Organisational Structure and Effectivness

Topics: Organizational structure, Management, Structure Pages: 29 (8044 words) Published: April 6, 2012


3.1 3.2 3.3 3.4

3.0 Objectives Introduction Concept of Organisation Structure Components of Organisation Structure Types of Organisation Structure 3.4.1 Functional Structure 3.4.2 3.4.3 Divisional Structure Adaptive Structure

3.5 3.6

Dimensions of Organisation Structure Organisational Design 3.6.1 Classical form of Organisation 3.6.2 3.6.3 Alternate Design Organisational and Mechanistic Design

3.7 3.8 3.9 10.10

Organisational Effectiveness Let Us Sum Up Key Words Terminal Questions



After studying this unit, you should be able to: · discuss the concept of organisation structure;

· · · · 3.1

explain the components of organisation structure; analyse the dimensions of organisation structure; discuss the model of organisation designs; and explain the determinants of organisational effectiveness.


In an organisation, a number of activities are performed. These activities are required to be coordinated. Organisation structure is designed for division of tasks, grouping of activities and coordinating and controlling the tasks of the organisation. The detailed study of all components and dimensions of organisational structure is required for creation of efficient and stable structure. Well designed organisation structure facilitates the smooth functioning of the organisation. In this unit, you will learn the concept, components and types of organisation structure. You will further learn the dimensions of structure and the models of organisational designs. You will be familiarised with the determinants of the organisational effectiveness.



Organisation structure may be defined as the established pattern of relationships among the components of the organisation. Organisation structure in this sense refers to the network of relationships among individuals and positions in an organisation. Jennifer and Gareth have defined organisation structure as the formal system of task and reporting relationships that controls, coordinates and motivates employees so that they cooperate and work together to achieve an organisation’s goals. In fact organisation structure describes the organisation framework. Just as human beings have skeletons that define their parameters, organisations have structures that define-theirs. It is like the architectural plan of a building. Just as the architect considers various factors like cost, space, special features needed etc. while designing a good structure, the managers too must look into factors like benefits of specialisation, communication problems, problems in creating authority levels etc., before designing the organisation structure. The manager determines the work activities to get the job done, writes job descriptions, and organises people into groups and assigns them to superiors. He fixes goals and deadlines and establishes standards of performance. Operations are controlled through a reporting system. The whole structure takes the shape of a pyramid. The structural organisation implies the following things :

· · · · ·

The formal relationships with well-defined duties and responsibilities; The hierarchical relationships between superior and subordinates within the organisation; The tasks or activities assigned to different persons and the departments; Coordination of the various tasks and activities; A set of policies, procedures, standards and methods of evaluation of performance which are formulated to guide the people and their activities.

The arrangement which is deliberately planned is the formal structure of organisation. But the actual operations and behaviour of people are not always governed by the formal structure of relations. Thus, the formal arrangement is often modified by social and psychological forces and the operating structure provides the basis of the organisation. Significance of Organisation...
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