TYPES OF

ORGANIZATION AND
ORGANIZATION
STRUCTURES
 ORGANIZATION

• An organization is a group of people who come together to

achieve a common goal or set of goals. Organizations can be
formal or informal, and they can be large or small.
• An organization is a structured group of individuals or entities
working together to achieve specific goals or objectives.
• Organizations can take many forms, including businesses, non-
profit organizations, government agencies, educational
institutions, and more.
 TYPES OF ORGANIZATION

• Line Structure Organization

• Line and Staff Organization

• Functional Structure Organization

• Matrix Structure Organization

• Project Structure Organization

 Line Structure Organization

 A line structure organization is the simplest type of organizational structure. It is characterized by a clear
chain of command, with each employee reporting to a supervisor.

 There are no separate staff functions, such as human resources or accounting.

 All employees are responsible for carrying out the organization's goals.

 Line structure organization is the simplest and oldest form of organization structure.

 Line structure organizations are often used in small businesses and organizations with a simple product or
service offering.
Line Structure Organization

Managing Directors

Production Manager

Plant Superintendent

Forman
Shop A

Forman
Shop B

Forman
Shop C
 Advantages & Disadvantages of Line Structure Organization

Advantages Disadvantages

 Simple structure  Limited flexibility

 Clear chain of command  Limited specialization

 Fast decision-making  Limited communication

 Cost-effectiveness  Lack of employee development

 Clarity of roles and responsibilities  Can be authoritarian

 Strong discipline
 Line and Staff Organization

 In a line and staff organization, line managers are responsible for making decisions and taking action to
achieve the organization's goals.

 Staff managers provide advice and support to line managers, but they do not have the authority to make
decisions or take action on their own.

 Line and staff organizations are often used in large organizations with complex product or service offerings.
They can also be used in organizations that need to be able to be flexible and adaptable.

 Staff managers can provide specialized advice and support to line managers, which can help line managers
to make better decisions and achieve their goals more effectively.
Managing
Directors
Product Manager Forman
Supervisor A
• Worker
Financial Advisor R&D Staff • Worker
• Worker

Supervisor B
Technical Advisor
System • Worker
Engineer • Worker
• Worker

Economic Advisor
Technt
ical Exper

Assistant to MD
Industrial
Engineer
 Advantages & Disadvantages Line and Staff Organization

Advantages Disadvantages

 Specialization  Cost

 Flexibility  Complexity

 Communication  Lack of clarity

 Expertise  Lack of coordination

 Improved decision-making  Conflict

 Functional Structure Organization

 Functional Structure Organization is one of the most common structures of organization. They are
grouped based on their specific skills and knowledge.

 Under this structure, the employees are divided into groups by the organization according to a particular or
group of tasks.

 In a functional structure, each department or unit is responsible for a specific set of tasks or functions, and
employees within each department have similar skills and expertise related to those functions
 Board of
Directors

Marketing Finance HR Production

Manager Manager Manger
 Advantages & Disadvantages of Functional Structure Organization

Advantages Disadvantages

 Specialization  Lack of coordination

 Efficiency  Bureaucracy

 Communication  Tunnel vision

 Expertise  Resistance to change

 Matrix Structure Organization

 A matrix organizational structure is a structure of organization in which some individuals report to

more than one supervisor or leader, which is described as solid line or dotted line reporting.

 Matrix organizations can be complex to manage, but they can also be very effective in helping
organizations achieve their goals.

 For example, an employee may have a primary manager they report to as well as one or more project
managers they work under.
 CEO

General
Manager

Director of Marketing Operation Engineering

Sales Manager
Project Manager Manager Manager

Sales team Marketing Operation Engineering

Project A
member team member team member team member

Sales team Marketing Operation Engineering

Project B
member team member team member team member
 Advantages & Disadvantages of Matrix
Structure Organization

Advantages Disadvantages

 Increased flexibility and adaptability  Conflict

 Improved communication and coordination  Lack of clarity

 Greater employee engagement  Increased bureaucracy

 Enhanced knowledge sharing  Increased workload

 Better decision-making  Difficulty measuring performance

 Project Structure Organization

 A project structure organizational structure is used to determine the hierarchy and authority of
people involved in a specific project.

 This organizational structure is temporarily created for specific projects for a particular period, for the
project to achieve the goal of developing a new product, specialize in various functional departments
such as production, engineering, quality control, marketing research etc. and will be ready to work
together.

 The project organization is established with the aim of overcoming the major weakness of functional
organization, such as absence of unity of command, delay in decision making and lack of coordination.
 CEO

Functlonal Functlonal Functlonal

Manager Manager Manager

Staff Staff Staff

Staff Staff Staff

Project
Staff Staff
Manager
 Advantages & Disadvantages of Project Structure Organization

Advantages Disadvantages

 Improved communication and coordination  Cost

 Increased accountability  Complexity

 Better use of resources  Lack of focus

 Increased team morale  Communication challenges

 Flexibility
TYPES ORGANIZATION
STRUCTURES
 ORGANIZATION STRUCTURES

 Organizational structure is the way that an organization is arranged and how its different parts
interact with each other.

 It defines the roles and responsibilities of employees, the lines of communication, and the
decision-making process.

 Organizational structure can help to ensure that resources are allocated to the areas where they
are most needed.
TYPES ORGANIZATION STRUCTURES

 Hierarchical structure

 Functional structure

 Divisional structure

 Team-based structure

 Network structure
 Functional structure

 A functional structure groups employees together based on their skills and expertise.

 Functional structures are often used in organizations that need to specialize in

different areas.

 For example, there might be a separate department for sales, marketing, and
engineering
 Board of
Directors

Marketing Finance HR Production

Manager Manager Manger
 Divisional structure

 A divisional structure groups employees together based on products, services, or

geographical regions.

 Divisional structures are often used in large organizations with multiple products or services.

 For example, there might be a separate division for each of the company's product lines.
 Managing
Director

Cosmetics Footwear Medicines Skincare

HR HR HR HR

Marketing Marketing Marketing Marketing

Research and Research and Research and Research and

Development Development Development Development

Purchasing Purchasing Purchasing Purchasing

THANKING YOU