org. structure & hrm

7/28/2019 Org. Structure & Hrm

http://slidepdf.com/reader/full/org-structure-hrm 1/23

1

Organisational Structure

&

HRM

• Formal & Informal Organisation

• Tall & Flat Organisation structure

• Responsibility , Authority and Accountability

• Line & Staff Functions



2

Organisational Design & Organisational Structures

• Organisational Design : The determination of

organisational structure that is appropriate for

the strategy, people, technology and task of the organisation.

• Organisational Structures : The way in which

an organisation’s activities are divided,organised and coordinated.



3

Organizational Design

1. The Classical Approach – • Fredrick Taylor- (1911)

• “One Best Way to Accomplish the task”

• Henry Fayol – Principles of Management

• Max Webber- Bureaucracy



4

2. The Task-Technology Approach

Woodwards‟ Research :Classified org.

based on mode of technology

1. Unit

2. Mass3. Process



5

Woodwards’ Research

1. Unit:

• Manufactures custom made

products –

• Tailor made suit, turbine or

Avanti cars



6

The Task-Technology Approach

2. Mass:

• Manufactures would make

large-batch or mass produced products

• Refrigerator, TV, Fans

• Ford Motors



The Task-Technology Approach

3. Process production:

• Heavily Automated Continuous

process providers

• Oils & Chemical refiners

• Reliance petrochemicals

AL JUBAIL

PETROCHEMICAL PLANT,

SAUDI ARABIA



3. The Environmental Approach

• Burns and Stalker Studied 20 org. to determine how their

org. structure & managerial practices

might differ based on differentenvironmental conditions.

• They found org. structure found indynamic environment is very different

from org. structure found in static

environment.



The Environmental Approach

Mechanistic structures - a form of organization that

seeks to maximize internal efficiency• They performed – routine task

• Slow in responding to unfamiliar

Organic structure – an organization form thatemphasizes flexibility & adaptiveness

• people work more as teammates than assubordinates

• Influence based on knowledge than authority• Loosely defined responsibilities

• Emphasis on exchanging information than givingdirections



Comparing Mechanist & organic structure

Characteristics Mechanist Organic

Task Definition Rigid Flexible

Communication Vertical Lateral

Formalization High Low

Influence Authority Expertise

Control Centralized Diverse



Formal & Informal Organisations

1. Formal Organisation:

• Set-up of roles for the achievement of organisationgoals

• Reporting channels and job description is rigid

• Accountability and responsibility are fixed

2. Informal Organizations• Formation is ad-hoc and follows no structure

• They generally share same interest, ideas or

information.

• They donot contribute directly to organisationsgoals.



Span of Control of 4:Total employees = 4096

Managers at levels 1-6 = 1365

Span of Control of 8:Total employees = 4096Managers at levels 1-4 = 585

Difference in managers equals 780.

1

8

64

512

4096

1

4

16

64

256

4096

1024

Span of Control

Defines the number of people that one person willsupervise. There may be a narrow span or a wide span of

control.

Tall & Flat Org. Structure



Span of Control

1

4

16

64

256

1024

4096

1

8

64

512

4096

Span of 8

Span of 4

Members at each level

Managers = 1365

Managers = 585



Matrix Structure



Network Structure

• Workers or worker groups contribute tomultiple organizationaltasks

• Work groups are

reconfigured when thetasks change

• Relationships amonggroups are governedby the requirements of

the task



Responsibility, Authority & Accountability

• Responsibility: One’s obligation to perform the

function assigned to the best of one’s ability inaccordance with directions received.

• Key principles to be considered :

• Delegation should improve org. working

• No two employees should be assigned the sameresponsibility

• The boundaries of the responsibility should be

fixed.

• Org. cannot afford gap in the delegation chain.



Authority

• Authority:• It refers to the right to give orders

and the power to exact obedience

from others in the process of

discharging duties

• It enables managers to act, exert

influence and make decisions in

carrying out their responsibilities.



Accountability

• An employee‟s answerability on

using the authority in discharging a

responsibility is termed as

accountability.



Line & Staff Functions

• Line function: The department or

employees of the firm that performscore activity that contributes to its

business directly.

• Staff Functions: The department or

employees of the firm that performs

a support function that contributes toits business indirectly.



Line & Staff Conflict• Expectations & complaints from line :

1. HR staff don't see the whole picture2. HR Staff try to steal the lime light

3. HR doesn‟t provide the right support.

• Expectations & complaints from staff :

1. Line function is prejudiced & biased

2. Doesn‟t understand importance of developing the employees

3. Doesn‟t value contribution of HRD



The role of HRD in an organisation

Specialist

Controller

Change

Agent

Facilitator

HRD



HRM & other Org. Functions

Products

Techn-

ology

Marketing

Production

HRM

S



HR Strategy ABB

To build value,

performance and

leadership into ABB,responsibility, respect and

determination are key

Assuming responsibility, and acting with respect and determination

makes it possible to nurture

ABB‟s traditional strengths – our technology leadership, our

pioneering spirit and our ability to be at home everywhere. That is our

legacy, and our future.

„3S‟ (System, Speed, Spirit) Management Philosophy at ABB India.

Café – HR part of SAP HR module, serves as an employee self service

portal:

• Payroll management, Leave & Attendance management etc

org. structure & hrm

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