Informal communication b. 2. Coordination occurs through: a. Note that this leads to specialisation. Division of labour into distinct tasks.Fundamental Requirements of an organisational structure: 1. Formal hierarchy c. Standardisation ‡ ‡ ‡ formal instructions clear goals/outputs training/skills . Coordination of that labour so workers are able to work in concert to accomplish the organisation s goal-s.

Organisation Structure Bottling Plant. President Manufactu ring VP R & D Head Marketing & sales HR Head Product 1 Engineer 1 HR manager Product 2 Engineer 2 HR Manager 2 Product 3 Engineer 3 HR manager 3 .

Manufacturing Line Integrated line Clarifying the water Filtering. Sterilising & dechlorinating Product Specific line Mixing the Ingredient Carbonating Coding Integrated Line Quality control Filling and packaging .

Key Observation ‡ Different product lines will be better to adapt with the constantly changing market environment. .

.Challenges ± This model will work in automated environment as shift from integrated to product specific lines and back to integrated line will be efficient only when a controlled rate of production is maintained at each of the lines. Dual authority may lead to confusion. ± A conflict of loyalty between line managers and project managers over the allocation of resources. ± Projects can be difficult to monitor if teams have a lot of independence.

Further.Solution ‡ Control system processes can be used to control the line production rates so as to ‡ increase the efficiency of the process. All line integrated line engineers and product engineers should report to single head so that coordination is achieved. employees should have good interpersonnnel skills to have better communication. ‡ . The process should be standardised at every level and only supervisional tasks should be carried out by various engineers.