ORGANISATION STRUCTURE

1. ORGANISATION STRUCTURE An organisation structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organisational aims. It can also be considered as viewing glass or perspective through which individual see their organisation and its environment.

4. DETERMINING THE KIND OF STRUCTURE

5. ROLE OF ORGANISATION STRUCTURE

6. DESIGNING ORGANISATIONAL STRUCTURE

8. Types of Organisation

9. LINE ORGANISATION It is characterized by direct lines of authority flowing from the top to the bottom of the organizational hierarchy and lines of responsibility flowing in an opposite but equally direct manner. EXAMPLE:- As in case of military, commander-in-chief holds the top most position and has the entire control over the army of the country, which in turn is developed into main area commands under major-generals.

11. FEATURES • Authority flows from top to bottom and responsibility flows upward. • Every person is in incharge of person working under him. • Each subordinate receives orders only from one superior and is answerable to him only. • The authority of each person is clearly specified.

12. MERITS • Simplicity • Identification of authority • Co-ordination • Effective communication • Economical • Quick decisions • Unity of command • Effective control & supervision • Executive development • Flexibility

13. DEMERITS • Excess work • Lack of specialization • Lack of co-ordination • Improper communication • Lack of initiative • Favouritism • Instability

14. FUNCTIONAL ORGANISATION • Functional organizational chart is structured with few managers at the top and most people at the bottom, organized by the tasks they performed. • The incharge of a function is specialist in it and brings out the best in himself. Every functional area serves all other areas in the organisation

16. FEATURES • The whole task is divided into different functions • Each functions is performed by a specialist • The functional head is incharge of activities of his functions in the whole organisation • Functional heads operate with considerable independence

17. ADVANTAGES • Specialisation • Increase in efficiency • Scope for growth • Flexibility • Relief to top executives • Economy of operations • Better supervision • Democratic control

18. DISADVANTAGES • Conflict in authority • Lack of co-ordination • Difficulty in fixing responsibility • Delay in taking decisions • Poor discipline • Expensive • Group rivalaries

21. TYPES OF STAFF • PERSONAL STAFF The personal staff is attached to individual line officers. Example- Personal Assistant or the private secretary. • SPECIALIST STAFF These are technically qualified persons who provide service to the whole organisation. They serve line and other staff in planning organising and coordinating their work. Example –legal advisor • GENERAL STAFF This staff consists of a person attached to the key executives .They are attached to important functionaries as their deputies. Example –deputy managers ,assistant manager ,special assistant etc

22. ADVANTAGES • Specialisation • Better discipline • Balanced and prompt decisions • Growth and expansion • Development of employees • Lesser burden on line officers • Quick actions

23. LIMITATIONS • Conflict between line and staff personnel • Lack of responsibility • More dependence on staff • Lack of co-ordination • Ineffective staff • expensive

24. Difference between line and staff • Staff thinks ,lines do • Staff advises ,lines perform • Staff tells the line what to do ,lines tell staff where to go • Staff has the authority of line , line have the authority to command • Staff has no fixed responsibility ,lines have fixed responsibility • Staff has no authority over the line and has only power to recommend .Line is responsible for actual execution of work

27. COMMITTEE FORM OF ORGANISATION A number of persons may come together to take a decision, decide a course of action, advice line officers on some matters, it is a committee form of organisation. Thinking of varied persons is pooled together through deliberations and discussions and common decisions are reached.

30. NEED FOR COMMITTEES

31. TYPES OF COMMITTEES

32. ADVANTAGES OF COMMITTEE FORM OF ORGANISATION

33. WEAKNESS OF COMMITTEE FORM OF ORGANISATION

34. How to make committees effective? • Reasonable number- The number should be such which is essential for taking collective decisions. In case of a) line committee- 4 to 5 members b) advisory committee- 7 to 8 members • Well informed members- the members of committees should be well informed about the areas where they are supposed to take decisions. • Effective chairman- The wisdom and tactfulness of the chairman will make the committee purposeful. • Clear cut reference- the role of the committee should be clearly spelt out. • Proper briefing- The committees should be properly briefed by the concerned executives.

35. MATRIX ORGANISATION It was introduced in USA in the early 1960s. It is also known as grid organisation, product or project management. The employee has to work under two bosses i.e., functional manager and product manager. The authority of functional manager flows downward while the authority of product manager flows across.

37. ADVANTAGES

38. DISADVANTAGES

39. MODERN ORGANISATION

40. SIMPLE ORGANISATIONAL STRUCTURE This structure is widely used in small organisationswhere the owner and the manager are one and the same. It is a flat organisation which has only two or three vertical levels, a small body of employess and individual in whom the decision making authority is centralised.

41. Manager/ Owner salesman A Salesman B Salesman D Salesman C

43. DISADVANTAGES

44. Bureaucratic organisation structure A bureaucratic organization structure is one with rigid and tight procedures, policies and constraints. It is very organized with a high degree of formality in the way it operates. Decisions are made through an organized process, and a strict command and control structure is present at all times.

46. FEATURES • Highly routine operating tasks • Very formalised rules • Grouping of tasks into functional departments • Centralised authority • Narrow span of control • Chain of command

49. THE MATRIX DESIGN It is very popular organisational design It is also known as grid organisation, product or project management. The employee has to work under two bosses i.e., functional manager and product manager. The authority of functional manager flows downward while the authority of product manager flows across.