T OP AND B OTTOM L INE OF ORGANIZATION Mr. B S DESHMUKH

ORGANIZATION The organization is the structure where people come together and work together for the attainment of a common purpose. Every person in the organization is related with authority and responsibility. This enables in arranging the various activities effectively. Organization brings men and material resources together for fulfilling the goals of the enterprise. Efficient organization forms the basis of enterprise.

I MPORTANCE OF ORGANIZATION 1. Organization facilitate management:- A well knit organization helps in performance of other managerial functions planning, staffing, leading, motivating and controlling. 2. It helps in growth and diversification:- Efficient management see through future and make necessary changes in the organization to suit the future requirements.

C ONTD … 3. It facilitate the optimum use of technological development:- A sound organization possesses a quality for adopting modern techniques of manufacturing. 4. It facilitate maximum use of persons:- Expansion of the enterprise need more person to work. A sound organization encourages optimum use of human person in the country.

C ONTD …. 5. It fosters co-ordination:- Co-ordination among different personnels working in the department and between different department of an enterprise in necessary. 6. It facilitates specialization and creativity:- Every person is given a job in which he expert. This encourages specialization which leads to higher production.

T YPES OF ORGANIZATION STRUCTURE 1. Line Organization 2. Line and Staff Organization 3. Functional Organization 4. Committee Organization

L INE ORGANIZATION This is earliest and simplest form of organization. This form is adopted from military administration. There is a series of superior subordinate relationship from top to bottom level of organization structure. All measure decision are taken by the top level executives and then passed on their subordinate who in turn divide the decision according to function and passed on to their subordinate supervisor for implementation and so on. It establishes the direct authority relationship.

Board of Director General Manager/Managing Director Marketing Production Finance Personnel ManagerManagerManagerManager Assistant Prod. Assistant Prod. Assistant Prod. ManagerManagerManager SuperintendentSuperintendentSuperintendent Forman Forman Forman Workers Workers Workers

A DVANTAGES OF LINE ORGANIZATION It is simple and easy to understand. Authority and responsibility are clearly defined for each personnel in respect of his work. So it avoid confusion and misunderstanding. Subordinate and workers are responsible to one immediate superior ensuring better discipline in the enterprise. It facilitate greater control and better direction.

DISADVANTAGES OF LINE ORGANIZATION Different jobs and different types are to be looked after and supervised by the same executive. He may not be an expert in all of the jobs. The work therefore suffers. This is due to lack of specialization. Each executive is overloaded with too much of work. This affect his efficiency. The large scale of enterprise where specialization is required at each level, this type of organization is most unsuitable. There is excessive concentration of authority with the top executive. If the executive is inefficient, the enterprise will suffer.

L INE AND STAFF ORGANIZATION In line and staff organization structure, line authority moves downward from top to bottom while staff are the experts having no line authority and their function is advisory. Staff executive are in the organization because of their expert knowledge of a perticular kind which is useful to the enterprise. In this type of organization line manager are responsible for maintaining discipline, order stability and staff executive supply expert information carry on research regarding market and product, looks after quality control and establishing standard etc.

Board of Director General Manager/Managing Director Economist Scientific and Technical advisor ----Financial advisor Marketing Production Finance Personnel ManagerManagerManagerManager Industrial Engineer Quality control Manager Assistant Prod. Assistant Prod. Assistant Prod. ManagerManagerManager SuperintendentSuperintendentSuperintendent Forman Forman Forman Workers Workers Workers

ADVANTAGES Operational efficiency increases because of expertise of the staff executives. All technical problems are attended by staff with line executives. There is high level of specialization. Routine matters are attended by line manager as their load is released because of staff executives. Staff executive support line mangers in decision making by providing them with right kind of information. Staff executive provide help in training supervisory personnels aiding line manger to develop the skill of their subordinates.

DISADVANTAGES The growing conflict between line and staff executives is responsible for defeating the goals of the enterprise. There is a chance of misunderstanding the advice of staff by line manager. Line manager have practical approach to the problem while staff executive being expert in their field have theoretical approach. The distribution of work between line and staff is not proper and clear. This affects the coordination adversly.

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