Organization On the basis of Hierarchy On the basis of allocation of duties and responsibilities and delegation of authority. It shows pattern of communication and co-ordination. Also shows who is to direct whom, and who is to report to whom. There are basically four structure recognized by organizational theorist. (a) Functional Organization (b) Line Organization (c) Line & Staff organization (d) Committee Organization. Functional Organization or Functional Foremanship(Staff) Originated by F.W Taylor Taylor felt that no one supervisor or boss have the expertise necessary to direct or guide all his subordinates. He set up 8 boss for each production unit, each supervisor was assigned some supervisory responsibility. Each worker in the production department has eight supervisors. Taylor divided the supervisory function into two : (1) Office or Planning division (2) Factory division. (1) Gang Boss – Production (2) Speed Boss – Setting the standard of production (3) Inspector in charge – Checking the quality of work (4) Repair boss – Repair of equipment (5) Order-of-work clerk – determines the best way to do the job (6) Time & cost clerk – information relating to time & cost (7) Shop disciplinarian – Personnel activities (8) Work Boss or Route clerk Foremen in the Office Division The Route Clerk: The route clerk is responsible for ascertaining the actual route through which whole work process travel from conversion of raw materials into finished products. 2. Instruction Card Clerk: He prescribes the exact method of completing a work according to the route specified. 3. Time and Cost Clerk: He specified the standard time for the completion of the work and also fixes the time schedule for each element of the job. He also looks after the work relating to payroll and cost. Recent tendency is to split up the functions of this clerk into two separate units – the pay roll department and the cost department. 4. Shop Disciplinarian: He acts as a personnel manger and deals with the cases of indiscipline and absenteeism. Thus, his primary function is to maintain orderliness in the factory and Foremen in the factory Division: The factory division consists of the following four foremen: 1. Gang Boss: The gang boss is concerned with the preparation of work for the machine such as the set up of machine, moving work from machine to machine and from machine to stores. 2. Speed Boss: He is in charge of technical supervision of the work. Such as correcting the speed of the work, flow of work from one place to another, etc. Now-a-days he is designated as Assistant Foreman. 3. Inspector: The inspector is entrusted with all inspection and testing works. He is responsible for the quality of the product. 4. Repair Boss: The repair boss is entrusted with the task of proper repair and maintenance of the equipment and up-keep of the plant Advantages Specialization Increase in efficiency Scope of growth Flexibility Relief to top executives Economy of operation Better supervision Democratic control Disadvantages Conflict in authority Lack of coordination Difficulty in fixing responsibility Delay in decision Poor Discipline Expensive Group rivalry Line Organization It is the oldest form of organization, based on the classical principle of the scalar chain or chain of command. Represents a direct vertical relationship through authority flows. Means authority flows from top to bottom. Each subordinate is responsible for his immediate superior. Common in many small and medium sized companies. Authority & responsibility flows in an “unbroken straight line”, so called as line organization. This structure is mainly followed in military establishments. Types of Line Organization : (1) Pure Line organization (2)Department Line organization. Advantages of Line organization Simplicity Identification of authority & responsibility Co-ordination Effective communication Economical Quick decision Unity of command Effective control and supervision Executive development Flexibility Disadvantages of Line Organization Excess work Lack of specialization Lack of coordination Improper communication Lack of initiative Favoritism Instability Pure Line Organization Allpersons at the given level perform the same type of work The departmentalization are done only for the purpose of control, direction and convenience. Departmental Line Organization Dividesthe entire organization into departments which are convenient for control purpose. The whole organization is put under the control of GM, under which various departmental managers get orders , every department will have its own line of organization. Line & Staff Organization The common structure used in modern industries. Organization need the service of line as well as staff people who share the work load of line people. Specially in large organizations. Line people are those who contribute directly to the goals of the organization & staff contribute indirectly. In an organization personnel, finance & engineering are considered as staff organization. The staff people provide a number of services and relieve the number of line people from overload. But sometimes line and staff organization creates power barriers between line and staff people. Louis A Allen stated the “ line refers to those position & element if the organization which have the responsibility , authority and accountable to attain the primary objectives. Staff have the responsibility and authority to provide advise and service to the line”. Advantages of Line & Staff Organization Specialization Better discipline Balanced and prompt decision Growth and expansion Development of employees Lesser burden on line officers Quick actions Disadvantages Conflict between line and staff personnel Lack of responsibility More dependence on staff Lack of coordination Line & Staff conflict Conflict about authority & responsibility . High cost for staff functions and are blamed for the same by line managers. Credit are mostly gone to line managers when a project becomes successful. Staff people are forced to operate with limited objectives. Line managers are normally ignorant and bull headed who resist ideas. Line are mostly distress, incorporate towards staff. A number of persons may come together to take a decision, decide a course of action, advise line officers on some matters, it is a committee form of organization. A committee is not a separated type of organization as such. But it is a method of attaching persons or groups to line departments for advice and guidance in business planning and execution. The committees are set up for the following reasons
Forum for exchanging ideas
To generate some suggestions and recommendations
for organization
Proper discussion on present problems
To find solutions for the problems.
Needed in establishing and developing
organizational policies. Types of Committees
1. Formal and Informal Committees:
If a committee is formed as a part of organization structure and is delegated some duties and authority, it is a formal committee. An informal committee may be formed to tackle some problem. 2. Advisory Committees: These are the committees to advice line heads on certain issues. Line officers may refer some problems or issues to a committee for advice. The committee will collect information about the problem and recommend solution for the same. The line officers have the powers to accept, modify or reject the suggestions of advisory committees. These committees have no managerial powers and cannot exert their views on the line executives 3. Line Committees:
There may be committees with managerial
powers. Instead of giving a work to one person it may be assigned to a number of executives. The committees having administrative powers are called line or plural committees. Line committees help in planning company policies and programmes and organizing efforts at fulfillment of these plans, etc. These committees also direct and control the activities of employees for achieving organizational goals.