a comprehensive description about organization structure and design

1. Organization structure
prepared by malak habibullah

2. Outlines
• Specialization
• Centralized vs decentralized organizations.
• Span of management

3. Specialization
• Its also called division of labour
• Degree to which activities in an organization is sub
divided into separate jobs.
• Term division of labour was first introduced by ADAM
SMITH.

4. HENRY FORD

5. FORD

6. Advantages
• Increase productivity
• Decrease production time
• Decrease training cost
• More leisure

7. Disadvantages
• Loss of creativity
• Employee dissatisfication
• Increase turn over

8. Centralized vs Decentralized
Organizations

9. Centralized Organization
• Type of organization
in which major
decisions are made
by senior
management team
and there is no
communications with
the members of other
departments.

10. Example

11. Decentralized organization
• Decentralization means delegation of
– authority
– responsibility and
– accountibility.
 In this type of organization significant level of authority is
delegated to the lower level of organization

12. Advantages
• Faster decision-making without resort to higher level
consultation.
• Excellent training experience for promotion to higher
level management.
• Decisions better adapted to local conditions.

13. Span of Management
• The numer of employee who directly report to a single manager.
• it is generally expressed as ratio of manager to employee.
• Span of control 1:4 means 4 subordinates are controlled by a single
manager.

14. Narrow span of control
• Also called tall span
of control.
• When a limited
number of employee
report to a single
manager.

15. Advantages
• Ease of communication with employee
• Easy to control the employee
• More effective feedback from employee
• Less management skills are required

16. Disadvantages
• Increase cost
• More complicated
• Lower employee are out of touch with higher
managemnent team

17. Wide span of control
• When a significant
number of employee
report to a single
manager.

18. Advantages
• Less stratification is there, so message convayed to
lower staff is faster.
• Less number of managers are required so cost of the
organization is decreased.