The organisation function is the immediate logical function after planning. To achieve the objectives set in the plan, somebody should work and should do the right work. The organising function makes the people to work. The function "involves managers in decisions which result in a system of specialised coordinated jobs." In an organisation structure so many aspects are involved. Human and non-human elements will be working. Orgnisationál structure is an integrated whole. Job of each worker is specified, control measures are adopted for performing those jobs effectively. An organisational chart depicts tangibly the reporting relationships and channels of communication. Work flow and accountability are also shown. What factors actually determine the organisation structure? It is grouping activity of men, machine and material for attaining a specific objective. Hence the following factors determine the organisation structure. (This is based on four aspects given in the box.) Show 1. Size of the unit. (a) Capital employed. (b) Development of Science, and Technology. (c) Men employed. (d) Nature of activity. 2. Job design. 3. Grouping of activities. 4. Span of control. 5. Delegation of authority. 1. Size of the Unit. Size indicates the scale of operation. Normally there are three scales of operation, viz., small, medium and large. Size is an important factor governing cost, efficiency and profitability of a business enterprise. Before any business or non-business enterprise is started, the organisers will have to decide the most profitable and viable size of the unit. Optimum or the best size is a dynamic concept and it changes with the development of science and technology. Therefore, technology is one factor which determines the size and the organisation structure. To introduce new technology, in business enterprise, the activity has to be expanded and hence the structure changes. The size of the organisation is also determined by the capital employed in the unit. There may be heavy capital outlay but it may be less labour intensive. In such cases the size will be small as authority relation will be less. However, capital outlay is one factor which determines the size of the organisation. Another important factor which determines the size of the organisation is "men employed." If more men are employed there will be more level of management and more authority relationships. If men employed are less, the size of the organisation will be less and less levels of management and authority relationships. The nature of business unit also determines the size and organisation structure. If it is capital goods industry with huge capital outlay, the organisation structure will be complex in nature. Consumer goods industries will have more authority relationships in marketing division and less in production and finance line. Thus the nature of activity also determines the organisation structure. 2. Job Design. The bricks that develop an organisation structure are jobs. What are the jobs to be done in an organisation has to be decided by the top brass. Job design is the first managerial decision of the organisation structure. Jobs in a task have to be specified as one person cannot perform a task. It is a team work. Job in each task is to be specified and assigned. What an individual has to do to contribute to the overall tasks and objectives has to be decided. Therefore the fundamental factor, which determines the organisation structure is "Job designing" and "numbering" them. These numbers decide the size of the organisation. 3. Grouping of Activities. The designed jobs have to be formed into groups according to the nature of activity. Grouping of activities are essential to achieve coordination. Each group is termed as "DEPARTMENT." Departmentation is another factor which determines the organisation structure. Thus in each business organisation we observe departments like Marketing Department, Production Department, Finance Department etc which discharge their functions. In each department we find authority relationships like Finance Manager, Assistant Finance Section Officer, Finance Supervisor etc., each assigned with specific job and responsibility to perform. There will be accountability to higher ups also. Like this in every business or non-business activity, there will be grouping of similar jobs in the form of departments which are responsible to perform to specific task. There will be sub-departments in each basic department like Production Department in which we find (i) Purchase Department (ii) Stores Department (iii) Technical Design Department etc. These sub-departments constitute Production Department. All the functional departments put together forms an organisation. Grouping of the designed jobs according to their nature and activity is another factor which determines the organisation structure. 4. Span of Control. Another factor that determines the organisation structure is the number of persons to be managed by each manager. This is called "Span of management." Depending upon the nature of organisation some departments will be big in size and some will be small. Therefore, each manager should be assigned with manageable tasks and personnel. If the tasks are many in a department, there should be splitting the tasks into number of divisions and lower levels are to be created. All this takes place depending upon resources and personnel available. However, the span of management, i.e., the number of persons to be managed by each manager, has to be decided and that becomes one of the major factors to decide the size of organisation structure. The number varies from manager to manager and the number determines the span. Manageable span found out by experience is six, i.e., one manager can manage six, persons effectively. 5. Delegation of Authority. Authority relationship also decides the organisation structure. If the span is more, there will be more authority levels and top management has to delegate authority to each level. Authority, means "the right to make decisions without having to obtain approval from a higher up." In an organisation structure, if the span and levels of management are more, the delegation of authority will be more and there will be decentralisation of authority for smooth functioning of tasks. If the span is narrow, less levels and more centralisation of authority. Thus delegation of authority decides the organisation structure. The specialised job designs will have narrow spans, homogenous departments, little control, little authority and small structure will be designed. Job designs with less or no specialisation will have heterogeneous departments, more spans of management, more delegation of authority and forms a complex organisation structure. Although these are the factors which decide the organisation structure, research and experience have shown that performance, attitudes, satisfaction and other factors also influence the structure. Which of the following factors influence the structure of an organization quizlet?The number of employees influences the structure of an organization. Organizational structure is a consequence of both the division of and the coordination of labor, which results in a formal set of interrelated and interdependent roles and work groups.
What are the factors that affect the structure?Factors Affecting Organization Structure. Strategy: Strategy determines a course of action to direct various organizational activities. ... . Technology : The technology for manufacturing goods and services also affects the organization stricture. ... . People: ... . Tasks : ... . Decisions: ... . Informal organization: ... . Size: ... . Environment:. What are the 4 types of organizational structures?What Are Some Types of Organizational Structures? The four types of organizational structures are functional, multi-divisional, flat, and matrix structures.
What are the 3 aspects of structure of organization?Structure is composed of three components: complexity, formalization and centralization. Discuss each of these components. Complexity is the degree to which activities within the organization are differentiated.
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