University Of Palestine IT Planning & Management Organization Structure

1. University Of PalestineIT Planning & ManagementOrganization Structure Supervisor By:Yassmeen EL Bobo Prepared By : Moamer.T.Sawafiri 120050144

2. Content • Introduction • What is an organization structure? • Centralized and decentralized structure • Components of structure • Why should it have a structure ? • Six key elements define an organization structure • Ways to structure an organization • Advantages/Disadvantages of different types of organization structure

3. Introduction • Organizations are structured in a variety of ways, dependant on their objectives and culture. The structure of an organization will determine the manner in which it operates and it’s performance. Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees. • The wrong organization structure will hinder the success of the business. Organizational structures should aim to maximize the efficiency and success of the Organization. An effective organizational structure will facilitate working relationships between various sections of the organization. It will retain order and command whilst promoting flexibility and creativity.

4. What is an organization structure? • Formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocatesrights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how informationflows between levels of management. This structure depends entirely on the organization'sobjectives and the strategy chosen to achieve them.

5. Centralized and decentralized structure • In acentralizedstructure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. • In adecentralizedstructure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy.

6. Components of structure Components of structure • Grouping of people into teams or departments • Allocation of activities and responsibilities • Reporting lines and the number of subordinates that report to a boss • Lines of communication • Monitoring of performance and design of reward systems

7. why should it have a structure ? • All businesses have to organise what they do • A clear structure makes it easier to see which part of the business does what

8. Six key elements define an organization structure • Work Specialization Describesthe degree to which activities in the organization are subdivided into separate jobs • Departmentalization Basis by which jobs are grouped together • Function • Product • Geography • Process • Customer

9. Cont. • Chain of Command Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom • Span of control • Determines the number of levels and managers an organization has • Trend in recent years has been toward wider spans of control • Wider span depends on employees knowing their jobs well

10. Cont. • Centralization and Decentralization • Centralization - degree to which decision making is concentrated at a single point in the organization • Highly centralized is when top managers make all the decisions • More decentralized is when front line employees and managers make decisions • Formalization • Degree to which jobs within the organization are standardized

11. Ways to structure an organization There are many ways to structure a business • By function: arranging the business according to what each section or department does • By product or activity: organising according to the different products made • By area: geographical or regional structure

12. Ways cont.. • By customer: where different customer groups have different needs. • By process: where products have to go through stages as they are made.

13. Functional structure Advantages Specialisation – each department focuses on its own work Accountability – someone is responsible for the section Clarity – know your and others’ roles Functional structure Disadvantages Closed communication could lead to lack of focus Departments can become resistant to change Coordination may take too long Gap between top and bottom Advantages/Disadvantages of different types of organization structure

14. Functional structure example • Functional structure

15. Advantages Clear focus on market segment helps meet customers’ needs Positive competition between divisions Better control as each division can act as separate profit centre Disadvantages Duplication of functions (e.g. different sales force for each division) Negative effects of competition Lack of central control over each separate division Organization by Product/Activity

16. Product activity example • Product activity

17. Advantages Serve local needs better Positive competition More effective communication between firm and local customers Disadvantages Conflict between local and central management Duplication of resources and functions Organization by Area

18. Organization by area example • Organization by area

19. Any Question? Thanks