The basic objective of an organization is to ensure that the efforts of men and departments are coordinated and integrated for accomplishing the tasks in the best, efficient and economical way with the resources available. The following types of organizations are in existence today:-
(1) Military or line type: –
in organizations where large bodies of people have to be directed, the element of discipline assumes the highest importance. Historically the most natural form of organization known is called “military or line” organization. Under this system, the lines of direction and instructions are vertical and since duties and responsibilities of top executives go behind his physical and mental capacities, he is to be assisted by his deputies and in doing so the principle of delegation and chain of command have to find their play. The principle feature of line system is maintenance of discipline and clear and precise defining of responsibilities so that misunderstanding do not arise in each manager/supervisor’s sphere of activity. This system, however suffers from grave limitations especially because when organization grow in magnitude, the system invariably tends to load a few men to a breaking point and by implications these few men have to resort to crude methods which run counter to organization’s philosophy and sociological needs. In addition, the system tends to glorify a few individual for the success achieved by the organization undermining the effects of many. In the present setup this system is practically non existent except in armed forces.
(2) Functional type: –
this type of organization introduces by F.W. Taylor, is a logical extension of the division of the labour to cover departments as well as men. In this system, planning is separated from performance since the direction of work is divided by functions rather than by simple authority. In practice it ahs been found that functional performance increases ineffectiveness as the works of the departments and that of individuals increases in varieties and complexities and as the technical intelligence required exceeds the capacity of the employee. The principle disadvantage of this system is the weakening of discipline that results from substitution of several superiors for one. In fact the question whether a person can serve two masters need not necessarily result in creating confusion, if the scheme is properly applied and yet, the fact remains that the conflict of authority frequently does arise and leads to organizational inefficiency.
(3) Line and staff type: –
in view of the growth in the physical size and the scientific knowledge in organizations it is not uncommon to find that functional system can not be applied without moderation and taking records to the line type and that is why the combination of this two is called “line and functional” or “line and staff type”. Here the staff specialists work in advisory capacity for assembling operating data, and analyzing them and suggesting measures to be implemented through “line” personnel who enjoy the necessary authority to execute the function. Experts in planning, finance, personnel, medical, R&D, behavior scientists etc. are staff specialists. Whereas G.M., D.G.M., Manager, Asst. Manager, foreman, mate etc. in mine organization constitutes line. Most of the industrial units in organized sector have line and staff type of organization.