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Module 3 NCBA100

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Module 3 NCBA100

Uploaded by

shikhachauhan0321321
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Subject Code : NCBA 100

Subject name : Managers tool kit

CREDIT UNITS:02
Forms of Organization Structure
• Line Organization structures
• Line & Staff Organization structures
• Functional Organization structure

.
Line Organization structure

• Line organisation is the simplest and the oldest type of organisation. It is also
known as scalar organisation or military type of organisation.
• An important characteristic of such type of organisation is superior-subordinate
relationship.
• The line of authority so established is referred as “line authority.”
• Under this type of organisation authority flows downwards, responsibility moves
upwards in a straight line. Scalar principle and unity of command are strictly
followed in line organisation.

.
Types of line organization:

• Line organisation is of two type’s viz. (a)


Simple or Pure Line Organisation (b)
Departmental Line Organisation
• (a) Simple or Pure Line Organisation:
• In the ‘Pure Line organisation’ the activities (at
any level of management) are the same with
each man performing the same type of work
and the divisions primarily exist for the
purpose of control and direction. In practice,
such type of organisation
. rarely exists.
.
b) Departmental line organisation:

.
.
Line and Staff Organization
structure
• The commanders in the field who are line officers are assisted
by the staff that helps them in formulating strategies and
plans by supplying valuable information.
• Similarly in organisation, line officers get the advice of the
staff which is very helpful in carrying on the task in an efficient
manner.
• However, staff’s role is advisory in nature. Line officers are
usually assisted by staff officers in effectively solving various
business problems.

.
.
Merits and Demerits of Line and Staff structure

• Advantages of Line and Staff Organisation:


• 1. Specialisation:
• 2. Better decisions:
• 3. Lesser Burden on line officers:
• 4. Advancement of research:
• 5. Training for line officer:
Disadvantages of Line and Staff Organisation:
• 1. Conflict between line and staff authorities:
• 2. Problems of line and staff authority:
• 3. Lack of responsibility:
• 4. The system is quite expensive:
• 5. More reliance on staff:

.
Functional Organization
•
structure
F.W. Taylor, who is better known as the father of scientific
management developed the concept of ‘Functional Organisation’.
• As the very name suggests, functional organisation implies that the
organisation should be based on various functions.
• In functional organization all business activities of an enterprise are
divided into number of fractions and each function is entrusted to a
specialist, each specialist is known as functional specialist and
authority delegated to him is known as functional authority

.
.
• Advantages of functional organisation.
1. Specialisation:
2. Increased efficiency:
3. Limited duties:
4. Scope for expansion:
5. Flexibility:
• Disadvantages of Functional Organization:
1. Conflict in authority:
2. Difficulty in pinpointing responsibility:
3. Expensive:
4. Discipline is slackened:
5. Lack of co-ordination:

.
For Line organization
• Line managers are generalists.
• The line of authority is vertical as it follows the principle of scalar chain
• There is strict discipline
• It is not based upon planned specialization
• There is unity of command
• It is suitable for small scale operations
• It is quite economical
For Line and staff organization
• There are experts known as staff to advise and assist the line officials
• Line authority and staff people with advisory authority
• 3. Loose discipline
• It is based upon planned specialization
• Unity of command observed to a great extent
• Suitable for medium scale operations
• Little costlier
For Functional organization
• Functional managers are specialists in their respective areas
• The line of authority is functional or diagonal. The functional manager has authority over the functions wherever it is performed.
• Loose discipline
• Based on high degree of specialization
• Unity of command is not followed as each sub-ordinate gets instructions from his line boss and the functional bosses.
• It is suitable for large scale operations where expert knowledge in certain fields is a must
• Very costly

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