This document discusses different types of organizational structures. It defines organizational structure as the framework for how managerial and operating tasks are arranged. The main organizational structures covered are: line structure, which focuses on vertical authority; functional structure, which divides the organization by specialty areas; line and staff structure, which combines line managers and specialist staff; matrix structure, with dual lines of authority for functional areas and projects; and committee structure, where decisions are made by groups. Each structure is defined and its advantages and disadvantages are outlined.

1. Organizational Structure
By:
Pooja Yadav,
Research Scholar
Central University of
Rajasthan, Ajmer
Satyender Yadav
Research Scholar,
UCCMS, MLSU, Udaipur

3. What is Organisation??
• Organisation is refers to a social groups designed to
achieve certain goals. Organisation involves creating a
structure of relationship among people working for the
desired results”.
CONCEPT OF ORGANISATION
Organisation refers to the institution
Organising is one of the functions of management

4. The Concept of
Organisational Structure
• Organisational structure can be defined as “the
logical arrangement of task and the network of
relationships and roles among the various positions
established to carry out the activities.
• Organisation structure constitutes the arteries and
veins through which the blood of work flows in the
body of Organisation.

5. Definition of Organisational
Structure
According to Fred Luthans,
“ Organisation structure represents the skeleton
framework for organisations”
According to Albert Herry H.,
“Organisational structure is the framework within
which managerial and operating tasks are
performed”.

6. Types of Organizational
Structure
Line Organization Structure
Functional Organisation structure
Line and staff Organisation structure
Matrix Organisation structure
Committee Organisation structure

7. 1. Line organisation Structure
Line organization is the simplest and oldest form of organization structure. It
is also known as Scalar, Military, or Vertical organization.

8. 1. Line organisation Structure
• In Line organization authority flows directly and vertically from
the top of the managerial hierarchy ‘down to different levels of
managers and subordinates and down to the operative level of
workers.
• Line organization clearly identifies authority, responsibility and
accountability at each level.

9. Line organization
Advantage Dis-advantages
Simplicity Lack of Specialisation
Discipline Absence of Conceptual Thinking
Prompt Decisions Autocratic Approach
Orderly Communication Problems of coordination
Easy Supervision & Economical Delays in communication, limited
freedom to employees
Suitability:-
It is suitable to small-scale organizations where the number of subordinates is
quite small.

10. 2. Functional Organisation STRUCTURE

11. 2. Functional Organisation STRUCTURE
• The functional organization was evolved by F.W. Taylor.
• According to Terry, “Functional organization refers to
the organization which is divided on the basis of number
of functions such as finance, production, sales,
personnel, office and research and development and each
of functions are performed by an expert”.

12. Functional Organisation
Advantages Dis-advantages
Facilitates specialization Slow decision making
Clarity in functioning Costly
Control and Coordinate Hampers interdepartmental
communication
Operational flexibility Unclear processes and strategies for
different markets or products in a
company
Ensures effective supervision
Suitability:
The establishment of functional organisation structure becomes necessary as
a small organisation grows and business activity becomes more and more
complete

13. 3. Line and Staff Organization STRUCTURE

14. 3. Line and Staff Organisation structure
• In the line and staff Organisation, line executives and staff
(specialists) are combined together. The line executives are
'doers’ whereas staff refers to experts and act as 'thinkers'.
The adjacent chart shows line and staff Organisation
structure
• SUITABILITY: It can be followed in large organizations
where specialization of activities is required, because it
offers ample opportunities for specialization

15. 3. Line and Staff Organisation structure
Advantages Dis-advantages
Less burden on executives Delay in decision-making
Services of experts available Conflicts between line and
staff executives
Sound decision-making
Training opportunities to
employees
Benefits of specialization

16. 4. Matrix Organisation structure

17. 4. Matrix Organisation structure
A matrix organization, also referred to as the “multiple
command system” has two chains of command.
One chain of command is functional in which the flow of
authority is vertical.
The second chain is horizontal depicted by a project team,
which is led by the project, or group manager who is an expert
in his team’s assigned area of specialization.

18. 4. Matrix Organisation structure
• The organisation is divided into different functions, e.g.
Purchase, Production, R & D, etc. Each function has a
Functional (Departmental) Manager, e.g. Purchase
Manager, Production Manager, etc.
• The organisation is also divided on the basis of projects e.g.
Project A, Project B, etc. Each project has a Project
Manager e.g. Project A Manager, Project B Manager.
• Matrix organisation structure is essentially a violation of
unity of command.

19. 4. Matrix Organisation structure
Advantages Dis-advantages
Sound Decisions Increase in Work Load
Development of Skills High Operational Cost
focuses on end results Absence of Unity of Command
Specialisation Absence of Unity of Command
Suitability:-
It can be applicable where there is a pressure for dual focus, pressure for
high information processing, and pressure for shred resources.

20. 5. COMMITTEE ORGANISATION
STRUCTURE

21. 5. COMMITTEE ORGANISATION
STRUCTURE
Committee can be defined as a group of organisational
members who discuss and develop solutions to problems.
The purpose of such committees is to discuss various
problems and recommend solutions to the management.
The Board of Directors of a company is an example of a
committee organisation.

22. 5. COMMITTEE ORGANISATION
STRUCTURE
Advantages Dis-advantages
Pools up the Organisational
resources in terms of knowledge
skills and experience
Slow decisions/ Time consuming
Effective co-ordination Most Expensive
Effective Communication Difficult to maintain secrecy
Motivation through participation of
employees
No Accountability. A committee
decision is nobody's decision just
because it is everybody's decision

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