17.10.2012 Views

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

i. Divergent background<br />

Line and staff people, <strong>of</strong>ten have different backgrounds and individual<br />

characteristics. Staff people in contrast to line, are generally younger, better educated,<br />

dynamic, and more poised in social interaction. This difference in outlook is one <strong>of</strong> the<br />

reasons for discord.<br />

ii. Lack <strong>of</strong> demarcation between line and staff<br />

Though theoretically line and staff authority is clear, <strong>of</strong>ten in practice, demarcation<br />

between line and staff is rarely clear. Overlapping <strong>of</strong> basic functions and a gap could<br />

affect personal relationships. This structure survival for approximately three countries.<br />

This structure is useful when technology remains static and type <strong>of</strong> products are not many.<br />

Pr<strong>of</strong>. Drucker has defined this type <strong>of</strong> organization as “functional decentralization”. A<br />

typical diagram is shown in Fig. 2.1(a). This structure is useful and advantageous for<br />

smaller organizations but difficult for bigger ones. This structure was found ineffective to<br />

face keen competition in market due to rapid advancement in technology and development<br />

<strong>of</strong> multiple products.<br />

The advantages <strong>of</strong> functional type organizations are<br />

- Easier budgeting and cost control<br />

- Better technical control since specialists are grouped together<br />

- Flexibility in use <strong>of</strong> manpower<br />

- Provide continuity in functional disciplines<br />

- Better control on personnel<br />

- Quick reaction capability.<br />

The disadvantages are<br />

- No one individual is responsible for the entire operations / products<br />

- Does not provide the production <strong>–</strong> oriented emphasis<br />

- Coordination becomes complex<br />

- Does not provide single point contact for customers<br />

- More response time to the customer<br />

- Duplication and overlapping <strong>of</strong> responsibility.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!