Professional Documents
Culture Documents
Module 7
Module 7
Organization and
Management
Quarter 1 – Module 7
Nature and Types of Organization
Structures
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Organization and Management – SHS
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NATURE AND TYPES OF ORGANIZATION
STRUCTURES
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Line Organization – is the simplest and oldest form of organization structure;
the authority is delegated directly from top to bottom.
Line and Staff Organization – the line authority carries the right to require
the execution of orders while the line staff executive has the authority to
suggest on how such orders could be implemented.
5. It frees the line executive from performing functions not related to his work.
A. Formal organization C. Line-Staff organization
B. Line organization D. Informal organization
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Let’s get started by performing the activity
below. Good luck!
Activity 1
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What do I need to know?
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.
CHIEF
EXECUTIVE
E
LINE LINE
EXECUTIVE EXECUTIVE
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LINE ORGANIZATION
Advantages Disadvantages
• It is simple. It shows the direct lines of • It encourages the development of
responsibility, authority and excessive load of administrative
accountability of each individual in the responsibility. It becomes breeding place
organization. of “organizational dictators”.
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.
CHIEF
EXECUTIVE STAFF
E EXECUTIVE
E
LINE LINE
EXECUTIVE EXECUTIVE WORKERS
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LINE-STAFF ORGANIZATION
Advantages Disadvantages
• It maintains a single line of responsibility, • It creates a source of conflict between
authority and accountability line and staff executives. Line executives
may consider the staff a threat to their
• It provides the line executives with staff own positions
support of specialized knowledge or
capability • It forces the staff executives to insist on
their advices to line executives to show
• It frees the line executive from their importance in the organization and
performing functions not directly related to attain a certain degree of professional
to his work achievement.
Functional Organization
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FUNCTIONAL ORGANIZATION
Advantages Disadvantages
• It permits a high degree of specialization. • It suffers from dual authority and violates
the principles of single accountability. No
• It is easier to fill positions in such an organizations can run smoothly when a
organization since function specialists single individual has more than one boss.
are required to have only a limited
number of talents. • Authority and responsibility often overlap.
It is to draw a sharp line between
• It permits each specialist to become an functions.
expert in his own field.
• It is often difficult to get technical experts
• It provides better technical supervision to work together smoothly. Each is likely
for subordinates than would be possible to feel that his area of specialization is
where supervisors must perform less the most important.
similar functions.
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.
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.
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Activity #2 – My Organizational Structure
Direction: Outline and draw below a sample of an organizational structure that you
saw or observed in an office you have already visited. Include name and position in
each box of the outline structure.
Practice Task 1
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3. (Functional organization, Line-staff organization) is a type of structure that
applies the principle of division of labor and specialization.
Practice Task 2
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Post Test:
Direction: Encircle the letter corresponding to the word/s that matches the given
statement.
2. A structure that applies principle of labor and specialization and was advocated
by Frederick Taylor.
A. Functional organization C. Informal organization
B. Line organization D. Formal organization
3. It is the simplest and oldest form of organization structure and is commonly used
by many organizations.
A. Informal Organization C. Line-Staff Organization
B. Functional Organization D. Line Organization
4. It is a structure that has a staff support to frees the line executive from performing
functions not related to his work.
A. Informal organization C. Line organization
B. Line-staff organization D. Functional organization
Additional Activity:
Explain the following statements:
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Pretest:
1. C 4. A
2. B 5. C
3. D
Learning Activity 1
Learning Activity 2
Practice Task 1
Practice Task 2
Post Test
1. B 4. B
2. A 5. C
3. D
Reference:
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