Question

discuss the types of organizations, advantages and disadvantages (in bullet forms)

Words: 500

Answer 1

Following are some types of organizations:-

A. Project organization is oriented towards the completion of a big project or a small number of big projects. U der this, a team of specialists from different areas are created for each project. Such a team is separate from and independent of functional departments. The size of the project team varies from one project to another. The activities of the project team are coordinated by the project manager who can obtain advice and assistance of experts both inside and outside of the organization.

Advantages:-

1. It facilitate concentrated attention on the complex project.

2. It requires specialist in different fields.

Disadvantages:-

1. It becomes very difficult because of lack of clearly defined responsibility.

2.Lack of clear communication, lack of standards of performance

B. Matrix organization

This is one of the latest type of organizational designs which has been developed to establish flexible structure to achieve a series of project objectives. Matrix organization also known as grid has been designed as an answer to the growing size and complexity of undertakings which require an organization structure that is more flexible and technically oriented than the traditional line and staff or functional structure.

C. Cooperative organization

An association of persons, usually of limited means, who have voluntarily joined together to achieve a common economic end, through the formation of a democratically controlled business organization, making equitable contribution to the capital required and accepting a fair share of risk and benefits of the undertaking.

Advantages:

1. Being a voluntary organization it is easy to form as it doesn't required long and complicated legal preliminaries.

2. Like the liability of the shareholders in company form of organization, the liability of the members in a cooperative organization is also limited.

Disadvantages:-

1. Limited capital the amount of capital it has is limited because of membership remaining confined to a particular locality or region.

2. Misuse of funds as ignorance of principles and misuse of funds for personal ends may lead to recurring losses.

D. Public organization:-

It is not a private company and has a minimum paid up capital of five lakh rupees or such higher amount as may be prescribed by the government.

E. Private organization:-

It has a minimum paid up capital of one lakh rupees or such higher amount as may be prescribed by the government.

It restricts the right to transfer its shares .

It also limits the number of members to 50 excluding employees.

Prohibits any invitation to the general public to subscribe for its shares or debentures.