ORGANIZATIONAL

STRUCTURE & DESIGN

GROUP MEMBERS:
-VARUN JARET
-RAHUL ANAND
-SUDEEP BANERJEE
-DEBJYOTI MUKHUTY
-SATISH BAGAT
-AMAN PREET CHEEMA
-AMIL SAMEER SINGH
-PRAVEER SHANKAR DAYAL
-NIHARIKA SAHU
-RAVI MURARKA

What is an Organisational Structure

The organisational structure defines the

organisations hierarchy of people and

departments as well as how information flows
within the organization.
The organisational structure determines how and
when information is distributed as well as who
makes what decisions based on the information
available.
How job tasks are formally divided, grouped and
coordinated.

The importance of the Organizational

Structure
The Organisational Structure is important because it

ensures that there is an efficient operation of a

business and it clearly defines its workers and their
functions.
The organisational structure also helps define the
hierarchy and the chain of command.

The Concept of Organisation Structure

Structure helps influence behaviour and

relationships of jobs and functions

Structure defines recurring activities and processes.
Structure provides a purposeful and goal-oriented
behaviour.

The Designing the Process cont

Develop a clear mission statement for the
organization. Focus the organisation structure
around the mission statement.
2. The mission statement should include the interrelationship between workers at every level as well
as inspiring innovation and ensuring efficiency.
1.

The Designing the Process

3. Decide whether the organisation structure will be
centralized and formal or decentralized and
informal. For centralized and formal
organisations, the organisation structure takes
more of a top-down approach with strictly
defined work roles.
For decentralized and informal organizations,
there is more of a cooperative approach with
workers often performing a wide range of
functions.

The Designing Process cont

4. The organisation structure can be department based
or based on a particular project or process.
Department -based organization structure is often
divided into line functions (such as manufacturing)
and staff functions (such as human resources).

The Designing Process cont

5. Design the overall chain of command for the
organisation. If there is a single overall director or
leader, determine the title for that role. If there are
dual or multiple leaders, divide the overall company
function between the various roles in a way that
there is a clear unity of command.

The Designing Process cont

7. Add subordinate roles to the chain of command.
Determine the process of reporting from subordinate
to supervisor and make allowances for special
circumstances (such as an emergency). Indicate if
and how interactions across departments or projects
will take place.

Designing the Process

8. Determine the authority and responsibility to be
assigned to each position in the organization
structure. Attempt to achieve a minimum of
overlapping functions. Also, attempt to minimize any
possible confusion by subordinates concerning which
supervisors to consult with on specific issues.

The effects of structure on individual and

group
The structure of any organisation will affect the
following:1. Behaviour of how people act and work
2. Motivation of workers
3. Performance
4. Teamwork and cooperation
5. Intergroup and interdepartmental relationships

TYPES OF STRUCTURES
I.

Functional structure this kind of

organisational structure classifies people
according to the function they perform in the
organization. The organisation chart for a
functional based organisation consists of: Vice
President, Sales department, Customer Service
Department, Engineering or production
department, Accounting department and
Administrative department.

FUNCTIONAL STRUCTURE cont.

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.

TYPES OF ORGNAZATIONAL
STRUCTURES cont
II. Line Structure: This 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. This is the sort of
structure allows for easy decision making, and is
very informal in nature. They have fewer
departments, which makes the entire organization a
very decentralized one.

Types cont..
III. Line and Staff Structure: 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.

LINE & STAFF STRUCTURE cont.

The decision making process becomes slower in this

type of organizational structure because of the layers

and guidelines that are typical to it, and the formality
involved.

IV MARKET STRUCTURE
Market Structure market structure is used to group

employees on the basis of specific market the

company sells in a company could have three
different markets they use and according to this
structure, each would be a separate division in the
structure.

V GEOGRAPHIC STRUCTURE
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.

VI. MATRIX STRUCTURES

Matrix Structures

This is a structure, which has 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.

Components of Organizational Structure

Organizational Design
Management decisions and actions that result in a
specific organization structure and work
specification including:1. Work Specification: Specify to what degree the
tasks are subdivided into separate jobs
2. Departmentalization: The basis in which jobs
will be grouped together
3. Chain of Command: To whom do individuals
and groups report to.

Organizational Structure cont..

4. Span of Control: The number of people that a
can a manager efficiently and effectively direct.
5. Centralization and Decentralization: Where
is the decision making authority?
6. Formalization: To what degree will there be rules
and regulations to direct employees and managers?

Division of Labour/specialization

1.

This is a process of identifying the specific jobs

that need to be done and designing the people who
will perform them. Job specialization can occur in
3 different ways:
Personal Specialties: occupational and
professional specialties e.g. accountants,
engineers, scientists.

Division of Labour cont..

Horizontal Specialties: work is divided by the
natural sequence order e.g. manufacturing plants
divide work into fabricating and assembly.
3. Vertical Specialties: Work is divided along the
vertical plane of an organization from the lowest
level manager to the highest level manager.
2.

Delegation of Authority

1.
2.

3.

Process of distributing authority downward in an

organisation. Whether an organisation chooses
to centralize or decentralize will be guided by:
How routine and straightforward are the jobs
required decisions?
Are individuals competent to make decisions?
Are individuals motivated to make the decisions?

Delegation of Authority cont..

Reasons to Decentralize Authority: It encourages the development of professional
managers.
Managers are able to exercise more autonomy but it
can lead to a competitive climate.

Delegation of Authority cont

Reasons to Centralize Authority:1. When the managers are not skilled enough and
would need further training which can be
expensive.
2. When there are new administrative costs because
new divisions need to be formed.
3. Decentralization can mean duplication of
functions.

Departmental Bases

1.
2.

3.

The process of grouping jobs into logical units.

The process in which an organization is
structurally divided by combining jobs in
departments according to some shared
characteristics.
Functional Departmentalization
Geographical
Product

Multiple Forms of Departmentalization

President

Functional Departmentalization

Vice President
Marketing

Vice President
Production

Vice President
Finance

Vice President
Training

Geographical Departmentalization
Nairobi Plant
Manager

Mombasa Plant
Manager

Johannesburg Plant
Manager

Bulawayo Plant
Manager

Product Departmentalization
Consumer Products

Industrial Products

Marketing Products

Training Products

SPAN OF CONTROL
This is the number of individuals who report to a
specific manager.
Three factors are important in determining optimum
span of control: Required Contact
Degree of Specialization
Ability to communicate

Organizing cont

NB: The Importance of structure:

Good
organization structure does not by itself produce
good performance but poor organization
structure makes good performance impossible no
matter how good the individual managers may
be. (Drucker, 1989)

PANTALOONS FASHION AND RETAIL LTD.

Pantaloons Fashion & Retail Limited is an
Indian premium clothing retail store. The first
Pantaloons store was launched in
Gariahat, Kolkata in 1997. As of November 2013,
there are 76 Pantaloons stores in 44 cities.
Pantaloons was previously controlled by the Future
Group, but has now been taken over by Aditya Birla
Nuvo Limited.

Pantaloons.....
Pantaloons which was previously controlled by the Future Group has
now been taken over by Aditya Birla Nuvo Limited ['ABNL']. ABNL
is a part of the prestigious Aditya Birla Group, a $40 billion Indian
multinational, operating in 36 countries across the globe with over
136,000 employees.
The Aditya Birla Group ranks high in the League of Fortune 500
Corporations of the world with a strong mix of talented and capable
personnel comprising of 42 different nationalities, who are credited
with anchoring the organization and scripting one brilliant success
story after another.
With all these advancements, Pantaloons is one of the fastest growing
apparel companies. And is poised to grow bigger and better...

PRODUCTS
Pantaloons retails products consists of various
brands across categories that range from western
to ethnic wear, formal to party wear and active
wear for men, women and kids. Some of its
flagship labels are in-house brands such as
Akkriti, Rangmanch, Trishaa, Honey, Annabelle,
JM Sport, F Factor, Chalk, and Ajile.
Other than apparel, pantaloons also offers an
Assortment of fashion accessories like fragrance,
footwear, handbags, watches, sunglasses, etc.

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