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Types of organisation
1. 1
ORGANISATIONAL STRUCTURE
• Systematic arrangement of people working in an
organization in order to achieve the predefined
goals.
• It defines the authority and responsibility relations
between various positions.
• It shows interrelationships and relative position of
each department.
2.
3.
4. 4
Advantages
• Simple and easy to understand
• It is flexible, easy to expand
• Makes clear division of authority
• Clear channel of communication, no confusion.
• Strong in discipline
• Encourages speedy action
Disadvantages
• Neglects specialists
• Overloads a few key executives.
• Limited to small organizations
5. 5
Cont…
• Lack of specialization
• More wastage of resources such as material and man
hours.
Applications
• Small organizations
• Automatic and continuous process industries such as
paper, sugar, textile etc.
9. 9
Advantages
• Makes use of experts
• Expert guidance reduces wastage, accidents etc.
• No need of all round executives.
• Quality of work is improved
Disadvantages
• Difficult to maintain discipline
• All round executives cannot be developed.
• Makes industrial relationships more complex
• Workers are not given opportunity to use their
initiative and drive.
10. 10
Applications
• The functional organization as such is obsolete.
• In modified form it is used in some most modern and
advanced concerns.
11.
12.
13. 13
Advantages
• Expert advice from specialist staff executives.
• Line executives are relieved of some of their loads and
can devote more attention towards production.
• Less wastage of resources.
• Improved quality of production
• There is no confusion as exists in functional
organization.
Disadvantages
• High salaries of staff executives increases product
cost.
14. 14
Cont …
• Some times staff department may infringe upon the
rights and responsibilities of line departments.
• Frictions and jealousies may develop between line and
staff executives.
• Line executives if they depending too much on staff
executives may loose their initiative and drive .
Application
• Line and staff organization is very common among the
medium and larger enterprises.