FORMS OF ORGANISATION(STRUCTURE)

An organisation structure is a
machine through which
management works to accomplish
its objectives. It is primarily
concerned with the allocation of
duties and responsibilities, and
delegation of authority
 What is organization
It is a systematic arrangement of people carrying out
different tasks, which are coordinated to achieve a
common goal.

An organization is the rational coordination of the

activities or roles of number of people for achievement
of some common explicit purpose or goal, through
division of labor and function, and through a hierarchy
of authority and responsibility.
STEPS IN FORMING AN
ORGANIZATION
• Determine the activities.
1 • Group the activities.
2

• Assign group activities to individuals.

3 • Delegate authority and fix responsibility.
4

• Coordinate authority and responsibility relationship

5
6
• Provide physical facilities and proper environment.
FORMS OF ORGANISATION
Patterns
1. Line organisation
2. Functional organisation
3. Staff organisation
4. Line and Staff organisation
5. Project organisation
6. Committee organisation
7. Task force
 FORMS OF ORGANISATION

Line organisation
• It is the basic frame work for the whole
organisation
• It describes scalar principle
• Contribute directly to the creation and
distribution of goods or services of the
organisation
Ex-production,marketing and finance
 FORMS OF ORGANISATION

Line organisation
• Line executives are directly responsible for
primary objectives
• Executives enjoy powers to DM,issue
orders,instructions,implement plans and
policies in the assigned areas
• Line seek help from staff positions
 FORMS OF ORGANISATION

Features of Line organisation

1. Chain of Command
2. Line of Communication
3. Line of Accountability
 Line Organization
Advantages:-
• Supervisor enjoys full authority over his
subordinates.
• Delay can be avoided.
• Individuals are responsible for their work.
• More discipline.
• Simple to understand.
• Simple in structure.
• Effective accountability.
• Low cost.
• Less confusion.
• Clear channel of communication.
 FORMS OF ORGANISATION

Disadvantages of Line Organisation

1. Too many levels,autocratic behaviour
2. No scope for specialisation
3. In big organisations only line organisation
can`t work satisfactorily
4. Little time to think and plan systematically
5. Ineffective in big organisations
Functional Organization

It was originated by Taylor to introduce

specialization in management. Each function was
to be administered by a specialist who would
also have right to command in his field of
specialization.
 FORMS OF ORGANISATION

Functional organisation
• Permits a specialist in a given area to
enforce his directive within the limited and
clearly defined scope of authority
• Multiple bosses to worker
• Seperation of office work from plant work
 FORMS OF ORGANISATION
Functional organisation
• Functional authority is the right and power
of one department to issue orders and
instructions to one,several or other
departments in an enterprise,also with the
right of accountability from the addressee
• Functional authority is as binding as line
authority,but it will not carry the right to
discipline for violation in order to enforce the
compliance
• Functional authority is delegated to an
“accepted source of information”
Functional organization
Advantages
• Benefit of specialists.
• All round executive not needed.
• Better performance.
• Increase efficiency.
• Improves quality.
• Helps mass production.
• Reduction of waste and accidents.
Functional organization

Disadvantages
• No unity of command.
• Less discipline.
• Lack of coordination.
• Expert available, hence no motivation.
• Failure of one makes failure of all.
 FORMS OF ORGANISATION
Staff organisation
• It is a functional authority without a
right to command and decide
• Regarded as auxiliary in nature
• Specialist could be called upon to
advise and guide line authority but
without right to command
 FORMS OF ORGANISATION
Staff organisation
• Provide technical or special advisory and
service to line staff
• No direct responsibility for accomplishing the
objectives
• Help the line to work more effectively
• Main functions-investigate,research,and give
advice to line managers to whom they report
• No right to command
Pure staff carry out their work primarily
through influence
 FORMS OF ORGANISATION
Types of Staff Authority
1. Service Authority-Offers special service
2. Advisory Authority-Offers expert service
3. Functional Speciality-
Exercise effective direction and control
of a functional speciality
A staff manager may be allowed to
make decisions and assume power to
command in a given functional area
 FORMS OF ORGANISATION
Line and Staff organisation
• It utilises the advantages of both line
organisation and pure functional
organisation
Line portion maintains stability and
discipline, where as staff portion provides
expertise

• Popular form, used in big business

concerns.
 FORMS OF ORGANISATION
Line and Staff organisation
Need for Staff
1. Emergence of large scale
organisation
2. Knowledge explosion
3. Acute division of labour
4. Complex and dynamic
environmental forces
5. Social awareness in corporate
management
 Line and Staff organizations

Advantages:-
• Managers are less loaded.
• Offers expert advice.
• Better utilization of resources.
• Improves quality.
• Improves productivity.
• Reduction of accident and waste.
• Scope for research and development.
Line and staff organization

Disadvantages:-

• It is expensive.
• Line and staff blame each other for any failure.
• Conflicts harms organization.
• Too much dependency on staff.
• Staff has no control on subordinates.
 FORMS OF ORGANISATION

Project organisation
• For a specific objectives within time
limit
• Does not fit into standard line and staff
models
• Consists of specialists
Project Organization

• It is group of people working under

project manager with specific objective to
be fulfilled within a certain time limit.
• Under project management specialist from
various functional areas are allocated to a
project for a duration of its life and are
answerable only to the project coordinator
until the project is finished.
Project Organization

• Advantages:
• Quick decision making.
• Full control of managers.
• Reorganization simple
• Team has full control over resources.
• Highly responsible to customers
Project Organization
Disadvantages
• It is a costly organization.
• Duplication of staff.
• Low level of knowledge transfer.
• Overload due to deadline.
• Lay off risk after completion of project.
• Friction at work.
 FORMS OF ORGANISATION

Committee Organisation
• It is supplementary devise for internal
organisation
• It is a form of group management
 FORMS OF ORGANISATION
Task Force
• Has broader powers of decision and
action as well as duties for investigation,
planning, research and analysis
• Temporary organisation with experts to
solve a problem through joint efforts
• Deals with non recurring problem
• It is economical,effective than
consultancy services for problem solving
Different between Line and Staff

1. Staffs think, lines do.

2. Staff advise, lines do.
3. Lines say do, staffs say, if and when you
do it, do it this way.
4. Staffs have the authority of ideas,
knowledge; lines have the authority to
command
Differences between Line and
staff
5. Staff think, analyse and recommend, lines
perform.
6. The line does something to or with the
product, staffs do not.
7. Staff should be on tap and not on top.
The function of the staff is to advise and
recommend – without teeth.
Differences between Line and
Staff
8. Staffs tell the line what to do, lines tell
staffs where to go.
9. Line is to arrange actual execution of the
work planned by the staff and the staff
may be thought of as an advisory and
supplementary body to the line. Line of
power flows from top to bottom indicating
the existence of the line organisation.
Reasons for acceptance of staff ideas and
influence by line executives are:
1.Line regards staff as technical experts who have
specialised knowledge and who can speak with
authority of knowledge which can rarely be
ignored.
2. Higher status enjoyed by many staff men (as
they are attached to top executives directly)
enables them to ensure that their views will be
taken seriously by line officers.
3. Due to potential support of senior executives,
advice given by staff may not be ignored by line
officers as it may return as a command in due
course. Hence, any resistance to staff arguments
may be minimised.
 Delegations of Authority by Executives
Delegation of Operational Duties
to Line subordinates, i.e.,
Operational Specialists.
Example:
1. Plant Manager
2. Marketing Manager
Basic: three functions essential in
a business. 1) financing of the
concern, 2) production of goods
or services, 3) distribution of
goods or services. These are
absolutely necessary in operating
a business.
Line units : responsible for actual
operational responsibilities.
Delegation of Administrative
Duties to Staff Subordinates, i.e.,
Functional specialists.
Example:
1. Personnel Specialist
2. Planning Expert
All other aspects except those
directly affecting manufacture,
finance and marketing may be
considered staff. Staff either
provides service to the line
executive or offers advice and
guidance to him.
Staff has no authority over the
line.
 Delegations of Authority by Executives
Line Units: responsible for three main
enterprise operations, viz,
manufacturing, financing and
marketing or distribution. Plant
Manager, Marketing Manager and
Financial Manager are pure Line
Positions.
Line: Plant Manger
1.Doing and action
2. Authority to take decision and
action.
3.Forms a chain of command.
4.Superior – subordinate Relation.
5. Chain of communication.
Staff has only the power o
recommend. It is on tap for advice,
but not on top authoritatively.
Staff units represent functional
specialisation and help or expertly
serve the process of executive
decision and command.
Line executive are advised or served
expertly by staff specialist.
Staff: Production Planning & Control.
1.Contemplation, thinking etc.
2. Authority of knowledge
3. Outside the chain of command
Within the staff dept., we have pure
line or line and staff organisation.