Organisation Structures

And Departmentation
Presented by:
ARLEEN
BRYCIE
CLARIESON
MELITA
PREETHAM
RAMEEZ
 Organisation Structure

Meaning:
An organisation structure shows the
authority and responsibility relationships
between the various positions in the
organisation by showing who reports to
whom.
Types of Organisation Structure

• Line Organisation
• Line and Staff Organisation
• Functional Organisation
• Committee Organisation
• Project Organisation
• Matrix Organisation
Line Organisation
Line and Staff Organisation

Presented by:-
BRYCIE
 Line Organisation
• Direct vertical relationship
• Simplest form
• Scalar or Military organisation
• Authority flows downward
• Highest authority at the top
 Line Organisation

General Manager

Production Manager Finance Manager Marketing Manager

Superintendent Asst. Finance Manager Asst. Marketing Manger

Foremen Accountants Sale Supervisors

Workers Clerks Salesmen

Advantages

• Easy to establish and understand

• Facilitates unity of command
• Clear cut identification of authority and
responsibility
• Ensures excellent discipline
• Facilitates prompt decision making
 Disadvantages

• Superiors overloaded with work

• Concentration of authority at the top
• Not suitable to big organisations
• No communication from bottom upwards
 Line And Staff Organisation
• Line Authority remains the same
• Specialists are attached to line managers to
advise them on important matters
• Staff officers do not have any power of command
• Staff helps in handling details, gathering data for
decision making and offers advise on specific
managerial problems
 Line and Staff Organisation

BOARD OF DIRECTORS

EXECUTIVE CONTROLLER
MANGING OF FINANCE
COMMITEE
DIRECTOR

ASSISTANT TO
MANGING DIRECTOR

MANGER MANAGER MANAGER

DIVISION A DIVISION B DIVISION C
 Advantages

• Specialised knowledge
• Reduction of burden
• Proper wieghtage
• Better decisions
• Flexibility
• Unity of command
 Disadvantages

• Conflict between line and staff executives

• No clear allocation of duties
• Staff not accountable for results
• Difference between orientation of line and
staff men
 Functional Organisation
• F.W. Taylor evolved functional organisation
• Means of putting the specialists in the top
positions throughout the enterprise
• Activities classified according to functions like
production, marketing, finance, personnel etc
• Subordinates receives orders and instructions
not from one superior but several functional
specialists
 Managing
director

Production Finance Marketing Personnel

Director Director Director Director

General Manager General Manager General Manager

Division X Division Y Division Z
Advantages

• Specialisation of work
• Executive Development
• Reduction of workload
• Scope for expansion
• Better Control
 Disadvantages

• Violates the principle of unity of command

• Complicated operation – creates confusion
• Develops specialists rather than generalists
• Loss of overall perspective in dealing with
business problems
• Lack of coordination and delay in decision
making
Committee Organisation
Project Organisation
Matrix Organisation

Presented by:-
MELITA
Committee Organization

• Definition
“A committee is a body of persons
appointed or elected to meet on an
organized basis for the consideration of
matters brought before it.’’- Louis A. Ellen
Types of committees
• Line and Staff committee
• Formal and Informal committee
• Standing and Ad hoc committees
• Executive committee
• Coordinating committee
Advantages
• Pooled knowledge and experience
• Wider participation
• Tools of co ordination
• Overcoming resistance
• Check against misuse of powers
Disadvantages
• Evasion of decision-making responsibility
• Slow decision-making
• Costly device
• Lack of definite decision
• Source of misunderstanding
 Project Organization

Structured to facilitate planning and designing of the

product, completion of the assigned task and phasing out
of the project.

Advantages
• Concentrated attention
• Maximum use of specialized knowledge
Disadvantages

• Uncertainty
• Lack of clearly defined responsibility
• Pressures
• Motivation of specialists
 Matrix Organization

DIVISION X

production engineering finance personnel

Project Prod Engg Fin Pres

manager 1 group
group group group

Project Prod Engg Fin Pres

manager 2 group group group group
Advantages
• Better planning and control
• Flexible
• Provides motivation
• Better utilization of services

Disadvantages
• Violates principle of unity of command
• Problem of coordination
• Conflicts
• Lack of commitment
Meaning, objectives and
merits of departmentation

Presented by: Preetham

 Departmentation
Meaning

• The process of division of the enterprise into

different parts is broadly called
departmentation.
• A department is a work group combined
together for performing certain functions of
simple nature.
Objectives

• 1. Specialize activities
• 2. Simplify managerial tasks
• 3. Maintain control
Advantages

1. Increase in efficiency
2. Fixation of accountability
3. Development of managerial faculty
4. Performance appraisal
5. Better control
Methods of departmentation

Presented by: Rameez and Clarieson

 METHODS OF DEPARTMENTATION

• DEPARTMENTATION BY NUMBERS

• DEPARTMENTATION BY FUNCTION

• DEPARTMENTATION BY TIME

• DEPARTMENTATION BY PRODUCT
 CONTD……

•
• DEPARTMENTATION BY CUSTOMER

• DEPARTMENTATION BY TERRITORY

• DEPARTMENTATION BY PROCESS OR EQUIPMENT

• MIXED OR HYBRID DEPARTMENTATION

CONCLUSION
THANK YOU