 We are continuing our discussion on organizing, we are going to discuss part 2 of organizing. As I stated this unit has got certain learning objectives, here also in part 2 I have taken two learning objectives, but here the learning objectives are not that right a bit complex I am going to explain to you right. You see there are six types of organizational structure in your unit. In this part we shall take three types and in the third part of this organizing module we shall take the remaining three that is the part that is the complex part. So, with these three types we shall discuss the organizational structure, then we shall also discuss the merits and demerits of that particular structure. So, what are the structures that we have taken? We have taken three structures in this part in the last part of this organizing module we shall take the other three. Here we have taken line organization or line authority, line and staff organization and functional organization. We shall try to understand what are these three structures and what are the merits and demerits of each of these structures. Then in the third part of this video of this unit we shall take up the remaining three. Remaining three is what committee, project and matrix organization that we shall discuss in part 3. So, in part 2 we are going to discuss about line organization or line authority, line and staff organization and functional organization. First let us start with line organization or line authority. This is an organizational structure, line organization or line authority. That right or say matrix organization or say projects organization. So, organization has a structure. Some organizations are very steep, some are flat. Why do we have to have this structure? Because structure helps us in defining the roles and when we can define the roles the people will assume those roles. So, the term organizational structure explains the positions deputy manager, manager like that and official relationship among the various individuals working in an organization. It simply means the systematic arrangement of people working for the organization in order to achieve certain goals. So, it is a framework of authority relationship, the flow of authority, the delegation of authority from top to bottom and also the bottom up communication processes. So, that all the employees can be bound together towards the achievement of common objectives. So, first type of organization, line organization or line authority. In this type of structure senior delegates authority power, order and instruction to his subordinate. Who in turn delegates it? So, delegation is right top to bottom. So, ship general manager will delegate to general manager, general manager will delegate to deputy general manager, deputy general manager will delegate to ship manager like that. Who will delegate the same to another subordinate and so on. So, it is a forming a line, saying of command from top to bottom. So, what are the merits? If there is a line of command, if there is a saying of command means what? It is simple, it likely to work out, it is easy to understand, it is not it. There is no scope for duplication, each one will do their ear mutt, responsibility is only. There will be first in decision, firstness in decision making, there will be better supervision and there will be unity of command. These are all good things, but there are certain demerits also here in this line type of organization. Otherwise apparently it looks easy, but there are certain problems. What are those? It includes increased work laid of key executives, the top level executives, they are over worded, because they have to assume the entire responsibilities. Many times we might lack specification, everything cannot be that specifically assigned. There could be the possibility of use of excess authority, suppose the CGM holds the entire authority, the other persons will lack clarity, there could be less scope for supportive functions. So, though line organization has got these benefits, but at the same time line organization might have the problems of concentration of power and authority in a selected few only and that is not a desirable objective of organization. So, this has helped us in the absence of a staff kind of organization. So, this second type of organization structure is called line and staff organization or structure. So, this is basically in order to overcome the limitations of line organization, line and staff organization structure has been developed. So, it combines a staff function, staff functions means the advisory functions. The staff specialist with the line manager, suppose you are a deputy general manager production, you have got a chief manager production. Suppose there is an industrial relations problem, suppose there is a problem with safety or say some legal matters. So, the legal expert may be required to be consulted. So, that is a staff function, that is an advisory function. So, specialist in specific areas, they help the line managers. So, the legal expert will help the deputy general manager, suppose an accident takes place in the factory, the medical doctor will come and will assist the organization. So, this is basically a combination of line function as well as the staff function. So, it has got, it has arrested the deficiencies of line organization. So, what could be the merits? Merit includes it relieves the line managers from the burden of routine and auxiliary activities, the additional activities, those are reduced. So, you do not have to always see the rules, acts, manuals, etcetera, because the legal expert will help you. You can concentrate on your production. The suggestions given by the staff experts, staff experts will enable the line executives to take better decisions in case of confusion because they will be the specialist. So, there could be some demerits. What could be those demerits? They are there could be conflicts. So, the legal expert will say something, the production expert will say something, the reconciling the differences of opinions becomes a problem. So, that is a kind of demerit in line and staff organization. Achieving the cohesion is a problem. The staff experts do not have the authority to make decisions. Ultimately, the decisions will have to be made by the administration only. So, administration might take another step, another perspective. Staff specialist might have another perspective. So, these are could be the demerits. Then the third one is what? The functional organization or structure. This is very common in today's organizations we see. Suppose the marketing department, finance department, loan department is not it. HR department, production department, right, we again know about various departments. So, here the functions are drawn down through specialized knowledge. Marketing specialist knows about marketing. The financial manager knows about finance. So, specialized knowledge and advice. The departments are formed on the basis of division of work. And the efficiency of production and the skills of the employees are improved. Because someone is today the self supervisor. Tomorrow he can afford to be the sales manager. The after tomorrow he can afford to be the area manager. And maybe after 5 years he can be the DGM marketing, right. They can be, they can confine themselves to a particular function. Marketing person will do marketing activities only. Production people will do the production activities only. So, what are the merits? It promotes specialization. One can stick to their own areas of specialization. Each department specializes in a particular line of work. Marketing will be specialist in marketing only. There is no overburdening of key executives. Because the flow of authority will be there, the activity will be determined. The marketing manager, general manager, marketing will give all the responsibilities to the advertising manager. Marketing research to the marketing research manager. All other activities related with sales to the sales manager, right. The things are streamlined. There will be maximum efficiency as each individual concentrates on a particular tax. They are defined areas of operation. But however, this involves certain demerits. What could be those? This is one making process might be delayed. Area manager has got something. He will ask the DGM, DGM will ask the GM, right. Defined levels of management are there. So, it requires participation of functional heads. Within, suppose marketing will think about something, production will think about something, that coordination will have to be established. The subordinates may get instructions not only from the immediate boss, but also from bosses in other departments also. Don't sell this item. Production is disrupted. But marketing manager might say, no, no, increase the sale of this item. Production people will say, no, no, don't go for sale of this. Because there we are having some problems in production of this particular item. So, there could be some confusion. The creation of a number of departments and divisions, along with executives and subordinates involves heavy expenditure. Functional department, though it is easy, but because of the development of the specialist, because of the development of specific functions, it becomes a time-consuming process. But at the same time, it is expensive also. So, dear learners, we have discussed about the different, the three types of organizations. And we shall discuss about the other parts in the remaining videos. Thank you.