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

elationship. There is a need for understanding and coordination between line and staff
personnel.
The typical types of organization were i. functional type, ii. Product type and iii.
Matrix type.
Both the organization and HRD department shall have a good organization
structure. The structure may differ according to size, geographical spread, nature of
product or service.
Answer key
1. Formal organization – based on hierarchy, while informal organization is
automatically developed on faith, confidence and skill. Both are essential and
the management should also encourage informal organization.
2. Pre-requisites – simplicity, flexibility, good line of authority, delegation with
authority carrying responsibility, different managerial cadres, unit of command
and good staff function.
3. Various factors to be considered and model organizational charts.
4. Staff authority – advisory – specialists line authority – direct superior and
subordinate Advantages of staff authority and needed coordination.
5. Traditional – Functional type, product type and Matrix.