Question

Briefly discuss the types of organizations, advantages and disadvantages (in bullet forms) Words: 500 (10% +/-)

Answer 1

Mainly there are five types of organization's. They are :

1) Line organization or Scalar organization - In such type of organization all the business related activities are divided into three parts which are , accounting, production and sales . Now there are sub divisions under every parts and each part or division has their own head and concerned with their own activities. All these divisions work for their areas and collectively contribute to meeting company's goals.

Advantages :

• The division of authority and responsibility is properly decided so that there remains no confusion and work will go without hurdles being created. Each one gas its authorities and responsibilities very clear .
• It is helpful in taking fast and accurate decisions.
• Because the duties and responsibilities of every individual is known and fixed, it is hard to committ mistakes and if done it can easily be detected.
• It helps in maintaining a discipline in the organization and us also easily understood.
• It incurs less cost as each one has their own works distributed so loss is less including time and money .

Disadvantages:

• There may come a lack of specialization, as every divisions needs an expert in that particular area to head the department or division.
• There may be huge work load on the one heading the divisions and has more works to take care of. Hence it creates more burden on one particular individual.
• Due to overburden certain tasks may be ignored which could lead yo losses in organization.

2) Functional organization: In this type of organization, people with specialized in a particular feild are selected to perform that particular function in every department and divisions of the organization. This way individuals are selected on the basis of their function and their specialization in that particular function.

Advantages:

• It has a positive affect on the quality of work done as work is done by someone specialized.
• There is no overloading if work on a particular individual
• Wastage of material and resources are very minimum as the work is done by experts and are under their observation.
• Here mass production is possible with best standardization and specialization.
• Workers can get getter training and kniwknowl by the experts in doing and understanding their work.

Disadvantages:

• There can be problem in controlling process as the one being expert in any area would feel himself superior than anyone else in the organization and hence to control thdm becomes little challenging.
• It is possible that the experts would demand a high cost which would ultimately increase the cost if production.
• If the experts make mistakes, there is no one in the organization to detect that and correct it. And later on it will have negative impact on the organization leading to losses.
• It us possible that individual s will be doing shifting of responsibility.

3) Line and staff organization: In such type of organizations, staffs are being appointed by organizations to assist the line officers in their work by their specialized works as managers are not able to control and oversee every activities taking place.

Advantages:

• It will have positive affect on quality of production.
• Comparitively the wastage of resources will also be reduced .
• There will be discipline as because of presence of line managers with the experts .
• Knowledge from experts can ge utilised tere for expert production.

Disadvantages:

• Cost of production may rise as it includes experts and stafs with specialized knowledge who will demand high rates.
• The higher management may become indisciplined as because of lacking the responsibilities for upper level managers.
• Little less expert guidance to workers if compared to functional organization.

4) Line , staff and functional organization: It is the combination of all the three line , staff and functional organization. The employees and workers are under specific foreman who maintains discipline and outputs for each divisions. The person leading or inspecting various functions will have full authority to control and looking after the quality of production. There are specific department for research process to cempete with others in the market.

Advantages:

• All the functions arecwell managed in any organization
• Organization can positively compete with others in market
• It leads to making profit for tte organization

Disadvantages:

• It is time taking .
• Every process is related and concerned with other process and disturbance in one can lead to overall disturbance.
• There is increase in responsibilities fir certain individuals.

5) Committee organization: Thys consists of a group of people who advice the organization in certain circumstances. They basically form the procedures and rujes in any organization. Their work ys to five advice.

Advantages:

• Proper formulation of rules and their inplimplementain the organization.
• Dyscipline us mainrained in the organization.
• People in the organizations favour these rules framed as they are passed by their decisions only. Commitee only advices but does not implement.

Disadvantages:

• It leads to formulation of other groups that require extra time and efforts.

These are the advantages and disadvantages of the types of organizations.