Department of Technical Education

Andhra Pradesh
Name : K.V.Rama Rao
Designation : HMES
Branch : Mechanical Engineering
Institute : V.K.R & V.N.B Polytechnic, Gudivada
Semester : VI
Subject : Industrial Management & Entrepreneurship
Code No : 9EE602
Major Topic : Organisation Structure & Organisational
Behaviour
Duration : 50 Mts
Sub Topic : Advantages & disadvantages of line
& staff organization ,Staff organization
Effective organization
Teaching Aids : Photos, Diagrams
Revised by : B.S.L.Prasanna
9EE602.10 1
 Recap

In the last class, you have learnt about

• The philosophy of organization structure

• The line type of organization

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 Objectives

On completion of this period, you would be able to

understand
• Advantages & disadvantages of line & staff organization

• staff organization

• Effective Organization

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 Line & Staff Organization- Structure

Managing Director

General Manager

Business Works Legal Cost

I.R.O
Economist Manager Advisor Accountant

R&D Foremen Industrial

Engineer

Workers
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 Advantages Of Line And Staff
Organizational Structure
• It provides an expert advice
• Quality of the product is improved and wastage is
decreased
• Efficiency and flexibility increases
• Effective execution of work is possible
• Line executive get relief to some extent and able to
concentrate towards production
• It is a planned specialized system.

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Line And Staff Organizational (disadvantages)

• It is a complicated system and increases cost of

production

• It may arise conflicts between line and staff personnel

• There is no responsibility for staff personnel

• Lack of coordination between line and staff

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 Functional (Staff) Organization

Features
• The whole task of the enterprise is divided into
specialized functions
• Each function is performed by a specialist

• The specialist in charge of a particular function has the

authority over all other employees for his function
• Specialists operate with considerable independence

• This structure is suggested by F.W.Tylor

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 Functional (Staff) Organization- Structure

BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

WORKS MANAGER

GANG SPEED REPAIR ROUTE INSPECTION TIME& DISCIPLI

INSPECTOR
BOSS BOSS BOSS CLERK CLERK COST NERY
CLERK CLERK

WORKERS
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 Functional (Staff) Organization (advantages)

• Availability of specialists in each area

• Increases the overall efficiency of the organization

• Provides division of labour and gives relief to top

executives

• Quality of the work is improved due to specialization

• Considerable expansion of the factory is possible

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 Functional (Staff) Organization
(disadvantages)

• Unity of command is lost

• Fixing of responsibility is difficult

• Taking decisions will be delayed

• It is expensive due to appointment of number of experts

• It is too complicated in operation

• Division of authority creates problem of discipline

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 Different Departments In
Large Scale Industry

A major modern industry may be divided into the

following departments
• Administrative departments

• Service departments

• Production departments

• Commercial departments

• Personnel departments

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 Administrative Departments in large scale
Industry
Administrative Departments deals with
• Secretariat
• Time office
• Labour
• Accounts
Service Departments deals with
• Design
• Stores
• Inspection etc.
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Administrative Departments in large scale
Industry contd..
Production Department deals with
• Planning
• Design & Drawing
• Production etc.
Commercial Department deals with
• Purchases
• Sales
• Services etc.
Personnel Department deals with
• Employment
• Training
• Public Relations etc.

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 Factors of Effective Organization

• The functions of the company should be grouped in such

a manner , that action , consolation , coordination can

take place with a minimum of delay and confusion

• It is essential that every department must contribute for

realizing objectives, goals and purposes of the enterprise

• Its structure should be so simple so that even an

ordinary man can understand

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 Requirements For Good Organization

• A good organization must ensure discipline and team

work

• Every body should clearly know his specific job and also

to whom he is responsible

• The design of the organization structure should be such

that it eliminates any friction between the employer and

the employee
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 Requirements For Good Organization

• The span of control should be reasonable and as far as

possible it should be minimum

• Line of communication should be from top to bottom

• It should affect economy by reducing idle time and cost

of production

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 Organisation Behaviour

Organization

• Organizations are those which coordinate the activities

of number of people for the achievement of common

goal through division of labour and through well defined

system of working

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 Organisation Behaviour (Contd..)

Behaviour

• Behavior is a way of action and it is basically goal

oriented. In other words, behavior is generally motivated

by a desire to attain a goal

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 Summary

In this class, you have learnt about

• Advantages & disadvantages of line & staff

organization

• staff organization

• Effective Organization

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 Quiz

1.Functional (staff) organization is introduced by

a) F.W.Tylor

b) H.Fayol

c) Urwich

d) Gilbreth

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 Quiz

2. The best suited organization for a large industry is

a) Line

b) Staff

c) Line & Staff

d) Functional

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 Quiz

3. Gang boss, speed boss and repair boss are

associated with

a) Line

b) Military

c) Functional

d) Line & Staff

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 Quiz

4. Administrative department consist of

a) Secretariat

b) Time office

c) Labour

d) All

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 Quiz

5. Behavior is a way of action and it is basically _______

oriented.

a) Goal

b) Aim

c) Ambition

d) None

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 Quiz

6. Behavior is generally motivated by a _____

to attain a goal.

a) Desire

b) Ambition

c) Attitude

d) All

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 Frequently Asked Questions

1) List out the advantages and disadvantages of line and

staff organisation structure?

2) Explain about functional organisation structure?

3) List out requirements for good organization?

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