1. TYPES OF ORGANIZATION

2. Organization
Organization is a formalized intentional structure of roles and positions.
Organization is an identified group of people contributing their efforts towards the attainment of goals.
Organization is a harmonious adjustment of specialized parts for the accomplish of some common purpose.

3. Formal Organization Formal Organization means the
intentional structure of roles in a
formally organized enterprise.
Formal Organization refers to the structure of well defined jobs, each bearing a definite measure of authority, responsibility and accountability.
In formal Organization, Each & every person is assigned the duties, authority , responsibilities & relationship as prescribed by the top management.

4. Advantages & Disadvantages of Formal Organization
Advantages (1) Optimum use of resources (2) Job Satisfaction (3) Motivating Employees (4) Facilitating Management Action Disadvantages (1) Doesn’t allow flexibility (2) Doesn’t allow long term planning (3) Limited scope of Creativity

5. Informal Organization
Informal Organization means a network
of interpersonal relationships that arise
when people associate with each other.
Informal Organization means natural grouping of people in the work situation.
Informal Organization is a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.

6. Benifits of Informal Organization
To the Employees: (1) Job Satisfaction. (2) Earn sympathy; guidance & advice. (3) Get help in critical situation. (4) Atmosphere favorable to research is built. (5) Social control on members (6) If a manager tries to misuse his powers, informal organization puts a check on him.

7. To the Managers:
(1) Reduces burden.
(2) If manager is weak, informal group come to his help.
(3) Helps formal organization in realizing its objectives.
(4) Additional means of effective & quick communication.

8. Disadvantages of Informal Organization
(1) Rumors spread swiftly. (2) It oppose change. (3)Individuals personal need may go unsatisfied. (4)Members have to observe norms & values. (5) Gives importance to group relation which sometimes challenge the authority of the management (6) Group leaders sometimes uses group influence to promote his personal ends

9. Differenece between Formal Organization & Informal Organization
Basis of Distinction
Formal Organization
Informal Organization
Purpose
It is created to achieve pre determined objective
It has no pre determined objectives. It arises due to social interaction of people.
Formation
Formal relations are well planned and are created deliberately.
Informal relations are unplanned and they originate automatically.
Structure
Well structured
Unstructured
Nature
Official
Unofficial
Focus
Positions
Persons
Source of Power
Delegated
Given by group
Leadership
Managers
Informal Leader
Source of control
Reward/Punishment
Social Sanctions

10. Differenece between Formal Organization & Informal Organization
Basis of Distinction
Formal Organization
Informal Organization
Guidelines for behavior
Rules and Procedures
Group Norms
Stability
Stable (Long term)
Unstable (Short term)
Size
large
Small
Flexibility
Rigid Structure
Highly flexible
Communication
Chain of command
Grapevine

11. Organization Structure
Organization Structure refers to the hierarchical arrangement of various positions in the organization.
Organization Structure defines the relationship between various positions, departments and persons.
Organization Structure helps in allocating authority and responsibility formally and decides who is to report to whom, who is superior to whom and who are his subordinates.

12. Types of Organization
There are basic Four types of organization structure, which are more popular in the business word. These are;
(1) Line Organization
(2) Functional/Staff Organization
(3) Line and Staff Organization
(4) Committee Organization

13. Line Organization
Business unit is organized not according to functions, but on the basis of responsibility and authority.
Authority flows from the top to the bottom in a line, the responsibility flows in the opposite direction from the bottom to top. So it is known as line organization.

14. Advertisement manager
Board of Directors
Managing director
Production
Purchase manager
Workshop manager
Foreman
foreman
Marketing
Sales manager
Advertisement manager
Office
Accountant
secretary

15. Advantages of line organisation
Simplicity
Fixed authority and responsibility
Discipline
Quick decision-making
Development of skill
Effectiveness
Chances of success
Easy location of responsibility
Flexibility

16. Disadvantages of line organisation
Lack of all rounders
Overloading
Difficulties in departmentation
Difficulties in co operation & co ordination
Lack of specialization
Centralization of authority
Neglect of planning & research
Corruption
Difficulties of transfer

17. Staff organisation
The whole task of management is divided according to the type of function involved. Every person has to perform a special function under this organization. So it is called staff organization.

18. General Manager
Personal officer
Foreman A
Chief engineer
Foreman B
Workmen
Purchase officer
Foreman C

19. Advantages of staff organization
Specialization
Benefits of large scale production
Scientific recruitment and training
Co-operation
Decentralization of authority
Easy expansion
Flexibility

20. Disadvantages of staff organization
Expensive
Violation of Unity of command
Difficult to locate responsibilities
Lack of discipline & control
Absence of quick decision
Difficulties of co ordination
Increase in clerical work

21. Line and staff organisation
Line officials do administrative work as usual, but they are assisted by the experts. This group of experts is known as ‘staff’.
Line officers have the authority to issue orders while staff experts have the authority to give advice and instructions.

23. Advantages of Line and Staff organisation
Simplicity
Balance
Co-ordination
Prompt Decision
Less Burden on Line Officers
Blending of Abilities of Line Officers and Experts
Flexibility
Location of Responsibilities

24. Disadvantages of Line and Staff Organisation
Conflict among officials
Evading responsibility
Expensive
Disregard for line officers suggestion
Carelessness of line officers
Conflict between old & new

25. COMMITTEE ORGANISATION
The above three forms of organization cannot fully satisfy the requirements of modern business. Hence to supplement them, committee organisation began to be adopted.
Dr. Terry has defined committee as a “body of persons elected or appointed to meet on an organized basis for the discussion and dealing of matters brought before it.”

27. Importance and Usefulness
This pattern of organization is gradually gaining importance and popularity.
The committee organization is being used in the line and staff organization to keep the head of every department fully informed of the activities of the other department heads.
The committee organization has been in use in the business units both in the private and public sector.
It is widely used also in education, religious and social institution as also in hospitals and minicipal corporation.

28. Top Management Committee
Sales Committee
Distribution Committee
Salesmen
Advertisement Committee
Employees
Production Committee
Purchase Committee
Works Committee
Foremen
Workers
Stores Committee
Administrative Committee
Secretary
Accountant

29. Advantages of Committee organization
Best means of group deliberation
Decentralization of authority
Co operation
Co ordination
Matured decisions
Useful for training
Improvement in labor relations
Continuity in managerial policy
Helpful to research
Helpful to administrative officers
Helpful to communication

30. Disadvantages of committee organization
Delay in decision making
Injustice to minorities
Business secrets
Difficulty of fixing responsibility
Laxity in organization
conflict & bitterness
Expensive