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Chapter 13

Forms of Organisation
Structure
Line Organisation Structure

1. Pure Line Organisation Structure


2. Departmental Line Organisation
Structure
Pure Line Organisation Structure

Production Manager

Foreman A Foreman B Foreman C

Workers Workers Workers


Departmental Line Organisation
Structure
Production Manager

Foreman Foreman Foreman Foreman


(Spinning) (Weaving) (Dyeing) (Finishing)

Workers Workers Workers Workers


Line Organisation Structure
Merits
Simplicity
Discipline
Prompt Decision
Orderly Communication
Easy Supervision and Control
Economical
Overall Development of the Managers
Line Organisation Structure
Demerits
Lack of Specialisation
Absence of Conceptual Thinking
Autocratic Approach
Problems of Coordination
Lack of Groundwork for subordinates’
Training
Line and Staff Organisation
Structure
Secretary Public relations
Officer
Line and Staff Organisation
Structure
Merits…..
Planned Specialisation
Quality Decisions
Prospect for Personnel Growth
Training Ground for Personnel
Line and Staff Organisation
Structure
Demerits…..
Lack of Well- defined Authority
Line and Staff Conflicts
Functional Organisation Structure
Stability of Functional Structure
Problems of Functional Structure
Divisional Organisation Structure

Basis of Divisionalisation
Product Divisionalisation
Territorial Divisionalisation
Strategic Business Unit
Design of Divisional Organisation
Structure
Number of Divisions
Provisions of Corporate Staff
Activities
Relationship between Corporate and
Divisional Management
Design of Divisional Organisation
Structure
Suitability of Divisional Structure
Problems in Divisional Structure
Project Organisation Structure
Suitability Of Project Organisation
Problems in Project Organisation
Matrix Organisation Structure

Design
Suitability of Matrix Structure
Problems in Matrix Structure
Team Based Organisation

Concept of Team
Small number of People
Complementary Skills
Common Purpose and performance
Goals
Common Approach
Mutual Accountabilities

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