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ORGANISATIONAL STRUCTURE

• Systematic arrangement of people working in an organization in order to achieve the predefined goals.

• It defines the authority and responsibility relations between various positions.

• It shows interrelationships and relative position of each department.

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Advantages

• Simple and easy to understand• It is flexible, easy to expand• Makes clear division of authority• Clear channel of communication, no confusion.• Strong in discipline• Encourages speedy action

Disadvantages• Neglects specialists• Overloads a few key executives.• Limited to small organizations

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Cont…

• Lack of specialization• More wastage of resources such as material and man

hours.

Applications• Small organizations• Automatic and continuous process industries such as

paper, sugar, textile etc.

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Advantages

• Makes use of experts• Expert guidance reduces wastage, accidents etc.• No need of all round executives.• Quality of work is improved

Disadvantages• Difficult to maintain discipline• All round executives cannot be developed.• Makes industrial relationships more complex• Workers are not given opportunity to use their

initiative and drive.

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Applications

• The functional organization as such is obsolete. • In modified form it is used in some most modern and

advanced concerns.

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Advantages

• Expert advice from specialist staff executives.• Line executives are relieved of some of their loads and

can devote more attention towards production.• Less wastage of resources.• Improved quality of production• There is no confusion as exists in functional

organization.

Disadvantages • High salaries of staff executives increases product

cost.

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Cont …

• Some times staff department may infringe upon the rights and responsibilities of line departments.

• Frictions and jealousies may develop between line and staff executives.

• Line executives if they depending too much on staff executives may loose their initiative and drive .

Application • Line and staff organization is very common among the

medium and larger enterprises.

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PROJECT ORGANISATION

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PROJECT ORGANISATION

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APPLICATIONS

• Electronics• Chemicals• Advertising• Aerospace• Banking• Insurance• Hospitals