1) Line organization 2) Functional organization 3) Line and Staff organization. Welingkar’s Distance Learning Division CHAPTER-11 TYPES OF ORGANISATION We Learn – A Continuous Learning Forum 2. Project Managers have high levels of independence and authority for the project and control the project resources. We wrote this order for Aircraft Certification Service (AIR) and Flight Standards Service (AFS) personnel, who manage delegated organizations. Organization is a goal oriented process, which aims at achieving them, through proper planning and coordination between activities. Informal authority is power that isn't recognized by the systems of a society, organization or team. Line organization. 1. Types of Authority: Centralization and Decentralization. As a result, this system becomes quite expensive. There are several types of corporate structures (organizational structures), and organizations choose the one most suitable for them. Organizational-Position Authority This type of authority is seen in people who are put in charge of major projects where they work. (b) Organizational units, especially the organization as a whole, are therefore headed by managers and not by experts. 1) Academic authority. Weber spoke of traditional authority, legal rational authority, and charismatic authority. In the same way that no two people can ever be the same, no two companies are identical. Here’s the spectrum of authority for the different types of organization: Fig. Here are several types of authority that can be leveraged. It is adopted by many multinational and big companies, in many industries. In the other two structures, authority is clearly placed with either the project manager or the functional manager. In a project-based organization most of the organization's resources are involved in project work. Welingkar’s Distance Learning Division Introduction o Organisation is designed on the basic of principles of labour and span of management. A law may grant authority to a policeman to arrest a person committing a crime. •Authority and responsibility are clearly defined, which leads to efficiency and simplicity of relationships. The article discusses three types of power structures, namely, Rational Power Structure, Democratic Power Structure and Laissez-allar power structure. Staff authority is with the supervisors in an organization. Weber pointed out that what legitimates a person’s power over another is authority. The project expeditor acts primarily as a staff assistant and communications coordinator . Organizations in which top managers make all the decisions and lower-level employees simply carry out those orders. 5) Legal governing authority. Traditionally, organizations have been structured with centralized leadership and a defined chain of command. Most line managers have a responsibility to perform line functions, some staff functions, and coordination functions. Line organization • is the most oldest and simplest method of administrative organization. For those with aspirations, it's important to understand that having power doesn't necessarily just come from getting a promotion, but it … The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart. It helps an organization decide how the authority passes on, how message communication happens. A vertical structure clears out issues related to authority rights, responsibilities, and reporting relationships. This is a very effective and important source of authority. staff authority is subordinated to line authority. Concepts of Organizing. (c) Organizations have one and only one ultimate center of authority. These are, charismatic authority, traditional authority, and legal-rational authority. Line authority. The expeditor cannot personally make or enforce decisions . The following are illustrative examples of informal authority. Authority is part of the larger concept of power. the position authority (given and defined by the organization )that entitles a manager to direct the work of operative employees. Increasing the decision-making authority … Line executives are directly involved in the performance of the activities of an enterprise and are called the ‘doers’. Authority in project management is the power that gives a project manager the ability to act in the name of the project sponsor executive or on behalf of the organization.. 1. Line Organization (Oldest and Simplest Style) In this type of organization, the line of authority … Certainly leaders need to “know their stuff” (expert), and it doesn’t hurt to hold an important title The Senior Manager of Marketing gets credit for a job well done. If traditional authority derives from custom and tradition, rational-legal authority derives from law and is based on a belief in the legitimacy of a society’s laws and rules and in the right of leaders to act under these rules to make decisions and set policy. They are staff and line authority. The main reason for the given state of affairs is that it “has always been that way”. In a functional organization structure, the entire organization is divided into smaller departments based on their specialization. Positions that have some authority (e.g..,organization policy enforcement) but that are created to support assist,and advise the holders of line authority. 2. According to this type of organization, the authority flows from top to bottom in a concern. It relies on the principle of division of work and set up authority-responisbility relationship among the members of the organization. 3 main types of authority can exist within an organization: Line Authority Staff Authority Functional Authority Anyone who has worked in virtually any organization long enough has probably worked with a manager who is impotent when it comes to exerting influence. Legal – based on the ability to influence others based on your official authority and position. In such a type of organization , the project managers role is more of a project expeditor or a project coordinator . The line organization structure is very simple to understand and simple to operate. The line manager specifies the qualifications required from the upcoming employees for cert… Organization Structure and Design – Types, Authority, Responsibility, Centralization, Decentralization and Span of Control An organization is a social unit or human grouping deliberately structured for the purpose of attaining goals. It represents a direct vertical relationship through which authority flows. Power is the ability to assert one's will over others, forcing them to act in accordance with it despite their own desires. These are the Produ… Here power is the ability to set strategy, allocate resources and make decisions. This is a very typical type of organization structure. Rational-Legal Authority. The subordinate work is directed by the line manager. Decentralization refers to the systematic devolution (transference of power) of responsibility and authority within the structure of an organization. People want to follow them because of who they are and what they know. 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