This document summarizes different types of organizational structures: line, functional, line and staff, divisional, project, and matrix. It discusses the key characteristics of each structure, including advantages and disadvantages. For example, it notes that a line structure is simple and easy to understand but can lack coordination. A functional structure provides specialist expertise but can violate the unity of command principle. It also defines and compares centralization versus decentralization of authority, noting decentralization involves systematic delegation of power throughout the levels of management.

1. SUBJECT-
PERSPECTIVE MANAGEMENT
TOPIC-
ORGANIZING
CLASS-
FYMMS
Presented By-
Taslima Bashir Mujawar
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2. CONTENT
• What is Organizing?
• Nature of Organizing
• Types of Organizing
• Centralization and decentralization of Authority
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3. Organizing is the process of arranging
and allocating work, authority, and
resources among an organization’s
members so that they can achieve
organizational goal.
Stoner, Freeman and Gilbert
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4. 1. Group of Persons
2. Common Objectives
3. Division of Work
4. Cooperative Efforts 5. Communication
6. Central Authority
7. Rules & Regulations
8. Dynamic Element
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Line Organization
Functional Organization
Project Organization
Line and Staff Organization
Divisional Organization
Matrix Organization

6. 1. LINE ORGANIZATION
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7. Advantages of Line Organization
• It is simple to establish and can be easily understood by the employees.
• It helps in fixing authority and responsibility of each and every person in the organization.
• Easy to operate and less expensive.
• Too much is expected from executives.
• Lack of co-ordination among various departments.
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Disadvantages of Line Organization

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2. LINE AND STAFF ORGANIZATION

9. • A line and staff structure allows higher flexibility and specialization
• Staff officers may resent their lack of authority.
• Co-ordination between line and staff may become difficult.
• Conflict between line and staff may still arise.
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Advantage of Line and Staff Organization
Disadvantages of Line and Staff Organization

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3. FUNCTIONAL ORGANIZATION

11. • Benefit of having specialists in each area.
• It provides wide scope for growth.
• Top executives are not unnecessarily burdened as happens in line organization.
• The principle of unity of command is violated.
• Involvement of more than one person in decision-making process slows the process down.
• The division of authority creates problem of discipline.
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Advantages of Functional Organization
Disadvantages of Functional Organization

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4. DIVISIONAL ORGANIZATION

13. • Divisional structure emphasizes on the end result, i.e., on the product, or customer through
which revenue is generated in the organization.
• Performance measurement is easier.
• Organization size can be increased without any problem.
• Divisional Structure is quite costly.
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Advantages of Divisional Organization
Disadvantage of Divisional Organization

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5. PROJECT ORGANIZATION

15. • It allows maximum use of specialized knowledge.
• Provides more flexibility for the utilisation of resources.
• Less loyalty of people with the organization.
• Lack of clarity among members about their role in organization.
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Advantages of Project Organization
Disadvantages of Project Organization

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6. MATRIX ORGANIZATION

17. • Decentralised decision making.
• Strong product/project co-ordination.
• Flexible use of resources.
• Efficient use of support systems.
• High administration cost.
• Potential confusion over authority and responsibility.
• High prospects of conflict.
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Advantages of Matrix Organization
Disadvantages of Matrix Organization

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19. • “Centralization” is the systematic and consistent reservation of authority at central points
in the organization.
• The implication of centralization can be :-
 Reservation of decision making power at top level.
 Reservation of operating authority with the middle level managers.
 Reservation of operation at lower level at the directions of the top level.
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20. • “Decentralization” is a systematic delegation of authority at all levels of management and
in all of the organization.
• The implication of decentralization can be :-
 Less burden on the Chief Executive as in the case of centralization.
 Subordinates get a chance to decide and act independently.
 Operations can be coordinated at divisional level.
 Co-ordination to some extent is difficult to maintain.
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21. THANKYOU
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