Briefly examine the merits and demerits of different types of organisation that are found in modern enterprises

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Organisation structure denotes the system of staff organisation or the relationship between the staff positions. Every staff of the organisation should know his position and status in the organisation and to whom he is accountable. Broadly, there are four forms of organisation like line organisation, functional organisation, line and staff organisation and committee organisation.

1. Line Organisation:

The oldest and simplest forms of organisation where authority flows directly from the topmost man to the lowest man in the organisation. In this form of organisation a superior exercises direct supervision over a subordinate. This form of organisation is adopted in charistian church and in Indian army. It is also called as military form of organisation.

Advantages of Line Organisation:

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Line organisation offers the following advantages:

(a) It is simple to operate and easy to understand.

(b) It facilitates unity of control and the presence of scalar principle.

(c) It enables clear cut definition of authority and responsibility. Each staff is clear about his authority and responsibility.

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(d) It facilitates better discipline because of unified control. The subordinates know the person who commands them and they will do their best to satisfy his commands.

(e) This organisation is flexible as the executive enjoy freedom within the defined sphere.

Disadvantages of Line Organisation:

(a) No specialisation in work is possible, as line organisation does not give emphasis on appointment of specialists.

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(b) The top executives are overburdened and as such, it becomes difficult to manage on the key areas of the operation.

(c) It developes favouritism as one man decides on the issue of efficiency of individuals. It develops nepotism and jobbery hi work.

2. Functional Organisation:

Functional organisation has been advocated by F.W. Taylor who is known as the father of scientific management. The business unit is divided into various parts on the basis of major functions. Similar functions are grouped into one organisational unit called department and this department is placed in the charge of an expert. Thus functional organisation refers to a system of organisation in which functional departments are created to deal with problems of the business at departmental level.

Advantages of Functional Organisation:

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(a) It encourages and facilitates division of labour, which results in specialisation of activities. As the head of the functional department is entrusted with one kind of work, he becomes a specialist in course of time.

(b) It brings separation of manual and mental function and received the advantages of proper planning.

(c) Functional techniques are improved through intensive study and research because special attention is given to the departmental work.

(d) It develops co-operation & team spirit in work. This results elimination of autocratic management.

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(e) It facilitates mass production because in this, organisation specialisation is coupled with standardisation.

Disadvantages of Functional Organisation:

The disadvantages of functional organisation are:

(a) It gives too much emphasis on specialisation. Too much specialisation is undesirable because it makes organisation confused.

(b) This system of organisation leads to conflict among the foreman and supervisor for equal status.

(c) In this organisation the disciplinary controls are weak as a worker is commanded by more than one person.

3. Line and Staff Organisation:

A system of organisation which strikes a balance between the line organisation and staff organisation is called line and staff organisation. The need for a balance between the two is needed because line organisation over concentrates on control and functional organisation
on divide. In this system, primarily line type of organisation is followed. But some common and important functions are placed under the experts called staff functions. In this organisation line authority acts as an executor and staff authority function as on advisor.

Advantages of Line and Staff Organisation:

(a) In this organisation line authorities concentrate on execution of work and are relieved from thinking function.

(b) Line authorities are not autocrats as they are to take the advice from the experts or staff position.

(c) This results greater efficiency as the line managers are to devote much of their time on line functions. The line managers function more efficiently as they get support from staff positions.

(d) This organisation ensures co-ordination automatically as the line managers work along with staff officers.

Disadvantages of Line and Staff Organisation:

(a) It creates friction between line executive and staff executive. The success of this organisation largely depends on the proper understanding of the two.

(b) Staff officers may not give proper advice, as they are not to be responsible for the accomplishment of the job.

(c) The line authorities are to depend on staff executive. This results in too much dependancy. Too much dependent on staff will lose the creative thinking and initiative.

4. Committee Organisation:

A committee is a group of people specially designated to perform some administrative act. A committee is formed to consult various managers and to secure co-operation of various departments. The organisation that emphasises on formation of committee is called committee form of organisation.

Advantages of Committee Organisation:

The followings are some of the advantages of committee form of organisation.

(a) It provides pooled knowledge and judgement and there-by helps in increasing the efficiency of the organisatioin.

(b) It avoids too much concentration of power and allows dispersal of authority.

(c) Committees motivate managers better since managers occupy position or status in the committee.

(d) The line officials are relieved of many intricate problems as these committees handle these.

Disadvantages of Committee Organisation:

The followings are some of the disadvantages of committee organisation :

(a) Decisions are delayed, as many persons are to take decision in committee organisation.

(b) No one is held responsible if any faulty decision is taken. Everybody’s responsibility is nobody’s responsibility.

(c) It develops minority tyranny as the leader of a small pressure group may force” a decision to be taken.

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