Major keys for organizational designing includes the specialization of work, command chain, span of controls, and centralization along with decentralization, departmentalization, and also formalization. Previously the specialization of work was considered to be a way of dividing activity into varied tasks. But today it has been considered important for all organization and also a reason for leading problems. Companion of chain of commands include authority, responsibilities, along with unity of commands as they are meant for the maintenance of control in the organizations. But for a note these are of less relevance in today’s era for any organization. Span of control states that managers be able to handle five or six employees within a single hour. This solely depends upon skills and ability of each manager and what situation the current organization is going through.
Forms of the departmentalization includes: functional group responsible for various functions, product group for maintaining the line of product, geographical for regions in geographic, process for maintaining the product flow, customer group is for unique number of customers.
Whereas on the other hand the authority is meant for making people inherit the properties of being engaged in a job of how to do and ask what to do. The views of authority have stated that it comes from its subordinate’s willingness. Line authority is for manager’s directions for employees work. Staff authority is meant for the functioning and support to reduce the burden of managers. Responsibility is one of the expectations for performing various duties. Other than this the unity of commands says that any person being under problem should directly contact their managers. Making decisions on structure include centralization and decentralization. This is done with lower and upper level manager’s help. Making use of standardized rules for perfect consistency and controlling of work is referred to formalization.
It is a fact that mechanistic organizations are rigid and also tightly controllable structure, whereas a highly flexible organization is organic organizations.
It is a well-known fact, that whatever be the organizations structural designing it should also support the strategy. In case of any changes made to the strategy the structure simultaneously transforms. Size of organizations affects their center point. When the number of employees within organization becomes 2000 then it falls under mechanistic organization and also is affected by its technology. On the other hand the organic organization is one that is affected by its production of units and processes productions. Mass production makes the mechanistic structure even more effective. When the environment of the organization becomes more flexible then it gets designed with organic designing.
One of the simplest structures is one that has lowest departmentalization, wider span of controlling, centralized form of authority for one person, and less of formalization. Functional structures of similar or even of related groupings occupy special positions on a contrary note the divisional units are made of separate units of business.