Engineering Management

MCE 4521

Professor Dr. Mohammad Zoynal ABEDIN

abedin.mzoynal@duet.ac.bd
+88 01829 311 650

Department of Mechanical Engineering

Dhaka University of Engineering and Technology, Gazipur
www.duet.ac.bd
 Division of Management Structure into Elemental Functions
Six General Building Blocks of
Structure:
1) Chain of Command
 Basic elements of an organizational
structure which is exactly what it sounds
like as:

 An unbroken line of authority that extends

from the top of the organization (e.g. a
 Chain of way down to the bottom.
CEO) all the
command
clarifies
who reports
to whom
within the
organizatio
n.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
2) Span of Control
 It refers to the number of subordinates, a
superior can effectively manage.
 The higher the ratio of subordinates to
superiors, the wider the span of control.
 It has two types: Wide span of control and
narrow span of control

3) Centralization
 If decision-making power is concentrated at a
single point, the organizational structure is
centralized.
 If decision-making power is spread out, the
structure is decentralized.
 While a decentralized structure promotes a
more democratic decision-making process, it
can also slow down the decision-making
process, making it harder for organizations to
operate efficiently. 
Professor Dr. Mohammad Zoynal ABEDIN
Dept. of ME, DUET, Gazipur
HUM 4521
Engineering Management
Department of EEE
IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
4) Specialization
 It is also known as division of labor.
 It is the degree to which activities or
tasks in an organization are broken
down and divided into individual jobs.
 It has two types: High specialization
and low specialization.
 High specialization can be beneficial for
an organization, as it allows employees
to become “masters” in specific areas,
increasing their productivity as a result.
 However, low specialization allows for
more flexibility, as employees can more
easily tackle a broader array of tasks
(as opposed to being specialized for a
single task).
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
5) Formalization
 Similar to specialization, formalization deals
with how jobs are structured within an
organization.
 The key differentiator here is that
formalization also takes into account the
degree to which an employee’s tasks and
activities are governed by rules, procedures,
and other mechanisms.
 A formal organizational structure seeks to
separate the individual from the role or
position, as the role or position stays the
same regardless of who’s holding it. 
 An informal organization, on the other hand,
places more value on the individual.
 It allows for the evolution of a role or position
based on an individual’s preferences, skill set,
etc., and places less importance on what
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
team or department
Dept. of ME, DUET, Gazipur
that individual is part of.
Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
6) Departmentalization
 Departmentalization refers to the
process of grouping jobs together in
order to coordinate common activities
and tasks.
 If an organization has rigid
departmentalization, each
department or team is highly
autonomous, and there is little (or no)
interaction between different teams. 
 In contrast, loose departmentalization
entails that teams have more
freedom to interact and collaborate.
 For example, an organization that
departmentalizes by function (i.e.
marketing, sales, services), is said to
have a functional organizational
structure.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
Seven Common Specific Structures
1. Functional Organizational Structure:
 One of the most common types of organizational
structures, the functional structure departmentalizes an
organization based on common job functions.
 The functional structure allows for a high degree of
specialization for employees, and is easily scalable
should the organization grow.
 It is mechanistic in nature -- which has the potential to
inhibit an employee's growth -- putting staff in skill-
based departments can still allow them to delve deep
into their field and find out what they're good at.
Disadvantages
 It has the potential to create barriers between different functions -- and it can be
inefficient, if the organization has a variety of different products or target markets.
 The barriers created between departments can also limit peoples' knowledge and
communication with other departments, especially those that depend on other
departments to succeed.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
2. Product-Based Divisional
Structure
 A product-based divisional structure --
each division within the organization
is dedicated to a particular product
line.
 This type of structure is ideal for
organizations with multiple products
and can help shorten product
development cycles.
 This allows small businesses to go to
market with new offerings fast.

Disadvantages
 It can be difficult to scale under a
product-based divisional structure,
and the organization could end up
with duplicate resources as different
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
divisions strive to
Dept. of ME, DUET, Gazipur
develop new
Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
3. Market-Based Divisional Structure
 It is based on around markets, industries, or
customer types.
 It is ideal for an organization that has
products or services that are unique to
specific market segments, and is particularly
effective if that organization has advanced
knowledge of those segments.
 It also keeps the business constantly aware of
demand changes among its different
audience segments.
Disadvantages
 Too much autonomy within each market-
based team can lead to divisions developing
systems that are incompatible with one
another.
 Divisions might also end up inadvertently
duplicating activities that other divisions are
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
already handling.
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
4. Geographical Divisional Structure
 It establishes the divisions based on geography
which can include territories, regions, or districts.
 It is best-suited to organizations that need to be near
sources of supply and/or customers (e.g. for
deliveries or for on-site support).
 It also brings together many forms of business
expertise, allowing each geographical division to
make decisions from more diverse points of view.

Disadvantages
 It can be easy for decision-making to become
decentralized, as geographic divisions often have a
great deal of autonomy.
 If it is more than one marketing department -- one
for each region -- you run the risk of creating
campaigns that compete with (and weaken) other
divisions across your digital channels.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
5. Process-Based Structure
 It is designed around the end-to-end flow of different
processes.
 Unlike a strictly functional structure, it considers not
only the activities employees perform, but also how
those different activities interact with one another.
 The customer acquisition process can't start until you
have a fully developed product to sell.
 By the same token, the order fulfillment process can't
start until customers have been acquired and there
are product orders to fill.
 It is ideal for improving the speed and efficiency of a
business, and is best-suited for those in rapidly
changing industries, as it is easily adaptable.
Disadvantages
 It can erect barriers between the different process groups which leads to problems
communicating and handing off work to other teams and employees.

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
6. Matrix Structure
 A matrix organizational structure doesn't follow the
traditional, hierarchical model. Instead, all employees
(represented by the green boxes) have dual reporting
relationships.
 Typically, there is a functional reporting line (shown in
blue) as well as a product- based reporting line (shown
in yellow).
 Solid lines represent strong, direct-reporting
relationships, whereas dotted lines indicate that the
relationship is secondary, or not as strong.
 It can provide both flexibility and more balanced
decision-making (as there are two chains of command
Disadvantages
 instead of just one).
It is complex process where the more layers of approval employees have to go
through, the more confused they can be about who they're supposed to answer to.
 This confusion can ultimately cause frustration over who has authority over which
decisions and products -- and who's responsible for those decisions when things go
wrong.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Division of Management Structure into Elemental Functions
7. Circular Structure
 It relies on hierarchy, with higher-level
employees occupying the inner rings of the
circle and lower-level employees occupying
the outer rings.
 The leaders or executives in a circular
organization aren't seen as sitting atop the
organization, sending directives down the
chain of command.
 Instead, they're at the center of the
organization, spreading their vision
outward.
 A circular structure is meant to promote
communication and the free flow of
Disadvantages
information between different parts of the
 The circular structure can be confusing, especially for new employees.
organization.
 Unlike with a more traditional, top-down structure, a circular structure can make it
difficult for employees to figure out who they report to and how they're meant to fit
into the organization.
Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE
Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur
 Thank you
for
your cooperation

Professor Dr. Mohammad Zoynal ABEDIN HUM 4521 Department of EEE

Dept. of ME, DUET, Gazipur Engineering Management IUT, Board Bazar, Gazipur