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
(a) Functional organization : As the name suggests, under this type of organizational structure, all activities in the organization are grouped together according to basic functions like production, marketing, finance, human resource etc. Each function is put under the charge of a specialist who is fully responsible for carrying out the function for the entire enterprise. The authority flows functionally to the divisional heads. The divisional heads report to one specialist with reference to one functional and to another, for another function.
(b) Line and staff Organization : This type of organization has been evolved to achieve the advantages of the two forms of the organizational structures mentioned above. While the line organization insists too much on the unity of command, the functional organizational emphasizes too much on the decentralization of control. In order to strike a balance, line and staff organization structure has been evolved. In this form of organization, the structure is basically that of the line organization but functional experts are provided to advise line authorities in he performance of their duties.
Tags: committee organization, divisional heads, Finance, functional organization, human resource, line organization, marketing, Organization, organizational emphasizes, organizational structure
