Types of Organization Structures

INDEX

 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.
Conclusion :-
• Role Clarity

• Optimum utilization of resources

• Benefits in division of work and specialisation

• Development of personnel