Types and Types and Classification Of Classification Of Organizational Organizational

structuresstructures

Types and Types and Classification Of Classification Of Organizational Organizational

structuresstructures

Group members

• Dhruvin Modi (Group Leader)• Saumya Kotiyan• Prachi Biyala• Hinal Goradia• Priyanka Gholap• Sneha Mishra

What is organization?• Basically, an organization in its

simplest form ,is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals.

What is a structure?ACC. TO KAST AND ROSENZWEIG, “STRUCTURE IS THE ESTABLISHED PATTERN OF RELATIONSHIPS AMONG THE COMPONENT PARTS OF THE ORGANIZATION.”

What is Organizational structure?

• Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management.

• An structure depends entirely on the organization's objectives and the strategy chosen to achieve them.

Types of organisation

›TRADITIONAL STRUCTURE1.LINE STRUCTURE 2.FUNCTIONAL STRUCTURE

3.LINE & STAFF STRUCTURE

› MODERN STRUCTURE

1. PROJECT STRUCTURE

2.MATRIX STRUCTURE

Line Structure Line Structure is the OLDEST and SIMPLEST form of INTERNAL ORGANIZATION STRUCTURE. It was first developed by the ROMAN ARMY and the latter adopted by ARMIES all over the world. Factory owners also used LINE ORGANIZATION in its purest form in the NINETEENTH CENTURY IN ENGLAND. In LINE ORGANIZATION, top management has complete control and the CHAIN of COMMAND is clear and simple. MANAGEMENT has complete control.

Advantages SIMPLICITY

DISCIPLINE

ECONOMICAL

STRICT CONTROLS

FLEXIBILITY

HIGH MORAL

Disadvantages

Line and Staff Organization

ACCORDING TO LOUIS ALLEN, “LINE REFERS TO THOSE POSITIONS AND ELEMENTS OF AN ORGANIZATION, WHICH HAVE THE RESPOSIBILITY AND AUTHORITY AND ARE ACCOUNTABLE FOR ACCOMPLISHMENT OF PRIMARY OBJECTIVES. STAFF ELEMENTS ARE THOSE WHICH HAVE RESPONSIBILITY AND AUTHORITY FOR PROVIDING ADVICE AND SERVICE TO THE LINE IN ATTAINMENT OF OBJECTIVES.”

Advantages

LESS BURDEN ON EXECUTIVES

SERVICES OF EXPERTS AVAILABLE

LIMITED TENSION ON LINE MANAGERS

BENEFITS OF SPECIALIZATION

TRAINING OPPURTUNITIES TO EMPLOYEES

FLEXIBILITY

Limitations DELAY IN DECISION-MAKING

BUCK PASSING AMONG EXECUTIVES

CONFLICTS BETWEEN LINE AND STAFF

EXECUTIVES

COSTLY ORGANIZATION

COMPLICATED IN OPERATION

DISCIPLINE IS AFFECTED

Reasons for conflicts between line and staff

ARGUMENTS OF LINE EXECUTIVES AGAINST STAFF

DILUTION OF AUTHORITY

LACKS PRACTICAL KNOWLEDGE

LACKS HUMAN SKILLS

DOMINATION OF STAFF MANAGERS

STRESS ON PAPERWORK

ARGUMENTS OF STAFF EXECUTIVES AGAINST LINE

RESISTANCE TO NEW PLANS AND IDEAS

INADEQUATE SUPPORT FROM LINE EXECUTIVES

LIMITED COOPOERATION FROM LINE EXECUTIVES

SUPPLY OF INADEQUATE INFORMATION

Solutions for resolving the conflicts

RELATIONSHIP SHOULD BE NOTED IN WRITING

CLEAR UNDERSTANDING OF STAFF ROLE

FREQUENT MEETINGS

SELECTION OF COMPETENT STAFF

STAFF SHOULD BE TREATED AS TEAM MEMBERS OF THE GROUP

QUICK SETTLEMENT OF CONFLICTS

Project Structure THE TERM PROJECT REFERS TO A UNIQUE AND COMPLEX CLUSTER OF ACTIVITIES TO BE COMPLETED WITHIN FIXED TIME AND COST. THEY ARE DISSOLVED ONCE THE GOAL IS ACHIEVED. EG- THE GOAL MAY BE TO CONSTRUCT A NEW RAILWAY BRIDGE. SPECIALISTS FROM DIFFERENT FUNCTIONAL DEPARTMENTS ARE BROUGHT TOGETHER TO WORK IN HARMONY. THE FUNCTIONAL DEPARTMENT MAY BE PRODUCTION, ENGINEERING, QUALITY CONTROL, PRODUCT ANALYSIS, ETC. WHEN THE PROJECT IS COMPLETED, THESE SPECIALISTS RETURN TO THE RESPECTED DEPARTMENTS

Uses

a) OBJECTIVES

b) TIME-BOUND

c) UNRELATED WITH DAILY ADMINISTRATIVE WORK

d) IN NEED OF SPECIALISED SKILLS

e) ITS TEMPORARY

Limitations CONFLICTS IN APPROACH

LACKS CLARIFY OF ROLES

CONFLICTS BETWEEN DEPARTMENTS

UNCERATIN FUTURE

LACKS CLEARITY OF COMMANDS

Functional organizational

structure• Employees are grouped together

according to their similar tasks, skills or activities. Functional structures are suitable for SMEs with high level of specialization.

The decision making is centralized at the top of the organization.

Benefits of functional organizational

structure• Efficient use of resources;• In-depth skill development;• Clear career paths;• Strategic decisions are made

on the top of the organization.

Disadvantages of functional design

• Slow decision making• Less innovative.• Performance responsibility is

unclear;• Limited management training.• Poor coordination across functions.

Matrix Organization

• Matrix Organization was introduced in USA in the early 1960's. It was used to solve management problems in the Aerospace industry.

• Matrix Organization is a combination of two or more organization structures. For example, Functional Organization and Project Organization.

• The organization is divided into different functions, e.g. Purchase, Production, R & D, etc. Each function has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc.

• The organization is also divided on the basis of projects e.g. Project A, Project B, etc. Each project has a Project Manager e.g. Project A Manager, Project B Manager, etc.

• The employees has to work, under two authority (bosses). The authority of functional manager flows downwards while the authority of project manager flows across (sideward). So the authority flows downwards and across. Therefore, it is called “MATRIX ORGANISATION”.

Matrix design

• It implements functional and divisional structures simultaneously in each department.

• The worker in each department is being supervised by two bosses at the same time.

• It is suitable for the following situations:- Environmental pressure exists for a dual focus;- Large amount of information needs to be processed;- Innovations are performed- Organization is working on several projects together.- Efficiency is needed in the use of resources.

Strengths of matrix design

• Provides flexibility;• Encourages resource efficiency;• Enhances skill development;• Increase motivation and

commitment;• Helps top management in planning

process.

Weaknesses of matrix design

• Creates dual authority confusion;• Is time consuming;• Generates high implementation

cost;• Requires interpersonal skill training;• Spawns power struggle.

Thank You!!!