What is organization? , Types , characteristics, advantage, disadvantage

 What is organization?

Organization is a systematic arrangement of people working together towards a common purpose it is composed of a group of individuals acting as a unit for the attainment of an objective.

 

                                 Or

Organization is a group of people who work together. Organization exist because people working together can achieve more than a person working alone. It is the idea of putting things together in a logical order.

Types of organization:-

1. Line organization:-

• Line organization is the oldest and simplest form of internal organization structure. In which decision is taken by owner only.
• Under line organization each department is generally a complete self-contained unit. A  separate person will look after the activities of the department and he has full control over the department.
• The same level executives do not give or receive orders amongst themselves. But they receive orders from their immediate boss and give orders to their subordinates.

Characteristics:-

• It consists of direct vertical relationship.
• Authority flows from top level to bottom level.
• Departmental head are given full freedom to control their departments.
• A senior member has direct command over his subordinates.
• The superior takes decision within the scope of his authority.
• Existence of direct relationship between superiors and subordinates.

Advantages:-

• It is simple in phone with a clear cut division of authority.
• Decisions are speedly and their implementation is quick.
• Keeps better discipline.
• Responsibility can be easily fixed.
• More economical and flexible.

Disadvantages:-

• Lack of specification and initiative.
• Overloading.
• Limited communication and subjective approach.

2. Line and staff organization:-

In the line and staff organization line executives and staff (specialists) are combined together. The line executives are doers where staff refers to experts and act as thinkers. The authority flows from top level to lower level of the organization.

Characteristics:-

• It consists of direct vertical relationship.
• Departmental head is given full freedom to manage his department.
• It does not make provision for staff specialist.
• Existence of superior subordinate relationship.
• Instructions are given by the boss directly to his subordinates.
• Superior at each level makes decision within the scope of his authority.

Advantages:-

• Facilitates to work faster and better.
• Officers can take sound advice.
• Promotes efficient functioning of line officers.

Disadvantages:-

• There may be confusion about the relationship between staff and line employments.
• If power are not difained then get confusion.
• Delay in decision making.

3. Functional organization:-

In his functional organization foremenship, there will be eight specialists foremen who will be required to guide, direct and control the work. Workers at the plant level will have to follow the instructions.

Characteristics:-

• The work is divided according to specified functions.
• Authority is given to a specialist to give orders and instructions in relation to specific function.
• Functional authority has right and power to give command throughout the line with reference to his specified area.

Advantages:-

• Facilitates specialisation.
• Benefits of large scale operations.
• Facilitates effective coordination.
• Operational flexibility.
• Ensure effective supervision.

Disadvantages:-

• It is difficult to define who the boss is.
• It de-emphasizes the position of the line organizations.
• Increasing the overhead expenses.