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The organization structure is the basic framework within which the decision making behaviour occurs. It shows the different positions in the organization and the responsibilities attached to this formal position. Examples of forms of organization are:

(a) Line /military organization
(b) Staff or functional
(c) Line and staff
(d) Management by committee
(e) Matrix organization

Also known as military organization. Under this system, the authority moves from top to lower levels. There is direct vertical relationship connecting the positions at each level with those above and below. If there are different departments in an organization, then each department is independent and responsible for the activities assigned to that department. For example, a manufacturing company that has three lines of products, i.e textile, cooking oil and soap. This company will have three departments namely. Each department having its own production, purchases, sales, accounting and office staff. It’s important features include;

i) Superior subordinate authority
ii) Authority descends from the top to downward level through downward delegation of authority iii) Subordinates become responsible to the immediate superiors iv) All decisions and orders are made by the top executives and handed down to subordinates v) The top-most management has full control over the entire enterprise. Advantages

1. It is simple to be understood by the staff
2. Responsibility for work at different level is clear
3. The lines of communication both upward and downwards are indicated 4. Discipline can easily be maintained
5. It is economical and effective.
1. Where there is no overall planning, there is a possibility of lack of coordination at different departments 2. Each department tends to be an empire of its own and not of the same concern 3. The organization is rigid and inflexible

4. It works on a dictatorial basis

Also known as functional organization.
Under this system various departments are established and each department is required to perform specific duties headed by a specialist. There are separate functional departments for major functions of the enterprise. E.g Personnel (Human Resource Dpt), sales, purchasing department etc. each department does the function of the entire organization. Advantages

1. There is specialization for each department
2. Responsibility is also fixed
3. Co-ordination is a must as each department relies on each other and thus discipline can be maintained. 4. Methods and operations can be standardized e.g procurement and salaries 5. Mass production is achieved by standardization and specialization. Disadvantages

1. The workers may be confused because of the many instructions or orders from the many experts heading different departments 2. The system becomes very much detailed and thus uneconomic 3. In large organization with several departments there maybe too many experts and many bosses 3. LINE AND STAFF ORGANIZATION

In this structure a company is divided into departments each engaged in a particular undertaking. The structure provides a compromise between the two basic types of organization i.e line and staff organization. This type of organization produces line officers who give orders and decisions to subordinate in consultation or guidance to the staff officers. The underlying idea of this method is that specialist work is left to experts who will give advice on specialized ground- research and investigations etc The staff officers have no executive positions in the concern and are the thinkers while the line officers are the doers. Advantages

1. The principle of specialization is retained and responsibility fixed. 2. Co-ordination is possible yet discipline can be maintained at the same time 3. Increased...
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