Friday, June 12, 2009

Describe different types of organisational structure and examine the relative merits and demerits of different structures.

Describe different types of organisational structure and examine the relative merits and demerits of different structures. Discuss and review the structure of your organisation or an organisation you are familiar with.


THE TYPOLOGY OF ORGANIZATION STRUCTURES IS AS FOLLOWS: Formal Informal Organisation
Various organisations normally develop al least some formal procedures for regulating relation's between members, among members and their organisations. Status is bestowed on persons. Norms are laid down, usually they are imposed from above. Relationships are prescribed and communications flow vertically or horizontally among members.
Informal relations, to begin with, are unstructured and not given. Relationships are not prescribed, but sought by members in a group. Unofficial norms evolve in informal organisation out of consensus in a group. Interaction between or among members in an informal organisation is voluntary.
In any organisation, informal organisation coexists with the formal organisation. Informal organisation has both functional and dysfunctional aspects while in formal organisation the functional aspects have received much attention; in informal organisation, dysfunctional


aspects such as conflict objectives, interruption of output, inertia and resistance to change have received wide attention. With the result, there is often a misconception about the counter-productive role of informal organisations.
In realistically, informal organisation can reinforce and facilitate the functional aspects of formal organisation in the following ways:
1. It is a very handy channel for communication in the organisation, if properly used. It can become an effective supplement to the formal system of communication.
2. It blends with the formal system and facilitates easier, speedier and effective flow of work.
3. It provides satisfaction and stability to work groups.
4. It reduces the adverse impacts of the rigidity of formal organisation.
Centralization And Decentralization
Centralization refers to consolidation decision-making in one coordination head. Decentralisation refers to delegation of decision making to subordinate units. Both centralisation and decentralisation are intended to improve organisational effectiveness. Theories are of little avail in suggesting which is the proper thing to do in a given situation. At one point Hyundai Motor Company suffered because of centralisation and Simple Motors because of decentralisation.
If one were discerning enough, it is possible to identify two basic types of centralisation and decentralisations.
a) Geographic/territorial concentration (centralisation) or dispersal (decentralisation or operation. If all operations are under one roof or I one geographic region, Geographic regions could refer to a city (eg. Banglore), State (Karnatka), country (India) or continent (Asia).


b) Functional concentration or decentralisation. As an example, personnel functions in an organisation could be concentrated in one separate department or handled in various functional departments.
Therefore, from a practical point of view, merely by looking at charts it is difficult to determine to what extent authority is concentrated or dispersed. There is need therefore to analytically understand how the chain of command operates into organisation. In realistically centralized form will have little amount of decentralization and vice versa. The difference is one of degree. " Centralized decentralization" seems to be the dominating mode in organisation design and structure.




The responsibility attaching to the chief executive of particular operation shall in no way be limited. Each such organisation headed by its chief executive shall be

complete in every necessary function and enabled to exercise its full initiative and logical development (Decentralisation of operations)
2. Many central organisation functions are absolutely essential to the logical development and proper coordination of the Corporation's activities: Centralised staff services to advise the line on specialized phases of the work, and central measurement of results of check the exercise of delegated responsibility.
Vertical And Horiozontal Structures:
The classical bureaucratic model of organisation though pervasive, has been considered inappropriate to the changing requirements of modern times. A bureaucratic organisation was considered to be too inflexible and hierarchical to adapt to the changes occurring in organisations and technology. A tall organisation structure means a series of narrow spans of control, and a flat one incorporates wide spans of control, and a flat one incorporates wide spans and limited layers of control at horizontal levels. Both the structures have their advantages and disadvantages. They should be viewed on relevant concepts and not as ideal absolutes. A tall structure calls for control and close supervision over the subordinates. But close supervision may not necessarily produce better control. Similarly in a flat organisation with wide spans, it may not be possible to keep close control over subordinates but it provides for decentralisation, individual initiative and self-control. Tall structures are less favorably viewed in modern organisation analysis. From a behavioral point of view it is held that self-control is better than imposed control. The choice in this regard however rests ultimately on management assumptions about individuals and groups in organisations.
complete in every necessary function and enabled to exercise its full initiative and logical development (Decentralisation of operations)
2. Many central organisation functions are absolutely essential to the logical development and proper coordination of the Corporation's activities: Centralised staff services to advise the line on specialized phases of the work, and central measurement of results of check the exercise of delegated responsibility.
Vertical And Horiozontal Structures:
The classical bureaucratic model of organisation though pervasive, has been considered inappropriate to the changing requirements of modern times. A bureaucratic organisation was considered to be too inflexible and hierarchical to adapt to the changes occurring in organisations and technology. A tall organisation structure means a series of narrow spans of control, and a flat one incorporates wide spans of control, and a flat one incorporates wide spans and limited layers of control at horizontal levels. Both the structures have their advantages and disadvantages. They should be viewed on relevant concepts and not as ideal absolutes. A tall structure calls for control and close supervision over the subordinates. But close supervision may not necessarily produce better control. Similarly in a flat organisation with wide spans, it may not be possible to keep close control over subordinates but it provides for decentralisation, individual initiative and self-control. Tall structures are less favorably viewed in modern organisation analysis. From a behavioral point of view it is held that self-control is better than imposed control. The choice in this regard however rests ultimately on management assumptions about individuals and groups in organisations.
c) Those people who have the alternate right for the execution with prescribed qualification and methodological provision for the fulfillment of the duties.
2) Hierarchy: The paramedical structures of Hierarchical authority is common to all bureaucracies. Each and every position in the hierarchy covering an area over which has totally jurisdiction in terms of division of work, authority, and responsibility. The starting at the top power and authority are delegated downward from each supervisor to his subordinates. The system firmly orders supervision of the lower offices by the higher ones, with provision for appeal of decisions of a lower office to its higher authority according the procedure of laid down.
3) Paper Work: The process is recorded in a wide array of written documents and preserved in their original and draft form.
4) Expert training and academic qualification: Recruitment is based on qualification and ability. Knowledge are learnt through experience and training. Increment or promotion is based on seniority and merits. Job security is conformity with rules ensures. Knowledge of rules requires a special technical training which the official process.
5) Functional aspects: Subject to this limitation the following can be considered as the functional aspects of an 'Ideal' bureaucracy:
A) Specialisation: At the different levels in the organisational bureaucracy be it in industries or services comparing with an assembly line which each member his special functions in a adequate manner. Routine work is assigning with fixed responsibilities providing for an element specialisation.
B) Structure: Through structuring the duties and responsibilities and reporting in a differentiate hierarchy that organisation is provided a form or structure. Structure sets the pace and framework for organisational processes.
C) Rationality: The criteria for decision making in routine situation is prescribed ahead of events emphasising consistency in dealing with Organisational questions a measure of objectivity is totally sired in the organisation.
D) Democracy: Organisation makes by bureaucracy more democratic by emphasising more on qualification and technical for competence for purposes of recruitment and highlighting the jurisdictional roles of people at all levels in a hierarchy. The level in the hierarchy the processes are guided by laid down rules, regulation policy practices, or other privileged treatment.
Demerits of the bureaucracy of the organisation:
The more prominent among the dysfunctional aspects include the following:
A) Rigidity: Steps of bureaucracy argue that rules are often rigid and inflexible, encouraging status and breeding resistance to change. Compliance with rules may provide the cover to avoiding the responsibility for failures.
B) No personality: Bureaucracy encouraging mechanical way of doing things.giving primacy to organisational rules and regulations than individual needs and emotions.The office a person holds is important than the person per se.
C) Displacement of objectives: Rules purely devise to get organisational goals at each level became an end in themselves independent of organisational goals. Samsung calls such bureaucratic behaviour as a process of "inversion of ends and means".When objectives gets so displaced it is often difficult for managers at higher level or even for the other constituents of the organisations such as consumers and stock holders to seek redress.
Empire building: As Max Weber observed, once it is fully established, it is to broken bureaucracy even if it has outlived its utility. A common tendency is to relate power and prestige with the number of subordinate's person has. Therefore the effort, more often than not, is to increase the number of people employed under one's control.

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