ORGANIZATION

- AND ITS STRUCTURES

A BRIEF EXPLANATION ABOUT THE STRUCTURES

OF ORGANIZATION
 PERSONAL INFORMATION

NAME BHASKAR JYOTI CHANDA

STREAM B.Sc. (H.) BIOTECHNOLOGY

ROLL NUMBER 26408216039

REGISTRATION NUMBER 162642410006

SEMESTER 6TH SEMESTER

YEAR 3RD YEAR

Introduction:

ORGANISATION:
The term “Organization” is simply defined as a mechanism that
enables things to work effectively together. It co-ordinates men,
machine, and material in such a way that maximum output can be
achieved with minimum cost.

In other words, organization:

Establishes the relationship between persons by allotting work to individual.

Specifies duty, authority and responsibility of individual towards group.
Provides a co-ordination and communication.
Arranges people in a definite structure.
ITS POSTULATES:
They are:

Organization is a group of people.

This group works under an executive leadership.
Its defines responsibility of an individual.
It is a tool of management.
It is first step in achievement of goal.
 ELABORATIONS:
Organization is an open system which interacts with the
environment. A system receives input from the environment and
delivers the output in the form of product.
INPUTS ENVIRONMENT OUTPUTS ENVIRONMENT
CONVERSION

MEN, CONVERSION PROCESS PRODUCTS &

MATERIAL, MANUFACTURING SERVICES
MACHINERY, PROCESS
INFORMATION, OUTPUT
CAPITAL
FEEDBACK
INPUT SYSTEM CONCEPT
ORGANIZATION
STRUCTURES
 ELABORATIONS:
Organization structure is designed by management to achieve
goals. It simply means systematic arrangement of the people
working organization to achieve set targets or aims. It gives idea
about the position of the person in the respective organization and
the relationship between them. It also provides certain frameworks
about the authority, responsibility between various positions.
Thus, organization structure:
Gives idea about the authority & responsibility of individual.
Helps in achieving coordination.
Distributes work according to functions and specialization.
Avoids misunderstandings and confusions in organization.
 GENERAL MANAGER

Sales Manager Prod. Manager Finance Manager

Sales Engineer Prod. Engineer Asst. Manager

Sales Executive Foreman Accountant

Salesman Worker Clerk

ORGANIZATION CHART FOR MANUFACTURING INDUSTRY

 CONSIDERATION OF OBJECTIVE

RELATIONSHIP OF BASIC COMPONENTS

AUTHORITY & RESPONSIBILITY

SPAN OF CONTROL

DIVISION & GROUPING OF WORK

EFFECTIVE DELEGATION

COMMUNICATION

LINE & STAFF FUNCTIONS

BALANCE, STABILITY & FLEXIBILITY

ORGANIZATIONAL ESSENTIALS
TYPES OF ORGANIZATION

Fundamental Concepts
LINE ORGANIZATION

FUNCTIONAL ORGANIZATION

LINE & STAFF ORGANIZATION

Recent Concepts
PROJECT ORGANIZATION

MATRIX ORGANIZATION

COMMITTEES
Fundamental Concepts Elaboration:
LINE ORGANIZATION

 This type of organizational structure is also known as scalar

organization. This is the simplest form of organizational structure.
 It is based on relative authority and responsibility. The authority
flows from top to bottom and the responsibility of every person
clearly defined.
 The top executive issues order to subordinate, assign duties and
authorities to complete the task. Every person is allotted with
definite work for which he is held responsible.
 This is also known as Military Organization as in military,
discipline is of high order.
 ADVANTAGES

Its simple & easy to understand.

Its very flexible.
It defines authority and responsibility clearly.
Communication is good.
Its speedy in functioning.
Disciplined in nature.
All round executives are developed.
ADVANTAGES

It neglects specialists.

It overloads few key executives.
All round persons are required.
Limited to small firms.
More wastage due to lack of specialization.
Training, development of executives is not possible.
GENERAL

MAJOR GENERAL

I.T. GENERAL

BRIGADIER

COLONEL

I.T. COLONEL

MAJOR

CAPTAIN

LINE ORGANIZATION
 FUNCTIONAL ORGANIZATION

 The difficulties in finding all round executives led to the advent of

Functional organization.
 In this platform, there are eight persons and everyone is having direct and
equal authority over workers . Four foremen are placed in the office and
the other four in the shop who are called boss.
 Each foreman is expert in a particular field and has uniform authority
over workers.
Superintendent

Office Shop

Route Clerk Gang Boss

Instruction Clerk Speed Boss

Workers
Time & cost Clerk Repair Boss

Discipline Clerk Inspection Boss

 DUTIES REQUIRED

Route Clerk: In charge of issuing work, orders and routing the job

Instruction Clerk: Issues specifications and instructions related to job

Time & Cost Clerk: Keeps record of time & wages of workers

Discipline Clerk: Keeps personal record of workers & maintains discipline

Gang Boss: In charge of preparation of work till the actual production starts

Speed Boss: Responsible for speedy & correct work

Repair Boss: Responsible for repair, maintenance of machine & equipments

Inspection Boss: Looks after the quality of the product

 ADVANTAGES

One can perform duties in a better fashion due to one function.

Specialization gives better advice.
It relives stress of line executives.
Expert guidance reduces wastage, accidents & time.
No all round executives required.
Quality of product is improved.

DISADVANTAGES

Discipline cannot be maintained.

It makes industrial relations complex.
Workers always remain confused about reporting.
Coordination among foremen is difficult.
All round executives cannot be developed.
Difficult to fix up responsibility.
 LINE & STAFF ORGANIZATION

 It combines the advantages of line & functional organization. As the

industry grows in size and complexity, the line executives are overloaded

and they cannot perform other functions properly & satisfactorily.

 This leads to employing special executives to assist line executive and they

are called staff.

 Staff performs definite & specialized functions.

 The final authority lies in the hands of line executives whether to accept

and implement the recommendations of the staff executives or not.

 SECRETARY BOD LEGAL ADVISOR

FINANCE
SALES MANAGER
MANAGER
G.M.
PERSONAL PURCHASE
MANAGER MANAGER

INDUSTRIAL
DESIGN ENGINEER
ENGINEER
W.M.
MAINTENANCE PURCHASE
ENGINEER MANAGER

SUPT. A SUPT. B

F/M F/M F/M F/M

LINE & STAFF ORGANIZATION

 ADVANTAGES

Expert advice from specialist can be received.

Line executives can formulate further plans.
Quality of product is improved.
Less wastage of man and machine hours.
There is no confusion between workers.
It possesses advantages from line & functional ones.

DISADVANTAGES

Product cost is increased due to high salaries of staff executives.

Line ones may start depending on staffs.
If coordination is not there, it causes confusions.
Misunderstanding may occur between line & staff.
Infringement upon rights weakens the platform.
A bit more: Recent Concepts

PROJECT ORGANIZATION
It is of recent origin. Under this, each project is organized as semi –
autonomous project division.
A project is a unique and complex cluster of activities designed
around a distinct mission and a specific time frame. It consists of a
well organized team. The team members are specialized in their
different & respective fields. The activities of team is coordinated by a
project manager who is ultimately responsible for the successful
completion of this project.
Managing director

Manager Project Div: 1 Manager Project Div: 2

R&D Accounts Personnel R&D Accounts Personnel
Engineer Engineer
Manager Officer Officer Manager Officer Officer

Clerks Clerks
 MATRIX ORGANIZATION

Matrix management is an organizational structure in which some individuals

report to more than one supervisor or leader, relationships described
as solid line or dotted line reporting. More broadly, it may also describe
the management of cross-functional, cross-business groups and other work
models that do not maintain strict vertical business units or silos grouped by
function and geography.
There are different types of matrix management, including strong, weak,
and balanced, and they are hybrids between functional grouping and
divisional or product structuring.
For example, by having staff in an engineering group who have marketing
skills and who report to both the engineering and the marketing hierarchy,
an engineering-oriented company produced "many ground-breaking
computer systems." This is an example of cross-functional matrix
management, and is not the same as when, in the 1980s, a department
acquired PCs and hired programmers.
 Managing Director

Production Personnel Engineering Finance

Project Prod. Group Pers. Group Eng. Group Finance

Manager 1 1 1 1 Group 1

Project Prod Group Pers. Group Eng. Group Finance

Manager 2 2 2 2 Group 2

MATRIX ORGANIZATION
 COMMITTEES

 A committee (or "commission") is a body of one or more persons that is

subordinate to a deliberative assembly. Usually, the assembly sends matters
into a committee as a way to explore them more fully than would be
possible if the assembly itself were considering them. Committees may have
different functions and their type of work differ depending on the type of
the organization and its needs.
 A deliberative assembly may form a committee (or "commission") consisting
of one or more persons to assist with the work of the assembly. For larger
organizations, much work is done in committees. Committees can be a way
to formally draw together people of relevant expertise from different parts
of an organization who otherwise would not have a good way to share
information and coordinate actions.
 Its functions are as follows:
 Governance
Coordination & Administration
Research & recommendations
Discipline & as a tactic for decision
Finance B.O.D. Executive

Purchase Production Purchase

Production Marketing Finance Personnel

COMMITTEE ORGANIZATION
 COMPARISON BETWEEN FUNDAMENTALS

DIFFERENTING
LINE FUNCTIONAL LINE & STAFF
FACROR
DISCIPLINE VERY HIGH POOR MEDIUM

SPECIALIZATION NO MODERATE EXCELLENT

CONFUSIONS
COMMUNICATION STRONG & CLEAR CONFUSIONS
( SOMETIMES)
AUTHORITY &
CLEARLY DEFINED CONFUSED CLEARLY DEFINED
RESPONSIBILITY

SPEED VERY FAST & SMOOTH SLOW MEDIUM

PROD. COST LESS MEDIUM HIGH

WASTAGES LESS MEDIUM LESS

PRODUCT QUALITY MEDIUM GOOD EXCELLENT

ALL ROUND EXECUTIVE DEVELOPED NOT DEVELOPED DEVELOPED

PRAC. APPLICATION SMALL FIRM NOT IN USE MEDIUM & LARGE SCALE
Conclusion:
Therefore, we can say that the structures allotted for
organization help them to construct themselves in an
efficient manner reducing the flaws & faults in its system.

It helps us to give organization an efficient, productive,

executable and transparent structure which in turn helps in
the attainment of topmost level of production and
fulfillment of managerial objectives.

It is a vast area with immense scope of development for the

betterment of several fields of management.
THANK YOU

Bhaskar Jyoti Chanda