Organisation requires the creation of structural relationship among different departments and the individuals working there for the accomplishment of desired goals. Organisation structure is primarily concerned with the allocation of tasks and delegation of authority.
The establishment of formal relationships among the individuals working in the organization is very important to make clear the lines of authority in the organisation and to coordinate the efforts of different individuals in an efficient manner. According to the different practices of distributing authority and responsibility among he members of the enterprise, several types of organisation structure have been evolved. They are:
This is the simplest and the earliest form of organisation. It is also known as "Military", "traditional", "Scalar" or "Hierarchical" form of organisation. The line organization represents the structure in a direct vertical relationship through which authority flows.
Under this, the line of authority flows vertically downward from top to bottom throughout the organisation. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. All major decisions and orders are made by the executives at the top and are handed down to their immediate subordinates who in turn break up the orders into specific instructions for the purpose of their execution by another set of subordinates. A direct relationship of authority and responsibility is thus established between the superior and subordinate. The superior exercises a direct authority over his subordinates who become entirely responsible for their performance to their commanding superior. Thus, in the line organisation, the line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. The line of authority not only becomes the avenue of command to operating personnel, but also provides the channel of communication, coordination and accountability in the organisation.
Prof. Florence enunciates three principles which are necessary to realise the advantages of this system and the non-observance of which would involve inefficiency.
Chart showing a line organisation
Advantages or merits of line organisation
Disadvantages or demerits of line organisation
Prof. Florence, sums up the inefficiencies of the line organisation system under three heads-
In spite of these drawbacks, the line organisation structure is very popular particularly in small organisations where there are less number of levels of authority and a small number of people.
Line and Staff Organisation
In line and staff organisation, the line authority remains the same as it does in the line organisation. Authority flows from top to bottom. The main difference is that specialists are attached to line managers to advise them on important matters. These specialists stand ready with their speciality to serve line mangers as and when their services are called for, to collect information and to give help which will enable the line officials to carry out their activities better. The staff officers do not have any power of command in the organisation as they are employed to provide expert advice to the line officers. The combination of line organisation with this expert staff constitutes the type of organization known as line and staff organisation. The 'line' maintains discipline and stability; the 'staff' provides expert information. The line gets out the production, the staffs carries on the research, planning, scheduling, establishing of standards and recording of performance.
The authority by which the staff performs these functions is delegated by the line and the performance must be acceptable to the line before action is taken.
Line and staff Organisation
Types of Staff
The staff position established as a measure of support for the line managers may take the following forms:
Features of line and staff organisation
Advantages or merits of line and staff organisation
Disadvantages or demerits of line and staff organisation
The difficulty of the line organisation in securing suitable chief executive was overcome by F. W. Taylor who formulated the Functional type of organisation. As the name implies, the whole task of management and direction of subordinates should be divided according to the type of work involved. As far as the workman was concerned, instead of coming in contact with the management at one point only, he was to receive his daily orders and help directly from eight different bosses; four of these were located in the planning room and four in the shop. The four specialists or bosses in the planning room are:
The four specialists or bosses at the shop level are:
The chart showing functional foremanship
It was F. W. Taylor who evolved functional organisation for planning and controlling manufacturing operations on the basis of specialisation. But in practice, functionalization is restricted to the top of the organisation as recommended by Taylor.
Features of functional organisation
The features of functional organisation are as follows:
Advantages of functional organisation
Disadvantages or demerits of Functional organisation
Committee organisation as a method of managerial control has very little practical importance, because it is managed by a senior member of the committee only. But the committee organisations are widely used for the purpose of discharging advisory functions of the management. Committees are usually relatively formal bodies with a definite structure. They have their own organisation. To them are entrusted definite responsibility and authority.
According to Hicks, "A committee is a group of people who meet by plan to discuss or make a decision for a particular subject."
According to Louis A Allen, "A committee is a body of persons appointed or elected to meet on an organised basis for the consideration of matters brought before it."
A committee may formulate plans, make policy decisions or review the performance of certain units. In some cases, it may only have the power to make recommendations to a designated official. Whatever may be the scope of their activities, committees have come to be recognised as an important instrument in the modern business as well as nonbusiness organisations.
Objectives of committees
Committees are constituted to achieve one or more of the following objectives:
Types of committees
Advantages or merits of committee type of organisation
Group endeavour, team spirit and collective responsibility are control to the philosophy of committees.
Disadvantages of committee type of organisation
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