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Chapter 5

ORGANIZATIONAL
STRUCTURE

Management: Principles, Processes & Practices


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Learning Objectives
 To understand what is meant by organizational
structure.
 To comprehend different dimensions of organizational
structure.
 To understand difference between job specialization
and differentiation
 To understand what is meant by formalization
 To understand difference between centralization and
decentralization.
 To understand the use of different bases for
departmentation.
 To understand the effect of size, environment and
technology on organizational structure.
 To learn about Mintzberg’s typology of organizational
configurations.

Management: Principles, Processes & Practices


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DIMENSIONS OF ORGANIZATIONAL
STRUCTURE

 Job Specialization

 Behaviour Formalization

 Centralization

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JOB SPECIALIZATION

 Division Of Labour
 Job Specialization in horizontal and
vertical dimensions
 Job Enlargement
 Job Enrichment
 When to go for job Enlargement?
 When to go for Job Enrichment?

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BEHAVIOUR FORMALIZATION
 By Positions [Job Description].

 By Work-Flow [Process Descriptions].

 By Specifying Rules [Regulations,


Policy Manuals, Code and Conduct
Rules etc.]  

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CENTRALIZATION

 Vertical Decentralization.

 Horizontal Decentralization

 Selective Decentralization.

 Parallel Decentralization.  

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DEPARTMENTALIZATION Based
on…..
 Number
 Function
 Product-line
 Territory
 Customers
 Processes
 Matrix
 Cross-functional team
 Virtual Network

Management: Principles, Processes & Practices


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SPAN OF MANAGEMENT

 Tall Structure Vs. Flat


Structure.

 Chain of Command.

 Line and Staff Relationships.

Management: Principles, Processes & Practices


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SITUATIONAL FACTORS AFFECTING
STRUCTURE
 SIZE
 ENVIRONMENT
 STATIC VS. DYNAMIC
 SIMPLE VS. COMPLEX
 TECHNOLOGY
 BATCH PRODUCTION
 MASS PRODUCTION
 PROCESS PRODUCTION

Management: Principles, Processes & Practices


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MINTZBERG’S TYPOLOGY
Key Parts Of an Organization:-
 Operating Core

 Strategic Apex

 Middle Line

 Techno-structure

 Support Staff

Management: Principles, Processes & Practices


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MINTZBERG’S TYPOLOGY….
Coordinating Mechanisms:-
 Direct Supervision

 Mutual Adjustment

 Work-Process Standardization

 Outputs Standardization

 Skills or Knowledge

Standardization

Management: Principles, Processes & Practices


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MINTZBERG’S TYPOLOGY….

 Simple Structure
 Machine Bureaucracy
 Professional Bureaucracy
 Divisionalized Form
 Adhocracy

Management: Principles, Processes & Practices


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