In a functional organisation

Explanation:

There are five main types of organizations:

1) Linear or scalar organization:

• This type of organization is also known as a departmental or military type of organization.
• In this type of organization business activities are divided into three groups, namely fi­nance and accounts, production, and sales. Each of these departments is sub-divided into certain self-contained departments.
• Each departmental head has sole control over his section and has full authority to select his labor, staff, purchase of raw materials, stores and to set the standards of output, etc

2) Functional organization:

• In this, specialized people are employed under the production superintendent and everybody is supposed to give his functionalized ad­vice to all other foremen (bosses) and workers.
• This system provides more specialized knowledge and guidance to individual workers through experts.
• If any operation needs improvement, it can be improved even up to the last moment.
• Since for every operation expert guidance is there, hence wastage of material will be minimum which will reduce prime cost.

3) Line and staff organization:

• It is a planned specialized system.
• Quality of product will be better and Wastage will be less.
• Sufficient time is available to the general manager for future planning and expansion

4) Line, staff, and functional organization:

• Because of scientific methods, enough market competition, and complications in the busi­ness, to obtain a sound system, the combination of line, staff, and functional type of organization is required.
• In this system, as regards the discipline and output are concerned, the workers are kept under the direct control of the foreman.

5) Committee organization:

• A committee is a group of persons formed for the purpose of giving advice on certain important problems, which cannot usually be solved by an individual.
• It helps by pooling the thoughts of several persons on problems involving several functions and offered for criticism.
• These committees may be either “Permanent” sometimes referred to as standing committees or they may be organized to serve a temporary function only.
• Decision taken is impersonal which leave the chairman free from personal criticism There is a stimulus towards cooperative action, so it is said that committee organization is the most democratic.