Archive for January, 2009

ORGANIZATION STRUCTURE AND CHART

Organization structure refers to the formal, established pattern of relationships amongst the various parts of a firm or any organization. The fact that these relationships are formal implies that they are deliberately specified and adopted and do not evolve on their own. Of course, it may sometimes happen that given an unusual situation, new working relationships may evolve and which may later be adopted as representing the formal structure. For example for a blinds company who manufacturing vertical blinds, roman shades, faux wood blinds, formal relation between sales department and production department is must.

 

The second key word in our definition of structure is ‘established’. Only when relationships are clearly spelled out and accepted by everyone, can they be considered as constituting a structure. However, this does not mean that once established, there can be no change in these relationships. Changes may be necessary with passage of time and change of circumstances, but frequent and erratic changes are to be avoided. A structure can be based on relationships only if they exhibit a certain degree of durability and stability.

 

The organization chart is a rather abstract illustration of the structure. To get a more complete picture, the chart may be supplemented by job descriptions of each position. The job description gives in detail the activities and responsibilities expected of the person occupying the position.

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ORGANIZATION STRUCTURE AND DESIGN

Organizing is the formal grouping of activities and resources for facilitating attainment of specific organizational objectives. It is possible to achieve objectives without formally organizing, but there is likely to be great wastage of resources and time. Organizing ensures that objectives are achieved in the shortest possible time, in an orderly manner, with maximum utilization of the given resources. For a company who are selling blinds, vertical blinds, roman shades online, utilization of each leads given to them is most important part of organization.

 

In the context of a firm, its people, machines, building, factories, money, and credit available for use are the resources at its disposal. All these resources are limited. Your roles as a manager is to organize all these resources, so that there is no confusion, conflict, duplication or wastage in achieving your organization’s objectives and authority for utilizing the resources assigned to him, and the higher authority to whom he has to periodically report his progress. In this unit, we will take up all these issues for discussion, dwelling at some length on the various types of organization structure that you can choose from to suit your company’s specific objectives.

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Understanding Organizational Design

We are talking organization design in our blogs. Organizations are social units with specific purposes. The basic elements of organizations have remained the same over the years. Several disciplines provide the knowledge and the means to understand organizations. However, it is appropriate to look at organizations integrally in multi-disciplinary perspective. Three viewpoints have emerged, over the years in successive stages, each seeking to provide a window on the others. They are the classical approach, three streams stand out: bureaucracy, administrative theory and principles of scientific management. It is important to note that with the passage of time, the viewpoints have been changed or modified, but not replaced as such. Each major contribution brought new knowledge, awareness, tools and techniques to understand the organizations better.

Thus, today we are richer than ever before tin terms of our knowledge about approaches to understand organizations. We take example of portable car DVD players. Today there are so many companies who are manufacturing car DVD players like philips pet1002 , samsung DVD-L100 , JVC kd-avx33.  One person can have all knowledge of such products at one desk.  All the same, more knowledge meant reckoning with more complex variables to comprehend the complexities of human organizations. There is, as yet, no general, unified, universal theory as such. Organizations being diverse and complex in more senses than one, it is difficult, if not meaningless to be too general or too specific about them.

 

Organization structures based on classical bureaucratic principles are hierarchical. But modern organization theories attempted to modify them in the light of experience, changes in technology and knowledge about human behaviour. The centralized structures gave way to some sort of decentralization and thus transformed, partially at least, vertical (tall) organizations into horizontal (flat) ones, reflecting a shift in emphasis from command to consensus based self control. The relative conditions of instability and uncertainty transformed the classical mechanistic forms of management systems into organic ones.

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MATRIX ORGANIZATION-2

 

This is the output or transaction side of the matrix. Depending on how many people holding a specialist orientation, either resource or output, the organization needs, these groupings can develop several echelons in response to the practical limits of the span of control of any line manager. At the foot of the matrix is the two-boss manager. This manager is responsible for the performance of a defined package of work. The manager is given agreed-upon financial resources and performance targets by superiors on the output side, and negotiated human and equipment resources from the resource manager. The two streams, taken together, constitute the work package. The manager is responsible for managing these resources to meet performance targets. To perform, the manager must handle high volumes of information, weigh alternatives, make commitments on behalf of the organization as a whole, and be prepared to be judge by the results. A manager of blinds company who are selling vertical blinds and roman shades online, need to use all information related to online business as well as the real customers. This form of organization induces the manager to think and behave like a general manager.

 

Even in a fully developed matrix organization, only a relatively small proportion of the total number of people in the organization will be directly in the matrix.

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MATRIX ORGANIZATION-1

The change to a matrix cannot be accomplished by issuing a new organization chart People are brought up, by and large, to think in terms of “one person, one boss” and such habits of mind are not easily changed. People must learn to work comfortably and effectively in a different way of managing and organizing.

 

Ideally, the matrix form organization induces (1) the focusing of undivided human effort on two (or more) essential organizational tasks simultaneously, (2) the processing of a great deal of information and the commitment of organization to a balanced reasoned response, and (3) the rapid redeployment of human resources to various projects, products, services, clients, or markets. 

Diamond-shaped organization rather than the conventional pyramid. The top of the diamond represents the same top management symbolized by the top of the pyramid. The two arms of the diamond symbolize the dual chain of command. In the typical case the left arm would array the functional specialist groups or what could be thought of as the resource or input side of the organization. The right arm arrays the various products, projects, markets, clients, services or areas the organization is set up to provide.

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