Types of Organization

Types of Organisation

Types of Organisation

On the basis of structure the organization may be of four following types:-

  1. Line organization
  2. Functional organization
  3. Line and staff organization
  4. Project organization

1. Line organization:-

It is also called Scalar organization. It has the chain of authorities one above the another. It has the typical vertical structure.

It is the simplest and oldest form of organization.

Line Organisation

Advantages of Line Organisation:-

  • It is very simple and easy to understand.
  • Clear and simple division of authority.
  • Almost no confusion exists.
  • Working speed is fast.
  • High level of discipline.

The disadvantage of Line Organisation:-

  • Lack of Specialisation.
  • No place for overlapping activities.
  • Wastage of material and manpower.
  • Monotonous working style and directorship by the superior.

Application of Line organization.

  • Military Organisation.
  • Small scale Industries.

2. Functional Organisation:-

A functional organization is based on specialization factor. The functional organization mainly focuses on the specialized area of the person and person does the same job. It is not a practical organization because of the unavailability of the specialist.

Functional Organisation

Advantages of Functional Organisation:-

  • The correct decision is taken by experts.
  • Efficient utilization of resources.
  • Better Quality of products can be produced.
  • Performance is better.

Disadvantages of Functional Organisation:-

  • Decision making is slow.
  • Lack of discipline.
  • Lack of coordination.
  • Specialization demands more costs.
  • Confusion among staffs.

3. Line and staff Organisation:-

The line and staff organization combine the line organization with staff departments that support advice the line department. Line and Staff organization are multiple layers of management.

It has both a horizontal and vertical structure.

Line and staff Organisation  

Advantages of Line and staff Organisation:-

  • It has a disciplined and specialized system.
  • The structure of the organization can be modified as per requirement.
  • Perfect work Division.
  • Loss of wastage of material and time.
  • System Functions smoothly.

Disadvantages of Line and staff organisation.

  • Cost of production is more.
  • More people more confusion.
  • Complexity reduced performance.

Applications of Line and staff Organisation.

  • Used in medium Scale and Large Industries.

4. Project Organisation:-

It is a structure within the organization formed for a specific purpose. This type of structure is temporary in use and exist any till purpose.

Different forms of Project organization are as follows:-

(A) Functional Matrix:-

A person is asked of over-ease the project across different functions areas.

(B) Balanced Matrix:-

A person is assigned over-ease the project and take advice for the functional manager whenever required.

(C) Project matrix:-

A manager made uncharge of the company when a group of the person working on the project.

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