Organizations are formal social units devoted to the attainment of specific goals. Organizations use certain resources to produce outputs and thus meet their goals. For example, a business firm that produces natural wood blinds, vertical blinds, roller shades etc. consumes certain resources (money, materials, labor, machinery and information) and aims to meet certain financial objectives. In hospitality business like motels in California suppose to give their best service and hospitality to their customer. To attain their target they need to organize their resources and infrastructure.
Although the type of organization would largely depend on the size and nature of the enterprise, yet there are 4 common forms of organizational structure, namely
(a) line organization
(b) functional organization
(c) line and staff organization
(d) committee organization
Line organization : This is one of the oldest and simplest form of organizational structures and is also known as scalar organization, military organization, vertical organization or departmental organization. Under this organization structure, the line of authority flows vertically from the top most executive to the lowest subordinate. The authority concentrates in the hands of the topmost executive to the lowest subordinates and so on. Thus the authority reduces at each successive level down the organization. The line organization is thus based on the superior-subordinate relationship. For example in a term life insurance rates business or term life insurance agent, they do have agents and associate relationship. This relationship is very much important. Associates are working under agents. The line organization does exist.
We will discuss on functional organization, line and staff organization and committee organization in our next post.
Tags: blinds, departmental organization, Finance, line organization, military organization, motels, Organization, organizational structure, scalar organization, staff organization, term life insurance, term life insurance rates, vertical organization
