Topic : Types of Organization

By : Sagar Vekariya

Organization :An organization is a

social entity (વ્યવસ્થા)

that has a collective goal and is linked to an external environment.

The word organization is derived from the Greek word “organon”

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A social unit of people that is structured and managed to meet a need to collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks.

1. Functional organization

2. Line organization

3. Line and staff organization

4. Matrix organization

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Line and staff organization is that type of organization in which two types of employees are engaged. One is line executive and another is staff/consultant. In this organization, the line executives are liable to achieve the goal. The responsibilities of the staff are to help line executives by giving suggestions.

Line managers are busy with basic functions like purchase and sales. And staff officers are experts and they do auxiliary functions. They give advice to the line managers, purchase managers, accountant etc.

Chief project engineer

Engineer

(Design)

Architect Legal advisor

Administrator

Finance manager

Security officer

Resident engineer

(mech.)

Resident engineer

(Civil)

Resident engineer

(elect)

Asst. engineer Asst. engineer

Junior engineer Supervisor

Tech asst. Draftsmen Tracer Field staff

Line & Staff Organization Chart

Merits : Project can be made

with better quality.

The staff can do their work according to the allotted job.

Staffs on the basis of their efficiency and experience can do better performance.

It enhances the opportunity to do work.

Demerits Chances to occur conflict in the

staff increase.

There is no authority with the staff which will let them do work according to their decision.

Over heads occur due to expert advices.

Expert to increase his importance may be give wrong orders which may not be useful as he is not responsible for the end results.

There is a tendency to create misunderstanding till any order pass from higher authority to the lower staff.

A matrix organization is one where functional leaders are responsible for more than one area. Employees report to both their immediate manager and a cross function leader. This type of organization is known as a matrix organization because when the relationship between an employee and the management team is illustrated on a diagram it is in a matrix square.

Matrix organization chart:

Corporate accountability

Corporate accountability

Chief design engineer

Chief engineer (const.)

Owner

Const. project manager

Design engineer Const. engineer

Merits : Functional staff can

work according to their suitable quality.

If there is understanding and well defined work distribution amongst the engineer and manager then its is the best technique.

Staff weakness can be cured.

Demerits :

Management and business cost increases comparison to rest.

There is a problem in maintaining the understanding and division of work amongst the manager and the engineer.