Organizational Plan

Organizational Structure
• is the division of activities into specific functions and responsibilities
for the executive department and the group of workers.
Types of Organization
Line Structure
• simplest form of organization.
• direct straight line responsiblity and control is exercised from the
general manager to the department head, until the worker is reached.
• in this department or section head on the same level of authority is
independent of the other.
• the head of each division is responsible only to the men directly under
him/her.
Advantages of Line Organization
1. Problems are solved promptly because there is centralization of
authority.
2. It is easier to define responsibility; single accountability can be
maintained and better control exercised.
3. Overhead expenses tend to be lower because functionalization is not
complex.
Disadvantages of Line Organization
1. As the organization grows, the load of each executive increases, thus
calling for increased knowledge and technical ability.
2. Communication/dissemination of instructions have to be through
channels.
3. Line executives are less likely to find themselves in a position to
acquire expertise and gain wider experiences in a particular field.
4. Centralization of authority deters the development of supervisors at
the lower level.
Line and Staff Structure
• combines the best features of the line type and the functional type of
organization.
• the functions of the staff executives are to assist, advice, and
coordinate wide level the functions of the company.
• the influence given by staff executive is mainly through ideas and
training.
Functional Structure
• managerial acivities is derived so that each head has a few functions
as possible and is thus able to able to become an expert in these few
functions.
• authority is delegated according to functions.
• the worker takes orders from more than one supervisor, but only in
that aspect of work over which that particular supervisor has control.
Types of Organizational
Charts
Line Organizational Charts
 Captain

Second Lt.
First LT.

Sergeant Sergeant

Corporal Corporal

Private Private
 Line and Staff
Organizational Chart
 Stokholder

Board of Directors

President

Vice President

Gen. Manager

Personnel Production
Sales Manager Auditor
Manager Manager