Organization Structure

Good Day

Design of Organization Structure

Submitted to: Prof. Drashti Shah

Topic Assigned:

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Features of Good Organization Structure - Sonal Patel Need & Importance of Departmentation - Viral Vaghani Bases Of Departmentation - Mitul Sevak & Vaibhavi Randeria Span of Management - Hitesh Rajvanshi Factors affecting Span of Management - Rahul Rana

What is Organization Structure ?  “Organization

structure is a pattern of relationships about various components or parts of the organization it prescribes the relationships among various activities and positions”

Features of Good organization Structure:

 Simplicity  Flexibility  Clear

line of Authority  Application of ultimate responsibility  Proper delegation of Authority  Minimum possible managerial levels  Principals of unity of direction in Command  Proper emphasis on staff  Provision for top management

Departmentation:

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The first task in designing an organization structure is the identification of activities and a group them properly. The process of grouping the activities is commonly known as Departmentation

Need and importance of Departmentation     

Advantages of specialization Fixation of responsibility Development of managers Facility of appraisal Feeling of autonomy

Bases of Departmentation  Function  Product  Territory  Process  Customer

Functional Departmentation BOD

MD

Production

Marketing

Finance

Personnel

MR

Sales

Advertising

News Paper

Radio

TV

Product Departmentation

Chief executive

Mid Class

Production

Sedan Segment.

Marketing

Finance

SUV

Personnel

Territorial Departmentation of Nissan Head office (Mumbai)

Eastern Zone

Jalandhar

Northern Zone (Delhi)

Southern Zone

Roorki

haridwar

Branch

Western Zone

Branch

Meerut

Process Departmentation Manager (production)

Structure

assembling

finishing

Customer Departmentation

Marketing Manager

Direct customer

Corporate Customer

Transport customer

Span of Management 

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Span of management refers to the number of subordinates who can be managed effectively by superior’ Soujanen has suggested that span of management traditional concept and is not valid because coordination and control can be achieved through formal and informal activity.

Determination of span of management

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Direct single relationship Direct group relationship Cross relationship

Factor affecting span of management  Capacity

of informal relation  Capacity of subordinate  Nature of work  Degree of decentralization  Degree of planning  Communication techniques  Use of staff assistance  Supervision from others