Company structure ppt

determinants of organizational structure ppt and divisional organizational structure ppt
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Prof.WilliamsHibbs,United States,Teacher
Published Date:28-07-2017
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3. ORGANIZATIONAL STRUCTURE Prof. Lovorka Galetić, PhD. ORGANIZATIONAL STRUCTURE  Word “structure” means composition, complex, scheme  Every organization, every company, has its inner composition, and that means structure  Many authors have defined organizational structure Organizational Structure • The formal system of task and authority relationships that controls how people are to cooperate and use resources to achieve organization‘s goals. • Can be managed and changed through the process of organizational design. ORGANIZATIONAL STRUCTURE  It is often equalized with organization  Organization is broader concept which includes:  organization structure  organizational resources  organizational procedures  It is equalized with management  it is one of elements of the organization structure ORGANIZATIONAL STRUCTURE  Organizational structure is dynamic, not static, because of the constant change in the organizational environment  Relationship: goals – strategy – structure  Relationship of internal and external design elements Designing organizational structure  Choosing the right organization structure is one of the most important decisions in the company  There is no “one right way” to design organizational structure  There are no universal organization principles which are good for all cases  Each internal and external design element has diferent effect in every special case. The ways of forming org. structure: 1. Top down system  based on classical theory  set global organization units, departmant services, and then design specific tasks 2. Basis upward system 3. Combined approach  structuring onganization top down and basis upward at the same time (bipolar strategy) 4. Sprearhead strategy  changes begin from middle management levels 5. Multiple nucleus strategy  Many organization changes begin at the same time on diferrent management levels and in various sections The ways of forming org. structure:  In every day use, ways that we are talking about are used combined, rarely separate  While forming organization structure of a new company and for big reorganization procedures top down system is mostly used.  In all the other cases various combinations are possible. The ways of forming organizational structure:  Stability and flexibility of organization structure:  Stability makes specialization, rationalization and expenses decrease possible  Flexibility makes adjustment to evironment changes possible  The balance should be found.  Organizational structure has to provide: 1. reaching organization goals 2. optimal grouping of activities 3. full attention on key functions 4. efficient use of all available resources 5. organization flexibility 6. clear responsibility 7. rational use of human resources 8. adequate information and communication system Formal and informal organization  Formal organization structure is a result of the process of organization design and it represents backbone of each organization.  It is set by regulations and use of written rules and procedures Formal organization  Formal organization structure regulates all relevant questions referred to organization:  It connects people and resources in closer and wider groups ( workplaces, work units, org. units, company)  It allocates and connects organizational tasks  It defines people status in a company (managers and employees)  It sets rules and behavioral norms in a organization Formal organization  Formal organization structure is shown with graphs and schemes Formal and informal organization  Real organization structure (objective existing) develops spontaniously in process of formal organization structure functioning  In the moment of setting organization structure company’s real organization structure matches formal. While time goes by, differences between those two organizational structures get bigger and bigger Formal and informal organization  Formal organization structure needs to adjust to the real:  Simultaneously (constantly adjusting every year - difference is small)  Reorganization (if difference is big – every 4-5 years)  Differences between formal and real organization structure come by changing elements of organization structure Formal and informal organization  Informal organization is related to people and their work in organization  Informal organization structure is a group of relations between people in a organization, which have grown while they have been working together, and which effect formal goals of organization  Informal organization is usually connected with informal groups in a company. Usually it is considered negative, which does not have to be true Formal and informal organization  In every formal organization there are many informal groups. They can be: interest groups – they come as a result of job which is done by group members friendly groups – result of companionship between members outside the company E.g.: football team, aerobic team Formal and informal organization  Informal organization structure can not be shown: Football Areobics team team Saturday shopinng grup Formal and informal organization  Informal organization is very important, it can dominate over formal organization.  It has hierarchy, it’s leaders and goals  Formal organization  intended, thought trough, planned  Informal organization  spontaneous Types of organization structures  Types of organization structures represent ways of carrying out internal work devision in a company, and forming lower organization units on all company levels (departments, sectors, services)  Forming lower organization units in a company is done according to the theory of departmentalization

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