TYPES OF

ORGANIZATIONS
-BY M.SREEKAR B14-29
CONCEPT

• THE STRUCTURE OF INDUSTRIAL ORGANIZATIONS

DIFFER FROM EACH OTHER ON THE FOLLOWING BASIS:
1.SIZE OF ORGANIZATION
2.NATURE OF PRODUCT MANUFACTURED
3.COMPLEXITY OF PROBLEM BEING FACED
TYPES OF ORGANIZATIONS

• LINE,MILITARY OR SCALAR ORGANIZATIONS

• FUNCTIONAL ORGANIZATION
• LINE AND STAFF ORGANIZATION
CONCEPT

• SIMPLEST OF ALL
• CALLED MILITARY AS IT RESEMBLED OLD MILITARY ORGANIZATIONS
• BASED ON AUTHORITY AND RESPONSIBILITY RATHER THAN NATURE AND
KIND OF ACTIVITIES
• AUTHORITY FLOW GOES FROM TOP TO BOTTOM
• IMMEDIATE BOSS GIVES ORDER TO HIS SUBORDINATES
• ANY SMALL FIRM STARTS WITH THIS TYPE
MILITARY,LINE OR SCALAR
ORGANIZATION
ADVANTAGES

• SIMPLE AND EASY TO UNDERSTAND

• FLEXIBLE i.e EASY CONTRACTION AND EXPANSION
• MAKES CLEAR DIVISION OF AUTHORITY
• CLEAR COMMUNICATION CHANNEL
• ENCOURAGES SPEED ACTION
• STRONG IN RESPONSIBILITY OF AN INDIVIDUAL
DISADVANTAGES

• NEGLECTS SPECIALISTS
• OVERLOADS FEW KEY EXECUTIVES
• ENCOURAGES DICTATORIAL WAY OF WORKING
• MORE WASTAGE OF MATERIALS AND MANHOURS
• PROVISIONS FOR DEVELOPMENT AND REPLACEMENT OF TOP EXECUTIVES
APPLICATIONS

• SMALL COMPANIES
• PAPER INDUSTRY
• SUGAR INDUSTRY
• TEXTILE INDUSTRY
STRUCTURE
FUNCTIONAL
ORGANIZATION
CONCEPT

• SUGGESTED BY FW TAYLOR
• SAME AS LINE ORGANIZATION BUT ONLY
DIFFERENCE IS THAT INSTEAD OF 1 FOREMAN THERE
ARE 8
• 4 IN SHOP FLOOR AND 4 IN OFFICE
• EVERYONE HAS EQUAL AUTHORITY OVER WORKERS
EXPLANATION OF FIGURE

• ROUTE CLERK: ROUTES JOBS TO WORKERS

• INSTRUCTION CLERK: GIVES INSTRUCTIONS TO PERFORM JOB
• TIME AND COST CLERK:ESTIMATES TIME AND COST FOR THE WORK
• DISCIPLINARIAN:KEEPS PERSONAL RECORDS OF WORKERS
• GANG BOSS:PREPARES WORK UP TO TIME
• SPEED BOSS:ENSURES WORK EFFICIENCY
• REPAIR BOSS:TAKES CARE OF REPAIRS TO MACHINERY
• INSEPECTOR:ENSURES PRODUCT QUALITY
ADVANTAGES

• DUTIES PERFORMED BETTER

• SPECIALISTS GIVE EXPERT ADVISE TO WORKERS
• DECISIONS WELL GIVEN
• REDUCES WASTAGE TO MATERIALS AND MANHOURS
• QUALITY ENSURED
DISADVANTAGES

• DIFFICULTY OF COORDINATION
• DIFFICULT TO MAINTAIN DISCIPLINE
• CONFUSION BETWEEN BRANCHES
• DIFFICULT TO TAKE RESPONSIBILITY IF SOMETHING GOES
WRONG
• ALL ROUND EXECUTIVES CANNOT BE DEVELOPED
LINE AND STAFF
ORGANIZATION
CONCEPT

• AS INDUSTRIES GREW,EXECUTIVES COULDN’T PERFORM ALL FUNCTIONS SUCH

AS RESEARCH AND DEVELOPMENT,PLANNING, AND ETC
• SO THEY RECRUITED STAFF TO ASSIST THEM
• LINE AUTHORITY CARRIES FROM ONE LEVEL TO THE OTHER
• SAME AS LINE ORGANIZATION,ONLY DIFFERENCE IS THE ASSISTING STAFF AT
EACH LEVEL
• FINAL DECISION FOR ANYTHING LIES WITH THE LINE EXECUTIVE
ADVANTAGES

• EXPERT ADVISE FROM STAFF CAN BE TAKEN

• DIFFERENT OPINIONS COME INTO PICTURE
• WORK LOAD DECREASES
• LESS WASTAGE OF MATERIAL AND MANHOURS
• QUALITY OF PRODUCT IMPROVED
• NO CONFUSION
• WORKS ON BOTH LINE AND FUNCTIONAL
DISADVANTAGES

• PRODUCT COST WILL BE HIGH DUE TO HIGH SALARIES

• CONFUSION ARISE IF FUNCTIONS ARE NOT CLEAR
• JEALOUSY CAUSES HARM TO ORGANIZATION
• WEAKENS ORGANIZATION IF RIGHTS BETWEEN GROUPS COME
INTO PICTURE