MODULE 7

3 RD

QUARTER
What is/are your obligation/s as a daughter/son?
NATURE AND TYPES OF
ORGANIZATION
STRUCTURES
OBJECTIVES:
The following are for you to learn:
• identify and discuss the different types of
organization structures; and
• classify the advantages and
disadvantages of each type of organization
structures.
ACTIVITY 1:
Direction: Arrange the jumbled letters below by considering the
given clue.

GORINGANIZ

1. It is the second managerial function which is considered

to be the backbone of management is called _________.
ACTIVITY 1:
Direction: Arrange the jumbled letters below by considering the
given clue.

GORINGANIZ

1. It is the second managerial function which is considered

to be the backbone of management is called Organizing .
 ROFLAM GANORIZAONTI

2. Managerial authority is explicitly vested to individuals

according to skills and responsibility is________________ .
 ROFLAM GANORIZAONTI

2. Managerial authority is explicitly vested to individuals

according to skills and responsibility is Formal
Organization.
 TIOFUNALNC ONIRGATIZAON

3. An organizational structure which has a high

degree of specialization is __________________.
 TIOFUNALNC ONIRGATIZAON

3. An organizational structure which has a high

degree of specialization is Functional Organization.
 INLE NIORZATIGAON

4. The simplest form of organization structure

which facilitates discipline and control to individual
is ___________________.
 INLE NIORZATIGAON

4. The simplest form of organization structure

which facilitates discipline and control to individual
is Line Organization.
 NELI FTASF GAORNITIONZA

5. It is a structure that provides a staff support

with specialized knowledge and capability to line
executive is called ________________________.
 NELI FTASF GAORNITIONZA

5. It is a structure that provides a staff support

with specialized knowledge and capability to line
executive is called
Line-Staff Organization.
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.
 LINE ORGANIZATION
Advantages Disadvantages

 It is simple. It shows the direct  It encourages the development

lines of responsibility, of excessive load of
authority and accountability administrative responsibility. It
of each individual in the becomes breeding place of
organization. “organizational dictators”.
 It facilitates decision making  It encourages the development
within the organization due to of centralization of line
the simplicity of its controls of responsibilities.
organization structure.
 It facilitates discipline and  It lengthens the chain of
control of individuals in the command of the organization,
organization for its clarity and which causes the delays in the
chain of command. administrative decisions.
 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.
 LINE-STAFF ORGANIZATION

Advantages Disadvantages
 It maintains a single line of  It creates a source of conflict
responsibility, authority and between line and staff
accountability executives. Line executives
may consider the staff a
 It provides the line threat to their own positions
executives with staff support
of specialized knowledge or  It forces the staff executives
capability to insist on their advices to
line executives to show their
 It frees the line executive importance in the
from performing functions organization and to attain a
not directly related to his certain degree of
work professional achievement.
 If facilitates the recruitment  It creates administrative
and training of people problems if the staff
needed by the organization 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.
 FUNCTIONAL ORGANIZATION
Advantages Disadvantages
 It permits a high degree of  It suffers from dual
specialization. authority and violates the
principles of single
 It is easier to fill positions accountability. No
in such an organization organizations can run
since function specialists smoothly when a single
are required to have only a individual has more than
limited number of talents. one boss.
 It permits each specialist
to become an expert in his  Authority and
own field.
responsibility often
overlap. It is to draw a
sharp line between
functions.
 It is often difficult to get
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.