Geographical functional organizations involves grouping of the activities according to regional or geographical locations.  The territorial divisions become a complete administrative unit to cater to the need of the localities. The Regional Manager will practically be the chief controller of his region.  He is given full powers of managing his own region or zone.  His office functions as a head office for all practical purposes.  The functions pertaining to finance, marketing, personnel and production development of low-level employees are completely vested in the zonal office which has ...

Product Functional Organizations Product functional organization establishes each product or group of related products as an autonomous unit in the framework of the organization. In product functional organization structure, each product has a separate identity although it functions under the control of the Chief Coordinating Executive.  Each product department has several functions broadly divided into finance, marketing, personnel and production, which are also coordinated with the chiefs of the respective functions.  The main advantage of product functional organization is qualitative ...

Functional organization is technically called functional foreman-ship because the function itself becomes a supervisor and the employees automatically perform their respective duties.  The emphasis of functional organization structure is on operations rather than on management.  Functional organization is commonly used in business organizations.  The spirit of organization, which involves grouping tasks together and allocating them to genuine employees is observed in functional organization. Functional sets like marketing, finance, production and personal are grouped systematically. ...

A line and staff organization is a mixture of the line as well as staff organization. Line organization points out direct vertical relationships, i.e., superior-subordinate relationship connecting the positions at each level.  It forms a chain of command or hierarchy of authority on scalar principles.  A line relationship is simply known as a relationship of authority between the superior and subordinates in a hierarchical arrangement. The direct line superior has control over his immediate subordinates.  In this case, authority flows downward and accountability goes upward in a straight ...

An organization is the association of persons for achieving certain objectives. An organization is a social system wherein its members try to achieve their private goals while achieving the organizational goals. The seemingly contradictory goals are resolved by effective organizational behavior.  The organization has some objectives which are attained by organizing the activities of their member. An organization for business purposes is commonly known as a corporate body or a corporation or a company or formally established business unit. It is dynamic and ever changing as per the needs of ...

By decentralization of authority we mean dispersal of decision-making authority at various levels in the organization. In a centralized set-up, decision-making authority is concentrated at the top-level of the management, whereas in the decentralized set-up, many important decisions are made at the lower level also. The most significant feature of decentralization of authority is that most of the decisions made at the lower level do not need approval of the seniors. This means greater freedom is given in decision-making to lower level managers and supervisors in the organization. Factors ...