Forms of organization

PRESENTATION ON FORMS OF ORGANIZATION

By

ORGANIZATION• Collection of people working

together under a division of labour and a hierarchy of authority to achieve a common goal.

• It facilitate a greater accomplishment of work.

• Best utilization of human and material resources .

According to Mooney and Reily - “organization is the form of every human association for the attainment of a common purpose.”

organization

Identifying and grouping

of work

Defining and delegating

authority and responsibility

Creating good relationship

CooperatingEffective work performance

Achieving organizational

goal

Achieving personal goal

Example of a organization

FORMS OF ORGANIZATION

• Line organization

• Line and staff organization

• Functional organization

• Committee organization

• Project organization

• Matrix organization

LINE ORGANIZATION• Authority flows vertically in hierarchical

order.

• Authority flows from top to bottom/lower level of management.

• Responsibility flows from lower to top level.

• Greatest decision making and authority persons are located at the top and least are at the bottom.

• It shows horizontal or vertical unbroken lines.

• Unbroken lines shows formal path of communication or authority deligation

• Used in military organization.

TOP LEVEL

MIDDLE LEVEL

BOTTOMLEVEL

AUTHORITY

RESPONSIBILITY

TYPES OF LINE ORGANIZATION

1. PURE LINE ORGANIZATION

All person at particular level perform same type of work.

Purpose of division – direction and control

Found in modern industry.

Exist in very small business units.

2. DEPARTMENTAL LINE ORGANIZATION

Activities divided into separate departments.

Heads of each departments control and command by top boss.

Heads have sufficient autonomy in work.

Example of line organization

President of India

Defense minister

Air force chief Army chief Navy chief

Air force staff Army staff Navy staff

LINE AND STAFF ORGANIZATION• It deals with authority relationships.

• Staff refers to those elements of the organization that help the line to work most effectively in accomplishing the primary objectives of organization

• Specialist support lo line managers

• Use of scalar principle

• Staff advice is critical as they have specialised knowledge in their area.

• Nature of staff-advisory

example

Functional organization

• A functional organization is design groups of people on the basis of common skills and expertise or resources they used.

OR • Grouping of job which

require same knowledge ,skill and resources.

Some examples

Committee organization• Some persons are pooled

together for collective thinking and critical analysis on some issues to arrive on some common decision.

• It has a chairman who conduct meeting.

• Decision taken on consensus basis.

• According to G.R.Terry A body of persons elected or appointed to meet on a organized basis for the discussion of dealing with matters brought before it.

Types of committee

• Permanent committee Work on permanent basis. longer duration Ex. policy planning committee,

Purchase committee

• Temporary committee Constituted for specific purpose. Work completed in short span of time Ex. Enquiry committee , Farewell

committee

• Executive committee Line committee Have authority to take decision and

executed them. Ex. Purchase committee

disciplinary committee

• Advisory committee Not have authority to take decision. Submit recommendations to higher

authorities. Ex. Quality improvement committee

• Formal committee Constituted after approval of higher

authority Ex. Advisory committee Coordination committee

• Informal committee Come up in existence without the

approval of higher authority Ex. fund rising committee, strike

management committee constituted by employees themselves without consulting their boss

Example of committee

Project organization• It is created when a enterprise takes up one or more projects.

• Project- a major work which is of specialised nature and completed within a stipuleted cost and time framework.

• It has its own separate fund, men, material machines and other resources.

• Project manager leads the project team.

• Separate accounts are maintained for every projects.

• Ex. Construction of new office building,construction of a new bridge.

some examples

Matrix organization• It is a rectangular grid that shows a vertical

flow of functional responsibility and a horizontal flow of product responsibility

• Combination of project organization and functional organization.

• It is created when an organization has a number of projects.

• It have duel authority structure.

• In this functional departmentalization commonly is combined with product groups on a project basis.

• Structure has formal , vertical as well as horizontal chain of command.

• Modified version of project organization

Matrix organization chart