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Types of organisation
This document discusses different types of organizational structures: - Functional organization structures departments by specialized functions and has advantages like use of experts but disadvantages like lack of flexibility. - Line organization structures positions in a clear chain of command and has advantages like flexibility but disadvantages like neglecting specialists. - Line and staff organization combines functional departments and clear lines of authority, having advantages like expert advice but also potential friction between departments. - Project organization structures roles around completion of specific projects and is applied in industries like electronics, chemicals, advertising and aerospace.
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Types of organisation
- 1. 1 ORGANISATIONAL STRUCTURE • Systematicarrangement of people working in an organization in order to achieve the predefined goals. • It defines the authority and responsibility relations between various positions. • It shows interrelationships and relative position of each department.
- 4. 4 Advantages • Simple andeasy to understand • It is flexible, easy to expand • Makes clear division of authority • Clear channel of communication, no confusion. • Strong in discipline • Encourages speedy action Disadvantages • Neglects specialists • Overloads a few key executives. • Limited to small organizations
- 5. 5 Cont… • Lack ofspecialization • More wastage of resources such as material and man hours. Applications • Small organizations • Automatic and continuous process industries such as paper, sugar, textile etc.
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- 9. 9 Advantages • Makes useof experts • Expert guidance reduces wastage, accidents etc. • No need of all round executives. • Quality of work is improved Disadvantages • Difficult to maintain discipline • All round executives cannot be developed. • Makes industrial relationships more complex • Workers are not given opportunity to use their initiative and drive.
- 10. 10 Applications • The functionalorganization as such is obsolete. • In modified form it is used in some most modern and advanced concerns.
- 13. 13 Advantages • Expert advicefrom specialist staff executives. • Line executives are relieved of some of their loads and can devote more attention towards production. • Less wastage of resources. • Improved quality of production • There is no confusion as exists in functional organization. Disadvantages • High salaries of staff executives increases product cost.
- 14. 14 Cont … • Sometimes staff department may infringe upon the rights and responsibilities of line departments. • Frictions and jealousies may develop between line and staff executives. • Line executives if they depending too much on staff executives may loose their initiative and drive . Application • Line and staff organization is very common among the medium and larger enterprises.
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- 21. 21 APPLICATIONS • Electronics • Chemicals •Advertising • Aerospace • Banking • Insurance • Hospitals