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FORMS OF ORGANIZATION STRUCTURES
The organization structure is the basic framework within which the decision making behaviour occurs. It shows the different positions in the organization and the responsibilities attached to this formal position.
Examples of forms of organization are: (a) Line /military organization (b) Staff or functional (c) Line and staff (d) Management by committee (e) Matrix organization
1. LINE STRUCTURE
Also known as military organization. Under this system, the authority moves from top to lower levels. There is direct vertical relationship connecting the positions at each level with those above and below. If there are different departments in an organization, then each department is independent and responsible for the activities assigned to that department. For example, a manufacturing company that has three lines of products, i.e textile, cooking oil and soap. This company will have three departments namely. Each department having its own production, purchases, sales, accounting and office staff.
It’s important features include; i) Superior subordinate authority ii) Authority descends from the top to downward level through downward delegation of authority iii) Subordinates become responsible to the immediate superiors iv) All decisions and orders are made by the top executives and handed down to subordinates v) The top-most management has full control over the entire enterprise.
Advantages
1. It is simple to be understood by the staff 2. Responsibility for work at different level is clear 3. The lines of communication both upward and downwards are indicated 4. Discipline can easily be maintained 5. It is economical and effective.
Disadvantages
1. Where there is no overall planning, there is a possibility of lack of coordination at different departments 2. Each department tends to be an empire of its own and not of the same concern 3. The organization is
The organization structure is the basic framework within which the decision making behaviour occurs. It shows the different positions in the organization and the responsibilities attached to this formal position.
Examples of forms of organization are: (a) Line /military organization (b) Staff or functional (c) Line and staff (d) Management by committee (e) Matrix organization
1. LINE STRUCTURE
Also known as military organization. Under this system, the authority moves from top to lower levels. There is direct vertical relationship connecting the positions at each level with those above and below. If there are different departments in an organization, then each department is independent and responsible for the activities assigned to that department. For example, a manufacturing company that has three lines of products, i.e textile, cooking oil and soap. This company will have three departments namely. Each department having its own production, purchases, sales, accounting and office staff.
It’s important features include; i) Superior subordinate authority ii) Authority descends from the top to downward level through downward delegation of authority iii) Subordinates become responsible to the immediate superiors iv) All decisions and orders are made by the top executives and handed down to subordinates v) The top-most management has full control over the entire enterprise.
Advantages
1. It is simple to be understood by the staff 2. Responsibility for work at different level is clear 3. The lines of communication both upward and downwards are indicated 4. Discipline can easily be maintained 5. It is economical and effective.
Disadvantages
1. Where there is no overall planning, there is a possibility of lack of coordination at different departments 2. Each department tends to be an empire of its own and not of the same concern 3. The organization is