MANAGEMENT(22509)

Microproject
Title
“Presentation on types of organizational structure”

Group members: Roll No:

• Dhanush Balasubramanian -04
• Merwyn Pillay -05
• Aradhya Borhade -06
AN ORGANIZATION
An organization is a group of people who come
together to achieve a common goal or purpose.
It could be a company, a non-profit, a school, or
any group with a shared objective. Within an
organization, individuals have specific roles
and responsibilities, and there is typically a
structure or hierarchy to facilitate coordination
and decision-making. Organizations can vary
widely in size and function, but they all involve
people working together in a coordinated
manner to accomplish something meaningful.
ORGANIZATIONAL STRUCTURE
Organizational structure is vital for business success,
providing a framework for efficient operations. It
clarifies roles, enhances communication, and optimizes
resource allocation. This structure aids decision-making,
accommodates growth, and boosts employee morale.
Through departmentalization, it fosters specialization
and accountability, crucial for effective risk
management. A strategically aligned organizational
structure serves as the backbone for a cohesive and
purpose-driven business, guiding efforts toward
overarching goals
 TYPES OF ORGANIZATIONAL STRUCTURE

• Line, Military or Scalar organization

structure.
• Functional Organization structure.
• Line and Staff Organization structure.
• Project organization structure.
 LINE, MILITARY OR SCALAR ORGANIZATION
STRUCTURE.
Line organization is the simplest and oldest type of
organization. It is also known as scalar or military
organization. This is called military organization as it
resembles old military organizations where discipline is of
high order. Orders and instructions issued from the top level
is followed by the people below. The line organization
represents the structure in a direct vertical relationship in
which authority flows vertically downward from top to
bottom throughout the organization. As the flow of authority
moves from top to bottom, this is also called line or scalar
organization. People at different levels know to whom they
are accountable.
 MERITS AND DEMERITS

MERITS DEMERITS
• It is simple and easy to understand. • There is lack of specialization. Due to lack of specialization, there may be
• Is flexible and easy to expand or contract. chances of accidents, wastage of material and man hours.
• There is a clear division of authority and responsibility, hence • Departmental heads are over-burdened with various routine jobs, so they
no scope of shifting the responsibility. do not have time for further expansion and planning.
• There is a clear channel of communication, so there is no • Chances of delay in communicating the orders of General Manager or any
chance of confusion. other
• It encourages speedy action. • departmental head to the workers and, therefore, possibility of distortion,
• It is strong in discipline. due to long channel.
• It overloads a few key executives. It encourages dictatorial way of
working.
• It has no means of rewarding good workers.
APPLICATIONS:

• Suitable for factories of small and medium size, where the number of subordinate and
operational staff is less.
• Suitable for continuous process such as sugar, paper, oil refining, spinning and weaving
industries, textiles, etc.
• Suitable where labour problems are not difficult to solve.
• Suitable where automatic plants are used
 FUNCTIONAL ORGANIZATION STRUCTURE.

Many jobs require specialized knowledge. In functional

organization the specialists are made available in the top
positions throughout the enterprise. The functional
organization was introduced by F.W.Taylor. Under functional
organization, various activities of the enterprise are classified
according to certain functions like production, marketing,
finance, personnel etc., and are put under the charge of
functional specialists. A functional in charge directs the
subordinates throughout the organization in his particular
area of business operation. This means that subordinates
receive orders and instructions not from one superior but
from several functional specialists.
 MERITS AND DEMERITS

MERITS DEMERITS
• Due to specialization quality of work is better. This system • As each worker is responsible to all experts, it becomes difficult to
provides more specialized knowledge and guidance to maintain discipline
individual workers through experts. • By employing high waged experts, the total cost of job may become high.
• It helps mass production by standardization and specialization. • As line workers will not be using their skills, their initiative cannot be
• Considerable expansion of the factory is possible. utilized.
• Unnecessary overloading of responsibilities will not be there, • It is very difficult to fix up the responsibility to any one foreman in case
as was in the case of line organization. something goes wrong.
• The line executives are spared from routine specialized • Workers will always be confused about the authority and activity of each
decisions. expert.
• Proper co-ordination of the work of different departments is required but
it is difficult to maintain as everybody is working individually.
• Lack of coordination among functional executives will delay decision
making.
• Industrial relationships become more complex.
APPLICATIONS:

• Due to the above disadvantages, a pure functional system is rarely found. However in modified
form, it is used in a few modern advanced concerns.
 LINE AND STAFF ORGANIZATION STRUCTURE.

Line and staff organization has advantages of both line

and functional organization. Here, the line executives
have supervisory authority and control over subordinates.
Authority flows from top to bottom as it does in the line
organization. In addition, specialists called staff are
recruited to advise the line executives on important
matters. The final decision whether to accept and
implement the recommendations of staff lies with line
executives. The staff officials do not have any power of
command in the organization as they are employed only to
provide expert advice to the line manager.
 MERITS AND DEMERITS

MERITS DEMERITS
• Specialized and expert advice from staff executives is • If allocation of duties between line and staff is not clear, it may give rise
available. to confusions.
• Reduction of burden on line managers. • There might be conflict between line and staff executives.
• Better decisions, as staff specialists help the line managers • Since staff is not accountable, they may not perform well.
Unity of command • Product cost will increase because of high salaries of staff executives.
• Flexible when compared to functional organization.
• Less wastage of material, man and machine hours.
• Management Quality of product is improved.
• Has all advantages of both line and functional organization
APPLICATIONS:

• Now-a-days this type of organization is preferred for medium and large scale industries,
depending upon internal structure, nature of productive activities and span of business area.
• It is applied in automobile industries and other intermittent nature of industries
 PROJECT ORGANIZATION STRUCTURE

A project organization is a temporary structure formed to

carry out a specific task or objective. Unlike traditional,
ongoing organizations, a project organization is created for a
limited duration to achieve a unique goal. It involves
assembling a team with diverse skills and assigning specific
roles to members based on their expertise. The structure is
designed to optimize collaboration, streamline
communication, and efficiently allocate resources to
complete the project successfully. Once the project is
completed, the organization may be disbanded, and team
members may move on to other projects or return to their
regular roles within the larger organization.
 MERITS AND DEMERITS

MERITS DEMERITS
• It does not interfere with the functioning of the existing • The members are recruited for a short period so it creates a feeling of
organization. insecurity and uncertainty.

• Decision making is quick. It allows maximum usage of • There may be conflicts among specialists.
specialist knowledge.
• The project manager may not have complete authority over team
• It provides the maximum attention that a project needs. members.

• Sometimes decision may be difficult due to pressures from different

specialists.
APPLICATIONS:

• In IT companies like L&T, Infosys, TCS, Wipro, etc where business is mainly project based.
THANK YOU!