UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

Introduction
Organisation structure is a basic framework within which the mangers’ decision
making behaviour takes place. Structure basically deals with relationships. Structure is
the pattern in which various parts or components are interrelated or interconnected.
Organization structure is the pattern of relationships among various components or parts
of the organization. This prescribes the relationships among various activities and
positions. Since the positions are held by various persons, the structure is the relationship
among people in the organization.
Design of basic structure involves such issues as how the work of organization will
be divided and assigned among various positions, groups, divisions, departments, etc., and
how the coordination necessary to accomplish total organizational objectives will be
achieved. Besides the formally established organization structure, people create
relationships independent of the formal relationships known as informal relationships or
informal organization. Thus organization structure should mean the totality of formal and
informal relationships. A good organizational structure is the pre-requisite for efficient
HRM. This is discussed in the following pages.
Formal Organization Structure
The formal structure is required as large number of people are associated in
achieving organizational objectives. All of them perform various functions which are
interdependent and interrelated. There should be a plan for systematic completion of the
work of each specialized, job so that the total activities accomplish common objectives.
Though an organization structure is required primarily to overcome the limitations of
individuals, it serves many purposes. The advantages of a good organizational structure
are as follows: