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ORGANIZATION
BY:- SID G
MEANING OF ORGANISATION
 an organized group of people with a particular purpose,
such as a business or government department
 The process by which managers establish working
relationships among employees to Deliberate arrangement
of people to accomplish some specific purpose achieve
goals.
 An organization is an entity comprising multiple people,
such as an institution or an association, that has a
particular purpose.
Types of organisation
1. Line Organization
2. Line and Staff Organization
3. Functional Organization
 4. Project Organization
 5. Matrix Organization
CONTINUE…
 LINE ORGANIZATION:- Under this system, 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.
 LINE AND STAFF ORGANIZATION:-“Line functions are those which have direct responsibility
for accomplishing the objectives of the enterprises and staff refers to those elements of the
organization that help the line to work most effectively in accomplishing the primary
objectives of the enterprises.”
CONTINUE…
 FUNCTIONAL ORGANIZATION:- The functional organization was evolved by F.W. Taylor while he
was working as a foreman. He suggested eight foremen, four in factory and four in planning division as
under.
 Factory Division:
 (i) The gang boss,
 (ii) The speed boss,
 (iii) The inspector, and
 (iv) The maintenance or repair boss.
 Planning Division:
 (i) Route Clerk,
 (ii) Instruction card clerk,
 (iii) Time and cost clerk, and
 (iv) The shop disciplinarian.
CONTINUE…
 PROJECT ORGANIZATION:- This organizational structure are temporarily formed for specific
projects for a specific period of time, for the project of achieving the goal of developing new
product, the specialists from different functional departments such as production, engineering,
quality control, marketing research etc., will be drawn to work together. These specialists go back
to their respective duties as soon as the project is completed.
 MATRIX ORGANIZATION:- any organization that employs a multiple command system that
includes not only the multiple command structure, but also related support mechanism and an
associated organizational culture and behavior pattern
LINE AND STAFF ORGANISATION
 This type of organization structure is in large enterprises. The functional specialists are
added to the line in line and staff organization. Mere, staff is basically advisory in nature
and usually does not possess any command authority over line managers. Allen has defined
line and staff organization as follows.
 “Line functions are those which have direct responsibility for accomplishing the objectives
of the enterprises and staff refers to those elements of the organization that help the line
to work most effectively in accomplishing the primary objectives of the enterprises.”
 In the line and staff organisation, staffs assist the line managers in their duties in order to
achieve the high performance. So, in an organization which has the production of textiles,
the production manger, marketing manager and the finance manager may be treated as line
executives, and the department headed by them may be called line departments
CONTINUE…
 On the other hand, the personnel manager who deal with the recruitment, training and
placement of workers, the quality control manager who ensure the quality of products and
the public relations manager are the executives who perform staff functions.
 Here, it is better to see the type of staff, which may be in an organization.
 Type of Staff:
 The staff organizations mentioned above all has in common the fact that they are auxiliary to
the main functions of the business. There are, however, different types of staff.
 The three main divisions may be listed as:
 1. Personal Staff.
 2. Specialized Staff.
 3. General Staff.
CONTINUE….
 1. Personal Staff:
 Personal staff consists of a personal assistant or adviser attached to the line executive at any
level. His main function is to aid and advise the line executive as also to perform any other work
assigned to him.
 In business, the personal staffs is typified by the private secretary, who may keep the executive’s
personal check book, buy his Christmas presents and arrange his appointments. General or
business executives are given personal staff assistants on the same theory. Their time is too
valuable to be spent in handling the details of daily living.
 2. Specialised Staff:
 The specialised staff have expert knowledge in the specific fields. The specialised staff are those
that handle the specialised functions. For example, accounting, personnel, engineering and
research. It is now impossible for one man to familiarise himself with all the various specialities
needed in the modern large business.
ADVANTAGES…
 a. Line officers can concentrate mainly on the doing function as the work of planning and
investigation is performed by the staff. Specialisation provides for experts advice and efficiency
in management.
 b. Since the organisation comprises line and staff functions, decisions can be taken easily.
 c. The staff officers supply complete factual data to the line officers covering activity within and
without their own units. This will help to greater co-ordination.
 d. It provides an adequate opportunity for the advancement of workers.
 e. The staff services provides a training ground for the different positions.
 f. Adequate organisation a balance among the various activities can be attained easily.
 g. The system is flexible for new activities may be undertaken by the staff without forcing early
adjustments of line arrangements.
 h. Staff specialists are conceptually oriented towards looking ahead and have the time to do
programme and strategic planning and analyze the possible effects of expected future events.
DISADVANTAGES…
 a. Confusion and conflict may arise between line and staff. Because the allocation of authority and
responsibility is not clear and members of the lower levels may be confused by various line orders and staff
advices.
 b. Staff generally advise to the lines, but line decides and acts. Therefore the staffs often feel powerless.
 c. Too much reliance on staff officers may not be beneficial to the business because line officials may lose
much of their judgment and imitative.
 d. Normally, staff employees have specialised knowledge and expert. Line makes the final decisions, even
though staff give their suggestions. Staff officers, therefore, may be resented.
 e. Staff officers are much educated so their ideas may be more theoretical and academic rather than
practical.
 f. Although expert advice is available it reaches the workers through the managers. Here it is liable to
create a greater deal of misunderstanding and misinterpretation.
 g. Since staff specialists demand higher payments, it is expensive.
 h. The staff are unable to carry out its plan or recommendations because of lack of authority. So they
become ineffective sometimes, it will make them careless and indifferent towards their jobs.
 i. Since the line are performed, with the advise provided by the staff, if things go right then the staff takes
the credit and if things go wrong then the line get the blame for it.

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Organisation and types

  • 2. MEANING OF ORGANISATION  an organized group of people with a particular purpose, such as a business or government department  The process by which managers establish working relationships among employees to Deliberate arrangement of people to accomplish some specific purpose achieve goals.  An organization is an entity comprising multiple people, such as an institution or an association, that has a particular purpose.
  • 3. Types of organisation 1. Line Organization 2. Line and Staff Organization 3. Functional Organization  4. Project Organization  5. Matrix Organization
  • 4. CONTINUE…  LINE ORGANIZATION:- Under this system, 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.  LINE AND STAFF ORGANIZATION:-“Line functions are those which have direct responsibility for accomplishing the objectives of the enterprises and staff refers to those elements of the organization that help the line to work most effectively in accomplishing the primary objectives of the enterprises.”
  • 5. CONTINUE…  FUNCTIONAL ORGANIZATION:- The functional organization was evolved by F.W. Taylor while he was working as a foreman. He suggested eight foremen, four in factory and four in planning division as under.  Factory Division:  (i) The gang boss,  (ii) The speed boss,  (iii) The inspector, and  (iv) The maintenance or repair boss.  Planning Division:  (i) Route Clerk,  (ii) Instruction card clerk,  (iii) Time and cost clerk, and  (iv) The shop disciplinarian.
  • 6. CONTINUE…  PROJECT ORGANIZATION:- This organizational structure are temporarily formed for specific projects for a specific period of time, for the project of achieving the goal of developing new product, the specialists from different functional departments such as production, engineering, quality control, marketing research etc., will be drawn to work together. These specialists go back to their respective duties as soon as the project is completed.  MATRIX ORGANIZATION:- any organization that employs a multiple command system that includes not only the multiple command structure, but also related support mechanism and an associated organizational culture and behavior pattern
  • 7. LINE AND STAFF ORGANISATION  This type of organization structure is in large enterprises. The functional specialists are added to the line in line and staff organization. Mere, staff is basically advisory in nature and usually does not possess any command authority over line managers. Allen has defined line and staff organization as follows.  “Line functions are those which have direct responsibility for accomplishing the objectives of the enterprises and staff refers to those elements of the organization that help the line to work most effectively in accomplishing the primary objectives of the enterprises.”  In the line and staff organisation, staffs assist the line managers in their duties in order to achieve the high performance. So, in an organization which has the production of textiles, the production manger, marketing manager and the finance manager may be treated as line executives, and the department headed by them may be called line departments
  • 8. CONTINUE…  On the other hand, the personnel manager who deal with the recruitment, training and placement of workers, the quality control manager who ensure the quality of products and the public relations manager are the executives who perform staff functions.  Here, it is better to see the type of staff, which may be in an organization.  Type of Staff:  The staff organizations mentioned above all has in common the fact that they are auxiliary to the main functions of the business. There are, however, different types of staff.  The three main divisions may be listed as:  1. Personal Staff.  2. Specialized Staff.  3. General Staff.
  • 9. CONTINUE….  1. Personal Staff:  Personal staff consists of a personal assistant or adviser attached to the line executive at any level. His main function is to aid and advise the line executive as also to perform any other work assigned to him.  In business, the personal staffs is typified by the private secretary, who may keep the executive’s personal check book, buy his Christmas presents and arrange his appointments. General or business executives are given personal staff assistants on the same theory. Their time is too valuable to be spent in handling the details of daily living.  2. Specialised Staff:  The specialised staff have expert knowledge in the specific fields. The specialised staff are those that handle the specialised functions. For example, accounting, personnel, engineering and research. It is now impossible for one man to familiarise himself with all the various specialities needed in the modern large business.
  • 10. ADVANTAGES…  a. Line officers can concentrate mainly on the doing function as the work of planning and investigation is performed by the staff. Specialisation provides for experts advice and efficiency in management.  b. Since the organisation comprises line and staff functions, decisions can be taken easily.  c. The staff officers supply complete factual data to the line officers covering activity within and without their own units. This will help to greater co-ordination.  d. It provides an adequate opportunity for the advancement of workers.  e. The staff services provides a training ground for the different positions.  f. Adequate organisation a balance among the various activities can be attained easily.  g. The system is flexible for new activities may be undertaken by the staff without forcing early adjustments of line arrangements.  h. Staff specialists are conceptually oriented towards looking ahead and have the time to do programme and strategic planning and analyze the possible effects of expected future events.
  • 11. DISADVANTAGES…  a. Confusion and conflict may arise between line and staff. Because the allocation of authority and responsibility is not clear and members of the lower levels may be confused by various line orders and staff advices.  b. Staff generally advise to the lines, but line decides and acts. Therefore the staffs often feel powerless.  c. Too much reliance on staff officers may not be beneficial to the business because line officials may lose much of their judgment and imitative.  d. Normally, staff employees have specialised knowledge and expert. Line makes the final decisions, even though staff give their suggestions. Staff officers, therefore, may be resented.  e. Staff officers are much educated so their ideas may be more theoretical and academic rather than practical.  f. Although expert advice is available it reaches the workers through the managers. Here it is liable to create a greater deal of misunderstanding and misinterpretation.  g. Since staff specialists demand higher payments, it is expensive.  h. The staff are unable to carry out its plan or recommendations because of lack of authority. So they become ineffective sometimes, it will make them careless and indifferent towards their jobs.  i. Since the line are performed, with the advise provided by the staff, if things go right then the staff takes the credit and if things go wrong then the line get the blame for it.