Designing a Organisational structure of a botteled mineral water company for which I am the owner.

Organizations can be regarded as people management systems. They range from simple hierarchies along traditional lines to complex networks dependent on computer systems and telecommunications. Human resource managers can encourage organizations to adopt strategies (for their structures) which foster both cost-effectiveness and employee commitment. Organizational structures can be classified into a number of types, including functional, divisional, matrix, federations and networks. The organisational structure for my company would be as depicted in the diagram given below.

What is Centralization? The systematic and consistent reservation of authority at central point within the organisation is called centralisation of authority. The various activities of office are brought under the direct control of the office manager. What is Decentralization? A Decentralized organization is one in which decision making is not confined to a few top executives but rather is throughout the organization, with managers at various levels making key operating decisions relating to their sphere of responsibility. Decentralization is a matter of degree, since all organizations are decentralized to some extent out of necessity. At one extreme, a strongly decentralized organization is one in which even the lowest-level managers and employees are empowered to make decisions. At the other extreme, in a strongly decentralized organization, lower-level managers have little freedom to make decisions.

Interpretation for the following Organisational Structure In the following case, we follow a decentralized pattern of decision making where in the lower level management are authorised to take decision but for which they have to be approved by me the owner and Managing Director. The reason because of the following pattern is due to several departments and Top management is relieved of much day-to-day problem solving and is left free to concentrate on strategy, on higher level decision making, and coordinating activities.