2. CONTENTS
Brief introduction about Organization
Structure
Forms of Organization Structure
Line Organization Structure
Line & Staff Organization Structure
3. What is an Organization Structure?
Organizing process leads to creation of organization
structure which is defined as :
“ Organization structure establishes relationship
between people and work within which managerial and
operating tasks are performed to achieve organizational
objectives.”
6. Line Organization Structure
It is also known as scalar, military or vertical
organization and perhaps is the oldest form. This
concept holds that in any organization or heirarchy
derived from a scalar process, there must be a
single head who commands it.
Line organization can be designed in 2 ways:
Pure Line Organization Structure
Departmental Line Organization Structure
7. Pure Line Organization Structure
Under this form, similar
activities are performed
at a particular level.
Each group of activities
is self contained unit
and is able to perform
the assigned activities
without the assistance
of others.
8. Departmental Line Organization Structure
Under this form, entire
activities are divided
into different
departments on the
basis of similarity of
activities. Each
department is placed
under one department
head. All persons in
the department are
subject to control by
the department head.
9. Merits & Demerits of Line Organization Structure
MERITS DEMERITS
• Simplicity
• Discipline
• Prompt
decision
• Orderly
communicatio
n
• Economical
• Lack of
specialization
• Absence of
conceptual
thinking
• Autocratic
approach
• Problems of
coordination
• Lack of
groundwork for
subordinates
10. Line and staff Organization Structure
This structure refers to a
pattern in which staff
specialists advise
managers to perform their
duties. When the work of
an executive increases,
its performance requires
the services of specialists
which he himself cannot
provide because of his
limited capabilities on
these fronts. Such
advices is provided to line
managers by staff
personnel who are
generally specialists in
their fields.
11. Merits & Demerits of Line and Staff
Organization Structure
MERITS DEMERITS
• Planned
Specialization
• Quality
Decisions
• Prospect for
personnel
growth
• Training ground
for personnel
• Lack of well
defined authority
• Line and staff
conflicts