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Structure Unit

The document discusses different types of organization structures. It describes entrepreneurial, functional, divisional, strategic business unit (SBU) matrix, and network structures. For each structure, it provides details on how the structure is set up and lists advantages and disadvantages. The key points are that organization structure charts the hierarchical relationships between positions and must adapt to changing business needs. The different structures discussed provide alternatives that allow for flexibility in how an organization coordinates its activities and allocates responsibilities.

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wruttika jadhav
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9 views

Structure Unit

The document discusses different types of organization structures. It describes entrepreneurial, functional, divisional, strategic business unit (SBU) matrix, and network structures. For each structure, it provides details on how the structure is set up and lists advantages and disadvantages. The key points are that organization structure charts the hierarchical relationships between positions and must adapt to changing business needs. The different structures discussed provide alternatives that allow for flexibility in how an organization coordinates its activities and allocates responsibilities.

Uploaded by

wruttika jadhav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Organization Structure

Prof. H.K.Padmanabhan
 Concept.
 Types of Organization Structure
Concept:
 Organization structure is a chart consisting of name or
designation of personnel written in hierarchical order along
with the depiction of the relationship that exists between
various positions.

 The organization structure is a tool for managerial


performance tool, organization must adapt itself to
changing conditions and circumstances and it must always
be compatible with the requirements of management duties
and responsibilities.
Types of Structure
 Entrepreneurial.
 Divisional.
 Functional.
 SBU Matrix.
 Network Structure.
 Cellular/ Modular.
Entrepreneurial Structure

Owner

Manager

Employee
Entrepreneurial Structure
 Advantages:
 Quick decision making (Centralized).
 Timely response.
 Informal and Simple system.

 Disadvantages:
 Excessive Reliance.
 Ignore strategic Decision.
 Inadequate for expansion.
Functional Structure

CEO

Marketing Finance HR Public


Operations
Relations
Functional Structure
 Advantages:
 Efficient distribution.
 Delegation of roles and responsibilities.
 Focus on strategic decisions.

 Disadvantage:
 Difficulty in co-ordination.
 Costly.
 Leads to conflict – role, function, staff.
Divisional Structure
CEO

General General
Manager Manager
Division - A Division - B

Marketing Marketing

Operations Operations

HR HR

Finance Finance
Divisional Structure
 Advantages:
 Effective functioning.
 Quick decision making.
 Focus on strategic decision.

 Disadvantages:
 Inconsistent authority.
 Costly.
 Problem in allocation of resources.
SBU Structure

CEO

SBU -1 SBU-2 SBU-3

Division Division Division Division Division Division


A B A B A B
SBU Structure
 Advantages:
 Easy co-ordination.
 Focus on strategic control.
 Distinct Business.

 Disadvantages:
 Diverse and large structure.
 Difficult to add SBU Layer.
Matrix Structure

CEO

Finance HR Marketing Operations


Matrix Strucutre
 Advantages:
 Allows functional specialist.
 Fosters creativity by diverse talent.

 Disadvantages:
 Creation of confusion and difficulty.
 Combination of vertical and horizontal level.
 Poor communication.
Stable Vs Turbulent
Organization Design
Stable Organization Turbulent Organization
Large Firm. Small Units.
Vertical Communication. Horizontal Communication.
Centralized Decision making. Decentralized Decision
Making.
Vertical Integration. Virtual Organization.
Work / Quality based team. Autonomous work team.
Functional work team. Cross functional work team.
Minimum training. Extensive training.
Individual focused job Value chain / Team focused
design. job design.
Thank - You

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