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Types of organisation

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Suresh Lal
Suresh Lal

types of organizational structures and advantages and disadvantages of each

Engineering
1 of 21
1 ORGANISATIONAL STRUCTURE • Systematic arrangement 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 Advantages • Simple and easy 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 Cont… • Lack of specialization • More wastage of resources such as material and man hours. Applications • Small organizations • Automatic and continuous process industries such as paper, sugar, textile etc.
6
9 Advantages • Makes use of 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10 Applications • The functional organization as such is obsolete. • In modified form it is used in some most modern and advanced concerns.
13 Advantages • Expert advice from 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 Cont … • Some times 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.
15 PROJECT ORGANISATION
16 PROJECT ORGANISATION
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21 APPLICATIONS • Electronics • Chemicals • Advertising • Aerospace • Banking • Insurance • Hospitals

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Types of organisation

  • 1. 1 ORGANISATIONAL STRUCTURE • Systematic arrangement 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.
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  • 4. 4 Advantages • Simple and easy 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 of specialization • 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 use of 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 functional organization as such is obsolete. • In modified form it is used in some most modern and advanced concerns.
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  • 13. 13 Advantages • Expert advice from 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 … • Some times 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