An organisation structure is mainly concerned with allocation of duties and responsibility and delegation of authority. It also specifies who is to direct whom and who is to report to whom in an organisation. The adoption of a particular form of organisation structure largely depends upon the nature, scale and size of the business. The following are the important forms or types of organisation.

A. Line organisation

B. Functional organisation

C. Line and Staff organisation


A. Line Organisation

Line organisation is the oldest form of organisation. It is also known as scalar organisation. It represents direct vertical relationship through which the authority flows. Authority flows from top to lower levels. Responsibility, on the other hand, flows upwards. Every person is in charge of all the persons under him and he himself is also accountable to his superior.