Principles of Organization Structure
organizational structures have evolved from several organizational theories, which
have identified certain principles as basic to any organization structure.
1 Line and Staff Relationships:
authority refers to the scalar chain, or to the superior-subordinate linkages,
that extend throughout the hierarchy (Koontz, O'Donnell and Weihrich). Line
employees are responsible for achieving the basic or strategic objectives of
the organization, while staff plays a supporting role to line employees and
provides services. The relationship between line and staff is crucial in
organizational structure, design and efficiency. It is also an important aid to
information processing and coordination.
a process of
horizontal clustering of different types
of functions and activities on any one level of the hierarchy.
Departmentalization is conventionally based on purpose, product, process,
function, personal things and place.
3 Span of Control:
refers to the number of specialized activities or individuals supervised by one
person. Deciding the span of control is important for coordinating different
types of activities effectively.
4 De-centralization and Centralization:
to decision making
at lower levels
in the hierarchy
of authority. In contrast, decision making in a centralized type of
organizational structure is at higher levels. Every organizational structure
contains both centralization and de-centralization, but to varying degrees. The
extent of this can be determined by identifying how much of the decision making
is concentrated at the top and how much is delegated to lower levels. Modern
organizational structures show a strong tendency towards de-centralization.