The Basic Parameters Of Organisational Design

Organizing provides the basic framework of management, the root structure upon which the succeeding planning, executive and supervisory functions can be built in accordance with the policy principles. 

The organisational structure of.any pattern implies the essence of certain relationship between individual members, group of members, environment, society and with other organisations. 

The organisational interaction between individuals depend on following : 

1. The actual time required to take decisions and their communication,  
2. The relative geographical hierarchical distance between interacting individuals and hence ,he  time/effort required for effective communications, 
3. The complexity and varieties of communication and their purposes, and 
4. The personal character and emotional stabilities of the concerned individuals. 

The total combination of effective primary and secondary relationships that must arise between interacting persons increases in geometrical progression with the number of involved persons as shown in Figure. 

 Basic Relationships 

It can be realized that there is a practical limitation on to the number of relationships, a normal human being can attend to at a particular point of time on one-to-one basis.  Hence, there must be a definite limit to the span of responsibility/control. According to Peters and Water man, the optimal group size is about seven persons. If there are more than seven persons in an organisation, some form of hierarchical relationship has to be designed for productive communication. 

Four distinct types of relationships are recognized as significant. These can be 

Direct 

These  relationship exists directly between employee/supervisor and the operative/subordinate. It involves giving instructions and obligation to carry them out. 

Lateral 

Relationships existing between members at the same rank in an organisation who are answerable to the same supervisor. It is reciprocal in nature. 

Functional 

Functional relations, e.g. relationship  between a specialist and other generalists in an organisation. The specialist exercises only limited authority over others,  concerning only the area of his specialization, 

Staff 

This relationship is between higher levels of management which does not involve any delegation of authority and responsibility; and is only advisory in nature.