Some of the important forms of organisation are:
1- LINE ORGANISATION
- Represents a direct vertical relationship through which the authority flows.
- This is the oldest and simplest form, known as a chain of command or scalar principle.
- The flow of authority is from top to the lower levels.
- Each person is in charge of everyone under him, and he himself is accountable and responsible to his superior only.
- Here, one person delegates authority to his subordinate who in turn delegates to his subordinate and so on.
- This organisation structure is called Line organisation because authority and responsibility flow in an unbroken straight line.
- Military establishments follow this kind of structure.
Types of Line Organisation
- Pure Line Organisation
- All people at a given level, perform work of the same type.
- The divisions are created only for the purpose of direction and control.
- Divisions based on departments are made only for the sake of convenience and control. All the workers here perform the same type of work.
- Departmental Line Organisation
- This structure splits up the enterprise into different departments, which are suitable for control purposes.
- The whole organisation may be under the control of a chief executive, who may be called the General Manager.
- Different departments are put under the control of different departmental managers. Each departmental manager gets orders straight from the general manager
The advantages of this structure include its simplicity, effective communication and its quick decision making. Its disadvantages include its lack of specialisation, instability and favouritism in the part of officers.
2- FUNCTIONAL/STAFF ORGANISATION
- In this type of organisation structure, the task of direction and management of the subordinates should be divided according to the type of work involved.
- All the activities in the organisation are combined together according to certain functions like personnel, marketing, production, finance etc. and are put under the charge of different specialised supervisors.
- All the workers in the organisation, concentrating on a specific function are put under the charge of a person managing that function.
- The person in control of a function is a specialist in it and brings out the best in himself for the organisation.
- The concept of the functional organisation was developed by F W Taylor.
Taylor suggested the division of supervisory functions into 2 groups
- Office Specialists - concerned with design, scheduling, recording and planning of work. It consists of :
- Route Clerk - responsible for planning the route from which work will pass from machine to machine.
- Instruction Card Clerk - records instructions for doing every piece of work.
- Time and Cost Clerk - lays down the standard time for completing a particular work and records the time actually taken for completing a job.
- Disciplinarian - ensures the implementation of several rules and regulations and also maintains discipline in the organisation.
- Shop Specialists - guide and supervise work in the factory.
- Gang Boss - ensures adequate work for workers and sees that the necessary tools are available. Also ensures that the work is completed at the earliest.
- Speed Boss - determines the speed at which work should go on. Ensures that the work is completed at standard time.
- Repair Boss - ensures machines and tools are maintained in proper condition.
- Inspector - ensures work is done according to the prescribed standards and qualities.
Advantages of this organisation structure include specialisation of work, its flexibility, better supervision is available etc. Its disadvantages include the conflict of authority, lack of coordination between the specialists etc.
3- LINE & STAFF ORGANISATION
- Line organisation is autocratic and the staff organisation has loose control. Line & Staff organisation together eliminate the drawback of both and also has the merits of both.
- It is a positive blending of line and staff organisations.
- The line manager is vested with executive authority. He is responsible for making important decisions and is also accountable for their effects. The authority flows from top to bottom i.e., vertically.
- Staff officers are experts in their fields. They are attached to line managers to advise them in their specialised area of expertise. The line officers may or may not depend upon the advice provided by the staff officers.
- Staff officers possibly are asked to suggest answers to various problems experienced by line officers.
Types of Staff
- Personal Staff - attached to individual line officers as their personal assistant or private secretary. The routine work of line officers is mostly handled by the personal staff.
- Specialist Staff - They provide service to the whole organisation. They are technically qualified in their area.
- General Staff - consists of persons attached to the key executives. They have a similar background as that of line officers.
Line vs. Staff
- Staff provides advice while Lines perform.
- Staff thinks while lines do.
- Staff has the power to recommend the line officers. Line is accountable and responsible for actual performance of work.
The advantages of this structure include better coordination, benefit of specialization, balanced decisions. The disadvantages may include, a conflict between line and staff personnel, lack of coordination and lack of responsibility.
4- COMMITTEE FORM OF ORGANISATION
- A number of persons come together to make a decision, decide a course of action, advise line officers on some matters.
- It is a method of collective thinking to attain a common judgement.
- A group or collection of competent persons pool their thoughts and ideas for a better and quicker decision making process.
Types of Committees
- Formal and Informal committees - If a committee is formed as a part of the organisational structure and is delegated some authority and duties, it is a formal committee. An informal committee may be called up by the manager to solve a particular issue or a situation. The manager may call specialists in each area to analyse and suggest suitable answers to certain problems.
- Advisory Committees - They advise the head of lines on certain problems. Line officers, if they face problems, can refer these to the committee. The committee after detailed enquiry and after gathering information will recommend a solution. The line officers have the power to either accept the recommendation as a whole, modify the recommendation or reject it.
- Line Committees - These committees have administrative or managerial powers. They help in planning companies policies and programmes, and also direct and control the activities of employees for achieving the goals of the organisation.
Advantages of this structure include the pooling of objectives, a better acceptance of decisions, better coordination and communication. Their disadvantages include delay in decision making, reach a compromise or consensus, domination by certain members etc.
5- MATRIX ORGANISATION
- Also called grid organisation.
- It is a combination of functional and product patterns of departmentation in the same organisation.
- It violates the principle of unity of command, as the employees here have two bosses - their functional departmental managers and their product managers.
- All employees are subject to a dual chain of command. They are accountable to their product as well as the functional line manager.
Advantages of this structure include direct and frequent contacts between experts, efficient allocation of specialists, better attention to employees. Disadvantages include the conflict between functional and product managers, imbalance of authority and power as well as time-consuming meetings.
6- PROJECT ORGANISATIONAL STRUCTURE
- It is temporary in nature, created to achieve specific results by assembling specialists from different functional areas.
- Under this structure, the project team focuses its entire resources, energy and time into a particular project.
- Once the task for which the team is formed is achieved, they go back to their respective departments.
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