Line Structure

UNIT 3: COMPANY STRUCTURE

LINE STRUCTURE

1. hierarchical or pyramidal including superior and subordinates

2. based on relative rank, authority and responsibility rather than the activity or operations that an individual performs

3.  flowing downward for authority while upwards for responsibility

4. vertical relationship

5. small organizations and informal relationship (superior working alongside with subordinates)

LINE-AND-STAFF STRUCTURE

1. more complex than line organization ( large companies or organizations

2. showing specialized and supportive activities ( staff

3. the power of command always ( line executives while staff services ( only as counselors.

4. therefore, divisions of work and specialization (found in line-and-staff organization

5.  two lines of authority which flow at one time in a concern

a. Line authority

b. Staff responsibility

FUNCTIONAL STRUCTURE

1. useful for relatively big companies

2. Employees within the functional structure ( perform a specialized set of tasks

3. operational efficiencies ( employees become specialists within their own realm of expertise

4. communication within the company can be rather rigid ( making the organization slow and inflexible

5. centralized structure because decision-making power ( at the top of the hierarchy

6. best suited for companies producing standardized goods and services at large volumes and low cost

MATRIX STRUCTURE

1. 3D or 4D view of relationship

2. containing teams of people created from various sections of the business

3. focusing on purposes of a specific project and being led by a project manager

4. existing for the duration of the project

5. (used/deployed) developing new products and services

6. Advantages:

• Individuals can be chosen according to the needs of the project.                              

• The use of a project team which is dynamic and able to view problems in a...