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Types of organization structures

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PRAJWAL SHRIRAO

This document discusses different types of organization structures, including line, functional, line and staff, matrix, and committee structures. It provides details on the key characteristics of each structure and lists their main advantages and disadvantages. The main types covered are line (simplest form with owner making decisions), functional (divided by specialized functions), line and staff (combines line executives and staff experts), matrix (divided by functions and projects), and committee (group discusses problems and solutions).

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Typesof OrganizationStructures
IND EX Introduction  Types of organization structure  Advantages  Disadvantages  conclusion
Construction Organization structure :- • Organisation structure is defined as "The logical arrangement of task and the network of relationships and roles among the various positions established to carry out the activities. • Organisation structure constitutes the arteries and veins through which the blood of work flows in the body of Organisation.
TYPES OF ORGANISATION STRUCTURE Organisation structures can be broadly classified into the following types: 1. Line Organisation structure. 2. Functional Organisation structure. 3. Line and staff Organisation structure. 4. Matrix Organisation structure. 5. Committee Organisation structure.
LINE ORGANISATION STRUCTURE  Line Organisation is the oldest and the simplest form of internal Organisation structure.  In which decision is taken by owner only.
Advantages of Line Organisation Structure  Simplicity  Discipline  Economical  Attraction to talented persons  Quick communication, high efficiency, flexibility Disadvantages of Line Organization Structure  Heavy burden on line executives.  Non-availability of services of experts  Too much dependence on limited executives  Rigidity  Delays in communication, limited freedom to employees
Functional Organization Structures In his functional foremanship, there will be eight specialists' foremen who will be required to guide, direct and control the work. Workers at the plant level will have to follow the instructions .
Advantages of Functional Organization 1.Facilitates specialization 2. Benefits of large-scale operations 3.Facilitates effective coordination 4. Operational flexibility 5. Ensures effective supervision Disadvantages of Functional Organization 1.Absence of unity of command 2.Fixing responsibility 3. Unsuitable to non-manufacturing activities 4. Costly 5. Creates confusion among workers
LINE AND STAFF ORGANISATION STRUCTURE In the line and staff Organisation, line executives and staff (specialists) are combined together. The line executives are 'doers' whereas staff refers to experts and act as 'thinkers'. The adjacent chart shows line and staff Organisation structure
Advantages of Line and Staff Organisation • Less burden on executives • Services of experts available • Sound decision-making • Limited tension on line managers • Benefits of specialization • Training opportunities to employees Disadvantages of Line and Staff Organisation • Delay in decision-making • Buck passing among executives • Conflicts between line and staff executives
MATRIX ORGANISATION STRUCTURE • The organisation is divided into different functions, e.g. Purchase, Production, R & D, etc. Each function has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc. • The organisation is also divided on the basis of projects e.g. Project A, Project B, etc. Each project has a Project Manager e.g. Project A Manager, Project B Manager.
Advantages of Matrix Organisation • Sound Decisions • Development of Skills • Top Management can concentrate on Strategic Planning Responds to Changes in Environment • Specialisation Disadvantages of Matrix Organisation • Increase in Work Load • High Operational Cost • Absence of Unity of Command • Difficulty of Balance
COMMITTEE ORGANISATION STRUCTURE • Committee can be defined as a group of organisational members who discuss and develop solutions to problems. • The purpose of such committees is to discuss various problems and recommend solutions to the management. • The Board of Directors of a company is an example of a committee organisation.
Advantages Committee Organization Structure :- • Pools up the organisational resources in terms of knowledge skills and experience • Coordinating plans as well as in facilitating their execution. Disadvantages Committee Organization Structure :- • It Is An Expensive Device Both In Terms Of Time And Cost. • Nobody is accountable for committee decisions. A committee decision is nobody's decision just because it is everybody's decision.
• Benefits in division of work and specialisation • Role Clarity • Optimum utilization of resources • Development of personnel Conclusion :-
Types of organization structures

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Types of organization structures

  • 2. IND EX Introduction  Types of organization structure  Advantages  Disadvantages  conclusion
  • 3. Construction Organization structure :- • Organisation structure is defined as "The logical arrangement of task and the network of relationships and roles among the various positions established to carry out the activities. • Organisation structure constitutes the arteries and veins through which the blood of work flows in the body of Organisation.
  • 4. TYPES OF ORGANISATION STRUCTURE Organisation structures can be broadly classified into the following types: 1. Line Organisation structure. 2. Functional Organisation structure. 3. Line and staff Organisation structure. 4. Matrix Organisation structure. 5. Committee Organisation structure.
  • 5. LINE ORGANISATION STRUCTURE  Line Organisation is the oldest and the simplest form of internal Organisation structure.  In which decision is taken by owner only.
  • 6. Advantages of Line Organisation Structure  Simplicity  Discipline  Economical  Attraction to talented persons  Quick communication, high efficiency, flexibility Disadvantages of Line Organization Structure  Heavy burden on line executives.  Non-availability of services of experts  Too much dependence on limited executives  Rigidity  Delays in communication, limited freedom to employees
  • 7. Functional Organization Structures In his functional foremanship, there will be eight specialists' foremen who will be required to guide, direct and control the work. Workers at the plant level will have to follow the instructions .
  • 8. Advantages of Functional Organization 1.Facilitates specialization 2. Benefits of large-scale operations 3.Facilitates effective coordination 4. Operational flexibility 5. Ensures effective supervision Disadvantages of Functional Organization 1.Absence of unity of command 2.Fixing responsibility 3. Unsuitable to non-manufacturing activities 4. Costly 5. Creates confusion among workers
  • 9. LINE AND STAFF ORGANISATION STRUCTURE In the line and staff Organisation, line executives and staff (specialists) are combined together. The line executives are 'doers' whereas staff refers to experts and act as 'thinkers'. The adjacent chart shows line and staff Organisation structure
  • 10. Advantages of Line and Staff Organisation • Less burden on executives • Services of experts available • Sound decision-making • Limited tension on line managers • Benefits of specialization • Training opportunities to employees Disadvantages of Line and Staff Organisation • Delay in decision-making • Buck passing among executives • Conflicts between line and staff executives
  • 11. MATRIX ORGANISATION STRUCTURE • The organisation is divided into different functions, e.g. Purchase, Production, R & D, etc. Each function has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc. • The organisation is also divided on the basis of projects e.g. Project A, Project B, etc. Each project has a Project Manager e.g. Project A Manager, Project B Manager.
  • 12. Advantages of Matrix Organisation • Sound Decisions • Development of Skills • Top Management can concentrate on Strategic Planning Responds to Changes in Environment • Specialisation Disadvantages of Matrix Organisation • Increase in Work Load • High Operational Cost • Absence of Unity of Command • Difficulty of Balance
  • 13. COMMITTEE ORGANISATION STRUCTURE • Committee can be defined as a group of organisational members who discuss and develop solutions to problems. • The purpose of such committees is to discuss various problems and recommend solutions to the management. • The Board of Directors of a company is an example of a committee organisation.
  • 14. Advantages Committee Organization Structure :- • Pools up the organisational resources in terms of knowledge skills and experience • Coordinating plans as well as in facilitating their execution. Disadvantages Committee Organization Structure :- • It Is An Expensive Device Both In Terms Of Time And Cost. • Nobody is accountable for committee decisions. A committee decision is nobody's decision just because it is everybody's decision.
  • 15. • Benefits in division of work and specialisation • Role Clarity • Optimum utilization of resources • Development of personnel Conclusion :-