Presentation on Basic forms of Organizations Design

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Information about Presentation on Basic forms of Organizations Design

Published on March 13, 2014

Author: unitedworldmba



Presentation on Basic forms of Organizations Design

Presented by Pretam Laha Pousali Mukherjee Nayan saha Sourav Tibrewal Pankaj Agarwal

 The members and units in the organization are grouped into functional departments such as marketing and production.  There should be coordination across the departments to make the organization work efficiently.  Design approach shares the basic advantages and disadvantages of functional departmentalization.

CEO Vice president, operation Vice president, marketing Vice President, finance Vice President, human resource Vice President, R & D Plant managers Regional sales managers Controller Labour relations director Scientific director Shift supervisors District sales managers Accounting supervisor Plant human resource manager Lab manager

 The organization is made up of a set of unrelated business.  Each business is operated by a general manager.  Corporate staff allocates corporate resources across companies.  Organizations following this approach achieve only average to weak financial performance.

CEO Semiconductor Telecommunications Appliances Media

 It is based on multiple businesses in related areas.  The design results from a strategy of related diversification.  Some activities are extremely decentralized down to the divisional level; others are centralized at the corporate level.  Opportunities of coordination and shared resources are the advantages of this design.

CEO The Limited Express Intimate brands Slatkin & Co Henri Bendel Victoria’s secret Bath and Body works White Barn Candle co.

 It is based on two overlapping bases of departmentalization.( e.g., Functional departments and product categories).  A set of product groups or temporary departments are superimposed across the functional departments.  The project groups, or teams are assigned to designated projects or programs.  A matrix design is useful when  There is strong pressure from the environment.  When large amount of information needs to be processed.  When there is a pressure for shared resources.

◦ Provides an efficient way for the organization to use its human resources. ◦ Team members serve as bridges to their departments for the team. ◦ Useful as a vehicle for decentralization. ◦ Enhances organizational flexibility. ◦ Involvement creates high motivation and increased organizational commitment. ◦ Team members have the opportunity to learn new skills.

Employees CEO Project manager B Project manager C Vice president, engineering Vice president, production Vice president, finance Vice president, marketing Project manager A

 It represents hybrid of two or more of the common forms of organization.  An organization may have a mixture of related divisions and a single unrelated division.  Most organizations use a modified form of organization design that permits it to have sufficient flexibility to make adjustments for strategic purposes

 The Team Organization ◦ An approach to organizational design that relies almost exclusively on project-type teams, with little or no underlying functional hierarchy.  The Virtual Organization ◦ An organizational design that has little or no format structure with few permanent employees, leased facilities, and outsourced basic support services. ◦ It may conduct its business entirely on-line and exists only to meet for a specific and present need.  The Learning Organization ◦ An organization that works to facilitate the lifelong learning and development of its employees while transforming itself to respond to changing demands and needs

 The trend toward internationalization of business  How to design a firm to deal most effectively with international forces and to compete in global markets: ◦ Create an international division? ◦ Establish an international operating group? ◦ Make international operations an autonomous subunit?


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