Departmentalization of organizational structure

Organization is a mechanism or social system that enables people to live together and perform the activities collectively. Behavior is a series of activities that a person does. It is the sum total of human activities that could be observed by other. The activate can be working, talking, eating, sleeping etc. organizational behavior is the study and application of knowledge about how people, individual and groups act in organization. It does this by taking a system approach. It interprets people- organization relationship in terms of the whole person, whole group, whole organization and whole social system. Its purpose is to build better relationship by achieving human, organizational and social objective.
Organizational behavior is the study of individuals and their behavior with in the context of the organization in a workplace setting. It is an interdisciplinary field that includes sociology, psychology, communication and management. Organizational behavior is an academic discipline concerned with understanding, predicting, describing and controlling human behavior in an organizational environment. It has been involving from classical management theory into a complex school of thought and its continues to change in response to the dynamic environment and proliferating (growing) corporate culture in which today’s businesses operate.
According to Fred Luthans “organization behavior is the understanding, prediction and management of human behavior in organizations/” in the same way, Stephen P. Robbing and others expressed that “organizational behavior is a field of study that investigates the impact that individuals, groups and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.”
As indicated by Fred Luthans, Stephen P. Robbing and other’s definition of organizational behavior, we can say that organizational behavior deals with human behavior in organizational settings by systematically studying individual, group and organizational structure.
Organizational behavior studies three determinants (elements/ factors) which are given below.
1. Individual
2. Group
3. Structure
1. Individual: it is related with understanding of individual protection, attitude and motives.
2. Group : it is concerned with study of group and focusing its study on how people communicate each other and coordinate their activities among themselves in work group
3. Structure: organizational behavior is also concentrates on the structure of organizational structure.
Organizational Behavior is the key aspect to maintain and enhance interaction levels along with employees in the company. Other attributes like leadership, openness to discuss problems, challenge-initiatives are all tied in to this base concept of Organizational Behavior to help the business achieve its strategic and in some cases business objectives.
We can define it (organizational behavior) in short form like: organizational behavior studies about how people and group act with in the organization and how people behave under variety of condition.
Importance of Organizational Behavior
As we know that we are born, we live; work and most probably will die in an organization. We are doing each and every work and spending each moments with in the organization but may be we do not understand how people function, behave and interact, work among each other within these organizations.
We are studying many books and literatures related with economic, science, sociology anthropology, history and other many more. In the foundation, people create an organization and shape its mission and culture with few objectives and later more people join the organization. This new group of people adjust themselves within the existing organizational culture. Sometimes they also influence organizational culture by bringing new and unique skills to the organization. Sometimes they learn from each and at other times, external forces like competition, political and cultural changes compel them to learn new technical, communication or interpersonal skills. All these internal and external factors help an organization and its people to evolve to cope with the ever-changing world.
Currently, managers paid little attention to Organizational Behavior or soft skill training. The industrial revolution created the need for hard (technical) skills. People worked in the production line and were not required to think or interact to each other. However, things have changed; instead of standing behind the production lines, they now sit in front of a computer and control a robot who works in the production line. Now, people need more technical skills, but they also need skills to communicate and work within a group.
The great English poet Samuel Butler put it together more eloquently, “Any fool can paint a picture, but it takes a wise man to be able to sell it.” If the “fool” is the metaphor for hard skill then the “wise man” would be the soft skill; but the soft skill of the wise man is useless without the hard skill of the fool; the harmonizing of both skills sells the picture. Therefore, the study of Organizational Behavior is not considered popular psychological jargon used imprecisely to talk about personal problems anymore. A comparison between old and new organizations makes the picture clear.
Organizational behavior is the study of how organizations can be structures more effectively, and how several events in their outside situations effect organizations. Learning about organizational behavior in today’s business environment could help managers build up a better work related understanding of themselves and their subsidiary.
With this knowledge managers can achieve a successful career. Since a manager needs to get his job done by the others, to have an organizational behavior skills become a valuable talent.
As the environment of business is always changing, the role of the managers has become more sensitive. In order to know how to handle a new workforce, and deal with the complication of the new environment, the supervisors need to develop their information about attitude and behavior of individuals, and groups in organization. Now we know not only the hard skills is important for get the job done, soft skills are helps managers to do their job more effectively and efficiently
Organizational Structure
Organizational structure is precise and understood institutional rules and policies designed to provide a structure where various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company. In a centralized structure, decisions flow from the top down. In a decentralized structure, the decisions are made at various different levels. A good organizational structure can often spell the difference between a smooth operating organization and one in chaos. By establishing a hierarchical structure with a clear chain of command, companies are better able to streamline their operations.
In my opinion, organizational structure is a picture of the chain of command within any organization. It generally starts with the main person in-charge, such as a President or G.M. and normally ends with those on the bottom such as company representatives or office assistant.
Organizational structure is a configuration among authority, responsibility and accountability.
General Structure
Environment is force which is affecting the work of organization. Like: political, social, technological environment etc. basically, we can divide in two parts to the environment like inter and external. In the same way, environment is multi faces because it can make positive and negative effect.
Production and service can be done simultaneously (at the same time).
The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management.
An structure depends entirely on the organization’s objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. An organizational chart illustrates the organizational structure.
Importance of organization structure in organizational behavior (OB)
(Why should organizational behavior study the organization structure?)
Organizational structure defines how specific tasks and activities are assigned to their functional departments. Organizational structure involves how a business organizes, categorizes and delegates tasks to achieve a specific goal. A company’s organizational structure determines how business decisions are made and implemented at all levels of the business.
The importance of functional organizational structure is to provide order and accountability to an organization. By creating specific job categories for specific task the efficiency of the Labor needed to accomplish the task increases. It would not make sense to have your Accountants repairing pumps at your facility while your Maintenance staff shipped out product. Dividing the labor by function then adding employees to the organization by matching their skills with the function needed is the way an organization can experience the highest level of efficiency.
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.[1] It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.
An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual.
Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.
Hence, Organizational structure defines how specific tasks and activities are assigned to their functional departments. Organizational structure involves how a business organizes, categorizes and delegates tasks to achieve a specific goal. A company’s organizational structure determines how business decisions are made and implemented at all levels of the business. The importance of functional organizational structure is to provide order and accountability to an organization. By creating specific job categories for specific task the efficiency of the Labor needed to accomplish the task increases. It would not make sense to have your Accountants repairing pumps at your facility while your Maintenance staff shipped out product. Dividing the labor by function then adding employees to the organization by matching their skills with the function needed is the way an organization can experience the highest level of efficiency. An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.[1] It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions. Hence, The organizational structure required study in organization behavior.
Dimension (factor/element) of organizational structure
While making the organization structure, different element should be address by the manager like department, chain of comment etc.
1. Work Specialization (Division of work) of organizational structure
Describes the degree to which tasks in an organization are divided into separate jobs. The main idea of this organizational design is that an entire job is not done by one individual. It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.
2. Departmentalization of organizational structure
Organizational structure defines how specific tasks and activities are assigned to their functional departments. For example, sale representatives may be grouped within a sales department or division. While making the organization structure different element should be address by the manager like ; department, chain of command etc.
It is the basis by which jobs are grouped together. For instance every organization has its own specific way of classifying and grouping work activities.
Types of Departmentalization
1. Functional departmentalization: Grouping activities by functions performed. Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations.
Example:
2. Product departmentalization: Grouping activities by product line. Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line. LA Gear is an example of company that uses product departmentalization. Its structure is based on its varied product lines which include women’s footwear, children’s footwear and men’s’ footwear.
Example
3. Customer departmentalization: Grouping activities on the basis of common customers or types of customers. Jobs may be grouped according to the type of customer served by the organization. The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists. The sales activities in an office supply firm can be broken down into three departments that serve retail, wholesale and government accounts.
Example :
4. Geographic departmentalization: Grouping activities on the basis of territory. If an organization’s customers are geographically dispersed, it can group jobs based on geography. For example, the organization structure of Coca-Cola has reflected the company’s operation in two broad geographic areas – the North American sector and the international sector, which includes the Pacific Rim, the European Community, Northeast Europe, Africa and Latin America groups.
Example
5. Process departmentalization: Grouping activities on the basis of product or service or customer flow. Because each process requires different skills, process departmentalization allows homogenous activities to be categorized. For example, the applicants might need to go through several departments namely validation, licensing and treasury, before receiving the driver’s license.
Owing to the complexity of tasks and the competitive environment in which organizations operate, they often use a combination of the above-mentioned methods in departmentalization.
3. Chain of command
It is defined as a continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. There are three important concepts attached to this theory:
• Authority: Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.
• Responsibility: The obligation to perform any assigned duties.
• Unity of command: The management principle that each person should report to only one manager.
4. Span of Control
It is important to a large degree because it determines the number of levels and managers an organization has. Also, determines the number of employees a manager can efficiently and effectively manage.
5. Centralization and Decentralization

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