There are different types of organizational structures and a company should choose the
one that best suits their needs.
Traditional Structures
These are the structures that are based on functional division and departments. These are the kind of structures that follow the organization's rules and procedures. They are characterized by having precise authority lines for all levels in the management. Under types of structures under traditional structures are:
•Line Structure
This is the kind of structure that has a very specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line. Hence the name line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decision-making, and also very informal in nature. They have fewer departments, which makes the entire organization a much decentralized one.
•Line and Staff Structure
Though line structure is suitable for most organizations, especially small ones, it is not effective for larger companies. This is where the line and staff organizational structure comes into play. Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision-making process becomes slower in this type of organizational structure because of the layers and guidelines that are typical to it, and let’s not forget the formality involved.
SNT GLOBAL ACADEMY OF MANAGEMENT STUDIES AND TECHNOLOGY Coimbatore
BATCH: 2012 - 2014 LECTURE NOTES - I - SEMESTER ACADEMIC YEAR: 2012 – 2013 SUBJECT: ORGANIZATIONAL BEHAVIOUR [OB] COURSE CODE: BA9204
Figure3c: Line and Staff structure
• Functional structure
This kind of organizational structure classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization. The organization chart for a functional based organization consists of Vice President, Sales department, Customer Service Department, Engineering or production department, accounting department and Administrative department.
SNT GLOBAL ACADEMY OF MANAGEMENT STUDIES AND TECHNOLOGY Coimbatore
BATCH: 2012 - 2014 LECTURE NOTES - I - SEMESTER ACADEMIC YEAR: 2012 – 2013 SUBJECT: ORGANIZATIONAL BEHAVIOUR [OB] COURSE CODE: BA9204
Divisional Structures
This is the kind of structure that is based on the different divisions in the organization. These structures can be further divided into:
• Product structure
A product structure is based on organizing employees and work on the basis of the different types of products. If the company produces three different types of products, they will have three different divisions for these products.
Figure3e: Product structure
• Market
Structure
Market structure is used to group employees on the basis of specific market the company sells in. A company could have 3 different markets they use and according to this structure, each would be a separate division in the structure.
SNT GLOBAL ACADEMY OF MANAGEMENT STUDIES AND TECHNOLOGY Coimbatore
BATCH: 2012 - 2014 LECTURE NOTES - I - SEMESTER ACADEMIC YEAR: 2012 – 2013 SUBJECT: ORGANIZATIONAL BEHAVIOUR [OB] COURSE CODE: BA9204
• Geographic structure
Large organizations have offices at different place, for example there could be a north zone, south zone, west and east zone. The organizational structure would then follow a zonal region structure.
Figure3g: Geographic structure
• Matrix Structures
SNT GLOBAL ACADEMY OF MANAGEMENT STUDIES AND TECHNOLOGY Coimbatore
BATCH: 2012 - 2014 LECTURE NOTES - I - SEMESTER ACADEMIC YEAR: 2012 – 2013 SUBJECT: ORGANIZATIONAL BEHAVIOUR [OB] COURSE CODE: BA9204
This is a structure, which is a combination of function, and product structures. This combines both the best of both worlds to make an efficient organizational structure. This
structure is the most complex organizational structure.
It is important to find an organizational structure that works best for the organization, as the wrong set up could hamper proper functioning in the organization.
Figure3h: Matrix structure
The new organization structure or management style
The new organization structure has no clearly defined boundary separating management from employees. It is a more flat and open structure known as the "humanistic" or "organic" style of management whereby employees and managers are seen as equal partners working towards a common goal. It is a more humane and "long-term thinking" style of management that permits the decision-making process to be distributed throughout the organization as a way of tapping onto the creativity and experience of its staff.
Among the more common aspects of this new style of management are as follows: 1. Self-managing individuals and work teams.
2. People become more multi - skilled so there are fewer job classifications. 3. Greater investment in learning and training for everyone.
4. Few status distinctions.
SNT GLOBAL ACADEMY OF MANAGEMENT STUDIES AND TECHNOLOGY Coimbatore
BATCH: 2012 - 2014 LECTURE NOTES - I - SEMESTER ACADEMIC YEAR: 2012 – 2013 SUBJECT: ORGANIZATIONAL BEHAVIOUR [OB] COURSE CODE: BA9204
6. Incentives for employees to perform work are less financially-based (eg. salary). 7. Greater employment security.
8. A policy that decisions will be made by consensus. 9. Flexible outsourcing arrangements.
10.A flexible (yet stable) management structure. Flexible to the point of learning from its employees and stable in the sense that it is developing long-term quality solutions for the organization.
The only potential problem with this management style is what happens if the organization suddenly finds itself in a survival situation. Would the staff be too complacent and happy achieving the goals of the organization without finding ways of being able to quickly respond to the emergency? Perhaps they may expect other people to have the skills to handle the problem?
Figure3i Flat / Organic structure
3.2. GROUPS IN ORGANIZATION DEFINITION
A group is a set of two or more individuals who are jointly characterized by a network of relevant communications, a shared sense of collective identity and one or more shared dispositions with associated normative strength.
SNT GLOBAL ACADEMY OF MANAGEMENT STUDIES AND TECHNOLOGY Coimbatore
BATCH: 2012 - 2014 LECTURE NOTES - I - SEMESTER ACADEMIC YEAR: 2012 – 2013 SUBJECT: ORGANIZATIONAL BEHAVIOUR [OB] COURSE CODE: BA9204
A group may de defined as a social phenomenon in which two or more persons decide to interact with one another, share common ideology and perceive themselves as a group.
- Edgar H Schien CHARACTERISITICS OF A GROUP
• Social interaction
One of the most obvious characteristics of group is that they are composed of two or more people in social interaction. In other words, the members of group must have influence on each other. The interaction between parties may either verbal or non - verbal, but the parties must have some impact on.
• Stable structure
Group also must posses a stable structure. Although groups can change, and often do, there must be some stable relationships that keep group members together and functioning as an unit.
• Common Interest
Another characteristic of groups is that their members share common interests or goals. • Perceive themselves as part of group
Finally, to be a group, the individuals involved must perceive themselves as a group. Group is composed of people who recognize each other as a member of their group and can distinguish these individuals from non - members.