Chapter 11 TYPES OF ORGANISATION

Transcription

1 TYPES OF ORGANISATION Introduction Organisation is designed on the basic of principles of labour and span of management. The success of the depends upon the experience and competence of the officers of the. Nature, scale and size of the business are the normal factors which determine forms of internal. The following common types of find a place in the structure of internal. 1. Line, Military or scalar 2. Functional 3. Line and staff 4. Committee 5. Project 6. Matrix 7. Freeform Line Organisation Line is the simple and oldest type of followed in an. Under line, each department is generally a complete self-contained unit. A separate person will look after the activities of the department and he has full control over the department. The same level executives do not give or receive any orders amongst themselves. But they receive orders from their immediate boss and give orders to their subordinates. Hence, all the heads are responsible to the general manager, the general manager, in turn, is responsible to the shareholders who are the owners. This type of is followed in the army on the same pattern. So, it is called military. Under type of, the line of authority flows from the top to bottom vertically. So it is called line. Characteristics of line 1. It consists of direct vertical relationships. 2. Authority flows from top-level to bottom level. 3. Departmental heads are given full freedom to control their departments. 4. Each member knows from whom he would get orders and to whom he should give his orders. 5. A senior member has direst command over his subordinates. 6. Operation of this system is very easy. 7. Existence of direct relationship between superiors and subordinates. 8. The superior takes decisions within the scope of his authority Advantages of line 1. Simplicity 2. Division of authority and responsibility 3. Unity of control 4. Speedy action 5. Discipline 6. Economical 7. Co-ordination 8. Direct communication 9. Flexibility Disadvantages of line 1. Lack of specification 2. Over loading 3. Lack of initiative 4. Scope for favoritism 5. dictatorial 6. Limited communication 7. United administration 8. Subjective approach 9. Instability 10. Lack of co-ordination

2 Suitability 1. This type of is suitable to small size business units. 2. Where the activities are of routine nature or machine based. 3. If the business activities are service mined. 4. Where the number of persons working is small 5. The business operation is simple in nature. 6. A business unit which has straight methods of operations. Functional Under line, a single person is in charge of all the activities of the concerned department. The person in charge finds it difficult to supervise all the activities efficiently. The reason is that the person does not have enough capacity and required training. Under functional, various specialists are for various functions performed in an. These specialists will attend to the work which is common to different functions of various departments. Workers, under functional, receive instructions from various specialists. The need for functional arises out of: The complexity of modern and large-scale A desire to use the specialization in full and; To avoid the work-load of line managers with complex problems and decisionmaking Characteristics of functional The work is divided according to specified functions. Authority is given to a specialist to give orders and instructions in relation to specific function. Functional authority has right and power to give command throughout the line with reference to his specified area. The decision is taken only after making consultations with the functional authority relating to his specialized area. The executives and supervisors discharge the responsibility of functional authority. o Route clerk o instruction card clerk o time and cost clerk o Gang boss o Speed boss o Inspector o Repair boss o Disciplinarian Advantages of functional Disadvantages of functional Benefit of specialization Application of expert knowledge Reducing the work load efficiency adequate supervision Relief to line executive Co-operation Economy Flexibility Mass production Complex relationship Discipline Over specialization Ineffective co-ordination Speed of action Centralization Lack of responsibility Increasing the overhead expenses Poor administration Suitability of functional

3 Line and staff The line officers have authority to take decisions and implement them to achieve the objectives of the. The line officers may be assisted by the staff officers while framing the policies and plans and taking decisions. The authority flows from top level to the lower level of the through the line officers while the staff officers attached to the various departments advise the departments. The staff officers are not in a position to compel the line officers to follow the advice by them. Each department is headed by a line officer who exercises full authority regarding the planning. Types of staff 1. Personal staff 2. Specialized staff 3. General staff assistant Functions of staff officers 1. The staff officers assist the line officers in the planning of business activity. 2. The board of directors frames the policies of the business on the basis of recommendations given by the staff officers. 3. The managers can get the advice from the staff officers regarding the selection. training placement and remuneration fixation the personnel 4. The staff officers give regarding the method of improving the product, the technique of reducing the cost of production, increasing the profits of the concern. 5. The staff officers prescribe the procedures to be followed by the line officers in the execution of policies and programs. 6. Staff officers of a department help the manager in the preparation of budget of the department. 7. The staff officers may be called to solve the administrative problems encountered by the line officers in general. Arguments of staff officers against line officers 1. The staff officers have only theoretical academic knowledge but not practical knowledge. 2. The staff officers go beyond their sphere of activity and assume that they have line officer s authority. 3. Much of the advice given by the staff officers is impractical 4. Since the staff officers unnecessary increase the paperwork of the line officers. 5. The staffs give advice without considering the nature of business as a whole. 6. Staff officers are very much interested in becoming line officers of the rather than impairing advice to them. Solution to the conflict between line officers and staff officers 1. Both line officers and staff officers should clearly understand the nature of relationship prevailing between them. 2. A separate staff member should be appointed to bring about co-operation between the line officers and staff officers. 3. The line officers should be encouraged to use the advice of staff officers. 4. Only qualified persons should be selected and placed as staff officers. 5. The staff officers should be convinced by the line officers if their advice is not accepted 6. The responsibility for results could be fixed on both line officers and staff officers 7. Only experienced persons alone should be promoted as line executives.

4 8. Remove the fear of the line officers and staff officers whether the new ideas of advice would be properly put into use or not. Advantages of line and staff Disadvantages of line and line and staff Facilitates to work faster and better If powers are not defined then get confusion Specialization is attained Line officers may reject advice without any reason for their action Enables to utilize experience and advice Staff officers are not responsible if favorable results are not obtained. Officers can take sound advice Difference between line and staff officers will defeat the very purpose of specialization. New technology or procedure can be Line officers blame staff officers for introduced without any dislocation unfavorable results and want to get rewards for favorable results Promotes efficient functioning of line officers Very good opportunity is made available to young person to get training Committee A Committee as a group of persons either appointed or elected who are to meet for the purpose of considering matters assigned it Types of committee a. Advisory committee problem solving committees b. Fast-finding committee c. Action committee Functions of a committee 1. Collect the necessary information from different sources and arrange the information orderly. 2. The collected information is critically analyzed. 3. Draft a detailed report containing the recommendations for the purpose of implementation. 4. Formulate the standard of performance for the purpose of evolution of actual performance in future. Recommendations for efficient functioning of a committee 1. clear objectives 2. Size of the committee 3. Selection of meeting 4. Role of committee 5. Role of chairman 6. Preparation for a meeting 7. Follow up 8. Evolution 9. Selection of subject matter

5 Project The project idea was developed after the second war. A project can also be the beginning of an cycle. The project may become a long term or permanent effort that eventually becomes a programe or branch. Features of project a. The Success of the project depends upon the co-ordination of activities b. There is a grouping of a activities for each project. it leads to the introduction of a new line of a authority. Drawbacks of project a. The professionals are deputed for the project. But there is an assurance of continuous work for the professional in a project. b. The decision is taken in the project under pressure of the top controls the staff in an. c. The top management does not extend its full co-operation for the effective functioning of the project. Some hindrance may be caused by the top management. Matrix Any that employs a multiple command structure but also related support mechanisms and an associated organizational culture and behavior pattern The matrix may be followed where a large of small projects have to be managed. Conditions for effective matrix 1. The principle of chain of command is not followed in the matrix. A project manager should give his report to more than one superior. 2. There should be an agreement among the managers regarding the authority of utilizing the available resources. The term resources include physical resources, financial resources and human resources. Merits of matrix Achievement of objectives Best utilization of resources Appropriate structure Flexibility Motivation Personal development Demerits of matrix Complex relationship Struggle for power Excessive, emphasis on group decision-making Arising conflict resolution Heterogeneous Free form This type of is formed whenever a need arises to form an, for achieving a particular object. It will be dissolved after achieving the object of the. The free form resembles the project and matrix. It otherwise called organic or ratio.