Formal organisational structures are categorised
as:
as:
(i) Line organisational structure.
(ii) Staff or functional authority organisational
structure.
structure.
(iii) Line and staff organisational structure.
(iv) Committee organisational structure.
(v) Divisional organisational structure.
(vi) Project organisational structure.
(vii) Matrix organisational structure and
(viii) Hybrid organisational structure.
1. Line Organisational Structure:
A line organisation has only direct, vertical
relationships between different levels in the firm. There are only line
departments-departments directly involved in accomplishing the primary goal of
the organisation. For example, in a typical firm, line departments include
production and marketing. In a line organisation authority follows the chain of
command.
relationships between different levels in the firm. There are only line
departments-departments directly involved in accomplishing the primary goal of
the organisation. For example, in a typical firm, line departments include
production and marketing. In a line organisation authority follows the chain of
command.
2. Staff or Functional Authority
Organisational Structure
Organisational Structure
The jobs or positions in an organisation can be
categorized as:
categorized as:
(i) Line position:
A position in the direct chain of command that is
responsible for the achievement of an organisation’s goals and
responsible for the achievement of an organisation’s goals and
(ii) Staff position:
A position intended to provide expertise, advice
and support for the line positions. The line officers or managers have the direct
authority (known as line authority) to be exercised by them to achieve the
organisational goals. The staff officers or managers have staff authority
(i.e., authority to advice the line) over the line. This is also known as
functional authority. An organisation where staff departments have authority
over line personnel in narrow areas of specialization is known as functional
authority organisation.
and support for the line positions. The line officers or managers have the direct
authority (known as line authority) to be exercised by them to achieve the
organisational goals. The staff officers or managers have staff authority
(i.e., authority to advice the line) over the line. This is also known as
functional authority. An organisation where staff departments have authority
over line personnel in narrow areas of specialization is known as functional
authority organisation.
In the line organisation, the line managers cannot
be experts in all the functions they are required to perform. But in the
functional authority organisation, staff personnel who are specialists in some
fields are given functional authority (The right of staff specialists to issue
orders in their own names in designated areas).
be experts in all the functions they are required to perform. But in the
functional authority organisation, staff personnel who are specialists in some
fields are given functional authority (The right of staff specialists to issue
orders in their own names in designated areas).
The principle of unity of command is violated when
functional authority exists i.e., a worker or a group of workers may have to
receive instructions or orders from the line supervisor as well as the staff
specialist which may result in confusion and the conflicting orders from multiple
sources may lead to increased ineffectiveness. Some staff specialists may exert
direct authority over the line personnel, rather than exert advice authority
(for example, quality control inspector may direct the worker as well as advise
in matters related to quality).
functional authority exists i.e., a worker or a group of workers may have to
receive instructions or orders from the line supervisor as well as the staff
specialist which may result in confusion and the conflicting orders from multiple
sources may lead to increased ineffectiveness. Some staff specialists may exert
direct authority over the line personnel, rather than exert advice authority
(for example, quality control inspector may direct the worker as well as advise
in matters related to quality).
3. Line and Staff Organisational
Structure:
Structure:
Most large organisations belong to this type of
organisational structure. These organisations have direct, vertical
relationships between different levels and also specialists responsible for advising
and assisting line managers. Such organisations have both line and staff
departments. Staff departments provide line people with advice and assistance
in specialized areas (for example, quality control advising production
department).
organisational structure. These organisations have direct, vertical
relationships between different levels and also specialists responsible for advising
and assisting line managers. Such organisations have both line and staff
departments. Staff departments provide line people with advice and assistance
in specialized areas (for example, quality control advising production
department).
4. Divisional Organisational
Structure:
Structure:
In this type of structure, the organisation can
have different basis on which departments are formed. They are:
have different basis on which departments are formed. They are:
(i) Function,
(ii) Product,
(iii) Geographic territory,
(iv) Project and
(iv) Combination approach.
5. Project Organisational
Structure:
Structure:
The line, line and staff and functional authority
organisational structures facilitate establishment and distribution of
authority for vertical coordination and control rather than horizontal
relationships. In some projects (complex activity consisting of a number of
interdependent and independent activities) work process may flow horizontally,
diagonally, upwards and downwards. The direction of work flow depends on the
distribution of talents and abilities in the organisation and the need to apply
them to the problem that exists. The cope up with such situations, project
organisations and matrix organisations have emerged.
organisational structures facilitate establishment and distribution of
authority for vertical coordination and control rather than horizontal
relationships. In some projects (complex activity consisting of a number of
interdependent and independent activities) work process may flow horizontally,
diagonally, upwards and downwards. The direction of work flow depends on the
distribution of talents and abilities in the organisation and the need to apply
them to the problem that exists. The cope up with such situations, project
organisations and matrix organisations have emerged.
A project organisation is a temporary organisation
designed to achieve specific results by using teams of specialists from
different functional areas in the organisation. The project team focuses all
its energies, resources and results on the assigned project. Once the project
has been completed, the team members from various cross functional departments
may go back to their previous positions or may be assigned to a new project.
Some of the examples of projects are: research and development projects,
product development, construction of a new plant, housing complex, shopping
complex, bridge etc.
designed to achieve specific results by using teams of specialists from
different functional areas in the organisation. The project team focuses all
its energies, resources and results on the assigned project. Once the project
has been completed, the team members from various cross functional departments
may go back to their previous positions or may be assigned to a new project.
Some of the examples of projects are: research and development projects,
product development, construction of a new plant, housing complex, shopping
complex, bridge etc.
6. Matrix Organisational
Structure:
Structure:
It is a permanent organisation designed to achieve
specific results by using teams of specialists from different functional areas
in the organisation.
specific results by using teams of specialists from different functional areas
in the organisation.
7. Hybrid Organisational
Structure:
Structure:
It is a
mixture of different organizational structures.
mixture of different organizational structures.
