HCM 433 MANGEMENT AND ORGANIZATIONAL BEHAVIOUR.pdf

decentralisation, with activities integrated into autonomous product businesses with their own
product and market, and with responsibility for their profit and loss. According to Drucker, if
regional decentralisation is not possible then the organisation structure should be based on the
principle of functional decentralisation with integrated units having the maximum responsibility
for major and distinct stages of the business process.
The objectives of organizational Structure, according to Knight (1977), are as follows:
i) The economic and efficient performance of the organisation and the level of resource utilisation;
ii) Monitoring the activities of the organisation;
iii) Accountability for areas of work undertaken by groups and individual members of the
organisation;
iv) Coordination of different parts of the organisation and different areas of work;
v) Flexibility in order to respond to future demands and developments, and adapt to changing
environmental influences; and
vi) the social satisfaction of members working in the organisation.
According to Knight, these objectives provide the criteria for structural effectiveness. Structure,
though, is not an end in itself but a means of improving organisational performance.
3.1.2 Dimensions of Structure
According to Mullins (2000), the variables which determine the dimensions of organisation
structure can be identified in a number of ways but are usually taken to include the grouping of
activities, the responsibilities of individuals, levels of hierarchical authority (the scalar chain),
span of control and formal organisational relationships. The dimensions of structure can, however,
be identified in a number of ways. Child (1988) suggests six major dimensions as components of
an organisation structure which are as follow:
•allocation of individual tasks and responsibilities, job specialisation and definition;
•formal reporting relationships, levels of authority and spans of control;
•grouping together of sections, departments, divisions and larger units;
•systems for communication of information, integration of effort and participation;
•delegation of authority and procedures for monitoring and evaluating the use of discretion;
•motivation of employees through systems for appraisal of performance and reward. Mintzberg
(1979) suggests another approach to the identification of dimensions of structure; gives a set of
nine essential design parameters which form the basic components of organisation structure.
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