Organizational Structure may be defined as how professionals and supervisors separate, group, and coordinate work between different employees and departments.
Other significant meaning may be defined as:
"An Organizational Composition is based on activities such as task allocation, coordination, and supervision, which are directed towards the success and fulfillment of organizational goals and objectives"
An group can be structured in many various ways, depending on their objectives, goals and longterm goals. The framework of an organization will determine the settings where it functions and performs. Many Organizations have a Hierarchy, however, not all.
Organizational Framework has 6 main elements:
1. WORK Specialty area:
Work Expertise is the amount to which organizational responsibilities are sub-divided into individual jobs. Additionally it is known as "Division of labor". It's the field of expertise of labor in specific, circumscribed tasks and like tasks. It is an essential aspect of Job Composition and attributes a significant role in success, if it's rightfully utilised. Wor Expertise is better and effective for managers, in order to satisfy organizational perspectives. Managers find it much simpler to find talented workers and train them to perform specific and certain responsibilities. As Repetition boosts the ability of an individual to perform a certain process with smaller time consumed.
Basically, the careers are designated to specialized personal or individuals. Thus, the individuals perform those duties or match those objectives where they are specialised or are trained to compile. The essence of Work Specialization is that an whole job being done by an individual, it is divided into quantity of steps, with each step being completed by another individual. Thus, individual perform their know-how in specialized process rather than the whole job. It can be elaborated with the following example.
FOR EXAMPLE;
In Method 1 Motorsports Auto racing, Racing teams Professionals hire mechanics that are specialised in certain jobs (during Pit Ceases). Some are expert in replacing Front tires, others are expert in updating Rear tires. In the same way, some are expert in Lifting Car from the trunk side and others are specialized to perform the responsibility of the "Lolly-Pop Man". Thus, these groups hire technicians and assign them jobs that, they are simply specialized to perform.
2. DEPARTMENTALIZATION:
Departmentalization is the second element of Organizational Framework and uses Work Specialty area. Departmentalization is the way, work and duties are distributed in amongst different departments. Departmentalization identifies the process of grouping activities into departments. "Division of labor" creates specialists who need coordination. This coordination is facilitated by grouping specialists alongside one another in departments.
Departmentalization has the pursuing main types:
DEPARTMENTALIZATION BY FUNCTIONS:
In Function Departmentalization, Departments are made to group activities by "function". Such as in an enterprise firm, the framework may have a Sales Office, a Marketing Team, a Purchase Section and a Individuals Resource Office etc. All these Departments are different from eachother based on functions, they perform and the tasks. Because of similar skills and knowledge, "Economies of Size" may be accomplished. The main good thing about this type of Departmentalization is the fact that, it could be used in all organizations, with reference to their goals and objectives, and it is better and effective, as the individuals who posses the same experience and skills, are governed in one department.
DEPARTMENTALIZATION BY PRODUCTS:
Activities that are grouped by similar "PRODUCTS or Product Categories". Responsibilities are grouped relating to products and services, thus giving all activities related to the merchandise or the service under a single manager or one head. Each major product area in the corporation is under the power of a senior manager who's specialist in, and is responsible for, everything related to the product brand. This departmentalization helps an organization to realize its strong products and vulnerable links, increases Accountability. For E. g; Unilever has different product lines such as Dove, Axe and Rational & Lovely etc.
DEPARTMENTALIZATION BY GEOGRAPHY:
Departments are shaped on the basis of "Geography and Territory"; such as North, South, East and West etc. If an organization's customers are geographically dispersed, it can group jobs predicated on geography. For example, Coca Cola has developed a Organizational Structure distributing territories, the North American sector and the International sector, which include the Pacific Rim, the European Community, Northeast European countries, Africa and Latin America communities.
COCA COLA GEOGRAPHICAL STRUCTURE
DEPARTMENTALIZATION BY PROCESS:
Grouping activities on the basis of "Product or service or customer move". Each process require different skills and techniques at different phases of its development or planning. Thus, this Departmentalization helps the organization to make use of the expertise of people at different periods of development.
Thus, departments are adopted due to the difference in described composition. For E. g; A complete process is to be followed for obtaining a Passport, Confirmation, Documents Submission etc, all from different departments.
DEPARTMENTALIZATION BY CUSTOMER:
Grouping activities based on "common customers or types of customers" Careers may be grouped according to the type of customer dished up by the business. The assumption is that customers in each team have a typical set of problems and needs that can best be found by specialists. For e. g; Law Firms provide services to PUBLIC, high profile individuals and Large Corporations.
3. String OF Control:
Chain of Demand is an unbroken type of Authority that extends from the very best level executive, management to the lowest post, echeleon and clarifies who records to whom. It is a Hierarchy which shows the Chain of Demand and specialist, creating a link between the Managers and Sub-ordinates. It offers 2 main elements:
Authority(It may be defined as the right of the professionals and top level professionals to give orders to sub-ordinates. To help Co-ordination, each supervisor has a certain role to learn in hierarchy and has a certain power over his co-workers and sub-ordinates to satisfy his responsibilty)
Unity of Control(It preserves the unbroken range in the hierarchy. It states that, for the sake of better co-ordination, an individual or a group must have only an individual superior, to whom reporting is done. It helps to remove conflicts and work dilemma)
For E. g;
Ohio Fire Division is under the control of Ohio Federal government. Chain of Command goes right from the very best level Mayor, to the lower degree of managements such as Supervision Divison Key and Staff Department Chief.
4. SPAN OF CONTROL:
Span of Control is also an important aspect of Organizational Structure. It essentially manipulates the capability of a administrator to regulate a certain range of employees. This quantity is determined after analyzing the size of the organization. You will find two type of spans, 1. Wider Spans 2. Small Spans.
If a administrator decides to keep up a narrow course, he can maintain close control. However, there are few drawbacks as well. Firstly, they are expensive scheduled to additional degree of management. Second of all, Communication process between your top and lower management becomes more technical. Finally, Due to narrow but limited supervision, Managers tend to make strong and small policies, legislation, which results in discouraging Staff Autonomy and Satisfaction.
In modern times, the emphasis has been laid on maintaining a wider span of control. It is much easier to maintain control, much easier to talk to sub ordinates and more importantly, insurance policies are in the favour of Employees autonomy, credited to fine supervision.
NARROW SPAN OF CONTROL
5. CENTRALIZATION AND DECENTRALIZATION:
Centralization is defined as "the degree to which decision making is targeted at a single point in the business".
An Organization, in which you can find less input taken from the lower level professionals and employees, and the very best level management rely and take key decisions independently, not involving the lower management's source. Hence, it is "Centralization".
For e. g; a Centralized Government is a kind of Centralization, as it requires lesser input from lower government bodies and has the autonomy to make decisions.
Decentralization maybe thought as "the procedure of dispersing decision-making governance nearer to the folks and people". In Decentralization, the low level employees provide more source and take part in the decision making.
Decentralization and centralization have played out major roles in the annals of many societies. A fantastic example is the gradual politics and organizational changes that have occurred in Western european history. Through the rise and semester of the Roman Empire, Europe went through major centralization and decentralization. Although leaders of the Roman Empire created a European infrastructure, nov the Empire kept Europe without a strong political system or armed service cover. Viking and other barbarian disorders further led abundant Romans to build up their large estates, in a manner that would protect their own families and make a self-sufficient living place. This technique was greatly "decentralized", as the lords of the manor got power to defend and control the small agricultural environment that was their manor.
6. FORMALIZATION:
"The degree to which careers within the organization are standardized" Standardization is the certainty of the work. If a job is standardized, the employees really know what to do and there is absolutely no sort of dilemma. If a job is highly standardized, you can find lowest amount of discretion over what's to be done, when it's to be achieved and exactly how it is to be done. It ends in consistent and increased performance. The degree of formalization depends upon the organization, its policies and its structure. For instance, there a few careers that aren't formalized i. e Departmental Stores Clerk, Gas Stop workers etc. Alternatively, companies like P&G and Unilever usually have a standardized way to do job. It is easy for employees to settle in, as they are in a position to understand their job properly.
