ORGANIZATION
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Staff authority may be in the following norms:
Advisory staff authority
on Concurring Staff authority
Control staff authority
Functional staff authority
LINE ORGANIZATION STRUCTURE
Production Manager
Simplicity
Discipline
Lack of Specialization
Prompt Decision
Absence of Conceptual Thinking
Orderly Communication
Autocratic Approach
Easy Supervision and Control
Problems of Coordination
Economical
Lack of Ground work for Subordinates Train
Overall Development of the Managers
Planned Specialization
Lack of Well defined Authority
Quality Decisions Line and Staff Conflicts
Prospect for Personal Growth
Training Ground for Personnel
Manager-Finance Manager-Personnel
Manager-production Manager-Marketing
Foreman
Sales Supervisor
Workers Salesmen
• Specializations by functions
• Emphasis on sub-goals
• Pyramidal growth of the organization
• Line and staff organization
• Functional authority relationships among
various departments.
• Limited span of management and tall structure.
degree of specialization.
Responsibility for ultimate performance
cannot be fixed.
ty in the organization.
Slow decision making process because the problem requiring a decision h
ides satisfaction to specialists.
§ Product Divisionalisation
§ Territorial Divisionalisation
§ Strategic Business Unit
Strategic Business Unit (SBU):
§ Multi product or multi-geographical area
companies/divisions are created in the
form of SBU’s
§ Each product / market segment has a
distinct environment, a SBU should be
created for each such segment.
§
Divisional Organization Structure
Managing Director
Engineering Engineering
Purchasing Purchasing
Matrix Organization Structure:
§ Pure Project structure and functional
structure are merged together to create
matrix structure.
§ Separate units for taking and managing
projects.
§ Complete responsibility for the tasks as
well as all the resources are assigned to
a project manager.
§ Project manager has to share the
resources with others in the
organization.
§ Once the project is completed its
resources are directed to other projects.
Design of Matrix Organization Structure:
§ Project manager is appointed to
coordinate the activities of the project.
§ Personnel are drawn from their respective
functional departments.
§ Each functional staff has two bosses – his
administrative head and his project
manager.
§ During his assignment to a project, he
works under the coordinative command
of the project manager and he may be
called upon by his permanent superior
to perform certain services needed in
the project.
MATRIX ORGANIZATION STRUCTURE
Team based Organization
TEAM: Team is a small number of people
with complementary skills who are
committed to a common purpose,
performance goals, and approach for
which they hold themselves mutually
accountable.
Characteristics:
§ Small number of people
§ Complementary skills
§ Common purpose and performance
goals
§ Common approach
§ Mutual accountability
Team based Organization
Importance of Teams:
qEnhanced Performance
§ Synergy effect is generated
§ Improves productivity, quality, service
qEmployee Benefits
§ Less hierarchical control
§ Self control, quick feedback, human dignity.
qReduced costs
§ Feeling of Stake in the outcomes
§ Fewer errors, reduced absenteeism and
turnover.
§ Higher degree of utilization of existing
facilities.
qOrganizational enhancements
§ Increased creativity, innovation, flexibility
working conditions.
§ Focus on the team effort outcomes.