MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Welcome to the session on Components of Organizational Design.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

In this session, we will understand about the components of organizational design.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

There are six elements of organizational design that can affect how employees and managers interact and divide primary duties.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

1. Work Specialization

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Work specialization is a process that assigns each professional to a specific task.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

When using work specialization, management professionals often assign tasks to the employee who is best suited for it.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

This means the professional's work history, skill set and education align with the task.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Work specialization allows an employer to focus less on training and redirect his energy and resources to other company needs.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

For example, factory and warehouse companies use work specialization for assembly line workers.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

In a factory that specializes in making gift baskets, one professional may arrange the decorative paper in the basket, while another professional adds fruits to the basket.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

2. Departmentalization and Compartments

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Departments and Compartments are teams of professionals within a large company.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

This component of organizational design allows each compartment or department to focus on a specific task the professionals in each group work together to achieve.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Compartments refer to teams of professionals who each are from a different career path and specialty.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

These professionals each use their own talents to help complete the project.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

For example, when a film company wants to produce a new movie, they hire a director, a photographer, a costume designer, a musician and other professionals to make the film.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Departments refer to groups of professionals of a similar skill set within a company.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Each of these professionals usually has the same primary duties and uses similar practices to meet the same goal.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

For example, a company's accounting department all work to manage the company's finances and taxation records using the same methodologies and practices.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

3. Formalization of Elements

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Formalization specifies the relationship and roles within a company.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Larger companies often have a more distinct formalization of primary roles than smaller companies.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

This is because employees may fill multiple roles in a smaller company.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

For example, in a neighborhood pizza shop, the manager may be responsible for food preparations besides his leadership responsibilities.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Formalization of Elements also can clarify workplace roles such as how many breaks an employee can take during their shift.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Because these elements can shape workplace culture, it is important to consider them carefully when crafting a company's organizational design plan.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

4. Centralization and Decentralization

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Centralization and Decentralization refers to the senior levels of employees who can influence a company's decisions.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Each company rests somewhere on a scale of centralization.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

For example, with centralization, some companies give the senior level of professionals complete influence over the decision-making process.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

However, with decentralization, a company may seek the input of lower-level employees as well.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Allowing more employees to influence company practices can give employees a stronger sense of pride and satisfaction in their work.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

But allowing only senior staff members to steer their input can be more time-effective.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

5. Span of Control

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Leaders can be more successful when they manage an appropriate number of employees.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Span of Control is an element of organizational design that accounts for the number of people a leader supervises and the tasks they handle.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Clarifying a specific span of control can ensure managers can handle all their tasks while observing daily operations and monitoring the progress of their designated team members.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

The ideal span of control can depend on a variety of factors including workplace size, manager abilities, company goals, company structure, leadership style.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

6. Chain of Command

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

The chain of command of a company describes the business hierarchy and can affect workplace culture and the efficiency of work production.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

An organizational chart can visually portray each employee's place in the company hierarchy and the company may have a strict or flexible chain of command.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

With a strict chain of command, each employee has a direct supervisor with an exception for the chief executive officer.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

In a more flexible chain of command, the owner may be the highest point of contact.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Then a manager or two in the middle with the rest of the employees ranking under the managers.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

In this scenario, the lowest level of employees would report to the managers and the managers report to the business owner.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

So the elements of organizational design are explained in this chart.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

One, organizational structure, two, departmentalization, three, number of employees, four, chain of command and line of authority, five, levels and span of control, six, roles and responsibilities, seven, team charter.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Break for questions.

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S… Speaker 2 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Question number one.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

So the correct answer is coordination is not one of the key elements of organizational design because coordination is a function of management.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Today's organizations are a open system, b closed system, c open as well as closed, d complex system.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

The correct answer is today's organizations are open system because organizations influence and are influenced by the environment.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

In this session, we have understood about the components of organizational design.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Happy learning.

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S… Speaker 1 (MBA_OB_unit 5_week 13_seq2_Components of organisational design _pandian)

Thank you.

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