Types of Organisational Structure - Line, Line and Staff, Functional, Project, Matrix Structure

Summary

This video provides an overview of five key types of organizational structures: Line, Line and Staff, Functional, Project, and Matrix. It explains how authority and responsibility are distributed in each structure, from the hierarchical flow of a Line structure to the dual-reporting system in a Matrix structure. The video also explores the benefits of each approach, including specialization in the Functional structure and project-based flexibility in the Project structure. Viewers gain a clear understanding of how organizations can choose the structure that best fits their operational needs and goals.

Takeaways

• 😀 Line Organizational Structure has a clear, top-to-bottom authority flow where superiors give orders to subordinates.
• 😀 In Line and Staff Organizational Structure, line executives are responsible for tasks, while staff executives provide expert advice and support.
• 😀 The Functional Organizational Structure divides the organization into departments based on specialized functions like marketing, production, and HR.
• 😀 The Project Organizational Structure is temporary and formed for specific projects, disbanding once the project is completed.
• 😀 In Matrix Organizational Structure, employees report to both functional and project managers, creating a dual-reporting system.
• 😀 A Line Organizational Structure creates a direct chain of command with clear authority relationships.
• 😀 The Line and Staff Organizational Structure helps improve efficiency by combining task management with specialized advisory roles.
• 😀 Functional Organizational Structures enable specialized expertise within departments, improving efficiency in tasks like marketing and HR.
• 😀 Project Organizational Structures are designed for flexibility and adaptability, used for limited-time projects that require specialized teams.
• 😀 Matrix Organizational Structures balance both functional and project needs, allowing resources to be allocated based on the demands of both areas.
• 😀 The Matrix Structure's dual reporting system ensures that team members are aligned with both their functional department and specific project goals.

Q & A

What is a Line Organizational Structure?

In a Line Organizational Structure, authority flows from top to bottom, with superiors giving orders to subordinates. Subordinates are responsible for fulfilling the orders given by their superiors. For example, a president gives orders to the vice president, who in turn gives orders to the managers.

How does Line and Staff Organizational Structure differ from Line Organizational Structure?

Line and Staff Organizational Structure combines both line executives (responsible for tasks) and staff executives (advisers or experts). While line executives are directly responsible for tasks, staff executives provide advice and support. For example, a managing director is a line executive, while a legal adviser or financial adviser is a staff executive.

What is the role of staff executives in a Line and Staff Organizational Structure?

Staff executives in a Line and Staff Organizational Structure serve as advisers to line executives. They provide expert guidance in areas such as finance, legal matters, or human resources. For instance, a financial adviser gives advice on financial decisions, while a legal adviser helps with legal issues.

What defines a Functional Organizational Structure?

A Functional Organizational Structure divides an organization into departments based on their specialized functions. Each department focuses on a specific area, such as marketing, production, or research and development. This structure helps streamline processes within specialized functions.

Can you explain the key feature of a Project Organizational Structure?

A Project Organizational Structure is created for a specific project or temporary purpose. It involves forming a hierarchy with a focus on the project at hand, and once the project is completed, the structure is disbanded. This structure typically includes project-specific teams like research, development, and management.

What is the purpose of a Project Organizational Structure?

The purpose of a Project Organizational Structure is to create a temporary team dedicated to completing a specific project. It provides a clear hierarchy and authority for people working on the project, and once the project concludes, the structure is dissolved.

How does a Matrix Organizational Structure work?

A Matrix Organizational Structure is a hybrid model combining functional and project-based structures. In this system, teams report to multiple leaders—typically both a functional manager (e.g., marketing or production) and a project manager. This dual-reporting structure allows for greater flexibility and collaboration across functions.

What are the advantages of a Matrix Organizational Structure?

The Matrix Organizational Structure allows for efficient use of resources and improved communication between different departments. It encourages collaboration between functional and project teams, and it allows employees to contribute their expertise to various aspects of a project, making it more adaptable.

What is the main characteristic of a Metric Organizational Structure?

A Metric Organizational Structure is characterized by dual reporting, where team members report to both their functional managers and project managers. This combination of functional and project structures allows for more flexibility, but it can also lead to confusion or conflict due to the multiple reporting lines.

How are departments organized in a Functional Organizational Structure?

In a Functional Organizational Structure, departments are organized based on the specific functions or expertise required by the organization. Examples of departments include marketing, production, research and development, and human resources. Each department is led by a department head who oversees the specialized tasks.