Thursday, May 02, 2013

INTRODUCTION TO MANAGEMENT-PART1


Types / Forms of Organization Structure
An organization structure is that where relationship among employees and management, defined duties, authority and responsibilities as well as hierarchy also defined to achieve organizational goals. Those organization structures are in different forms.
1.   Line organization structure: Line organization is the oldest and simplest method of administrative organization. In this organization the authority flows from top to bottom in a organization. The line of command is carried out from top to bottom. This is the reason for calling this organization as scalar organization, which means scalar chain of command is a part and parcel of this type of administrative organization. In this type of organization, the line of command flows on an even basis without any gaps in communication and coordination taking place.
Example:-
General Manager/CEO
>>Manager>>Sub-Ordinates (Officers)>>Workers
>>Manager>>Sub-Ordinates (Officers)>>Workers

This line structure is defined by its clear chain of command, with final approval on decisions affecting the operation of the company still coming from the top down. Because the line structure is most often used in small organization, as well as police and army organizations, small accounting office, law firm, hair salons and etc. The president/G.M./CEO can easily provide information and direction to sub-ordinate, thus allowing decisions to be made quickly.

Features/Characteristics of line organization structure
-         It is simplest and oldest form of organization structure
-         Line of authority flows from top from bottom
-         Line of responsibility flows from bottom to top
-         Specialized and supportive service do not take a place in this organization
-         Unified control by line officers can be maintained since they can independently take decision in their area
-         This kind of organization helps to increase efficiency in communication.

Merits
-         Simple
-         Unity of command
-         Better discipline
-         Fixed responsibility
-         Flexibility
-         Prompt decision (fast decision)
Demerits
-         Over confidence
-         Lack of specialization
-         Inadequate communication
-         Lack of coordination
-         Autocratic / Authoritarian leadership
-         Over loading to top executives
-         Favoritism  (Give priority to near and dear ones)

2. Line and Staff organization Structure
Line and staff organization is a modification of line organization. According to this administrative organization specialization and supportive are attached to the line authority / command by appointing specialized staff (advisor) supervisor and staff (advisor) specialists who are attached to the line authority. The power of command always remains with the line executives and staff (advisor) supervisor have only advice and council the line executives.
Example: - personal secretary, legal advisors, IT advisors are the staffs in this organization structure.




GM/CEO
Management Specialist………………………….. Legal advisor



IT manager                Administrative Manager
It advisor…………………..…
Officers                                 Officers

Workers                                Workers

Features/ Characteristics
-         There are two types of employees
i.                  Employee’s assistance
ii.               Employee’s supervisors
-         Line and staff organization is compromise of line organization. It is more complex than line organization
-         Division at work and specialization takes place in line and staff organization
-         The whole organization is divided into different functional areas e.g. IT department, administrative department, production department, account department
-         Efficiency can be achieved through the feature of specialization
-         There are two authorities
i.                  Line authority (right to implementation)
ii.               Staff authority (no right of implementation)
-         Power of command remains with line executives

Merits
-         Relief to the line executive
-         Chance to get export advice
-         Benefit of specialization
-         Better coordination
-         Benefit of research and development
-         Training
-         Balance decision
-         Unity of action

Demerits
-         Lack of understanding
-         Lack of sound advice
-         Line and staff conflict
-         Costly

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