Types of Organization Structure

Types of Organization Structure 

Types of organization structure have been discussed in this article. Generally, there are two types of organization structure and these are; 

1. Formal Organization
2. Informal Organization

Table of Contents

Types of Organization Structure 

Formal Organization

A formal organization is a type of organization structure where the authority and responsibility are clearly defined. The delegation of authority and roles and responsibilities for the members are defined under this organization structure.

There are several types of formal organization based on their structure, which are discussed as follows;

1. Line Structure Organization 
2. Line and Staff Organization 
3. Functional Structure Organization 
4. Matrix Structure Organization 
5. Project Structure Organization

Line Structure Organization

Line Structure Organization is one of the important types of organization. Line structure organization is the simplest and oldest form of organization structure. It is also known as a Scalar Type of Military or Divisional or Organization. 

Under the Line Structure Organization System, authority flows directly and vertically downward from the top of the managerial hierarchy to different levels of managers and subordinates and down to the operative level of workers. It is also known as the Chain of Command or Scalar Principle.

Advantages of Line Structure Organization

1. Simple to understand and simple to operate.
2. Communication is fast and easy.
3. Feedback can be acted upon faster.
4. Responsibilities are fixed and unified at each level and authority and accountability are clear cut, therefore, each individual knows to whom he is responsible and who is or in truth responsible to him.
5. Since it is beneficial when the company is small, it provides for greater control and discipline in the organization.
6. It is a more stable form of organization.

Disadvantages of Line Structure Organization

1. It is a rigid and inflexible form of organization.
2. The line authority has a tendency to become dictatorial.
3. It overloads the executive with suppressive activities so that long-range planning and policy-making are often neglected.
4. Line organizations can suffer from a lack of specialization. Because each department manager is concerned only with the activities of his own department.
5. Different departments may be more interested in their interests rather than overall organizational interests and welfare.
6. This is likely to encourage nepotism
7. It might stop progress and prevent the unit from working effectively.
8. It does not provide any means by which a good worker can be rewarded and a bad one can be punished.

Read Also;

1. Principles of Growth and Development
2. Types of Organization
3. Origin and Development of Human Rights

Line and Staff Organization

In management, the Line and Staff Organization approach authorities establish goals and instructions that are then met by their employees and the other workers. The line and staff organizational structure presents a large and complex enterprise more flexibly without sacrificing any managerial authority. 

The group supports line and staff organization, those who are engaged in the central productive activities of the enterprises. They back up their work. The line and staff organization groups help the organization in analyzing, researching, counselling, monitoring and evaluating activities.

Advantages of Line and Staff Organization

1. Line officers and staff officers can mainly focus on the task of planning and checking whether the work is done or not by their employees. The specialization provides expert advice and proficiency in management.
2. Since the organization includes line officers and staff officers, decisions can be made easily.
3. These staff officers provide complete and factual data to line officers covering every activity within and without their units. This will help to create more coordination between employees and employers.
4. It will provide ample opportunities for the advancement of workers.
5. These tap services provide a separate training ground for various positions.
6. In line and staff organization the arrangements are flexible for newcomers in that employees can be forced to make early adjustments to the line arrangement.
7. These staff experts are ideologically oriented to look forward and have time to undertake program and strategic planning and analyze the potential impacts of future events.

Disadvantages of Line and Staff Organization

1. the complications and confusion may arise between the line and staff officers. Because the allocation of authority and responsibilities is not clear the lower-level members may be confused with the various line orders and staff advice.
2. Generally, the staff advises the lines, but the line makes decisions and tasks. So employees often feel powerless.
3. Too much reliance on staff officers may not be beneficial to the employers and to the business, the line officers may have to lose a lot about their decisions and duplications.
4. Since the staff officers our specialists demand high pay, it is expensive.
5. The employees need more authority to carry out their plans or recommendations. So they sometimes become ineffective, which will make them careless and indifferent to their jobs.
6. Add the line is performed, with the advice given by the employees if things go right the employees get a tax credit and if things go wrong the line gets the blame for it.

Functional Structure Organization

Functional structure organization is one of the most common types of organization. Such types of organizations are based on their specific skills and knowledge. Under this organization, the employers and employees are divided into several groups by the organization according to a particular group of tasks. Where the functional structures may operate well in stable environments where business strategies have little inclination for change or mobility, the level of bureaucracy makes it difficult for organizations to react quickly to market changes. 

Advantages of Functional Structure Organization

1. the main object of functional structure organization is that the executive or the team leader has the complete knowledge and experience of that particular field or task. For example, the person heading the IT department will have the education and skills necessary to shoulder this responsibility and successfully run his team.
2. The work becomes more efficient and precise God the employees have expertise in that particular field or task.
3. It will be helpful to share ideas and come up with solutions as all the team members come from similar backgrounds.
4. Another advantage of this organization is that the employees also have a clear idea about the hierarchy of the firm or organization. They need not report or answer to these several managers.
5. The employees see that their work and efforts are not going unnoticed end result the employees feel secure in their work or field. This sense of security helps them to perform better in the field.

Disadvantages of Functional Structure Organization

1. the major disadvantage of functional structure organization is that after some time the employees may start feeling monotony or boredom as the work can be quite one-dimensional. The lack of new challenges can make them fun the enthusiastic for the job at hand.
2. In this type of organization, the manager must take care of the appraisal system. If the correct approach is not taken then conflicts or disputes may arise between the employers and employees or between the employees regarding promotions or appraisals.
3. Another disadvantage of this organization is that this form of organization requires a high degree of specialization which is difficult to establish for the employees.
4. Also, if there is a necessary change of personnel it can be disrupted the whole system and its balance. It is quite a rigid structure, not leaving a lot of scope for adaptation, alteration or modification.
5. In this type of organization structure, the employees never gain knowledge or skills outside their fieldwork. This can cause difficulties in interdepartmental communication between employees.

Matrix Structure Organization

Matrix structure organization is a structure of organization in which some individuals report to more than one supervisor or team leader. Briefly, it can also describe the management of cross-functional, cross-business groups and other work models that do not maintain rigid business units or silos grouped by function and geography. For example, the employees have a primary manager and they report to as well as one or more project managers they work under.

Advantages of Matrix Structure Organization

1. the matrix structure organization can increase coordination and this leads to greater and more effective control over operations.
2. As the matrix organization is handling many projects the available resources will be fully utilized.
3. The matrix structure organization focuses the resources on specified projects, thus enabling better planning and control.
4. It is highly flexible in following rules, regulations and procedures etc. Experience here is the best guide for setting rules and procedures.
5. As any department has to put its efforts towards the completion of any one project employees are effectively motivated then.

Disadvantages of Matrix Structure Organization

1. the major drawback of matrix structure organization is that there is more than one supervisor for each worker this causes confusion and conflict and reduces effective control over the employees.
2. There is continuous communication both vertically and horizontally, which can increase paperwork and costs.
3. It is more difficult to achieve a downward balance on projects like technical and administrative aspects.

Project Structure Organization

project structure organization is used to determine the hierarchy and authority of people involved in this specific project. This organization is temporarily created for specific projects for a particular., for the project to achieve the goal of developing a new product, specialising in various functional departments such as production, engineering, quality control, marketing research etc. And we'll be ready to work together. These specialists return to their duties as soon as the project is completed. 

In fact, the project structure organization is established to overcome the major weaknesses of functional organization, such as the absence of unity of command, delay in decision making and lack of coordination between the employees.

Advantages of Project Structure Organization

1. the major advantage of project structure organization is a notable depiction of the relationship between environment strategy and structure.
2. The team can focus properly and better way.
3. The clustering of activities based on each project initiates new authorization patterns.
4. Add experts from different organization structures are ready to work together under the project structure organization helps in coordination between the employees.
5. This makes for personal control and determination as personal responsibilities.

Disadvantages of Project Structure Organization

1. The disadvantages of project structure organization and its uncertainty can be attributed to the diverse backgrounds of the professionals who are deputed to the project.
2. Whenever the project manager finds it difficult to control traditionally motivate and control 3 employees in the absence of a norm of lines and norms responsible for communication. 
3. Project completion may be delayed.
4. Effective project management can also be hindered by top management who may not be fully aware of the problems in the project centre.

Informal Organization

An informal organization is a type of organization which do not have been defined by the hierarchy of authority and responsibility. In this type of organization, the relationship between employees is formed and based on common interests preferences and prejudices.

Frequently Asked Questions

What are the types of organization?

Generally, there are two types of organizations and these are; 1) Formal Organization and 2)Informal Organization. And, there are different types of organization.

What are the 5 types of organization in management?

There are several types of formal organization based on their structure, which are discussed as follows; 1) Line Structure Organization 2) Line and Staff Organization 3) Functional Structure Organization 4) Matrix Structure Organization 5) Project Structure Organization

What is organization and what types of organization

A formal organization is a type of organization structure where the authority and responsibility are clearly defined. The delegation of authority and roles and responsibilities for the members are defined under this organization structure.

Different types of organization culture?

Formal Organization and Informal Organization are the two types of organization culture.

Conclusion

Types of Organization Structure have been discussed in this article. Formal and Informal Organizations are the two types of organisational structure. However, the formal organization structure is further divided into 5 types of organizations. These are briefly enumerated in this article.