 Organizational Structure refers to the differentiation (differences in the

orientations among the managers if different departments and differences in

formal structure among these departments) and integration (quality of the
state of collaboration for achieving unity) of activities and authority, role
and relationships.
 Organisation Structure is the framework through which the organisation
operates.
 Organisation Structure refers to the pattern of relationships among
individuals and department in an organisation
 Classification of organisation structure is based on various activities which
are grouped together to create departments and units & prescribing their
relationships in the organisation.
 Organizational structure also refers to the well – defined jobs, each
bearing a definite authority, responsibility and accountability.
 Four pillars of Organizational Structure
 Division of Labour
 Scalar and functional processes
 Structure
 Span of control
Line Organisation Structure

 Lines of authority and instructions are vertical, i.e. they flow from the top
to the bottom.

 The unity of command is maintained in a straight and unbroken line. It

implies that each subordinate receives instructions from his immediate
superior alone and is responsible to him only.
 All persons at the same level of org. are independent of each other.

 This structure specifies responsibility and authority for all the positions
limiting the area of action by a particular position holder.

Line & Staff Organisation Structure

 Refers to a pattern in which staff specialists advise managers to perform

their duties.

 Staff managers provide advice to the line manager who are generally
specialists in the field.

 Staff positions are purely advisory in nature. They have a right to

recommend but have no authority to enforce their preference on other
dept.

 The line executives are the “DOERS” or commanders, where as, the
specialists are the “THINKERS” or advisors.
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While the line structure would not be appropriate for larger companies, the line-and-
staff structure is applicable because it helps to identify a set of guidelines for the
people directly involved in completing the organization's work. This type of structure
combines the flow of information from the line structure with the staff departments
that service, advise, and support them (Boone and Kurtz, 1993, p. 259).

Line departments are involved in making decisions regarding the operation of the
organization, while staff areas provide specialized support. The line-and-staff
organizational structure "is necessary to provide specialized, functional assistance to
all managers, to ensure adequate checks and balances, and to maintain accountability
for end results" (Allen, 1970, p. 63).

An example of a line department might be the production department because it is

directly responsible for producing the product. A staff department, on the other hand,
has employees who advise and assist—making sure the product gets advertised or that
the customer service representative's computer is working (Boone and Kurtz, 1993, p.
259).
Based on the company's general organization, line-and-staff structures generally have
a centralized chain of command. The line-and-staff managers have direct authority
over their subordinates, but staff managers have no authority over line managers and
their subordinates. Because there are more layers and presumably more guidelines to
follow in this type of organization, the decision-making process is slower than in a
line organization. The line-and-staff organizational structure is generally more formal
in nature and has many departments (Figure 2).