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.

Management
Specialist………………………….. Legal advisor
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It
advisor…………………..…


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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