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Structure
Forms Of Organization Structure
Line Organization Structure
Staff Organization Structure
Functional Organization Structure
Organizational Structure refers to the
differentiation (differences in the
orientations among the managers if
different departments and differences
in formal structure among these
departments) and integration
(quality of the state of collaboration for
achieving unity) of activities and
authority, role and relationships.
Organisation Structure refers to
the pattern of relationships
among individuals and
department in an organisation
Organisation Structure is the
framework through which the
organisation operates.
Classification of organisation
structure is based on various
activities which are grouped
together to create departments
and units & prescribing their
relationships in the organisation.
Organizational structure also
refers to the well – defined jobs,
each bearing a definite
authority, responsibility and
accountability.
Four pillars of Organizational
Structure
Division of Labour
Scalar and functional processes
Structure
Span of control
There are 7 types of
Organisation Structure
◦ Line
◦ Line & staff
◦ Functional
◦ Divisional
◦ Project
◦ Matrix
◦ Free-form
Line Organisation Structure
Linesof authority and
instructions are vertical, i.e. they
flow from the top to the bottom.
Thisstructure specifies
responsibility and authority for all
the positions limiting the area of
action by a particular position
holder.
Line & Staff Organisation Structure
Manager-Finance Manager-Personal
Workers Salesmen
ADVANTAGES
Planned Specialisation
Quality Decisions
Prospect for Personal Growth
Training Ground For Personnel
DISADVANTAGES
Lack Of Well Defined Authority
Line & Staff Conflicts
Suitability
Not suitable for small org. as it is quite costly
for them.
Functional Structure
Product Structure
Flat Structure
Vertical Structure
Matrix Structure
Functional structure is created by grouping the
activities on the basis of functions required for
the achievement of organizational objectives.
Functions are classified into
E x e c . V . PS . e n i o r V . SP e . n i o r V . P
F i n a n c e & A S d t mo r ie n s . L o g i s t i c s
V . P . T a Vx . P . C o n t r o l V l e . rP .
D i s t r i b u t i o n
V . P . M I S D i r e c t o r
C o r p . P l a n n D i n i r ge c t o r
T r a n s p o r t a t i o n
Characteristics of functional structure:
1.Specialization by functions
5.Functional
authority relationships
among various departments.
C o r p o r a t e
M a n a g e r s
W a s h i n g M a L c i gh hi n t ei n g T e l e v i s i o n
D i v i s i o n D i v i s i o n D i v i s i o n
C E O
C o r p o r a t i o n
C o r p o r a t e
M a n a g e r s
N o r t h e r nW e s t e r n S o u t h e r nE a s t e r n
R e g i o n R e g i o n R e g i o n R e g i o n
C E O
C o r p o r a t i o n
C o r p o r a t e
M a n a g e r s
L a r g e B u S s m i n a e l sl s B u sE i d n u e cs as t i o In n a d l i v i d u a
C u s t o m e C r us s t o m e I nr s s t i t u t i o C n us s t o m e r
Product departmentalization involves the grouping of all
activities necessary to manufacture a product or
product line.
Func.
Managers
managerial personnel.
◦ Tall structures have many levels of authority
relative to the organization’s size.
As levels in the hierarchy increase, communication
gets difficult.
The extra levels result in more time being taken to
implement decisions.
Communications can also become garbled as it is
his subordinate
DISADVANTAGES:
Creation of many levels of management
High cost to the organisation
Excessive distance between lowest level
problems.
Functional manager gives different directions
than product manager and employee cannot
satisfy both.
◦ Product Team Structure: no 2-way reporting and
the members are permanently assigned to the
team and empowered to bring a product to market.
CEO
Func.
Managers
Product
Team Managers
team A
Product
team B
Product Team
Product
team C
Func.
Managers