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ORGANIZATION• Collection of people working
together under a division of labour and a hierarchy of authority to achieve a common goal.
• It facilitate a greater accomplishment of work.
• Best utilization of human and material resources .
According to Mooney and Reily - “organization is the form of every human association for the attainment of a common purpose.”
organization
Identifying and grouping
of work
Defining and delegating
authority and responsibility
Creating good relationship
CooperatingEffective work performance
Achieving organizational
goal
Achieving personal goal
FORMS OF ORGANIZATION
• Line organization
• Line and staff organization
• Functional organization
• Committee organization
• Project organization
• Matrix organization
LINE ORGANIZATION• Authority flows vertically in hierarchical
order.
• Authority flows from top to bottom/lower level of management.
• Responsibility flows from lower to top level.
• Greatest decision making and authority persons are located at the top and least are at the bottom.
• It shows horizontal or vertical unbroken lines.
• Unbroken lines shows formal path of communication or authority deligation
• Used in military organization.
TOP LEVEL
MIDDLE LEVEL
BOTTOMLEVEL
AUTHORITY
RESPONSIBILITY
TYPES OF LINE ORGANIZATION
1. PURE LINE ORGANIZATION
All person at particular level perform same type of work.
Purpose of division – direction and control
Found in modern industry.
Exist in very small business units.
2. DEPARTMENTAL LINE ORGANIZATION
Activities divided into separate departments.
Heads of each departments control and command by top boss.
Heads have sufficient autonomy in work.
Example of line organization
President of India
Defense minister
Air force chief Army chief Navy chief
Air force staff Army staff Navy staff
LINE AND STAFF ORGANIZATION• It deals with authority relationships.
• Staff refers to those elements of the organization that help the line to work most effectively in accomplishing the primary objectives of organization
• Specialist support lo line managers
• Use of scalar principle
• Staff advice is critical as they have specialised knowledge in their area.
• Nature of staff-advisory
Functional organization
• A functional organization is design groups of people on the basis of common skills and expertise or resources they used.
OR • Grouping of job which
require same knowledge ,skill and resources.
Committee organization• Some persons are pooled
together for collective thinking and critical analysis on some issues to arrive on some common decision.
• It has a chairman who conduct meeting.
• Decision taken on consensus basis.
• According to G.R.Terry A body of persons elected or appointed to meet on a organized basis for the discussion of dealing with matters brought before it.
Types of committee
• Permanent committee Work on permanent basis. longer duration Ex. policy planning committee,
Purchase committee
• Temporary committee Constituted for specific purpose. Work completed in short span of time Ex. Enquiry committee , Farewell
committee
• Executive committee Line committee Have authority to take decision and
executed them. Ex. Purchase committee
disciplinary committee
• Advisory committee Not have authority to take decision. Submit recommendations to higher
authorities. Ex. Quality improvement committee
• Formal committee Constituted after approval of higher
authority Ex. Advisory committee Coordination committee
• Informal committee Come up in existence without the
approval of higher authority Ex. fund rising committee, strike
management committee constituted by employees themselves without consulting their boss
Project organization• It is created when a enterprise takes up one or more projects.
• Project- a major work which is of specialised nature and completed within a stipuleted cost and time framework.
• It has its own separate fund, men, material machines and other resources.
• Project manager leads the project team.
• Separate accounts are maintained for every projects.
• Ex. Construction of new office building,construction of a new bridge.
Matrix organization• It is a rectangular grid that shows a vertical
flow of functional responsibility and a horizontal flow of product responsibility
• Combination of project organization and functional organization.
• It is created when an organization has a number of projects.
• It have duel authority structure.
• In this functional departmentalization commonly is combined with product groups on a project basis.
• Structure has formal , vertical as well as horizontal chain of command.
• Modified version of project organization