DESIGNING THE

ORGANIZATIONAL
STRUCTURE
ORGANIZATIONAL STRUCTURE

The organization structure is

reflected in chart or drawn in boxes
representing different departments
and sections.
 COMPONENTS OF ORGANIZATIONAL
STRUCTURE
1. Organization structure designated formal
reporting relationship.
2. Organization structure identifies the
grouping together of individuals according to
functions into department.
3. The organization structure includes the
design of communication linkages.
 Line Organization
The top manager decision making is
more centralized.
Line managers are those elements which
have responsibility and authority for the
direct accomplishment of the primary
objectives of the organization.
 FEATURES OF THE LINE ORGANIZATION

1. Line Authority – decisions has to be approved

on the next higher level unless minor
decisions are authorize.
2. Line as the chain of command – the line
manager’s serve only as staff assistant to the
top of the line.
3. Chain of communication – the members
of the organization are connected thru a
line of communication.

4. Line as carrier of accountability – the line

element is the means of establishing the
manager’s functions of accountability for
results.
 Advantages of Line Organization
1. Organizational problems are solved quickly
as top management is in control of decision
making.
2. Responsibility is well defined. Single
accountability can be maintained and better
organizational control is achieved.
3. Less overhead expenses on
additional staff as a line managers also
provide functional activities to the top
executives.
Disadvantages of Line Organization
1. There will be an increase in the load of
line manager.
2. The chain of command becomes longer
as instruction has to pass though
channels.
3. There will be the existence of the
inadequacy of managerial specialization.

4. Over centralization of decision and

authority tends to develop dependent
managers and supervisors.
Thank You for listening……..

THE END…