ns. The classification is done according to the nature of internal authority relationships of organizations. В
Line Organizations
matrix Organization committee
The line organization is the oldest and the simplest organizational structure. This structure is defined by its clear chain of command, with final approval on decisions affecting the operations of the company still coming down from the top. Because the line structure is most often used in small organizations-such as small law firms, hair salons, and small stores-the president or CEO can easily provide information and direction to subordinates, thus allowing decisions to be made quickly.
Line structures by nature are informal and involve few departments, making the organizations highly decentralized. Employees are generally on a first-name basis with the president, who is often available throughout the day to answer questions and to respond to situations as they arise. It is common to see the president or CEO working alongside the subordinates. The line organization is effective in the smallest organization only. The reason is that the manager has total responsibility for a number of activities and cannot be efficient at all of them.
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Line-and-Stuff organizations
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While the line structure would not be appropriate for larger companies, the line-and-staff structure is applicable because it helps to identify a set of guidelines for the people directly involved in completing the organization's work. This type of structure combines the flow of information from the line structure with the staff departments that service, advise, and support them
Line departments are involved in making decisions regarding the operation of the organization, while staff areas provide specialized support. The line-and-staff organizational structure "is necessary to provide specialized, functional assistance to all managers, to ensure adequate checks and balances, and to maintain accountability for end results " 3
An example of a line department might be the production department because it is directly responsible for producing the product. A staff department, on the other hand, has employees who advise and assist-making sure the product is advertised or that the customer service representative's computer is working. b>
Committee Organizations
In ac ommittee organization, authority and responsibility are in the hands of a group of individuals rather than a single manager. In this type of organization groups of individuals, or committees, make decisions together. This ensures that individuals from diverse departments make more sound decisions. On the other hand, this slows down the decision making process as each member of the committee must agree with the decision.
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Matrix Organization: An Outline
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