This document discusses different types of organizational structures. It describes line organization as having clear lines of authority with managers having direct control over subordinates. A line and staff organization adds specialist staff managers who advise but do not command line managers. Functional organization groups activities by specialized functions like production and marketing. Divisional structure divides a large organization into autonomous business units. Matrix structure uses a combination of functional and project-based authority. The document also discusses departmentation, or dividing organizations into departments based on factors like functions, products, territories, customers, and processes.

1. Aijaz Ahmed Rather
I.K Gujral Punjab Technical University

2.  Pattern in which various parts or
components of an organization are
inter-related or inter-connected
 Hierarchical arrangement of lines
of
authority, rights and duties of an
organization.
 Relationships among various
positions and activities in an
organization.

3.  Simplicity
 Flexibility
 Clear Line of Authority
 Unity of Direction and Command
 Proper Delegation
 Co-ordination

4. Line Organization
Project
Organization
Matrix Organization
Functional
Organization
Divisional
Organizational
Line & Staff
Organization

6.  Also Known as Military Organization.
 Simplicity-Every person accountable to only one boss.
 Clear lines of Authority-Managers have direct authority over
their respective subordinates
 Unity of Command
 Authority flows directly from Top to bottom.
 Each employee aware of their immediate superior.

8.  Modification of Line organization and more complex.
 Staff supervisors & specialists are attached to line of
command.
 They guide and advice line executives. However,
power of command remains with line executives.
 Example: Personal Security to Managing Director.

9. Line Managers
•Directly involved in
producing goods/services.
•They are not the experts.
•No conflict between
managers and sub-ordinate
due to rigid discipline.
•Example: Production floor
supervisors.
Staff Managers
•Support, help and advice
the line managers
•Experts who look into the
problem occurred.
•Conflict between staff and
line managers is always
possible.
•Example: Personal Secretary.

11.  All activities are grouped together according to functions like
production, marketing, finance and personnel and are put under the
charge of different persons.
 The work is divided into specialized functions.
 The superior specialist commands an authority and therefore gives
orders relating to his specific functions throughout the line.
 The specialist must be consulted before any decision is taken on
matter relating to his specialized area.

13.  Organization is divided into several fairly autonomous
units.
 Each unit is relatively self-sufficient and has the
resources to operate independently.
 Required for growth through geographic and product
diversification.
 Example: Reliance- Mining & Oil, FMCG, Telecom

15. • Consists of the core of functional
departments; though main units are specific
programs/projects.
• Provision to disband it after project is
accomplished.
• Suitable in accomplishment of a small
number of large projects.
• Example: R&D of recently launched drug.

17.  Used mainly in the management of large projects or product
development process
 Report on day-to-day performance to the project manager
whose authority flows sideways (horizontally) across
departmental boundaries.
 Report on their overall performance to the head of their
department whose authority flows downwards (vertically) within
his or her department
 Multiple Command and control structure.

19.  Means of dividing the large organization into
smaller flexible administrative units.
 Dividing and grouping the activities into various
departments. Grouping may be either on the basis
of similarity of work or efficiency of performance.
 The work units so formed are known as
departments, divisions or units.

20. Functions
Products
Territory
Customer
Process

21. Departmentation by Functions:
Activities are grouped on the basis of
functions. Example: manufacturing
(production , marketing , finance)
Departmentation by Products:
For each product manufactured, there is a
separate department to look after its
production sale and finance.

22. Departmentation by Territory:
• Used in assembly plants where identical activities
are performed at different work-centre.
Departmentation by Customer:
• Different groups on the basis of customer
differences. Example:-Railway has different
reservation system for Class- I and II
passengers.
Departmentation by Process:
• Applicable for companies where operations flow
in sequence. Example:- oil company has various
process-exploration, drilling, refining,
transportation.