Chapter 13

Chapter 13 Forms of Organisation Structure

Line Organisation Structure 1. Pure Line Organisation Structure 2. Departmental Line Organisation Structure

Pure Line Organisation Structure Production Manager

Foreman A Foreman B Workers

Workers

Foreman C Workers

Departmental Line Organisation Structure Production Manager

Foreman Foreman (Spinning) (Weaving)

Foreman Foreman (Dyeing) (Finishing)

Workers

Workers

Workers

Workers

Line Organisation Structure Merits Simplicity Discipline Prompt Decision Orderly Communication Easy Supervision and Control Economical Overall Development of the Managers

Line Organisation Structure Demerits Lack of Specialisation Absence of Conceptual Thinking Autocratic Approach Problems of Coordination Lack of Groundwork for subordinates’ Training

Line and Staff Organisation Structure

Line and Staff Organisation Structure Merits….. Planned Specialisation Quality Decisions Prospect for Personnel Growth Training Ground for Personnel

Line and Staff Organisation Structure Demerits….. Lack of Well- defined Authority Line and Staff Conflicts

Functional Organisation Structure

Stability of Functional Structure

Problems of Functional Structure

Divisional Organisation Structure Basis of Divisionalisation Product Divisionalisation Territorial Divisionalisation Strategic Business Unit

Design of Divisional Organisation Structure Number of Divisions Provisions of Corporate Staff Activities Relationship between Corporate and Divisional Management

Design of Divisional Organisation Structure

Suitability of Divisional Structure

Problems in Divisional Structure

Project Organisation Structure

Suitability Of Project Organisation

Problems in Project Organisation

Matrix Organisation Structure Design

Suitability of Matrix Structure

Problems in Matrix Structure

Team Based Organisation Concept of Team Small number of People Complementary Skills Common Purpose and performance Goals Common Approach Mutual Accountabilities