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ORGANISATION
STRUCTURE TYPES
IMPLICATIONS
CASE STUDY
LINE AUTHORITY:
Only direct, vertical
relationships between
different levels in the
firm.
There are only line
departments-
departments directly
involved in
accomplishing the
primary goal of the
organisation.
Suitable for Small org.
gives clarity and fast
decision making.
STAFF AUTHORITY:
STAFF POSITION: A
position intended to
provide expertise, advice
and support for the line
positions. It is also
known as functional
authority.
An organisation where
staff departments have
authority over line
personnel in narrow
areas of specialization is
known as functional
authority organisation.
MATRIX STRUCTURE:
Is a structure in which there is
more than one line of reporting
managers. Effectively, it means
that the employees of the
organisation have more than
one boss!
It is used in org. which have
diverse product lines and
services.
Employees work with
colleagues of different
departments who have their
expertise in different functions.
CEO
CMO COO CFO
Project
Mgr 1
Project
Mgr 2
Project
Mgr 3
KK
DIVISIONAL
STRUCTURE:
The organisation can have
different basis on which
departments are formed.
They are:
(i) Function,
(ii) Product,
(iii) Geographic territory,
(iv) Project and
(iv) Combination approach.
CEO(India)
President(South) President(North) President (East)
Chairman Britannia
industries
President(Bakery) President(Dairy) President(Drinks)
Director SSSVV
Project Lead
(ABC)
Project Lead
(NMBW)
Project Lead
(Campus Team)
So, we all know
whatever we need
to know…
Then let’s have
some real fun…
Under which org. structure would you
place this SSSVV’s org. structure?
You are the COO of SAI consultancy (Services At Instant) well known for providing
quality consultancy at the shortest time. Larry Page, former CEO of GOOGLE approaches
you to help the company get in a proper org. structure.
Till now he was having a product based divisional structure but the company was
missing the required synergy , leading to huge duplication costs and internal conflicts.
He has furnished you with all the details of the co. wrt products, functions, geographic
layout etc.(check the excel file) You are required to make a organisational structure for
GOOGLE so as to provide clear reporting, cost saving, synergistic and cohesive
communication.
CASE STUDY:-
Difficult it was, wasn’t it…
Imagine designing the org.
structure of Alphabet, the
parent company of
Google…
How many
communication, reporting,
accountability issues might
arise…
The organisation structure
of some of our favorites…
Microsoft case study,
Nadella turns around the
Org. structure…
Should the start-ups have a Organisation Structure???
If you want flexibility, Work from home innovative projects, Deadline independent
projects…
Then should you, as an entrepreneur have a structure which binds employees???
What kind of Organisation structure would you choose/create/adopt for your startup?
A CASE STUDY:- How HOLACRACY is changing the startup structures!!!
&
Holacracy is a new way of
structuring and running your
organization that replaces the
conventional management
hierarchy.
Instead of operating top-down,
power is distributed throughout
the organization, giving
individuals and teams more
freedom to self-manage, while
staying aligned to the
organization’s purpose.
SUPER CIRCLE- This
contains sub circles, eg;
Marketing
SUB CIRCLE- Each is
dedicated to a function, this
could be Digital Advertising.
ROLE- This are the tasks
given to the team. This
could be taking care of one
campaign.

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Organisation Structure Types & Implications

  • 2. LINE AUTHORITY: Only direct, vertical relationships between different levels in the firm. There are only line departments- departments directly involved in accomplishing the primary goal of the organisation. Suitable for Small org. gives clarity and fast decision making.
  • 3. STAFF AUTHORITY: STAFF POSITION: A position intended to provide expertise, advice and support for the line positions. It is also known as functional authority. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation.
  • 4. MATRIX STRUCTURE: Is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organisation have more than one boss! It is used in org. which have diverse product lines and services. Employees work with colleagues of different departments who have their expertise in different functions. CEO CMO COO CFO Project Mgr 1 Project Mgr 2 Project Mgr 3 KK
  • 5. DIVISIONAL STRUCTURE: The organisation can have different basis on which departments are formed. They are: (i) Function, (ii) Product, (iii) Geographic territory, (iv) Project and (iv) Combination approach. CEO(India) President(South) President(North) President (East) Chairman Britannia industries President(Bakery) President(Dairy) President(Drinks) Director SSSVV Project Lead (ABC) Project Lead (NMBW) Project Lead (Campus Team)
  • 6. So, we all know whatever we need to know… Then let’s have some real fun… Under which org. structure would you place this SSSVV’s org. structure?
  • 7. You are the COO of SAI consultancy (Services At Instant) well known for providing quality consultancy at the shortest time. Larry Page, former CEO of GOOGLE approaches you to help the company get in a proper org. structure. Till now he was having a product based divisional structure but the company was missing the required synergy , leading to huge duplication costs and internal conflicts. He has furnished you with all the details of the co. wrt products, functions, geographic layout etc.(check the excel file) You are required to make a organisational structure for GOOGLE so as to provide clear reporting, cost saving, synergistic and cohesive communication. CASE STUDY:-
  • 8. Difficult it was, wasn’t it… Imagine designing the org. structure of Alphabet, the parent company of Google… How many communication, reporting, accountability issues might arise…
  • 9. The organisation structure of some of our favorites… Microsoft case study, Nadella turns around the Org. structure…
  • 10. Should the start-ups have a Organisation Structure??? If you want flexibility, Work from home innovative projects, Deadline independent projects… Then should you, as an entrepreneur have a structure which binds employees??? What kind of Organisation structure would you choose/create/adopt for your startup?
  • 11. A CASE STUDY:- How HOLACRACY is changing the startup structures!!! &
  • 12. Holacracy is a new way of structuring and running your organization that replaces the conventional management hierarchy. Instead of operating top-down, power is distributed throughout the organization, giving individuals and teams more freedom to self-manage, while staying aligned to the organization’s purpose. SUPER CIRCLE- This contains sub circles, eg; Marketing SUB CIRCLE- Each is dedicated to a function, this could be Digital Advertising. ROLE- This are the tasks given to the team. This could be taking care of one campaign.