ORGANIZING — OCM STD 12 Commerce — Question

In functional organisation, divisions are formed keeping in view various functions/ activities and for each function expert person is appointed.

• Hence, the benefit of labour division is obtained.
• But, Mr. Frederick Taylor, has suggested to classify the functions of foremen into two categories, in his foremanship style of functional organisation.
• Planning division in which procedure/method officer, directing officer, discipline officer, cost officer are included.
• In this method instead of handing over all the functions of production division to one or two foremen, they are assigned to experts concerned.
• So, all activities become effective and benefits of labour division are gained.