ORGANIZATION STRUCTURE

The organization structure provides a framework which holds the various functions together in accordance with the pattern determined by managers. A planned structure outlines the required functions, correlates in a systematic manners and assigns authority and responsibility.

every business sets some goals to be achieved. In order to achieve goals some activities are to be performed..these activities are to be specified. classified and grouped. The responsibility and authority is assigned activities are assigned to carry out various activities. A system of proper co-ordination is established to reach the organizational goals.The establishment of systematic relationship among various activities and persons is the framework of organisation structure.There may be problems and difficulties if the structure is faulty.The structure should be suitable to the working of the organisation and be helpful in achieving business goals.

DEVOLPING ORGANISATION STRUCTURE Relations between senior and subordinate

and vice-versa Relations between line position and

specialists Staff relations Lateral relations

DETERMINING THE KIND OF STRUCTURE Activities Analysis. Decision Analysis. Relation Analysis.

ROLE OF ORGANISAFACTION STRUCTURE Encourages Efficiency Communication Optimum use of resources Job satisfaction Creative Thinking Facilitates Management

DESIGNING ORGANISATION STRUCTURE Indentyfying Activities Grouping of Activities Delegation of Activities

FEATURES OF A GOOD ORGANISATION STRUCTURE Clear line of autthority. Adequate delegation of authority. Less managerial levels Span of control Simple and flexible

TYPES OF ORGANISATION CHARTS

There are three ways in which orginisation charts can be shown:

▓ Vertical▓ Horizontal▓ Circular

VERTICAL OR TOP TO BOTTOM: In this chart scaler levels run horizontally and

function run vertically.the supreme authority is shown at the top while lowest authority at the bottam.In this chart board of directors is at the top of the orginisation.The chief executive controls various functional managers,who in turn have downward staff as the reqi\uirement of respective departments.

VERTICAL ORG.

Board of directors

Chief of Executive

Market Manager

ProductionManager

FinanceManager

PersonnelManager

HORIZONTAL ORG. Highest positions are put on the left side and

those with diminishing authority move towards the right.The organisational levels are represented by vertical columns,the flow of authority from higher to lowr levels being represented by movement from left to right.In other words it presents scaler levels in a vertical position and functions horizontaly.The same levels of authority s shown in vertical chart cam be depicted in a left to right.

CIRCULAR ORG. In circular chart the centre of the circle represens the position of

supreme authority and the functions radiate in all directions from the centre.The higher the positions of authority, the nearer they are to the centre and lesser positions of authority.more distant they are from the centre.The pisitiond or relatuve equal importance are located at the same distance from the centre.The lines forming different blocks of functions or positions indicates the channels of formal authority,the same as in other arrangements.the circular chart depicts the actual condition of outward flow of formal authority from thr chief-minister Executive in many directions.

Principles of organisation charts The top management should fithfully follow the line of authority

while dealing with subordinates.Any attempt to bye pass the org. cchart will make it meaningless.

The chart should define lines of position. The undue concentration of duty at any point should be avoided. The org. chart should not be influenced by personalities. The org. chart should be simple and flexible.

ADVANTAGES OF ORG. CHART► An org. chart is a managerial tool.Its helps in

specifying authority and responsibility of every poisition.The relationship among different persons are also established for smooth working of the org.

► A org. chart specifically defines authority and responsibility of people in the enterprise there will be no dublication and overlapping of duties etc.Even if it happens in a particular instance it can be rectified immediately.

► The org. chartr will be help in pointing out the fault,deficiencies,dual command etc.The management will able to take prompt remedial action in case of certain lacuma.

► The org. chart acts as an information centre to the new entrants and they can easily understand different levels of authority and responsibility.

► The charts are helpful in decision-making process.They act as a guide to the decision makers.

LIMITIONS OF ORG. CHARTS

The org. chart show the relationship of different positions and not the degrees of authority and responsibility.The size of boxes or circles in the chart cannot show the level of authority etc.

A chart is only depicts formal org. relationship whereas informal org.is ignored.

In chart shows org. position and status at diffirent levels.it gives rise to superior inferior feeling among people and it restards the feeling of team work.

TYPES OF ORGANISATION MANUALS

Policy Mannual,Orjanisation Mannual.Rules and Regulations.Departmental Mannual.

ADVANTAGES OF MANNUALS

Written Information.Helpful in day-to-day workingAvioding conflictsHelpful to New Employees.Quick Decisions.

DRAWBACKS OF MANNUALS

Expensive.Time consuming RigidityEmbarrassing

TYPES OF ORGANISATION

Line organisationFunctional organisationLine and staff organisationCommittee form of organisationMatrix organisation

LINE ORGANISATION

It represent a direct vertical relationship through which authority flows.This is simplest and oldest,known as chain of command or scaler principle.

TYPES OF LINE ORGANISATION Pure Line Organisation Departmental Line organisation

Pure Line organisation:In Line organisation all persons at a given level performs the same type of work.The divisios are soley for the purpose of control and directions

THE DEPARTMENTAL ORG. TYPE OF LINE ORG.DIVIDED THE ENTERPRISE UINTO DIFFERENT DEPARTMENTS WHICH ARE CONVENIENT FOR CON ROL PURPOSE.THE WHOLE ORG. IS PUT UNDER THE CONTRROL OF DEPARTMENTAL OF CHIEF EXECUTIVE WHO MAY BE CALLED THE GENERAL MANAGER .

CONDITION FOR SUCCESS There should be a hiearchical arrangement of giving

commands.The subordinates shoulld get commnds only through their immidate superior.

There should ba a single line of command.One person should get order from one supervisor only.

All persons at the same level of authority should be independent of one another.

The number of subordinates should be such t5hat they are properly supervised.

DEPARTMENTAL PURE ORGINATION LINE

MERITS OF LINE ORGANISATION

Simplicity. Identification of authority and responsibility. Co-ordintion. Effective Commuynication.Economical. Quick decisions. Unity of command. Effective control and supervision. Excutive department. Flexibility.

DEMERIT OF LINE ORG. Excess work. Lack of co-ordination. Improper c ommunication. Lack of initative. Lack of specialisation. Favouritism. Instability.

FUNCTIONAL ORG. Iin functional org. the task management and direction of subordinates

should be divided according to the type of work involved. Types of function org. Office specialists:`design,`recording,planning.

Ifferent people: Route lerck Instruxctiion card clerk Time and cost clerk. Disciplinarium. Shoo specialistss. Gang boss Speed boss Repair boss Inspector

ADVANTAGES OF FUNCTIONAL ORRG. Specialisation Increase of efficency. Scope for growth. Flexibility. Relief to top execcutves. Economy of operations. Better supervision Democratic Control

DISADVANTAGES OF FUNCTIONAL ORG. Conflict in authority Lack of co-ordination Difficulity in fixing responsibilityDelay ion taking decisions .Poor discipline.Expensive.Group Rivalaries.

LINE AND STAFF ORG. Line org. is autocrati,on other hand ,has a

loosae cojntrol.aline manager is vested with executive authority.he responsile for making important decisions and is also accountable for the impliucations.

Types of staff:Personal staff,Specialist staff and General staff.

Function of staff Authority:Agency of control,Agency of Co-ordination,Agency of service,Agency of advice.

ADVANTAES OF LINE AND STAFF ORG. Specialisation Better displine Balanced and prompt decisions Growth and Expansiion Devolopment of employees Lesser burden on line officers Quick Actions

DISADVANTAGES OF LINE AND STAFF ORG. Conflict b/w line and staff personal Lack of Responsibility More depence on staff Lack of co-odination Ineffective Staff Exprnsivem+