Back to Top

Login | Register

Please Wait ..

Forum Home > Human resources > Organisational Structure & Its Meaning (MBA Notes)

Recent Topics

Post New Topic

13 June 2013, 23:56   Report Abuse



[ Scorecard : 63]

Organisational Structure:

Meaning: Stephen P Robbins has defined organizational structure as “how job tasks are formally divided, grouped & coordinated”. It tells how specialized & non specialized tasks are performed. The frame work of organization is structure where in the job of each & every person is defined, described & coordinated to achieve organizational goals. The control, command, division of work & placement of jobs to them are considered under organizational structure. Centralisation, decentralization & related factors are considered under organizational structure.


Differentiation: Jobs are differentiated for achieving the goals more effectively. Interrelated tasks are put in one group. Thus, many job groups of differentiations are developed under structure. The jobs are subdivided in to horizontal & vertical forms.

Horizontal Differentiation: The division of labour is the best example of horizontal differentiation. The jobs can be divided on the basis of purposes, process, persons & place product line change or departmental is horizontal differentiation.

Vertical Differentiation: Vertical differentiation deals with hierarchy, power, influence, authority, responsibility & span of control. Level & function are differentiation. Vertical distance is created between individuals, groups & scalar or chain of command is used for differentiation.

Standardisation:  Organisational structure is formalized or standardized for simplicity & efficiency. There is minimum amount of discretion. Jobs are explicitly defined & described. Employees have least freedom under standardization structure. They adopt stereo type process. If the formalization is low, the employees are free to process according to their liking. They behave in a free atmosphere. In case of stnandardisation, the behavior is known. They have to perform as per the set rules of the work process. Less standardization gives more freedom to employees. They exercise discretion in their work. Employees do not have alternatives to behave differently in case of standardized structure. This structure differs as per the nature of the work.

Specialisation: Specialisation is another component of organizational structure. Each &every part of the whole work is done by specialized people. The total work is broken up in small parts & performance responsibility of each part is assigned to expect persons.  This makes people more specialized & active. There may be further subdivision of each part to make it more specialized. Each step is completed by skilled labor. Specialisation of whole activity is possible by breaking the total work in to separate parts, subdivisions and steps. Specialisation makes all the work more useful whether it involves skilled or unskilled functions. Even highly sophisticated tasks can be easily performed by specialized structure.  Time, Money and energy are effectively increases by repetition. Complex & sophisticated operations are performed easily acquired due to skills & specialization. It is a well known fact that the level of specialization increases along with technological development. Specialisation has increased performance & employee’s satisfaction.

Departmentalisation: Specialisation is grouped together to form a job which is to be performed by a departmentalisation is grouping of specialization in to specific functions. Departmentalisation is used in all types of organizations according to their objectives & functions.

 Product Departmentalisation: Departments are divided on the basis of product. Each department has its own head who is looking after the total functions of his department. The accountability, authority & responsibility are specifically assigned for each department.

Process Departmentalisation: The product department it self divided in to several sub departments. The process organization basis of departmentalisation. The people working on a process become specialised during a reasonable period.

 Place departmentalisation: The department is developed according to territory, geographical areas & place of functions. The departments in one state & other states have different functions according to their nature of work.

Customer Service Departmentalisation: Departments are formed according to the needs of customer’s services.  Wholesaling, retailing & departmental stores are the main departmentalisation to cater to the needs of customers. Efforts are made to satisfy the customers’ needs at every debarment. If they are not satisfied, the customers are requested to consult some specialized personnel in higher departments.

Advanced Departmentalisation: Organisation develops its own administration department. The personnel department, secretarial department, training & placement departments &etc…,

 Chain Management: Organisational Structure decides the mode of chain of command. Line Organisation has scalar chain of command, functional organization has supervisory command. The chain of command is unbroken line of authority that extends from the top of the organization to the lowest echelon.  It decides the amount of authority, responsibility & accountability at the level of each chain. Delegation of authority flows from higher to lower level in different forms in separate organizations. Authority is the legalized power. Higher level asks lower level to perform some functions which are expected to be carried out by the lower manager or employee.

                The chain command decides the spam of control which is the number of subordinates a manager can effectively & efficiently direct.

smileyFor more topics & other subject (MBA Finace, Marketing, HR & OB) material & Projects,please visit www.managementduniya.comsmiley

15 January 2019, 15:17  

Hugo Northfield

[ Scorecard : 22]

Construction and structures are aligned for the completion of the goals. The charges and review are inquired for the humans. The offer is demarcated for the parallel items for the lines in life.

Related Topics / Similar Threads


Post your reply for : Organisational Structure & amp Its Meaning MBA Notes

Your are not logged in . Please login to post replies
Click here to login

Not a member yet ?? Click here to signup


Subscribe to the latest topics :

to your account


Remember Me

Forgot your password?

Sign-up now

Join and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.