYSIS
DECISION ANALYSIS
ACTIVITIES ANALYSIS

5. ROLE OF ORGANISATION STRUCTURE
ENCOURAGE EFFICIENCY
COMMUNICATION
OPTIMUM USE OF RESOURCES
JOB SATISFACTION
CREATIVE THINKING
FACILITATES MANAGEMENT

6. DESIGNING ORGANISATIONAL STRUCTURE
Identifying activities
Grouping of activities
Delegation of authority

7. FEATURES OF ORGANISATION STRUCTURE
CLEAR LINE OF AUTHORITY
ADEQUATE DELEGATION OF AUTHORITY
LESS MANAGERIAL LEVELS
SPAN OF CONTROL

8. Types of Organisation TRADITIONAL MODERN Line Functional
Line and staff
Committee
Matrix
MODERN
Simple
Bureaucratic
Horizontal
Network
Virtual
Free form

9. LINE ORGANISATION EXAMPLE:-
It is characterized by direct lines of authority flowing from the top to the bottom of the organizational hierarchy and lines of responsibility flowing in an opposite but equally direct manner.
 EXAMPLE:-
As in case of military, commander-in-chief holds the top most position and has the entire control over the army of the country, which in turn is developed into main area commands under major-generals.

11. FEATURES
Authority flows from top to bottom and responsibility flows upward.
Every person is in incharge of person working under him.
Each subordinate receives orders only from one superior and is answerable to him only.
The authority of each person is clearly specified.

12. MERITS Simplicity Identification of authority Co-ordination
Effective communication
Economical
Quick decisions
Unity of command
Effective control & supervision
Executive development
Flexibility

13. DEMERITS Excess work Lack of specialization Lack of co-ordination
Improper communication
Lack of initiative
Favouritism
Instability

14. FUNCTIONAL ORGANISATION
Functional organizational chart is structured with few managers at the top and most people at the bottom, organized by the tasks they performed.
The incharge of a function is specialist in it and brings out the best in himself. Every functional area serves all other areas in the organisation

16. FEATURES The whole task is divided into different functions
Each functions is performed by a specialist
The functional head is incharge of activities of his functions in the whole organisation
Functional heads operate with considerable independence

17. ADVANTAGES Specialisation Increase in efficiency Scope for growth
Flexibility
Relief to top executives
Economy of operations
Better supervision
Democratic control

18. DISADVANTAGES Conflict in authority Lack of co-ordination
Difficulty in fixing responsibility
Delay in taking decisions
Poor discipline
Expensive
Group rivalaries

21. TYPES OF STAFF PERSONAL STAFF SPECIALIST STAFF GENERAL STAFF
The personal staff is attached to individual line officers. Example- Personal Assistant or the private secretary.
SPECIALIST STAFF
These are technically qualified persons who provide service to the whole organisation. They serve line and other staff in planning organising and coordinating their work. Example – legal advisor
GENERAL STAFF
This staff consists of a person attached to the key executives .They are attached to important functionaries as their deputies. Example –deputy managers ,assistant manager ,special assistant etc

22. ADVANTAGES Specialisation Better discipline
Balanced and prompt decisions
Growth and expansion
Development of employees
Lesser burden on line officers
Quick actions

23. LIMITATIONS Conflict between line and staff personnel
Lack of responsibility
More dependence on staff
Lack of co-ordination
Ineffective staff
expensive

24. Difference between line and staff
Staff thinks ,lines do
Staff advises ,lines perform
Staff tells the line what to do ,lines tell staff where to go
Staff has the authority of line , line have the authority to command
Staff has no fixed responsibility ,lines have fixed responsibility
Staff has no authority over the line and has only power to recommend .Line is responsible for actual execution of work

27. COMMITTEE FORM OF ORGANISATION
A number of persons may come together to take a decision, decide a course of action, advice line officers on some matters, it is a committee form of organisation.
Thinking of varied persons is pooled together through deliberations and discussions and common decisions are reached.

29. Attaching groups to departments for
Advice
Business planning
Guidance
Execution

30. NEED FOR COMMITTEES 1
It provides forum for exchanging ideas among members 2
During discussions some useful suggestions and recommendations may generate 3
It may be needed in establishing and developing organisational policies

31. TYPES OF COMMITTEES
Formal and informal
Advisory
Line

32. ADVANTAGES OF COMMITTEE FORM OF ORGANISATION
Pooling of opinions
Better co-ordination
Balancing of views
Motivation
Dispersion of power
Better acceptance
Better communication
Executive training

33. WEAKNESS OF COMMITTEE FORM OF ORGANISATION
Delay
Compromise
No accountability
Domination by some
Strained relations
Lack of effectiveness

34. How to make committees effective?
Reasonable number- The number should be such which is essential for taking collective decisions.
In case of a) line committee- 4 to 5 members
b) advisory committee- 7 to 8 members
Well informed members- the members of committees should be well informed about the areas where they are supposed to take decisions.
Effective chairman- The wisdom and tactfulness of the chairman will make the committee purposeful.
Clear cut reference- the role of the committee should be clearly spelt out.
Proper briefing- The committees should be properly briefed by the concerned executives.

35. MATRIX ORGANISATION It was introduced in USA in the early 1960s.
It is also known as grid organisation, product or
project management.
The employee has to work under two bosses i.e., functional manager and product manager.
The authority of functional manager flows downward while the authority of product manager flows across.

37. OPTIMUM UTILISATION OF RESOURCES
ADVANTAGES
SOUND DECISION
DEVELOPMENT OF SKILLS
MOTIVATION
OPTIMUM UTILISATION OF RESOURCES
SPECIALISATION

38. ABSENCE OF UNITY OF CAMMAND
INCREASE IN WORK LOAD
ABSENCE OF UNITY OF CAMMAND
HIGH OPERATIONAL COST
COMPLEX
DISADVANTAGES

39. MODERN ORGANISATION

40. SIMPLE ORGANISATIONAL STRUCTURE
This structure is widely used in small organisations where the owner and the manager are one and the same. It is a flat organisation which has only two or three vertical levels, a small body of employess and individual in whom the decision making authority is centralised.

41. Manager/ Owner
salesman A
Salesman B
Salesman C
Salesman D

42. ADVANTAGES
Simple
Inexpensive
Fast
and
Flexible

43. DISADVANTAGES Suitability Rigid design Overload at top level
Slow decision making
Overload at top level

44. Bureaucratic organisation structure
A bureaucratic organization structure is one with rigid and tight procedures, policies and constraints. It is very organized with a high degree of formality in the way it operates. Decisions are made through an organized process, and a strict command and control structure is present at all times.

46. FEATURES Highly routine operating tasks Very formalised rules
Grouping of tasks into functional departments
Centralised authority
Narrow span of control
Chain of command

47. ADVANTAGES
Specialisation
No Need For Experts
No Biasedness
Economical

48. DISADVANTAGES
Conflicts
Resistance to Change
Rigid

49. THE MATRIX DESIGN It is very popular organisational design
It is also known as grid organisation, product or
project management.
The employee has to work under two bosses i.e., functional manager and product manager.
The authority of functional manager flows downward while the authority of product manager flows across.

51. OPTIMUM UTILISATION OF RESOURCES
ADVANTAGES
SOUND DECISION
DEVELOPMENT OF SKILLS
MOTIVATION
OPTIMUM UTILISATION OF RESOURCES
SPECIALISATION

52. ABSENCE OF UNITY OF CAMMAND
INCREASE IN WORK LOAD
ABSENCE OF UNITY OF CAMMAND
HIGH OPERATIONAL COST
COMPLEX
DISADVANTAGES

53. HORIZONTAL ORGANISATIONAL DESIGN
The horizontal organisational design has been suggested to take advantage of advanced information technology and total quality emphasis.
Horizontal structure facilitates
Cooperation
Team work
Customer
orientation

54. Frank Ostroff and Douglas Smith are given credit for developing some of the following guiding principles that define horizontal organisational design. 1.
Organisation revolves around the process, not the task 2.
The hierarchy is flattened 3.
Teams are used to manage everything 4.
Customers drive performance 5.
Team performance is rewarded 6.
Supplier and customer contact is maximised 7.
All employees need to be fully informed and trained

55. NETWORK DESIGN
Miles and Stone have identified this design as the dynamic network. They describe the network design as “Delayered, highly flexible and controlled by market mechanisms rather than administrative procedures, firms with this structure arrayed themselves on an industry value chain according to their core competencies, obtaining complementary resources through strategic alliances and outsourcing.”

56. Miles and his colleagues identified three types of radical redesign organisation
Green field
It implies starting from just a clean slate or piece of green field and establishing a totally different design.
Rediscovery
Already established companies return to a previously successful design by eliminating unproductive structures.
Network
Outsources to upstream or down stream partners who can do a better job.

57. VIRTUAL ORGANISATION
‘The virtual organisation is a temporary network of companies that come together quickly to exploit fast changing opportunities.’
The virtual organisation is different from traditional mergers and acquisitions.
In virtual organisations the partners share costs, skills and access to international markets.

58. Features

65. Free-form organisation
According to WARREN G. BENNIS “Free form organisation is a rapidly changing adaptive ,temporary system around problems to be solved by a group of relative strangers with diverse professional skills”.
This model goes beyond traditional bureaucratic model of organisation to find innovative solutions to unique problems.
The management draws experts from various fields to form teams to attain specific objectives .
They are highly result oriented and their success is usually measured in terms of contribution they make.

66. “Structure does not create
extraordinary organisations
by collecting extraordinary
people. It does so by enabling
very ordinary people to perform in extraordinary ways.”