3. What is organization?
• Basically, an organization in its
simplest form ,is a person or group of
people intentionally organized to
accomplish an overall, common goal or
set of goals.
4. What is a structure?
ACC. TO KAST AND
ROSENZWEIG,
“STRUCTURE IS THE
ESTABLISHED PATTERN OF
RELATIONSHIPS AMONG THE
COMPONENT PARTS OF THE
ORGANIZATION.”
5. What is Organizational
structure?
• Organizational structure determines
the manner and extent to
which roles, power,
and responsibilities are delegated,
controlled, and coordinated, and
how information flows between levels
of management.
• An structure depends entirely on
the organization's objectives and
the strategy chosen to achieve them.
7. Line Structure
Line Structure is the OLDEST and SIMPLEST
form of INTERNAL ORGANIZATION
STRUCTURE. It was first developed by the
ROMAN ARMY and the latter adopted by
ARMIES all over the world. Factory owners also
used LINE ORGANIZATION in its purest form
in the NINETEENTH CENTURY IN ENGLAND.
In LINE ORGANIZATION, top management has
complete control and the CHAIN of COMMAND
is clear and simple. MANAGEMENT has complete
control.
10. Line and Staff Organization
ACCORDING TO LOUIS ALLEN,
“LINE REFERS TO THOSE
POSITIONS AND ELEMENTS OF AN ORGANIZATION,
WHICH HAVE THE RESPOSIBILITY AND AUTHORITY AND
ARE ACCOUNTABLE FOR ACCOMPLISHMENT OF PRIMARY
OBJECTIVES. STAFF ELEMENTS ARE THOSE WHICH
HAVE RESPONSIBILITY AND AUTHORITY FOR
PROVIDING ADVICE AND SERVICE TO THE LINE IN
ATTAINMENT OF OBJECTIVES.”
11. Advantages
LESS BURDEN ON EXECUTIVES
SERVICES OF EXPERTS AVAILABLE
LIMITED TENSION ON LINE MANAGERS
BENEFITS OF SPECIALIZATION
TRAINING OPPURTUNITIES TO EMPLOYEES
FLEXIBILITY
12. Limitations
DELAY IN DECISION-MAKING
BUCK PASSING AMONG EXECUTIVES
CONFLICTS BETWEEN LINE AND STAFF
EXECUTIVES
COSTLY ORGANIZATION
COMPLICATED IN OPERATION
DISCIPLINE IS AFFECTED
13. Reasons for conflicts between line
and staff
ARGUMENTS OF LINE
EXECUTIVES AGAINST
STAFF
DILUTION OF AUTHORITY
LACKS PRACTICAL KNOWLEDGE
LACKS HUMAN SKILLS
DOMINATION OF STAFF
MANAGERS
STRESS ON PAPERWORK
ARGUMENTS OF STAFF
EXECUTIVES AGAINST
LINE
RESISTANCE TO NEW PLANS
AND IDEAS
INADEQUATE SUPPORT FROM
LINE EXECUTIVES
LIMITED COOPOERATION FROM
LINE EXECUTIVES
SUPPLY OF INADEQUATE
INFORMATION
14. Solutions for resolving the
conflicts
RELATIONSHIP SHOULD BE NOTED IN WRITING
CLEAR UNDERSTANDING OF STAFF ROLE
FREQUENT MEETINGS
SELECTION OF COMPETENT STAFF
STAFF SHOULD BE TREATED AS TEAM MEMBERS OF
THE GROUP
QUICK SETTLEMENT OF CONFLICTS
15. Project Structure
THE TERM PROJECT REFERS TO A UNIQUE AND
COMPLEX CLUSTER OF ACTIVITIES TO BE COMPLETED
WITHIN FIXED TIME AND COST. THEY ARE DISSOLVED
ONCE THE GOAL IS ACHIEVED. EG- THE GOAL MAY BE
TO CONSTRUCT A NEW RAILWAY BRIDGE.
SPECIALISTS FROM DIFFERENT FUNCTIONAL
DEPARTMENTS ARE BROUGHT TOGETHER TO WORK IN
HARMONY. THE FUNCTIONAL DEPARTMENT MAY BE
PRODUCTION, ENGINEERING, QUALITY CONTROL,
PRODUCT ANALYSIS, ETC. WHEN THE PROJECT IS
COMPLETED, THESE SPECIALISTS RETURN TO THE
RESPECTED DEPARTMENTS
17. Limitations
CONFLICTS IN APPROACH
LACKS CLARIFY OF ROLES
CONFLICTS BETWEEN DEPARTMENTS
UNCERATIN FUTURE
LACKS CLEARITY OF COMMANDS
18. Functional organizational
structure
• Employees are grouped together
according to their similar tasks, skills
or activities. Functional structures
are suitable for SMEs with high level
of specialization.
The decision making is centralized at
the top of the organization.
19. Benefits of functional
organizational structure
• Efficient use of resources;
• In-depth skill development;
• Clear career paths;
• Strategic decisions are made on
the top of the organization.
20. Disadvantages of
functional design
• Slow decision making
• Less innovative.
• Performance responsibility is unclear;
• Limited management training.
• Poor coordination across functions.
21. Matrix Organization
• Matrix Organization was introduced in USA in the early
1960's. It was used to solve management problems in the
Aerospace industry.
• Matrix Organization is a combination of two or more
organization structures. For example, Functional
Organization and Project Organization.
• The organization is divided into different functions, e.g.
Purchase, Production, R & D, etc. Each function has a
Functional (Departmental) Manager, e.g. Purchase
Manager, Production Manager, etc.
• The organization is also divided on the basis of projects
e.g. Project A, Project B, etc. Each project has a
Project Manager e.g. Project A Manager, Project B
Manager, etc.
22. • The employees has to work, under two authority
(bosses). The authority of functional manager flows
downwards while the authority of project manager flows
across (sideward). So the authority flows downwards and
across. Therefore, it is called “MATRIX
ORGANISATION”.
23. Matrix design
• It implements functional and divisional structures
simultaneously in each department.
• The worker in each department is being supervised by two
bosses at the same time.
• It is suitable for the following situations:
- Environmental pressure exists for a dual focus;
- Large amount of information needs to be processed;
- Innovations are performed
- Organization is working on several projects together.
- Efficiency is needed in the use of resources.
24. Strengths of matrix
design
• Provides flexibility;
• Encourages resource efficiency;
• Enhances skill development;
• Increase motivation and commitment;
• Helps top management in planning
process.
25. Weaknesses of matrix
design
• Creates dual authority confusion;
• Is time consuming;
• Generates high implementation cost;
• Requires interpersonal skill training;
• Spawns power struggle.
