INSTITUTE –University School of Business

DEPARTMENT –AIT

Management Practices & Organisational Behaviour

By : Dr. Honoria Samson

(Assistant Professor)

DISCOVER . LEARN . EMPOWER

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 Management Practices & Organizational
Behaviour

Course Objectives
1 To introduce students to the fundamentals of management practices, organizational
behavior and the human resource function within an organization.
2 To provide an overview of the various elements of an organization with a focus on
human resource as its foundation.
Will be covered in this
lecture

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Learning Objectives

• To know about Authority and its types

• Comprehend and understand the different forms of
organization structure.
• To understand the Line and Staff Functions

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Content

Meaning of Authority
Meaning of Organisation Structure
Factors of Organisation Structure
Line organisation structure
Line and Staff organisation structure
Matrix organisation Structure
Advantages of Line and Staff organization
Disadvantages of Line and Staff
Organization

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 Organisation Structure

• Organization structure is a network of formal

authority relationships among people within which
behaviour and activities of people are regulated for
the accomplishment of organizational objectives.
Factors affecting Organization
Structure
• Organisation Life cycle
• Strategy
• Environment
• Organisational Size
Authority
• AUTHORITY in an organization is the power in a
position to exercise discretion in making decisions
affecting others.
• In an organization there may be four sources of
authority:
1. Legal
2. Financial
3. Operational
4. Technical
 LINE ORGANISATION STRUCTURE
Line authority and instructions are vertical, that is,
they flow from the top to the bottom.
The unity of command is maintained in a straight
line.
All persons at the same level of organisation are
independent of each other.
This structure specifies responsibility and
authority for all the positions limiting the area of
action.
Suitability:-
It is suitable to small – scale organizations where
the number of subordinates is quite small
 LINE ORGANISATION STRUCTURE
1. PURE LINE ORGANISATION

2. DEPARTMENTAL LINE ORGANISATION

2. DEPARTMENTAL LINE ORGANISATION

 FUNCTIONAL ORGANISATION
STRUCTURE

In functional organization structure, line authority runs

through many functional experts who have authority to
issue orders in their respective areas of specialization.
Suitability:
The establishment of functional organisation structure
becomes necessary as a small organisation grows and
business activity becomes more and more complete
FUNCTIONAL ORGANISATION STRUCTURE
 LINE & STAFF ORGANISATION STRUCTURE

It refers to a pattern in which staff specialists advise

line managers to perform their duties.
The staff people have the right to recommend, but
have no authority to enforce their preference on
other departments.

SUITABILITY:
It can be followed in large organizations where
specialization of activities is required, because it offers
ample opportunities for specialization
LINE & STAFF ORGANISATION STRUCTURE
 Comparison Chart

Comparison Chart
BASIS FOR COMPARISON LINE ORGANIZATION LINE AND STAFF ORGANIZATION

Meaning The organization in which the authority The organization structure, in which
and responsibility moves downward, specialist are added to the line
and accountability flows upward, is managers to provide guidance and
called line organization. support, is called line and staff
organization.

Authority Command Command and Advise

Discipline Strict Loose

Executives Line executives are generalist. Line executives are generalist and staff
executives are specialist.

Degree of centralization Absolute centralization Partly centralized and partly

decentralized

Appropriate for Small organization with less number of Large organization with a number of
employees. employees.
Advantages Line and staff
Organization
• 1. Line mangers get the benefit of specialists‘advice on all
important matters at various levels.
• 2. Specialized advice improves the quality of decisions
resulting in operational efficiency and economy.
• 3. Staff specialists relieve the line authorities of botheration
of concentration on specialized staff function like selection
and training, purchasing, public relations.
• 4. Line and staff has greater flexibility, since required
specialists can be added to help line mangers at various
levels.
• 5. The enterprise besides taking advantage of functional
organization, maintain the principle of unity of command.
Disadvantages Line and staff
Organization
• 1. By introducing staff relationship in the line structures the overall
organizational structure becomes more complicated and complex.
• 2. Line and staff structure also suffers from the drawback of poor co-
ordination, because of dual relationship in organization.
• 3. Line and staff structure, may also results in high operating cost
especially if the services of staff specialists are not properly used in a
desirable manner.
• 4. The position of staff specialists in organization seems to be very weak
because they do not have any authority to assert on line mangers and
do not assume any responsibility.
• 5. In this type of organizational structure difference of perceptions and
orientation of line and staff managers does create serious problem with
respect to smooth functioning of the organization.
• 6. Due to many reasons clash and conflict occur between line mangers
and staff specialist
 MATRIX ORGANISATION STRUCTURE
Matrix organisation structure is a hybrid organization
structure.
It combines project structure with the functional structure.
A matrix organisation is a permanent organization structure
designed to accomplish a specific project by using teams of
specialists drawn from different functional departments
within an organization.
Suitability
It can be applicable where there is a pressure for dual focus,
pressure for high information processing, and pressure for
shared resources.
Ex: - Aerospace, chemicals, Banking, Brokerage, Advertising etc.
 DESIGN OF
MATRIX ORGANISATION STRUCTURE
 MATRIX ORGANISATION STRUCTURE
Merits:-
It offers operational freedom & flexibility
It focuses on end results.
It maintenance professional Identity.
It holds an employee responsible for management of resources
Demerits:-
It calls for greater degree of coordination,
It violates unity of command.
Difficult to define authority & responsibility.
Employee may be de motivated.
Suitability
It can be applicable where there is a pressure for dual focus,
pressure for high information processing, and pressure for shared
resources.
Ex:- Aerospace, chemicals, Banking, Brokerage, Advertising etc.
Summary of the Topic

• Organisation Structure determines how the

roles, power and responsibilities are
assigned, controlled, and coordinated, and
how information flows between the different
levels of management.
• A structure depends on the organization's
objectives and strategy.

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 References
Books • Durai, P. (2015). Principles of Management, Text and Cases. New
Delhi: Pearson Education.
• Koontz, H. (2010). Essentials of Management. New Delhi: Tata
McGraw-Hill Education.
• Stoner, Freeman & Gilbert Jr. (2009). Management. New Delhi:
Prentice Hall.
• Weihrich, H. & Koontz, H. (2010). Management- A Global
Perspective: New Delhi: Tata McGraw-Hill Education.

Websites • https://online.pointpark.edu/
• https://www.toppr.com/
• https://www.tutorialspoint.com/
Video https://www.youtube.com/watch?v=dXHPqYGWIkg
Link https://www.youtube.com/watch?v=Vbcpr1TS9NM
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THANK YOU

For queries you can reach me on

Email:
[email protected]