Classification of Organizations
April 3, 2025
Classification of Organizations
Organizations are basically clasified on the basis of relationships. There are two types of organizations formed on the basis of relationships in an organization Formal Organization – This is one which refers to a structure of well defined jobs each bearing a measure of authority and responsibility. It is a conscious determination by which people…
Importance of Organizing Function
Specialization – Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work is helping in bringing specialization in various activities of concern. Well defined jobs – Organizational structure helps in putting right men on right job which can be done by selecting people for…
Principles of Organizing
The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions and can act. To organize in an effective manner, the following principles of organization can be used by a manager. Principle of Specialization According to the principle, the whole work of a concern should be divided…
Line and staff organization is a modification of line organization and it is more complex than line organization. According to this administrative organization, specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. The power of command always remains with the line executives and staff supervisors guide, advice and council the line executives. Personal Secretary to the Managing Director is a staff official.
| MANAGING DIRECTOR | ||
| ↓ | ↓ | ↓ |
| Production Manager | Marketing Manager | Finance Manager |
| ↓ | ↓ | ↓ |
| Plant Supervisor | Market Supervisor | Chief Assisstant |
| ↓ | ↓ | ↓ |
| Foreman | Salesman | Accountant |
The line executive can concentrate on the execution of plans and they get relieved of dividing their attention to many areas.
The planning and investigation which is related to different matters can be done by the staff specialist and line officers can concentrate on execution of plans.
Line executives can give due concentration to their decision making. This in itself is a training ground for them.
At times the staff specialist also provide wrong decisions which the line executive have to consider. This can affect the efficient running of the enterprise.
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