types organisation structure
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Organisation Structure
Forms Of Organisation Structure
Line Organisation Structure
Staff Organisation Structure
Functional Organisation Structure
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Organisations should aim at providingopportunities for human fulfillment ofambitions and values.
It would be in the fitness of things to sodesign the structure of the org. as toplace importance on the individual andhis work.
In the words of F.Kast & S.Roseenweig,Structure is the established pattern ofrelationship among the components or
parts of an Organisation.
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Organisation Structure refers to thepattern of relationships amongindividuals and department in an
organisation
Organisation Structure is the frameworkthrough which the organisation
operates.
Classification of organisation structureis based on various activities which are
grouped together to create departmentsand units & prescribing their relationshipsin the organisation.
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There are 7 types of Organisation Structure
Line
Line & staff
Functional
Divisional
Project
Matrix
Free-form
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Line Organisation Structure
Lines of authority and instructions arevertical, i.e. they flow from the top to thebottom.
The unity of command is maintained ina straight and unbroken line. It implies
that each subordinate receivesinstructions from his immediatesuperior alone and is responsible tohim only.
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All persons at the same level of org. areindependent of each other.
This structure specifies responsibilityand authority for all the positions limitingthe area of action by a particular positionholder.
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Line & Staff Organisation Structure
Refers to a pattern in which staff specialists
advise managers to perform their duties.
Staff managers provide advice to the linemanager who are generally specialists in thefield.
Staff positions are purely advisory in nature.They have a right to recommend but have noauthority to enforce their preference on other
dept.
The line executives are the DOERS orcommanders, where as, the specialists are
the THINKERS or advisors.
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GMSecretary PRO
Manager-Finance Manager-Personal
Manager Production
Production Engg.
Foreman
Workers
Manager Marketing
Sales Officer
Sales Supervisors
Salesmen
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ADVANTAGES
Planned Specialisation
Quality Decisions Prospect for Personal Growth
Training Ground For Personnel
DISADVANTAGES Lack Of Well Defined Authority
Line & Staff Conflicts
Suitability
Not suitable for small org. as it is quite
costly for them.
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Functional Organization
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Functional structure is created by grouping theactivities on the basis of functions required forthe achievement of organisational objectives.
Functions classified into Basic, Secondary
& Supportive functions according to their
nature and importance.
E.g. of basic functions would be production,marketing, in manufacturing organisation.
Authority relationships in functional structuremay be in the form of line, staff & functional.
Ch t i ti f f ti l t t
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Characteristics of functional structure:
Specialization by functions
Emphasize on sub goals
Pyramidal growth of the organization
Line and Staff organisation
Functional authority relationships among
various departments.
Limited span of management and tallstructure.
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MD
Marketing manufacturing Finance personnel
Functional Organization
ADVANTAGES
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ADVANTAGES:
Result into high degree of specialization
Brings order & clarity in the org.
Promotes professional achievements,provides satisfaction to the specialist.
Resources can be saved
High degree of control and coordination of
functions.
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DISADVANTAGES:
Judging the performance of each dept is
difficult.
Slow Decision Making process
Lack responsiveness necessary to cope up withnew & rapidly changing work requirements.
Offers usually line & staff conflict &interdepartmental conflict and results ininefficiency.
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Suitability
Required when small org. grows &
business activities become more &
more complex.
Works better if org. has one major
product or similar product line.
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The Difference Between WhatTo Do And What We Are
Capable Of Doing WouldSuffice To Solve Most Of The
Worlds Problems.