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.