ORGANIZATION STRUCTURE & DESIGN

ORGANIZATION

Organization and management of people at work are interrelated. The genesis organization occurs when two or more met together to achieve common goals.

DEFINATION:

“An Organization is a system, having an established structure and conscious planning in which people work and deal with each other in a co-ordinate and cooperative manner for the accomplishment of recognized goals”

We can say “the progress of creating an organization’s structure”

ORGANIZATION STURCTURE

Organization implies structure. It means the total work to be carried on must be grouped by kinds into divisions department sections and units. Means must also be provide for coordination and integration of people and their activities.

S.P ROBBINS:

“The formal framework by which jobs tasks are divided, groups and coordinated”

BOBEE SAYS

“Organization structure is a formal system of interaction and coordination that links the takes of individuals and groups the effectively achieve organization goals”

DEPARTMENTALIZATION

The basis by which jobs are grouped tighter is called departmentalization. Every organization will have its own specific way of classifying and grouping work activities

Grouping activities according to similar work

Thus companies:

• All engineers together into an engineering department
• All personnel specialists into a personnel department
• All sales persons into a sales department
• All account people into an account department

Here we diagrams of every department and process specialization. There are five and very important departments.

FUNCTIONAL DEPARTMENTALIZATION

departmentalization groups jobs by functions performed. This approach can be used in all types of organization. Although the function changes reflect the organization’s objective and work activities. Following a diagram of functional departmentalization

Efficiencies from putting together similar specialties and people with common skill knowledge and orientations. Limited view of organization goals.

LOCATIONAL AND GEOGRAPHICAL DEPARTMENTALIZAION

Geographical departmentalization groups jobs on the basis of territory or geography. So sales force are typically organized by this method. A company has a head office in one city and for control, and for too close to the buyers , they open their branches in different cities and countries.

• Pakistan postal service
• Tele communication service

More effective & efficient handling of specific region issues that arise

Duplication of function (+) serve needs of unique geographic maker better (-)

Can feel isolate from other organization areas.

PRODUCT DEPARTMENTALIZAION

This method is very common in manufacturing field, originally organization were organized functionally, but as they grew to achieve coordination and to achieve unified effort become so different.

So to remove these problems they set product departments or units. These units are responsible regarding all aspects of respective products.

Multinational companies which have hundred of products, usually do that such as

• Liver brother company etc
• General electric company etc

ü Allows specialization in particular products and services

ü Manager can become exports in their industry

ü Closer to customer

ü Duplication of function

ü Limited view of organization goals.

PROCESS DEPARTMENTALIZAION

Process departmentalization groups’ jobs on the basis of product or customer flow.

In organization there are number of employees who are doing something, working in same general location on same product for the same clients. It is necessary for the organization for control purpose to set up units’ sections and departments such as in the army. Personnel are organized into Squads, platoons, companies and battalions.

Inspection and shipping department manager

v Efficient flow of work activities

v Can only be used with certain types of products

CUSTOMER DEPARTMENTALIZAION

Finally, customer departmentalization grouped jobs on the basis of common customer who hove common needs or problems that can best be met by having specialist for each.

Usually sales force may be divided keeping in view the customer such as government, industry and private individuals.

This type of specialization may be advantageous of personnel must aware to the special needs particular classes of custom.