nbm

PostingFreak

09172012,11:21AM

Onthebasisofrelationship,anorganisationmayoftwotypesformalandinformal.

Formalorganisationreferstothestructureofwelldefinedjobs,eachbearingadefinitemeasureof
authority,responsibilityandaccountability.

Informalorganisationreferstotherelationshipbetweenpeopleintheorganisationbasedonpersonal
attitudes,emotionsandprejudices,likesanddislikes.

TherearefivecommonformsoforganisationstructureLine,Functional,LineandStaff,Committeeand
matrixorganisation.

(1)LineorganisationInthis,thereisachainofauthoritywhichflowsfromupwardtodownword.

Advantages.Mainadvantagesofthisformoforganisationare:(i)Simple,(ii)Fixedresponsibility,(iii)
Flexibility,(iv)Promptdecision,(v)Unifiedcontrol,(vi)Welldefinedauthority,(vii)Fixedchannelof
promotions.

DisadvantagesThesystemclaimsthefollowingdisadvantages:(i)Unitaryadministration,(ii)
Overloadingwithwork,(iii)Lackofspecialisation(iv)Lackofcommunication(v)Succession
problem,(vi)Absenceofconceptualthinking,(vii)Favourities,(viii)Nocoordination.

(2)FunctionalorganisationInthisformoforganisationallactivitiesintheorganisationare
groupedaccordingtothebasicfunctions,i.e.,production,finance,marketing,headedbyaspecialist.

AdvantagesMainadvantagesofthisformare:(i)Specialisation,(ii)Largescaleproduction,(iii)
Improvedefficiency,(iv)Flexibility,(v)Betterindustrialrelations,(vi)Separationofmentalandphysical
functions.

DisadvantagesFollowingarethedisadvantagesofthisformoforganisation:(i)Multiplicityof
authority,(ii)Indiscipline,(iii)Shiftingofresponsibility,(iv)Lackofcoordination,(v)impracticable,(vi)

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delayindecisionmaking.

(3)LineandStaffOrganisationInthisformoforganisationthestructureisbasicallythatofline
organisationbutfunctionalexpertsareappointedtoadvisethelineauthorityintheirrespectivefield.

Advantages:(i)Advantagesofthelineandthefunctionalorganisations,(ii)Specialisation,(iii)Sound
decisions.

Disadvantages:(i)Conflictsbetweenthelineandthestaffexecutives,(ii)Adviceofthestaffexecutivesis
ignored,(iii)Nodemarcationofauthority,(iv)Lackofresponsibility,(v)uneconomical.

(4)CommitteeOrganisationCommitteeisagroupofindividualsformedpermanentlyor
temporarilyforaparticularpurposethroughfreeinterchangeofideas.

Advantages(I)Poolingofideas,(2)Coordination,(3)Motivationthroughparticipation,(4)
Representationofinterestgroups,(5)Easycommunication,(6)Noconcentrationofpower,(7)Atoolof
managementfordevelopment.

Disadvantages(I)Slowdecisions,(2)Dividedresponsibility,(3)Minoritytyranny,(4)otherabuses.

(5)ProjectorMatrixOrganisationInitauthorityflowsverticallywithinfunctionaldepartments.

AdvantagesItemphasisesmultipleinterdependenceamongvariousfunctions,horizontalrelationships
andoperationalflexibility.

DisadvantagesItisofatemporarynature.
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