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ORGANISATIONAL STRUCTURE,

DESIGN AND CHANGE


ORGANISATIONAL STRUCTURE
• ELEMENTS OF AN ORGANISATION STRUCTURE-
(I) Allocation of responsibilities
(II) Grouping of workers
(III)Co ordination and Control of activities.
• The formal way of identifying who is responsible to whom, who is to
exercise what authority over whom, and who is answerable to whom.
DIMENSIONS OF STRUCTURE
• Specilaisation
• Standardisation
• Formalisation
• Centralisation
• Configuration
• traditionalism
Influences on Structure:

Stability/turbulence
of PEST environment

Strategy
Technology Culture Creativity STRUCTURE
Size Politics Leadership
Consequences of deficient
organizational structure:
• Motivation and morale may be depressed.
• Decision making may be delayed and lacking in quality.
• There may be conflict and a lack of coordination.
• An organization may not respond innovatively to changing circumstances.
• Costs may be rising rapidly , particularly in the administrative area.
Strategy-Structure Fit:
Strategy is the direction and scope of an organisation over the long term, which
achieves advantage for the organisation through its configuration of resources
within the a changing environment , to meet the needs of the market and to fulfill
stakeholder expectations.
Strategy Decisions:
• Be complex in nature.
• Made in situations of uncertainty.
• Affect operational decisions.
• Requires an integrated approach.
• Involve considerable change.
“ Structure follow Strategy”.
Chandler’s Strategy-Structure thesis:
Owner –managed companies-1800
Manager took all decisions.
Functional Structure-1850:
Focus on national than regional market.
Cost effective and profitable.
Difficulty in diversification.
Divisional Structure- 1920-1930:
Each division made its own strategy in line with products,markets and cultural
environment.
Matrix Structure-1950:
Standard and innovative products and services.
Dynamic Network-2000
The influence of the
external environment
Socio-cultural influences
The Culture’s Impact on the
Structure
It is very possible in the early stages a corporation’s
existence a conscious decision is made as to what the
organisational culture is going to be.
The structure is then built with that end idea in mind.
The decisions about organisational cultural themselves may
be influenced heavily by external events.
A company that is heavily regulated by the government has
to have certain procedures in place to be compliant with
the law.
Contd…
This is especially true of financial institutions, and
while they made appear extremely formal to the
outsider be defined structure is necessary for
financial reporting and compliance purposes.
Other cultures have to respond immediately to
changes.
The software and mobile application industries need
to have cultures that can react quickly to any
technological change.
contd….
This means the structure may have an
orientation towards teams as opposed to
departments, or only three levels of staff, with
executives not that distant from the workforce
in the hierarchy.

Communication flow within the organisation


may have to be formal or informal, depending
on what is demanded by external factors.