11 Types of organization

8/18/2019 11 Types of organization

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Welingkar’s Distance LearningDivision

CHAPTER-11

TYPES OF ORGANISATION

We Learn – A Continuous Learning Fo


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Introductiono Organisation is designed on the basic of

rinci!es of !abo"r and san of

#anage#ent$ The s"ccess of theorganisation deends "on the e%erienceand co#etence of the o&cers of theorganisation$ Nat"re' sca!e and si(e of the

b"siness are the nor#a! factors )hichdeter#ine for#s of interna! organisation$

The fo!!o)ing co##on t*es of

organisation +nd a !ace in the str"ct"reof interna! organisation$We Learn – A Continuous Learning Fo


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Introduction

o ,ine' i!itar* or sca!ar organisationo F"nctiona! organisationo ,ine and sta. organisationo Co##ittee organisationo Pro/ect organisationo atri% organisationo Freefor# organisation



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Line Organisation

o ,ine organisation is the si#!e ando!dest t*e of organisation fo!!o)edin an organisation$ 0nder !ineorganisation' each deart#ent isgenera!!* a co#!ete se!f-contained

"nit$

o A searate erson )i!! !oo after the

acti2ities of the deart#ent and heWe Learn – A Continuous Learning Fo


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Line Organisationo The sa#e !e2e! e%ec"ti2es do not gi2e or

recei2e orders a#ongst the#se!2es$ 3"t the*

recei2e orders fro# their i##ediate boss andgi2e orders to their s"bordinates$ Hence' a!!the heads are resonsib!e to the genera!#anager' the genera! #anager' in t"rn' is

resonsib!e to the shareho!ders )ho are theo)ners$

o This t*e of organisation is fo!!o)ed in the

ar#* on the sa#e attern$ So' it is ca!!ed#i!itar or anisation$ 0nder t e ofWe Learn – A Continuous Learning Fo


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Characteristics of lineorganisation

o

It consists of direct 2ertica!re!ationshis$o A"thorit* 4o)s fro# to-!e2e! to

!e2e! to botto# !e2e!$o 5eart#enta! heads are gi2en f"!!

freedo# to contro! theirdeart#ents$

o Each #e#ber no)s fro# )ho# heWe Learn – A Continuous Learning Fo


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Characteristics of lineorganisation

o

A senior #e#ber has direstco##and o2er his s"bordinates$o Oeration of this s*ste# is 2er* eas*$o E%istence of direct re!ationshi

bet)een s"eriors and s"bordinates$o The s"erior taes decisions )ithin

the scoe of his a"thorit*



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Advantages andDisadvantages ofLine Organisation


Advantages of lineorganisation

Disadvantages of lineorganisation

1$ Si#!icit* 1$ ,ac of seci+cation6$ 5i2ision of a"thorit* andresonsibi!it*

6$ O2er !oading

7$ 0nit* of contro! 7$ ,ac of initiati2e

8$ Seed* action 8$ Scoe for fa2oritis#

9$ 5isci!ine 9$ 5ictatoria!

:$ Econo#ica! :$ ,i#ited co##"nication

;$ Co-ordination ;$ 0nited ad#inistration

$ ,ac of co-ordination


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Suitabilit

o This t*e of organisation is s"itab!e tos#a!! si(e b"siness "nits$

o ?here the acti2ities are of ro"tinenat"re or #achine based$

o If the b"siness acti2ities are ser2ice

#ined$o ?here the n"#ber of ersons )oring

is s#a!!o The b"siness oeration is si#!e in

nat"re$ We Learn – A Continuous Learning Fo


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Functional organisation

o 0nder !ine organisation' a sing!eerson is in charge of a!! theacti2ities of the concerneddeart#ent$ The erson in charge+nds it di&c"!t to s"er2ise a!! the

acti2ities e&cient!*$



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Functional organisationo The reason is that the erson does not

ha2e eno"gh caacit* and re@"ired

training$ 0nder f"nctiona! organisation'2ario"s secia!ists are for 2ario"sf"nctions erfor#ed in an organisation$

These secia!ists )i!! attend to the )or)hich is co##on to di.erent f"nctionsof 2ario"s deart#ents$ ?orers' "nderf"nctiona! organisation' recei2e

instr"ctions fro# 2ario"s secia!ists$We Learn – A Continuous Learning Fo


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Functional organisationo The need for f"nctiona! organisation

arises o"t ofo The co#!e%it* of #odern and !arge-

sca!e organisationo A desire to "se the secia!i(ation in

f"!! andBo To a2oid the )or-!oad of !ine

#anagers )ith co#!e% rob!e#s

and decision-#aingWe Learn – A Continuous Learning Fo


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Characteristics of functionalorganisation

o The )or is di2ided according toseci+ed f"nctions$

o A"thorit* is gi2en to a secia!ist togi2e orders and instr"ctions in

re!ation to seci+c f"nction$o F"nctiona! a"thorit* has right and

o)er to gi2e co##and thro"gho"t

the !ine )ith reference to hisWe Learn – A Continuous Learning Fo


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Characteristics of functionalorganisation

o The decision is taen on!* after #aing cons"!tations )ith

the f"nctiona! a"thorit* re!ating to his secia!i(ed area$

o The e%ec"ti2es and s"er2isors discharge the resonsibi!it*of f"nctiona! a"thorit*$- Ro"te c!er

- instr"ction card c!er- ti#e and cost c!er- Gang boss- Seed boss- Insector- Reair boss

- 5isci!inarianWe Learn – A Continuous Learning Fo


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Advantages andDisadvantages of FunctionalOrganisation


Advantages of functionalorganisation

Disadvantages offunctional organisation

o 3ene+t of secia!i(ationo A!ication of e%ert

no)!edgeo Red"cing the )or !oado E&cienc*o Ade@"ate s"er2isiono Re!ief to !ine e%ec"ti2eo Co-oerationo Econo#*o F!e%ibi!it*o ass rod"ction

o Co#!e% re!ationshio 5isci!ineo O2er secia!i(ationo Ine.ecti2e co-ordinationo Seed of actiono Centra!i(ationo ,ac of resonsibi!it*o Increasing the o2erhead

e%enseso Poor ad#inistrationo S"itabi!it* of f"nctiona!

organisation


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Line and sta! organisation

o The !ine o&cers ha2e a"thorit* totae decisions and i#!e#ent the#to achie2e the ob/ecti2es of theorganisation$

o The !ine o&cers #a* be assisted b*the sta. o&cers )hi!e fra#ing theo!icies and !ans and taing

decisions organisation$We Learn – A Continuous Learning Fo


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Line and sta! organisation

o The a"thorit* 4o)s fro# to !e2e! tothe !o)er !e2e! of the organisation

thro"gh the !ine o&cers )hi!e the sta.o&cers attached to the 2ario"sdeart#ents ad2ise the deart#ents$

The sta. o&cers are not in a osition toco#e! the !ine o&cers to fo!!o) thead2ice b* the#$ Each deart#ent isheaded b* a !ine o&cer )ho e%ercises

f"!! a"thorit* regarding the !anning$We Learn – A Continuous Learning Fo


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"#es of sta!

o Persona! sta.

o Secia!i(ed sta.

o Genera! sta. assistant



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Functions of sta! o$cerso The sta. o&cers assist the !ine o&cers in

the !anning of b"siness acti2it*$

o The board of directors fra#es the o!iciesof the b"siness on the basis ofreco##endations gi2en b* the sta.

o&cers$

o The #anagers can get the ad2ice fro# thesta. o&cers regarding the se!ection$trainingD !ace#ent and re#"nerationWe Learn – A Continuous Learning Fo


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Functions of sta! o$cerso The sta. o&cers gi2e regarding the #ethod

of i#ro2ing the rod"ct' the techni@"e of

red"cing the cost of rod"ction' increasingthe ro+ts of the concern$o The sta. o&cers rescribe the roced"res to

be fo!!o)ed b* the !ine o&cers in the

e%ec"tion of o!icies and rogra#s$o Sta. o&cers of a deart#ent he! the

#anager in the rearation of b"dget of thedeart#ent$

o

the sta. o&cers #a* be ca!!ed to so!2e thead#inistrati2e rob!e#s enco"ntered b theWe Learn – A Continuous Learning Fo


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Arguments of sta! o$cersagainst line o$cers

o The sta. o&cers ha2e on!* theoretica!

acade#ic no)!edge b"t not ractica!no)!edge$

o The sta. o&cers go be*ond their shereof acti2it* and ass"#e that the* ha2e !ineo&cerDs a"thorit*$

o "ch of the ad2ice gi2en b* the sta.o&cers is i#ractica!

o

Since the sta. o&cers "nnecessar*We Learn – A Continuous Learning Fo


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Arguments of sta! o$cersagainst line o$cers

o The sta.s gi2e ad2ice )itho"tconsidering the nat"re of b"siness asa )ho!e$

o Sta. o&cers are 2er* #"chinterested in beco#ing !ine o&cersof the organisation rather than

i#airing ad2ice to the#$We Learn – A Continuous Learning Fo


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Solution to the con%ict bet&eenline o$cers and sta! o$cers

o 3oth !ine o&cers and sta. o&cers sho"!d

c!ear!* "nderstand the nat"re of re!ationshire2ai!ing bet)een the#$

o A searate sta. #e#ber sho"!d be aointedto bring abo"t co-oeration bet)een the !ine

o&cers and sta. o&cers$o The !ine o&cers sho"!d be enco"raged to "se

the ad2ice of sta. o&cers$o On!* @"a!i+ed ersons sho"!d be se!ected and

!aced as sta. o&cers$We Learn – A Continuous Learning Fo


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Solution to the con%ict bet&eenline o$cers and sta! o$cers

o The sta. o&cers sho"!d be con2inced b*

the !ine o&cers if their ad2ice is notacceted

o The resonsibi!it* for res"!ts co"!d be +%edon both !ine o&cers and sta. o&cers

o On!* e%erienced ersons a!one sho"!d bero#oted as !ine e%ec"ti2es$$

o Re#o2e the fear of the !ine o&cers andsta. o&cers )hether the ne) ideas ofad2ice )o"!d be roer!* "t into "se orWe Learn – A Continuous Learning Fo


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Advantages of line and sta!

organisation

Disadvantages of line and sta!

organisation

Faci!itates to )or faster and better If o)ers are not de+ned then getconf"sion

Secia!i(ation is attained ,ine o&cers #a* re/ect ad2ice)itho"t an* reason for their action

Enab!es to "ti!i(e e%erience andad2ice Sta. o&cers are not resonsib!e iffa2orab!e res"!ts are not obtained$

O&cers can tae so"nd ad2ice 5i.erence bet)een !ine and sta.o&cers )i!! defeat the 2er* "rose ofsecia!i(ation

Ne) techno!og* or roced"re can be

introd"ced )itho"t an* dis!ocation

,ine o&cers b!a#e sta. o&cers for

"nfa2orab!e res"!ts and )ant to getre)ards for fa2orab!e res"!ts

Pro#otes e&cient f"nctioning of !ineo&cers

er* good oort"nit* is #adea2ai!ab!e to *o"ng erson to get

training


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Committee organisationo A Co##ittee as a gro" of ersons either

aointed or e!ected )ho are to #eet for

the "rose of considering #attersassigned it

"#es of committeeo Ad2isor* co##ittee rob!e# so!2ing

co##ittees

o

Fast-+nding co##itteeWe Learn – A Continuous Learning Fo


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Functions of a Committeeo Co!!ect the necessar* infor#ation fro#

di.erent so"rces and arrange the

infor#ation order!*$o The co!!ected infor#ation is critica!!*

ana!*(ed$o 5raft a detai!ed reort containing the

reco##endations for the "rose ofi#!e#entation$

o For#"!ate the standard of erfor#ance for

the "rose of e2o!"tion of act"a!erfor#ance in f"t"re$We Learn – A Continuous Learning Fo


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Welingkar’s Distance LearningDivision'ecommendations for e$cient functioning of a

committee


Se!ectionof s"b/ect

#atter

Committee

Ro!e ofchair#an

Prearation for a

#eeting

C!earOb/ecti2e

Ro!e ofco##ittee

Si(e of theco##ittee

Se!ection of#eeting

Fo!!o) "

e2o!"tion


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(ro)ect organisation

o The ro/ect organisation idea )asde2e!oed after the second )ar$

o A ro/ect organisation can a!so bethe beginning of an organisation

c*c!e$ The ro/ect #a* beco#e a!ong ter# or er#anent e.ort thate2ent"a!!* beco#es a rogra# or

branch organisationWe Learn – A Continuous Learning Fo


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Features of #ro)ectorganisation

o The S"ccess of the ro/ectorganisation deends "on the co-ordination of acti2ities

o There is a gro"ing of a acti2ities foreach ro/ect$ It !eads to theintrod"ction of a ne) !ine of a

a"thorit*$ We Learn – A Continuous Learning Fo


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*atri+ organisation

o An* organisation that e#!o*s a#"!ti!e co##and str"ct"re b"t a!sore!ated s"ort #echanis#s and anassociated organi(ationa! c"!t"re andbeha2ior attern The #atri%

organisation #a* be fo!!o)ed )herea !arge of s#a!! ro/ects ha2e to be#anaged$



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Conditions for e!ective matri+organisation

o The rinci!e of chain of co##and is not

fo!!o)ed in the #atri% organisation$ Aro/ect #anager sho"!d gi2e his reort to#ore than one s"erior$

o There sho"!d be an agree#ent a#ong the#anagers regarding the a"thorit* of"ti!i(ing the a2ai!ab!e reso"rces$ The ter#

reso"rces inc!"de h*sica! reso"rces'We Learn – A Continuous Learning Fo


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*erits and Demerits of*atri+ organisation


*erits of *atri+

organi,ation

Demerits of matri+

organi,ationo Achie2e#ent of

ob/ecti2eso 3est "ti!i(ation of

reso"rceso Aroriate str"ct"reo F!e%ibi!it*o oti2ationo

Persona!de2e!o #ent

o Co#!e% re!ationshio Str"gg!e for o)ero E%cessi2e' e#hasis

on gro" decision-#aing

o Arising con4ictreso!"tion

o

Heterogeneo"s


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Free form organisation

o This t*e of organisation is for#ed)hene2er a need arises to for# anorganisation' for achie2ing aartic"!ar ob/ect$ it )i!! be disso!2edafter achie2ing the ob/ect of the

organisation$ The free for#organisation rese#b!es the ro/ectand #atri% organisation$ It other)ise

!! d i ti i ti

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11 Types of organization