Forms of Organizations

7/29/2019 Forms of Organizations

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Forms of Organizations


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Line Organization

Line organization is the most oldest and

simplest method of administrative

organization.

According to this type of organization, the

authority flows from top to bottom in a

concern.

The line of command is carried out from top

to bottom.


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Features of Line Organization

It is the most simplest form of organization. Line of authority flows from top to bottom.

Unified control by the line officers can be

maintained since they can independently takedecisions in their areas and spheres.

This kind of organization always helps in bringing

efficiency in communication and bringingstability to a concern.


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Line organization


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Merits of Line Organization

Simplest

Unity of Command

Better discipline. Fixed responsibility

Flexibility

Prompt decision


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Demerits of Line Organization

Over reliance

Lack of specialization

Inadequate communication Lack of Co-ordination

Authority leadership


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Functional organization

It has been divided to put the specialists in the topposition throughout the enterprise.

This is an organization in which we can define as asystem in which functional department are created

to deal with the problems of business at variouslevels.

Functional authority remains confined to functional

guidance to different departments.

This helps in maintaining quality and uniformity ofperformance of different functions throughout the

enterprise


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Advantages

Is logical and reflection of functions

Follows principle of occupation specialisation

Simplifies training

Better control as the manger in charge of each functionaldepartment is usually an specialist.

Disadvantages

Overspecialisation and narrow viewpoints of keypersonnel can limit the organisation growth.

Reduced coordination between functions.

Conflicts between different functions could bedetrimental for the organisation as a whole.

Difficult for general managers to coordinate differentdepartments.


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Line and Staff Organization

It is a combination of line and functional structures.

In this organization a structure, the authority flowsin a vertical line and get the help of staff specialistwho are in advisory. When the line executives need

advice, information about any specific area, these

staff specialists are consulted.

For example Chief accountant has command

authority over accountants and clerks in theaccounts departments but he has only advisoryrelationship with other departments like production

or sales


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Advantages

Line managers are provided by expert advice by these

specialists. Staff managers provide specialist advice which can

improve quality of decisions in various departments.

Disadvantages

Line managers and staff managers might have conflictson particular issues.

Line and staff managers might not be clear as to what

the actual area of operations is and what is expected of

them. Co-ordination may be a problem. Staff personnel are not accountable for the results and

thus may not take tasks seriously.

Documents

Forms of Organizations