DEFINITIONS OF ORGANIZATIONAL STRUCTURE

The organization structure is reflected in chart or drawn in boxes representing different

departments and sections. It is a visible representation of the total company set-up and the
underlying activities and processes. There are three components of organization structure:
1. Organization structure designates formal reporting relationship. It includes the number
of levels in the organizational hierarchy and it also defines the span of control of managers and
supervisors.
2. Organization structure identifies the grouping together of individuals according to
functions into departments. It specifies the grouping of departments and sections into the total
organization.
3. Organization structure includes the design of communication linkages. This ensures
that coordination and integration of efforts towards goal achievement are effected among the
different sectors.
The three elements of structure pertain to both vertical and horizontal aspects of
organizing.' The first two elements are structural framework reflected in the vertical hierarchy in
the organization chart. The third element pertains to the horizontal interactions to provide
information and effective coordination across departments.

TYPES OF ORGANIZATIONAL STRUCTURE

Designing the organizational structure is ordinarily considered as a matter of choice
among a large number of alternatives. After considering the major jargons of organizational
design, we have to look back to the purpose and objectives that shall be suited to the needs of the
company to be competitive in its industrial world.
Looking on the many companies' organizational structure, we all find them that there are
line, line and staff, and staff type organizations. Putting boxes in the structure is a matter of top
management choice.

THE LINE ORGANIZATION

At the early stage of the company's operation, Management wanted more control of the
operation. Along this line of thinking top management decision making is more centralized. Line
managers are those elements who have responsibility and authority for the direct
accomplishments of the primary objectives of the organization. The vertical line of authority
emanates from the top of the organization down the chain of command. Line managers have
clearly defined roles to play. This requires understanding of the nature of line authority and the
line relationships.
The Features of the Line Organization
1. The Line Authority
Managers identified in the line are getting direct command from the top of the line. The
line within the company is the relationship that identifies and connects people in the chain of
command. Decision has to be approved on the next higher level unless minor decisions are
authorized.

2. The Line as the Chain of Command

The command relationship exists between each superior and subordinates. In accepting
the line responsibility, it is clear that the line managers serve only as staff assistant to the top of
the line. They are subordinates to his superior's authority and responsibility. The manager
obligates himself to obey his command.

3. The Chain of Communication

The members of the organization are connected thru a line of communication. There is
the existence of vertical line direct from the top executive to the line managers. The horizontal
lines indicate the process of horizontal communication between line managers. The development
of line relationship is the channel through which managers can proceed most effectively in
coordinating company activities.

4. The Line as Carrier of Accountability

The line element is the means of establishing the manager's functions of accountability
for results. He is accountable for the results of his operating decisions. He has to maintain the
integrity of his define work and held responsible for doing it properly. It stresses and emphasizes
that the line is a line of accountability and responsibility.

Advantages of Line Organization

The line organization has the following principal advantages:
1. Organizational problems are solved quickly as top management is in control of
decision-making. The red tape is at minimum level as there is centralization of authority.
2. Responsibility is well-defined.The simple line of communication is present: Single
accountability can be maintained and better organizational control is achieved.
 3. Less overhead expenses on additional staff as line managers also provide functional
activities to the top executives.
The Disadvantages of Line Organization
When the organization expands its operation and growth becomes inevitable and management
refuse to heed the idea for change, the following are the disadvantages:
1. There will be an increase in the load of line managers. They will be overburden with
the conceptual and technical activities. It will result in the loss of effectiveness unless they are
highly talented and dedicated
2. The chain of command becomes longer as instruction has to pass through channels.
The layer of supervision and actions create red tape.
3. There will be the existence of the inadequacy of managerial specialization. The
company's expansion program maybe at stake.
4. Over centralization of decision and authority tends to develop dependent managers and
supervisors. This will hamper the development of managerial creativity and initiative.