FORMS OF ORGANIZATION

STRUCTURE
LINE ORGANIZATION
 It is the oldest form of org. structure.
 It is also known as the scalar org. because it originated
from the army.
 Lines of authority are vertically flowing from top
bottom.
 The command is through a straight and unbroken line.

 All persons at the same level are independent of each

other.
CONTD…
 The authority and responsibility of each position is
clearly specified.
 There are no staff specialist.
CONTD…

Managing
Director

Production
Manager

Plant
Superintendent

Foreman A Foreman B Foreman C

FUNCTIONAL ORGANIZATIONS
 The org. is divided into a number of functional areas.
 Each function is managed by a functional expert in that
area.
 Every functional area serves all the other areas of the
org.
 The specialists operate with considerable independence.
CONTD…
 An individual in the org. receives instructions from
several functional heads.
 E.g. each foreman in a factory receives orders from
factory superintendent, chief engineer etc.
CONTD…

M.D

Prodn.
Mgr

Supdt. Of
Engineer Chemist
Prodn.

Foreman Foreman Foreman

Foreman Foreman
LINE AND STAFF ORG.
 Line and staff org. is a combination of line and
functional structures.
 Staff specialist are attached to line positions to advise
them on important matters.
 These specialists do not have the power to command
over subordinates in other departments.
 Staff positions are created to support the line managers.
CONTD…

M.D

Personnel Works
Chief Manager
Manager Manager

Plant
Superintend.

Foreman A Foreman B Foreman B

PROJECT ORGANIZATIONS
 This structure is mainly used when the organization has
to execute large projects of long duration.
 Each project is organized as a semi - autonomous project
division.
 A project team consists of specialist in different fields.

 Once a project is complete, the regular project division

undertakes a new project.
 Project organizations can be effectively applied under
the following situations:
CONTD…
1. The project offers a unique or unfamiliar challenges
2. The project has defined goals and well defined
specifications
3. Successful completion of the project is critical to the
organization.
4. The project is complex and with interdependent tasks.
5. The assignment is to be completed within the given
time limit.
MATRIX ORGANIZATION
 Matrix org. is hybrid grid structure wherein pure project
org. is superimposed on a functional structure.
 It is developed to meet the problems of growing size and
complexity of undertaking.
 The essence of matrix org. is the combining of functional
and product forms of departmentation.
 It is characterized by an overlapping of command,
control and behavior patterns.
 There is a permanent functional set. Temporary project
groups are created to handle infrequent short term
projects.
CONTD…
 Matrix org. are widely used in engineering, research and
product management areas.
 The project manager does not have complete authority
for exclusive use of resources.
 Matrix org. are more appropriate in the case of large
number of small projects.
 Also , where a project requires only part time use of an
expensive equipment.
 It is suitable when it is not possible to give a manager
direct line authority over all the activities to accomplish
results.
COMMITTEE ORGANIZATIONS
 A committee is a group of persons formed to discuss and
deliberate an problem and to recommend or decide solutions.
 It many be authorized to deal with all or specific activities.

 Committees have become an important instrument of

management because:
1. To secure viewpoints and consultation of various persons in
the organization
2. To give participation and representation to different groups or
interests
3. To coordinate the activities of different departments

4. To review the performance of certain units.

5. To facilitate communication and coordination among diverse

groups.
ASSIGNMENT

 Q. list down the advantages and disadvantages of the

various forms of organizational structure.
Thank You