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FORMS OF ORGANIZATION

STRUCTURE

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LINE ORGANIZATION

It is the oldest form of org. structure.

It is also known as the scalar org. because it

originated from the army.

Lines of authority are vertically flowing from topbottom.

The command is through a straight and

unbroken line.

All persons at the same level are independent ofeach other.

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CONTD

The authority and responsibility of each position

is clearly specified.

There are no staff specialist.

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CONTD

ForemanCForeman BForeman A

Plant

Superintendent

Production

Manager

Managing

Director

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FUNCTIONAL ORGANIZATIONS

The org. is divided into a number of functional

areas.

Each function is managed by a functional expert

in that area. Every functional area serves all the other areas

of the org.

The specialists operate with considerable

independence.

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CONTD

An individual in the org. receives instructions

from several functional heads.

E.g. each foreman in a factory receives orders

from factory superintendent, chief engineer etc.

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CONTD

Foreman

Prodn.

Mgr

M.D

Engineer ChemistSupdt. Of

Prodn.

ForemanForeman Foreman

Foreman

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LINE AND STAFF ORG.

Line and staff org. is a combination of line and

functional structures.

Staff specialist are attached to line positions to

advise them on important matters. These specialists do not have the power to

command over subordinates in other

departments.

Staff positions are created to support the linemanagers.

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CONTD

M.D

PersonnelManager

WorksManager

ChiefManager

Plant

Superintend.

Foreman BForeman BForeman A

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PROJECT ORGANIZATIONS

This structure is mainly used when the

organization has to execute large projects of long

duration.

Each project is organized as a semi - autonomousproject division.

A project team consists of specialist in different

fields.

Once a project is complete, the regular projectdivision undertakes a new project.

Project organizations can be effectively applied

under the following situations:

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CONTD

1. The project offers a unique or unfamiliar

challenges

2. The project has defined goals and well defined

specifications3. Successful completion of the project is critical to

the organization.

4. The project is complex and with interdependent

tasks.5. The assignment is to be completed within the

given time limit.

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MATRIX ORGANIZATION

Matrix org. is hybrid grid structure wherein pure

project org. is superimposed on a functional

structure.

It is developed to meet the problems of growingsize and complexity of undertaking.

The essence of matrix org. is the combining of

functional and product forms of departmentation.

It is characterized by an overlapping ofcommand, control and behavior patterns.

There is a permanent functional set. Temporary

project groups are created to handle infrequent

short term projects.

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CONTD

Matrix org. are widely used in engineering,

research and product management areas.

The project manager does not have complete

authority for exclusive use of resources. Matrix org. are more appropriate in the case of

large number of small projects.

Also , where a project requires only part time use

of an expensive equipment.

It is suitable when it is not possible to give a

manager direct line authority over all the

activities to accomplish results.

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COMMITTEE ORGANIZATIONS

A committee is a group of persons formed to discussand deliberate an problem and to recommend ordecide solutions.

It many be authorized to deal with all or specificactivities.

Committees have become an important instrument ofmanagement because:

1. To secure viewpoints and consultation of variouspersons in the organization

2. To give participation and representation to different

groups or interests3. To coordinate the activities of different departments

4. To review the performance of certain units.

5. To facilitate communication and coordination amongdiverse groups.

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ASSIGNMENT

Q. list down the advantages and disadvantages ofthe various forms of organizational structure.

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