Organisational Structure part2

The organisational makeup of a firm is a well designed relationship among the individuals in the organisation and the functions they are performing in connection with the objectives of a firm.

There are four forms of organisational structure: line, staff, functional, and committee.

Line structure demonstrates authority from top to bottom.

Staff authority is primarily advisory and gives advice to line managers.

Functional structure aims to divide the essential functions of a business into separate departments.

Committee is a collection of persons delegated to attain a goal by a senior authority.

Note managers at similar levels of authority have a lateral or side ways relationship.

The qualities of line authority are that it:

– Provides directly to the creation of goods and services

– Demonstrates straight authority over subordinates

– Makes up the major function of an organisation.

The levels or stages of management are:

– Top management where the aim is analyzing competitors, strategies, and policies

– Middle management where the aim is harmonization of activities and subgroups, connecting top and lower management. Other responsibilities include planning departmental work.

– Lower management where the aim is to make sure the work is done. Also they handle the maintenance of equipment, scheduling of work and reports.

Advantages of a functional organizational structure:

– Resourceful use is made of ability

– Distinct managerial responsibility is revealed for a precise duty

– It is rational, uncomplicated and time saving.