An organisation(organization) is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating

it from its environment.

In other words, A group of people who work together or Organisation is the structure or mechanism that enables living things to work together.

"Organization design" can be defined as the process of

reshaping organization structure and roles. Or As the alignment of structure, process, rewards, metrics and talent with the strategy of the business
Traditional Organisational Design Contemporary Organisational Design

Types of Organisational Design

Simple

A simple organisationis defined as a design with low departmentalization, wide span of control, centralized authority, and little formalization Eg. A start up Business A functional organisation is defined as that design in which groups of similar or related occupational specialties are together. Eg. Revlon Inc.
A divisional design is made up of separate, semi-autonomous units or divisions. Within one corporation there may e many different divisions and each division has its own goals to accomplish. Eg. WalMart

Functional

DIVISIONAL

Team

A team is a design in which an organization is made up of teams, and each team works towards a common goal. Eg. hole Foods arket Inc.

atrix

A matrix is one that assigns specialists from different functional departments to work on one or more projects.

Project

A project is an organizational design in which employees continuously work on projects. This is like the matrix structure; however when the project ends the employees don t go back to their departments. Eg. illiam Demant Holding

Autonomo us

The organization is comprised of many independent decentralized business units, each with its own products, clients, competitors, and profit goals. There is no centralized control or resource allocation. ABB

Boundary less

A boundary less organization is one in which its design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure. In other words it is an unstructured design. Eg. ChevronTexaco

Learning

A learning organization is defined as an organization that has developed the capacity to continuously learn, adapt, and change.

Division of ork Coordination Division of Responsibility Planning and Controlling Relationships Optimum use of Resources

Structure Size Environment Technology

The formal arrangement of jobs within an organisation Key Elements in Organizational structure Work Specialization Span of control Chain of command Departmentalisation Centralization Decentralization Formilization

Work Specialization The degree to which tasks in the organisation are divided into separate jobs with each step completed by a different person Individual employees specialize in doing part of an activity rather than the entire activity. Overspecialization can result in human diseconomies like fatigue, stress, poor quality, increased absenteeism, and higher turnover. Span of control: determines the number of levels and managers an organization has. determines the number of employees a manager can efficiently and effectively manage. Chain of Command: The continuous line of authority that extends from upper levels of an organisation to the lowest levels of the organisation and clarifies who reports to who

It is the basis by which jobs are grouped together.

Importance

Establishes work teams and supervision structure Creates common resources, measures of performance, etc Encourages informal communication among people and subunits

Types

Functional-Grouping jobs by functions performed Product-Grouping jobs by product line Process-Grouping jobs on the basis of product or customer flow Customers-Grouping jobs by type of customer and needs Geographical-Grouping jobs on thebasis of territory or geography

Board of Directors
MANAGING DIRECTOR

PRODUCTION

MARKETING

FINANCE

PERSONNEL

MARKET RESEARCH

ADVERTISING

SALES

INDOOR ADVERTISING

OUTDOOR ADVRTISING

CENTRALISATION

DECENTRALISATION

organisations in which top managers make all the decisions and lower-level employees simply carry out those Environment is stable Company is large Decisions are significant. Effective implementation of company strategies depends on managers retaining say over what happens. Organization is facing a crisis or the risk of company failure

   

organisations in which decision-making is pushed down to the managers who are closest to the action. Environment is uncertain Company is geographically dispersed Decisions are relatively minor. Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions Corporate culture is open to allowing managers to have a say in what happens.

The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures. Highly formalized jobs offer little discretion over what is to be done. Low formalization means fewer constraints on how employees do their work

The most obvious and most easily recognised factor in designing an organisation is the company's size. As an organisation grow larger it's formal structure , Specialisation, Departmentalisation, Centralisation

How an organisation is going to position itself in the market in terms of it's product is consider it's strategy. ost current strategy frameworks focus on three strategy dimensions Innovation strategy: A strategy that emphasizes the introduction of major new products & services. Cost-minimization strategy: A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses & price cutting. Imitation strategy A strategy that seeks to move into new products or new markets only after their viability has already been proven.

Internal factors. External factors.

Management philosophy. Goal . Plans & policies. Mission and objective of the firm.

Customers. Competitors. Suppliers. Channel intermediaries. Legal. Technological. Social.

Definition Technology is usage and knowledge of tools, techniques, craft, systems or methods of organization

Accurate Result Save Time Make Task Easier Any time any where connect Globally

 Computer

Telephones Fax Machine Internet Security Systems

Organization Structure
The framework for dividing, assigning, and coordinating work

Organization Design
Development in or changes to the structure of an organization

Organization size
Depending upon the work, size is determined.

Organization technology

Right and correct use of technology.

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