Organization

Organization

 A group of two or more people who work together

in a consciously structured setting to achieve group
goals.

 Schools, religious, Institutions, stores, hospitals,

banks, camps, clubs are organizations.

 Government, Private, or devoted to improving

society.
 Organizations categorized

 Profit organizations and Non Profit Organizations.

 Manufacturing and service organizations.

 Private sector and public sector

 
1. Line Type of Organization
 The Line Type

 The superior-subordinate relationship wherein a

superior delegates authority to a subordinate who
in turn delegates authority to another subordinate
thus forming a line from the very top of the lowest
level of the organization structure.

 The simplest of the organization types.

 It is usually prevalent in small enterprises.

 Lines of authority are vertical

 Line Type

 Line type necessitate the highest grade of executive

and requires workers to be efficient.
 Advantages of the Line Type

 Directness

 Fixed Responsibility

 Discipline

 Simplicity

 Flexibility

 Development of all-around executives at higher

levels of authority.
Disadvantages of the Line Type

 It becomes difficult to secure executives ,

supervisors and workers with an all-round
knowledge and with the ability required.
 Specialization is not measured.

 In a company considerable size , the executives are

apt to be overloaded with duties and
responsibilities.
 Too much reliance is placed on the chief and other
executives.
Disadvantages of the Line Type

 The spirit of teamwork , or working toward a

common goal or end , is something lacking in a line
organization
 

2. Functional Type of Organization

 Functional Type

 Experts or men trained for a particular kind of work

are employed instead of all around men.

 The direct flow of authority from the head of the

organization down to the workers is done away with
or eliminated.
Advantages of the Functional Type

 Specialization is carried to a maximum degree.

 There is a greater need for specialized skills and

abilities.
 The needed supervisors are trained for their
specialized task with relatively little difficulty , thus
promoting flexibility in the organization.
 There is simplified control

 Cooperation is promoted.
 Comparison of line and functional type
Features Line Type Functional Type
Discipline Easily maintained Weak

Control Definite Difficult to

coordinate many
separate functions
Specialization Not Utilized Maximum Use

Methods inefficient Efficient and easily

installed
Executive and Demand for workers Individuals highly
Workers of all around ability efficient in their
particular field but apt to
Disadvantages of the Functional Type

 Discipline tends to break down among the

workmen and at times even among the foremen at
lower supervisory levels.

 When discipline is weak, moral is likely to be low.

 There is stunt flow of action on account of the

divided control.
 
3. The Line and Staff Type
 Line and Staff Type

 The combination features of both the line and the

functional type.
Advantages of the Line and Staff Type

 Greater flexibility

 Greater strength

 Specialization

 Executive Training