POWER POINT PRESENTATION ON TYPES OF ORGANISATIONS

1. TYPES OF
ORGANISATIONS
SUBMITTED TO : MS. MONIKA SHARMA
SUBMITTED BY : SRISHTI TAYAL
Enrolment no.: 01335101719

2. Welingkar’s Distance Learning Division
INTRODUCTION
 Organisation is designed on the basic of
principles of labour and span of management.
The success of the organisation depends upon
the experience and competence of the officers
of the organisation. Nature, scale and size of
the business are the normal factors which
determine forms of internal organisation. The
following common types of organisation find a
place in the structure of internal organisation.

3. INTRODUCTION
 Line, Military or scalar
organisation
 Functional organisation
 Line and staff organisation
 Committee organisation
 Project organisation
 Matrix organisation
 Freeform organisation

4. LINE ORGANISATION
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 Line organisation is the simple and oldest
type of organisation followed in an
organisation. Under line organisation, each
department is generally a complete self-
contained unit.
 A separate person will look after the
activities of the department and he has full
control over the department.

5. CHARACTERISTICS OF LINE
ORGANISATION
o It consists of direct vertical relationships.
o Authority flows from top-level to level to bottom
level.
o Departmental heads are given full freedom to control
their departments.
o Each member knows from whom he would get
orders and to whom he should give his orders.

6. Advantages and Disadvantages of
Line Organisation
Advantages of line organisation Disadvantages of line organisation
1. Simplicity 1. Lack of specification
2. Division of authority and
responsibility
2. Over loading
3. Unity of control 3. Lack of initiative
4. Speedy action 4. Scope for favoritism
5. Discipline 5. Dictatorial
6. Economical 6. Limited communication
7. Co-ordination 7. United administration
8. Direct communication 8. Subjective approach
9. Flexibility 9. Instability
10. Lack of co-ordination

7. SUITABILITY
 This type of organisation is suitable to small
size business units.
 Where the activities are of routine nature
or machine based.
 If the business activities are service mined.
 Where the number of persons working is small
 The business operation is simple in nature.
 A business unit which has straight methods
of operations.

8. FUNCTIONAL ORGANISATION
 Under line organisation, a single
person is in charge of all the
activities of the concerned
department. The person in charge
finds it difficult to supervise all the
activities efficiently.

9. CHARACTERISTICS OF FUNCTIONAL
ORGANISATION
o The work is divided according to
specified functions.
o Authority is given to a specialist to give
orders and instructions in relation to
specific function.
o Functional authority has right and power
to give command throughout the line
with reference to his specified area.

10. Advantages and Disadvantages
of Functional Organisation
Advantages of
functional
organisation
Disadvantages of
functional organisation
 Benefit of specialization
 Application of expert knowledge
 Reducing the work load
 Efficiency
 Adequate supervision
 Relief to line executive
 Co-operation
 Economy
 Flexibility
 Mass production
 Complex relationship
 Discipline
 Over specialization
 Ineffective co-ordination
 Speed of action
 Centralization
 Lack of responsibility
 Increasing the overhead
expenses
 Poor administration
 Suitability of functional
organisation

11. LINE AND STAFF ORGANISATION
o The line officers have authority to take
decisions and implement them to achieve
the objectives of the organisation.
o The line officers may be assisted by the
staff officers while framing the policies
and plans and taking decisions
organisation.

12. TYPES OF STAFF
 Personal staff
 Specialized staff
 General staff assistant

13. FUNCTIONS OF STAFF OFFICERS
 The staff officers assist the line officers in
the planning of business activity.
 The board of directors frames the policies of the
business on the basis of recommendations given
by the staff officers.
 The managers can get the advice from the staff
officers regarding the selection. ‘training’
placement and remuneration fixation the
personnel

14. ARGUMENTS OF STAFF OFFICERS AGAINST
LINE OFFICERS
 The staff officers have only theoretical
academic knowledge but not practical
knowledge.
 The staff officers go beyond their sphere of
activity and assume that they have line officer’s
authority.
 Much of the advice given by the staff officers
is impractical
 Since the staff officers unnecessary increases
the paperwork of the line officers.

15. ARGUMENTS OF STAFF OFFICERS
AGAINST LINE OFFICERS
 The staffs give advice without considering
the nature of business as a whole.
 Staff officers are very much interested in
becoming line officers of the
organisation rather than impairing
advice to them.

16. SOLUTION TO THE CONFLICT BETWEEN
LINE OFFICERS AND STAFF
OFFICERS
 Both line officers and staff officers should
clearly understand the nature of relationship
prevailing between them.
 A separate staff member should be appointed to
bring about co-operation between the line officers
and staff officers.
 The line officers should be encouraged to use the
advice of staff officers.
 Only qualified persons should be selected and placed
as staff officers.

17. COMMITTEE ORGANISATION
 “ACommittee as a group of persons either
appointed or elected who are to meet for the
purpose of considering matters assigned it”
Types of committee
 Advisory committee problem solving committees
 Fast-finding committee
 Action committee

18. FUNCTIONS OF A COMMITTEE
 Collect the necessary information from
different sources and arrange the information
orderly.
 The collected information is critically analyzed.
 Draft a detailed report containing
the recommendations for the
purpose of implementation.
 Formulate the standard of performance for
the purpose of evolution of actual
performance in future.

19. PROJECT ORGANISATION
o The project organisation idea was
developed after the second war.
o A project organisation can also be the
beginning of an organisation cycle. The
project may become a long term or
permanent effort that eventually becomes
a program or branch organisation

20. FEATURES OF PROJECT
ORGANISATION
 The Success of the project organisation
depends upon the co-ordination of
activities
 There is a grouping of a activities for each
project. It leads to the introduction of a
new line of a authority.

21. DRAWBACKS OF PROJECT
ORGANISATION
 The professionals are deputed for the project. But
there is an assurance of continuous work for the
professional in a project organisation.
 The decision is taken in the project organisation under
pressure of the top controls the staff in an
organisation.
 The top management does not extend its full co-
operation for the effective functioning of the project
organisation. Some hindrance may be caused by the
top management.

22. MATRIX ORGANISATION
 “Any organisation that employs a
multiple command structure but
also related support mechanisms
and an associated organizational
culture and behavior pattern” The
matrix organisation may be followed
where a large of small projects have
to be managed.

23. CONDITIONS FOR EFFECTIVE
MATRIX ORGANISATION
 The principle of chain of command is not followed
in the matrix organisation. A project manager
should give his report to more than one superior.
 There should be an agreement among the
managers regarding the authority of utilizing the
available resources. The term resources include
physical resources, financial resources and human
resources.

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