A Comprehensive Report on Business Organization Types and Structures

This report provides an overview of different business organization types, including line, line and staff, functional, and project organizations. It explores the hierarchical structures, advantages, and disadvantages of each type, focusing on how they function and allocate responsibilities. The report also includes a stakeholder analysis of a line organization, identifying the key stakeholders such as the head of the organization, managers, consumers, and employees, and their respective roles and interests within the organizational framework. The analysis highlights the importance of communication channels and planning in ensuring the organization's success, considering consumer feedback and employee engagement. The report references several academic sources to support its findings, providing a comprehensive understanding of business organization structures and their implications.

Running head: BUSINESS ORGANIZATION TYPES
BUSINESS ORGANIZATION TYPES
Name of the Student
Name of the University
Author Note

1BUSINESS ORGANIZATION TYPES
Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................5
References..................................................................................................................................8

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Answer 1
The hierarchy of the organization defining job position and the functional role of the
person within an organization is known as its organizational structure (Fan, Wong and Zhang
2013). The organizational structures differ among organizations according to their
organizational goals. The organizational structure helps the management by allowing them to
understand the functioning and allocate jobs according to the proficiencies. To an employee
the organizational structure helps in understanding their job role and the organizational goals.
The four major organizational structures are Line organization, Line and Staff organization,
functional organization and the project organization.
 Line Organization: It is the oldest and the simplest type of organizational structure.
In this type, the authoritative hierarchy flows from the top of the managerial level to
different t subordinates and workers of the organization. It is a target or goal based
organization in which the accountability, authority and responsibility is defined at
each level (Ashkenas et al. 2015). It is a model, which can help in the functioning of
small organizations due to its simple structure and ease of communication. Despite its
advantages, the structure does not have provision for employee feedback and
motivation.
President
Vice-President
Plant Manager
Supervisor 1 Supervisor 2 Supervisor 3
Worker Worker Worker

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 Line and Staff Organization: It is an organizational structure for the functioning of
the larger organization. The functional specialists are in line as the managers in the
organization and help in the achievement of goals (Marume 2016). The staff of the
organization is the advisory body, which have no real control over the line of the
specialists or workers in the organization. It has staff on the different proficiencies
like the legal, control and general staff. The staff advises the managers to helping in
their performance but have no direct control over them. This type of organization
helps in proper functioning due to specialized functioning but they often cause clashes
between management and employees.
 Functional Organization: It is the type of organization in which each function of the
organization such as production, management and sales are well bifurcated and is
performed by an expert. This organization system helps in the performance functions

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of the organization by allowing the better functioning by assigning the tasks to people
based on their proficiencies (Rothaermel 2015). This type of organization functions
well because each of the managers is an expert in their field and they know their job
well. This type of organization is not conducive for taking swift actions and enacting
proper discipline in the organization.
 Project Organization: In this organization, the specialist from different departments
comes together to develop a new approach or to resolve any issues faced by the
organization. The coming together of the people of different expertise in the
organization will help in the proper problem resolution and devising plans and
measures keeping in view the overall functioning of the organization. This
organizational structure will help in the proper devising of plans for the organizational
development (Kerzner 2013). The difference in background types decreases
managerial control and causes miscommunication among them.

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Answer 2
The organizational structure of an organization helps in its proper with the help of the
bringing a balance in the organization with the help of planning. The planning helps in the
proper execution of the needs of the stakeholders in the organization and building a proper
communication channel (Missonier and Loufrani-Fedida 2014). The organizational structure
taken in consideration is the Line organization. The stakeholder’s analysis of an organization
help in planning the growth of the organization by building communication channels and
devising plans for better functioning. The analysis has the important stakeholders kept in
different quadrants according to their power and interest (Hua, Aman and Ying 2016). The
different stakeholders of the line organization include the head of the organization, managers,
consumers and employees.
The head of the organization is the position of supreme authority and the decision-
making powers. They are kept in the first quadrant because he has the most power and

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interest for the growth of the organization. It is the head of the organization, who sets up the
organizational goals and decides the functional approach of the organization. It is the head’s
responsibility to assure that the organizational goals are properly communicated to their
subsidiaries. Any required measure or change in the functioning of the organization is the
responsibility of the manager.
The manager is the one who has complete control over the working of the employees
and help in the functioning of the organization. The mangers are in the fourth quadrant
because they have high interest in the success of the business but they are merely
communication channels. It is his responsibility to keep in check the production of the
organization (Reina et al. 2017). He has a role in the working of the organization and the
achieving the goals of the organization. He is answerable to the heads of the organization for
the success or failure of the ventures. The manager has an important role to play as the link
of communication between the top level of the organization and the employees.
The employees play a very important role in the functioning of the organization, as
they are the ones who execute the tasks assigned to them for achieving the organizational
goals (Memon et al. 2014). They employees in this model are in the third quadrant because
they have no power and have low interest as this business model has no appraisal method.
The working of the organization helps in the development and growth and the employees
decide the success of the organization. The ideas put forward by the managers are performed
by the employees, which helps in the proper functioning. The employees should be given
necessary feed backs and their feedbacks recorded for the proper functioning of the
organization.
To any organization the most important member of the stakeholder are the consumers
they decide the success and failure of the working of the organization (Im, Bhat and Lee

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2015). The consumers are in the second quadrant because they have less interest but more
control as their feedbacks shape the organization. The consumer feedback is very important
for the success of and devising a plan for the fulfillment of the consumer demands.
ConsumerPresidentEmployeesManagerPower
Interest

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References
Ashkenas, R., Ulrich, D., Jick, T. and Kerr, S., 2015. The boundaryless organization:
Breaking the chains of organizational structure. John Wiley & Sons.
Fan, J.P., Wong, T.J. and Zhang, T., 2013. Institutions and organizational structure: The case
of state-owned corporate pyramids. The Journal of Law, Economics, and
Organization, 29(6), pp.1217-1252.
Hua, X., Aman, Z. and Ying, W., 2016. A Study on the Path of the Non-capital Function
Relieving Policy Based on the Stakeholder Analytical Framework of “Importance-Influence”
Matrix: An Empirical Analysis on the Relocation of Beijing Zoo Wholesale Market. Urban
Insight, 5, p.009.
Im, S., Bhat, S. and Lee, Y., 2015. Consumer perceptions of product creativity, coolness,
value and attitude. Journal of Business Research, 68(1), pp.166-172.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Marume, S.B.M., 2016. An Understanding of Concepts of Line, Staff and Auxiliary in
Organization.
Memon, M.A., Salleh, R., Baharom, M.N.R. and Harun, H., 2014. Person-organization fit
and turnover intention: The mediating role of employee engagement. Global Business and
Management Research, 6(3), p.205.
Missonier, S. and Loufrani-Fedida, S., 2014. Stakeholder analysis and engagement in
projects: From stakeholder relational perspective to stakeholder relational
ontology. International Journal of Project Management, 32(7), pp.1108-1122.

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Reina, C.S., Rogers, K.M., Peterson, S.J., Byron, K. and Hom, P.W., 2017. Quitting the
Boss? The Role of Manager Influence Tactics and Employee Emotional Engagement in
Voluntary Turnover. Journal of Leadership & Organizational Studies, p.1548051817709007.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.