Republic of the Philippines

Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
CATAINGAN NATIONAL HIGH SCHOOL

LEARNING ACTIVITY SHEETS

Quarter 1 / Quarter 3, Week 7

This module explains...

Discusses and describes the different types of structures that a company
can use depending on the size of the organization. This further explains the advantages
and disadvantages of each organization structure.

After reading and studying this lesson, the students

will be able to:

✓ identify and discuss the different types of organization

structures; and
✓ classify the advantages and disadvantages of each type
of organization structures.

Address: Poblacion, Cataingan, Masbate

Telephone No.: (056) 578-3469
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
CATAINGAN NATIONAL HIGH SCHOOL

An organization need to be organized to achieve its goal. Functions and authority must be clear and well defined and
resources must be properly allocated. An organization seems to be ineffective when it is ill-structured or not organized,
hence, both human and material resources should be properly allocated.

A structure of organization varies depending on the size of the firm. The type of structure adapted by the
organization, however, influences how people act and perform within the organization. Below are the commonly used
types of organizational structures.

Line Organization

The line organization is the simplest and oldest form of organization structure where authority is delegated directly
from top to bottom. Both staff and line functions are performed by line executive. Each exercises line authority over his
own subordinates. It is for these reasons that a small size business uses this structure in their organization. Below is the
structure of a line organization.

Address: Poblacion, Cataingan, Masbate

Telephone No.: (056) 578-3469
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
CATAINGAN NATIONAL HIGH SCHOOL

LINE ORGANIZATION
Advantages
• It is simple. It shows the direct lines of
responsibility, authority and accountability of
each individual in the organization.
• It facilitates decision making within the
organization due to the simplicity of its
organization structure.
• It facilitates discipline and control of
individuals in the organization for its clarity
and chain of command.
• It facilitates flexibility within the organization
as it responds to the changing conditions
and demands of its organizational
environment.
Disadvantages
• It encourages the development of excessive load of administrative
responsibility. It becomes breeding place of “organizational
dictators”.
• It encourages the development of centralization of line controls of
responsibilities.
• It lengthens the chain of command of the organization, which causes
the delays in the administrative decisions.
• It prevents the development of specialization, other than its basic line
functions, which is needed to strengthen the capacity of line
executives.
• It discourages the recruitment and training of qualifies personnel for
the organization.

Line-Staff Organization

The line staff is the pattern of most large and complex organizations. The line authority carries the right to require
the execution of orders while the staff executive has the authority to suggest on how such orders could be implemented.
Below is the pattern of a line-staff organization structure.

Address: Poblacion, Cataingan, Masbate

Telephone No.: (056) 578-3469
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
CATAINGAN NATIONAL HIGH SCHOOL

LINE-STAFF ORGANIZATION
Advantages
• It maintains a single line of responsibility, authority
and accountability
• It provides the line executives with staff support of
specialized knowledge or capability
• It frees the line executive from performing functions
not directly related to his work
• If facilitates the recruitment and training of people
needed by the organization
Disadvantages
• It creates a source of conflict between line and staff executives.
Line executives may consider the staff a threat to their own
positions
• It forces the staff executives to insist on their advices to line
executives to show their importance in the organization and to
attain a certain degree of professional achievement.
• It creates administrative problems if the staff authority is not
carefully defined.

Functional Organization

Functional organization fully applied the principles of division and specialization advocated by Frederick Taylor. For a
functional organization to be effective, well qualified individuals should be appointed to all positions. Each individual
should know exactly what is expected of him and what he expects others to do. This is done by subdividing them into
departments or division for the purpose of allowing the people work effectively in groups as to their work alone. Below is
an example of a functional organization.

Address: Poblacion, Cataingan, Masbate

Telephone No.: (056) 578-3469
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
CATAINGAN NATIONAL HIGH SCHOOL

FUNCTIONAL ORGANIZATION
Advantages
• It permits a high degree of specialization.
• It is easier to fill positions in such an organization since
function specialists are required to have only a limited
number of talents.
• It permits each specialist to become an expert in his
own field.
• It provides better technical supervision for subordinates
than would be possible where supervisors must
perform less similar functions.
Disadvantages
• It suffers from dual authority and violates the principles of single
accountability. No organizations can run smoothly when a single
individual has more than one boss.
• Authority and responsibility often overlap. It is to draw a sharp
line between functions.
• It is often difficult to get technical experts to work together
smoothly. Each is likely to feel that his area of specialization is
the most important.

Organization may come in all sizes and types. Each structure is unique to some extent. However, the use of the different
types of organizational structures also considers the nature of an organization which is the formal and Informal

organization.

Formal or formalized organization is also labeled as bureaucracies. A bureaucracy is a form of organization

in which activities are rationally defined, division of work is unambiguous, and managerial authority is explicitly vested in
individuals according to skills and responsibilities prescribed for their organizations and it implies a less rigorous division
of labor in a less formal environment.

A chain of command is the unit broken line authority between the lowest and highest positions in an organization.
It is the description of rank-ordered authority, and in a bureaucracy, there is a presumption that a subordinate will seek
direction, communicate decisions and take orders directly from an immediate superior. While span of control is defined
by the number of subordinate one manager supervises.

Informal Organization on the other hand, refer to shadow organizations that evolve through personal
interactions, sentiments, and social activities of individuals. Informal organizational structures are not written down; they
do not have job titles or formal description of authority. Mutual support by the members may also ensure communications,
enhance socialization, and provide a sense of group identification. Informal leader gain status, although without rank,
which can help satisfy employee’s needs for leadership.

Address: Poblacion, Cataingan, Masbate

Telephone No.: (056) 578-3469
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
CATAINGAN NATIONAL HIGH SCHOOL

ACTIVITY 1 (GAS 1 and ABM 1 only)

Direction: Underline the correct word/s that correspond to the statement.

1. (Organization, Organization structure) is a framework where management authority is defined, resources are proper allocated,
and channel of communication is observed.

2. (Informal organization, Formal organization) is formed through interaction, sentiments, and social activities of the people but do
not have a structure.

3. (Functional organization, Line-staff organization) is a type of structure that applies the principle of division of labor and
specialization.

4. (Line organization, Line-staff organization) this structure is pattern by large and complex companies but somehow creates conflicts
between line and staff executives.

5. (Line organization, Functional organization) this is the simplest form of structure and it facilitate discipline and control of individuals
for its clarity and chain of command.

ACTIVITY 2 (For all learners)

Direction: Arrange the jumbled letters below by considering the given clue. Write the correct word in the space provided for.

GORINGANIZ 1. It is the second managerial function which is considered to be the backbone of management
is called _________________.
ROFLAM GANORIZAONTI 2. Managerial authority is explicitly vested to individuals according to skills and responsibility is
________________.
TIOFUNALNC ONIRGATIZAON 3. Managerial authority is explicitly vested to individuals according to skills and responsibility is
________________.
INLE NIORZATIGAON 4. Managerial authority is explicitly vested to individuals according to skills and responsibility is
________________.
NELI FTASF GAORNITIONZA 5. Managerial authority is explicitly vested to individuals according to skills and responsibility is
________________.

Address: Poblacion, Cataingan, Masbate

Telephone No.: (056) 578-3469
 Republic of the Philippines
Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
CATAINGAN NATIONAL HIGH SCHOOL

Answer key

Functional Organization

Line-Staff Organization
Functional organization
Organization structure

Line-staff organization

Formal Organization
Informal organization

Activity 2: (For All Learners)

Line Organization
Line organization
(GAS 1 and ABM 1 only)

Organization
Activity 1:

1.
2.
3.
4.
5.
1.
2.
3.
4.
5.

Prepared by: Reviewed by:

MARY JOY L. MORADO JANICE A. MARTIN

Teacher II Assistant School Principal II

Approved:

JESUS P. DELA PEÑA

Principal IV

Address: Poblacion, Cataingan, Masbate

Telephone No.: (056) 578-3469