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.

TYPES OF ORGANISATIONAL STRUCTURE

1.
2.
3.
4.
5.

Line/Military/Scalar Organisation
Functional Organisation
Line and Staff Organisation
Project Organisation
Matrix Organisation

Line/ Military/ Scalar orgaisation

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

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.

FUNCTIONAL ORGANISATION

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The functional organization as such is obsolete.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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LINE AND STAFF ORGANISATION

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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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PROJECT ORGANISATION

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MATRIX ORGANISATION

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APPLICATIONS

Electronics
Chemicals
Advertising
Aerospace
Banking
Insurance
Hospitals
Construction

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