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Functional Structure: A Structure in which each and or department has a different set of

activities and responsibilities.

Advantage of Functional Structure:

1. It maintains power and prestige of major functions.

2. It follow the principles of occupational specialization.
3. It simplifies training.
4. It furnishes tight control of top mgt.

Disadvantages of Functional Structure:

1. Responsibility for profit is at the top.

2. It makes set slow adaptation of changes in environment.
3. It reduce co-ordination between functions.

Line and staff from of structure: The most widely used from of structure in HR works is line
and staff. The most striking feature of line and staff from of structure that each person reports to
one and only one superior but also receives specialized service and help from various experts.


1. It makes more communication.

2. It makes the share of talent and resources.


1. Conflict arises between the line and staff people.

Which are the factors that affect specific design of HR department?

1. Attitudes of top executives.

2. Interacted of personal and structure.
3. Physical factors.
4. Affect on legislation and unions upon structure.
5. Problem faced.

Test for a good structure / how you will test the effectiveness of a good structure?

1. Stability
2. Flexibility
3. Growth
4. Balance
5. Simplicity
6. Objectivity
Functions of HR Manager:

Managerial = Planning, Organizing, Leading and Controlling.

Operating = Recruitment, Development, Compensation, Maintenance and Separation.

Manpower Planning: Manpower planning is the process by which organization ensures that it
has the right number of people and the right kind of people at the right place at the right time
doing things they are economically mast useful.

Objectives of Manpower Planning:

1. To take some necessary steps so that no scarcity of competent employees in future.

2. To ensure the organization not to employ excess employee or over qualified employ in
3. To optimum use of human resources.
4. To arrange the training program for existing employees.
5. To forecast the future vacancies.

Manpower Planning Process:

1. Manpower Inventory: Existing manpower and assessment of available resources.

2. Manpower Forecast: Determination of future requirement.
3. Manpower Plan: Action steps to meet manpower need.
4. Implementing and controlling: Manpower plan.

Why Manpower Planning is Needed:

 Nature of human resources.

 Scarcity of skill manpower.
 Rapid technical change.
 Cost recruitment and hiring highly skilled personal.
 Reduction of wastage.
 Size of the firm.
 Profitability.