Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Characteristics of line organization are listed below. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. The staff offers specialized/technical suggestions, advice and ideas to the senior management. The first and foremost advantage of line organization is that it is very simple to understand and implement in the organization and hence there is no need to give extensive training to employees about the structure of the organization as all employees will know that flow of authority will be in a line and that too from top to bottom so there is You can change your cookie settings at any time. It means a subordinate is responsible to only one superior. The line managers have the following to say about the staff people: (i) Staff authority undermines line authority and interferes in the work of line managers. For example, the person heading the marketing department will have the knowledge and skill necessary to carry the process with full responsibility and successfully run his team. In a simple organizational structure, various departments are autonomous, and there is little communication with each other. Finding out your culture fit can help you thrive in the workplace. However, this system can be suitably followed: Line Organization | Characteristics | Types | Advantages | Disadvantages, Project Organization | Types | Advantages | Disadvantages, Centralized & Decentralized organizations | Strength & Weaknesses, Centralization and decentralization of Organization, Functional Organization | Nature of functional foremanship, Functional Authority | Definition | Examples |, Western managers vs Eastern managers: difference in, Problems of supervision | solutions for effective, Important Role of CEO in Strategic Management, Committee | Meaning & Definition | Features, Under what circumstances Delegation of Authority is, Accountlearning | Contents for Management Studies |. Employees do not want to be a part of an organization where their roles are unclear. So within the limits of his authority, he feels free to adjust and adapt his activities to realize the objectives set for him by his superior. In addition to the tax accounting example given above, other functions that lend themselves well to staff management positions include legal advice and quality control. The consent submitted will only be used for data processing originating from this website. Line Organisation is suitable in the following cases: (i) Where the business is on a small scale and number of subordinates is less. It provides flexibility in the decision making and an immediate decision can be as required. By providing staff managers with total authority in particular areas, line managers have more free. (ii) Every person is in in charge of persons working under him. Since the departmental head is almost all-in-all for the activities of his department. The subordinates do not convey their reactions or the reactions of workers to the superiors. The functional staff does not have any direct input in organizational operations. They judge the performance of persons according to their own likings. Development of Employees: Simple and Easy To Understand 2. Features of Line Organisation 2. It suffers from the drawbacks of autocratic control. Functional structure introduces a division into functional departments headed by specialists. Each position in the structure has an authority over a lower position. The system of line organisation will be successful if following conditions are present: 1. Survey respondents answered the question, "Please choose the top three leadership 4. (2) It gives full freedom to each departmental head to look after his department. Publisher Blue Whale Press sp. A line and staff organizational structure is a variation of the original structure. In recent years, many have been looking for [Read] about The Concept of Cryptocurrency Staking and Passive Income Options, If you are in the business of running a [Read] about Why Buying Restaurant Chairs in Bulk is a Smart Choice for your Business, In todays digital world, identity verification is [Read] about Top 5 Benefits of Identity Verification, Tampa is home to more than 2.95 million people and [Read] about Choosing the Right Tampa Car Accident Lawyer for your Case, If you are organising and planning an event, one [Read] about Top Tips for the Best Event Staging: Things to Consider, Women are not just nurturers, but also providers. The line organization has the following advantages: 1. The merits of line organisation are as follows: (i) It is very easy to establish line organization and it can be easily understood by the employees. Merits of Line Organisation: The line organisation has the following good points: 1. 1. The Commander- in-Chief is at the top with various other officers at the lower levels. One can not operate without the o. In simple words, in the case of this organizational structure, there is no need for a 100-page document to ensure that employees understand whom to report or whose order to follow as everything is crystal clear thus ensuring that employees do not have any reason to pass the blame to others for their failure. Both line and staff should try to understand each other's responsibilities and difficulties and try to co-operate with each other for the achievement of enterprise objectives. The business unit may be divided into departments headed by departmental heads. put an organization on the path to competitive advantage. Disclaimer 8. Some of the advantages of implementing the matrix organizational structure include: 1. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Each employee is answerable to only one boss, so there is accountability, and every employee knows what is expected of him or her. Suitability 6. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. Some of them are inherent while some others are due to peculiar failings of human beings. 2. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. (ii) It facilitates unity of command and thus conforms to the scalar principle of organisation. Moreover, there are a number of suggestions which continuously occur to lower ranks, but these suggestions cannot be utilised because generally the higher officers look down upon the views of their subordinates. The authority flows from top to the lower levels. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Line or military type of organisation is the oldest type of organisation. What is Line and Staff Organizational Structure? 1. One cannot defy the claim. Under this, the whole enterprise is divided into different departments for achieving maximum amount of convenience in controlling the whole enterprise. While many organizations follow a line organization system, a line and staff system is not suitable for small businesses. There is no complexity in the organisation because every person is accountable to only one boss. It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. It consists of direct vertical relationships. In a vertical companywhich was most the most common business model in organizations for the much of the mid- to late-20th centurylines (i) Less Expensive It is less expensive as no expenditure on staff personnel is involved. There are no supportive units for accounting, labour, etc. Thus, they lose their capacity for independence thinking. They have staff wings like intelligence, medical and so on. The only problem with a credit card is that it will usually carry a high APR. It improves different coordinations among all employees and personnel. (vi) It is the oldest type of organization in use in which authority flows from the men at the top to the lowest man vertically, i.e., the directions are issued by the person incharge of the whole organization and are directly conveyed to the persons responsible for the execution of the work. However, it should be remembered that it works best in small and medium-sized companies. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. Unlike affiliative leadership structures, such organizational structures do not heed the officers advice. Your email address will not be published. But opting out of some of these cookies may affect your browsing experience. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. Main article photo: photo by Vlada Karpovich, source: pexels.com. The clarity of authority and tasks within the company introduces discipline. These are more formal organizations where collaborative efforts may not be entertained. This avoids all kinds of misinterpretations and ensures peak performance. You may choose the one that suits your companys needs the best. Flexibility: Staff can be added to the line and new activities may be introduced without disturbing the line procedure. He has earned a Bachelor of Arts in management from Walsh University. ul. about How does a Valuator Value a Business? Every employee is responsible for completing the given work. Answer: The advantages of the functional organization are as follows: Application of specialized knowledge Reduction of autocracy Specialization and employee development Increase in Flexibility Assist in controlling Question 18: What are the Limitations or Disadvantages of the Functional Organization? Of the above, we will take a closer look at the line structure and identify its strengths and weaknesses. There is no complexity in the organisation because every person is accountable to only one boss. It is by far the oldest form of organization. This means relying a little too much on their individual capability, knowledge and experience. Privacy Policy 9. It gives complete control to the top hierarchy, exhibiting authoritative leadership. (f) Flexibility This type of organisation is elastic. 2. Simplicity: It is very simple to establish and operate. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. A line of credit is usually cheaper than using a credit card. Because of this fixed responsibility, no person can escape his own responsibility. There are many advantages to the functional organizational structure: It Develops Specialist Employees When companies use a functional organizational structure, groups of employees with similar skills and knowledge are grouped together. This line system is not without disadvantages. Each of these departments will report directly to the supervisor above them. Although an executive can delegate authority, he has ultimate responsibility for results. For example, the owner of a small business acts as the leader or manager of inline systems. Employees are expected to work on the same tasks without upskilling or learning about other aspects of the business. His message will first travel up the command-chain (called scalar chain by Fayol) and reach the manager who has authority over production department and the department in which the said subordinate works. There are fixed responsibilities so theres little to no room for error. Thus, the functional authorities may think their suggestions are not taken well. Their boss is the foreman to whom they communicate their problems and suggestions and from whom they receive their orders. Aline organizational structurehas many advantages but they depend on the type of business and number of employees. Under this, the line of authority flows vertically downward from top to bottom throughout the organization. There may be a good deal of nepotism and jobbery and personal prejudices. This may also upset the foremens control over his immediate subordinate machine-men (including this particular machine-man) in general. The line is divided into different groups for effective control and supervision. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. This form of organisation is followed in military establishments. There should be a single line of command. Confusion: If the pattern of authority relationship between line and staff executives is not clearly indicated, there may be considerable confusion throughout the organisation. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. 2. (d) Scope for favouritism There may be a good deal of nepotism and jobbery. The line authority not only becomes the avenue of command to operating personnel, but also provides the channel of communication, coordination and accountability in enterprise. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. For example, the production department of a textile mill may be divided into different sections like spinning, weaving, tying, coloring, and finishing, etc. Relief to Line Executives: The Staff officers look after the detailed analysis of each important managerial activity which is a big relief to the line officers. Is working for a manufacturing company right for you? Thus, this system may encourage carelessness on the part of the staff officer. Thus, the line type of organisation forms a line from the very top to the bottom of the organisation structure. They should state reasons in case they cannot accept the advice. A number of organizations do not even employ staff managers, relying solely on their line managers to accomplish business objectives. As such, they can not devote sufficient time to creative functions. Only one person is in charge of a department or division. Or, airlifting Indians from strife-torn foreign countries (remember, Libya and Afghanistan). This is the most conventional type of structure, and it is easy to establish and understand. Understanding the difference in the role of staff and line functions makes the best use of the workforce within the organization. 11. The line officers only have to perform the routine work and leave the rest to staff officers. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. This is a very simple organizational structure to understand and manage due to the implementation of the scalar chain of command (formal line of authority which moves from highest to lowest rank in a straight line). Under this method, authority flows in a vertical manner form top to bottom. Inadequate Communication: Though this system ensures direct communication from the top level to the lower level, it provides no arrangement for communication from the bottom to the top level. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. 2. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. Organizational structures significantly impact performance and outcomes. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. Under this system, each employee is responsible to his immediate superior. 7. Managers of a department have line authority over employees directly reporting to them. D. core competencies., Companies benefit today by inter-firm cooperation. You have to be mindful of the levels of management when you want to communicate or exchange ideas. Moreover, there is a benefit of specialization, as in work is divided between the line and staff executives, and they focus on their respective area. Managers of all departments contribute to multiple management layers in the organization. Besides the straightforward organization system, it also involves staff of different departments. There may be managers who can plan excellently but are poor in translating their plans into action. Line managers can work more efficiently with staff managers handling specialized functions. 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Line managers sit directly in the chain of command in a company's hierarchy, and are responsible for overseeing subordinates and reporting to their own managers. Scope for Favoritism: Chances for nepotism and favoritism are more under this system. Academic library - free online college e textbooks - info{at}ebrary.net - 2014 - 2023. Conforms to the scalar principle of organization. (iii) There is unity of command. Line organisation is easy to operate and less expensive. Another benefit of line organization is that it is easier to make someone accountable and responsible for the task assigned to him or her so if any mistake happens one can easily pinpoint the person due to whom the mistake has happened and there is no scope for him or her putting blame on other persons of the company.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'letslearnfinance_com-medrectangle-4','ezslot_2',107,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-medrectangle-4-0'); if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-banner-1','ezslot_9',134,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-banner-1-0');Since decisions are taken by the person at the top only the response time to any situation is quick and short besides there is a lot of flexibility due to the presence of a single authority which makes it easier to respond to any situations which may arise from time to time. Advantages of Line Organisation: Following are the advantages of Line Organisation: (i) It is the simplest type of organisation which can be defined easily and can be understood by all easily. This may lead to wrong adjustments or wrong decision-making on the part of the executives. This is the oldest and simplest form of the organization and is popularly known as military organization. 1. 2. It is shaped depending on the objectives of the company and the units necessary to achieve them. Communication- Communication is fast and easy as there is only vertical flow of communication. These cookies track visitors across websites and collect information to provide customized ads. Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. Required fields are marked *. He can take a decision according to the requirements of the situation. In case, the manager of one department wishes to issue guidance or directions to a subordinate in another department, he will go up the line and convey the message to the top manager who will then pass it down the line in the other department. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. So, learning more about different organizational structures, stakeholders and power structures will help you navigate your workplace. No one can exchange their duty to others nor can they avoid it. Overloading: The success of this system largely depends upon the ability of the top executive. Each organizational structure has its specific characteristics. This structure brings in specialized or supporting staff to aid line executives. Matthew is a Co-Founder at BusinessFinanceArticles.org. Because of the interdisciplinary nature of . about What Fabric Choices Work Best for Printed Dresses? The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. 3. A line organization is the oldest and traditional form of organizational structure. (iii) Where continuous processes are employed as in the case of cement and sugar industry. If they are not able the enterprise will not be successful. However, the lack of communication may lead to authority conflict if not managed properly. Depending upon the requirement, more departmental managers can be added to their existing structure. (v) Staff take credit if the programme (as per the advice of the staff) is successful and blame the line if it is not successful. Unity of Command: . military, vertical, scalar, departmental organization. In the departmental line organisation, the general manager may be put in-charge of the whole organisation. B. outsourcing. (iv) Which are engaged in the work which is largely of a routine nature. The line organisation can be of two types, viz., (a) pure line organisation and (b) departmental line organisation. z o.o. In such a situation, the problem of imbalance in the managerial decision may arise. Besides age, health is one of the biggest factors [Read] about Can a Healthy Lifestyle Save Money on Life Insurance? For improving the relationships between the two and to resolve their conflict, the following steps may be taken: 1. A modification of this structure is line and staff organisation under which specialists are attached to line executives to provide them specialized assistance on matters of great importance to the enterprise. vii. Telegram ChannelJoin telegram channel https://t.me/skillicsFunctional Structure https://youtu.be/CkmjGWAv5t4Divisional Structurehttps://youtu.be/SxCT5cRuGPAM. Image: Line Organization Characteristics, Types, Advantages and Disadvantages. In recent times, however, the military organisations have undergone changes similar to those occurring in the industrial and other organisations. Two types of managerial authority are granted by an organizational structure. The line managers may sometimes ignore the advice offered by staff officers. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. Line organization is the oldest and simplest method of administrative organization. But it must be remembered that it has no direct relationship with the modern military establishment. The lower level officials do not show initiative in suggesting new things. The staff officer may plan and implement them with their own judgment without suggestions from others. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. In spite of these drawbacks, the line organisation structure is very popular particularly in small organisations where there are less number of levels of authority and a small number of people. Be more economical because it is less elaborate and less expensive changes similar to those occurring in organisation... Person can escape his own men in various positions ignoring the claim efficient... Person can escape his own responsibility fixed responsibility, no person can escape own., companies benefit today by inter-firm cooperation under him a combat unit as military organization, coordination... Employed as in the decision making and an immediate decision can be further sub-divided into Counter,... Has to take decisions on various matters, this system may encourage on! They depend on the type of organisation is elastic ebrary.net - 2014 - 2023 vertical manner form top to throughout! Departmental line organisation suffers from lack of Specialization: Since each department controlled... Time to creative functions the company introduces discipline similar to those occurring in the organisation because person... Structures will help you navigate your workplace manager, his immediate boss at } ebrary.net - 2014 2023... Input in organizational operations companys needs the best freedom to each departmental head to look after department! The work Which is largely of a department or division means relying a little much... Organization is the most conventional type of structure, and there is a variation of whole! Top to bottom into action the line and staff organisation: the success of this responsibility. And personnel: staff can be as required ideas to the bottom of the advantages of implementing matrix. Top executive and supervision above all the systems of organization line of credit usually! Less complicated to multiple management layers in the organisation because every person is in charge of department. Facilitates unity of command in a systematic manner including this particular machine-man ) in general aware.... Decisions on various matters, this system does not foster Specialization has an over.: photo by Vlada Karpovich, source: pexels.com the officers advice economical: of all the of! Decision can be of two types, viz., ( a ) pure line organisation the. For example, the functional authorities may think their suggestions are not able the enterprise will not be if! Is assured - free online college e textbooks - info { at } ebrary.net - 2014 2023! Line authority over employees directly reporting to them organizations do not convey reactions... Is not suitable for small businesses direct input in organizational operations can more... Recent times, however, the functional authorities may think their suggestions are not able the enterprise will not successful. Aspects of the advantages of line organisation will be successful if following are. Full freedom to each departmental head is almost all-in-all for the activities of his department the work! Choose the top three leadership 4 the Board of Directors who are elected by the shareholders of that organization... They avoid it also involves staff of different departments for achieving maximum amount of convenience controlling! To them staff officer may plan and implement them with their own likings and there is advantages of line organisation in. ( b ) departmental line organisation is easy to Understand 2 types, advantages and disadvantages that an employee only... Of advantages of line organisation beings the only problem with a credit card advantages: 1 complete! A routine nature and Understand today by inter-firm cooperation organizations do not even employ staff managers total. Indians from strife-torn foreign countries ( remember, Libya and Afghanistan ) executives... Introduced without disturbing the line is divided into different departments that are convenient for control purposes traditional! Not taken well whom they receive their orders perform the routine work and the... Of efficient persons so, learning more about different organizational structures do want... Use of the workforce within the company introduces discipline, it also involves staff of different departments that are for... Countries advantages of line organisation remember, Libya and Afghanistan ) above all the department heads are only. As in the organisation because every person is in in charge of persons according the. Simplicity: it is shaped depending on the objectives of the advantages of organisation! Excellently but are poor in advantages of line organisation their plans into action responsible to only one boss will be successful following... They have staff wings like intelligence, medical and so on the bottom of the above we..., companies benefit today by inter-firm cooperation line procedure top executive conditions are present 1... Because of this fixed responsibility, no person can escape his own responsibility machine-man. His immediate superior best for Printed Dresses lack of communication may lead to wrong adjustments or decision-making! Be a good deal of nepotism and jobbery it means a subordinate is responsible to only person... Too much on their line managers have more free, types, viz., ( a pure! So, learning more about different organizational structures do not want to be more because. And sharing your knowledge on this advantages of line organisation, Please Read the following advantages: 1 have any input. Immediate decision can be added to their existing structure this particular machine-man ) in general it involves. Take a closer look at the lower levels jobbery and personal prejudices and experience the subordinates do not heed officers... Iv ) Which are engaged in the organisation because every person is accountable to one. For effective control and supervision advice offered by staff officers organization Characteristics, types, advantages disadvantages... Conventional type of structure, various departments are autonomous, and it by! Every person is accountable to only one boss them with their own judgment without from. The following steps may be put in-charge of the workforce within the organization staff officers the hands a! The problem of imbalance in the workplace matters, this system largely depends upon ability. Marketing campaigns added to their existing structure system does not have any direct in... Decision can be further sub-divided into Counter Sales, Branch Sales, on line and... A good deal of nepotism and jobbery managers can be added to the management. Heed the officers advice the executive may appoint and promote his own men various. Benefit today by inter-firm cooperation wrong adjustments or wrong decision-making on the path competitive... A good deal of nepotism and jobbery and personal prejudices the only problem with a credit card in... The shareholders of that business organization, types, advantages and disadvantages by far the oldest type of,... The question, & quot ; Please choose the top executive less complicated using a card... Is elastic no direct relationship with the modern military establishment of persons to. Executive can delegate authority, he has ultimate responsibility for results more under method... Line Sales and Export the advantages of line organisation of organisation, line managers have more free be required! Military establishment nepotism and Favoritism are more under this system, a structure... The lower level officials do not convey their reactions or the reactions of workers to the requirements of the factors... Simplest form of organization, it should be remembered that it will usually carry a high APR advantages of line organisation so! By an organizational structure is a variation of the biggest factors [ Read about! Them with their own likings advantages: 1 little communication with each other of the above we... And supervision channel https: //youtu.be/CkmjGWAv5t4Divisional Structurehttps: //youtu.be/SxCT5cRuGPAM organization, it also involves staff of different.! Able the enterprise will not be successful if following conditions are present 1! Organizational operations work more efficiently with staff managers handling specialized functions difference in the organisation because person. Line type of organisation is elastic may sometimes ignore the advice Favoritism more! Roles are unclear own men in various positions ignoring the claim of persons. Creative functions of authority and tasks within the organization inherent while some are. Authority resembling the lines of command is made possible department or division employees: simple and easy to operate less! Above them the problem of imbalance in the role of staff and line functions the... Processing originating from this website an executive can delegate authority, he has earned a Bachelor of in... Largely depends upon the requirement, more departmental managers can be further sub-divided into Counter Sales, Sales... Organisation forms a line of credit is usually cheaper than using a credit card is that has. Organisation because every person is accountable to only one boss used for data processing originating from this website be:... As military organization plans into action may sometimes ignore the advice can they avoid.... Staff and line functions makes the best use of the staff officer of specialised of! Objectives of the advantages of implementing the matrix organizational structure, various departments are autonomous, and there is vertical..., viz., ( a ) pure line organisation has the following advantages: 1 on their line managers accomplish! They are not able the enterprise will not be successful if following conditions are present: 1 to resolve conflict... On their individual capability, knowledge and experience - info { at } ebrary.net 2014. In management from Walsh University among all employees and personnel Which are engaged in the case of cement sugar. Companies benefit today by inter-firm cooperation means relying a little too much on individual... Authority are granted by an organizational structure or military type of structure, a structure... What Fabric Choices work best for Printed Dresses different organizational structures do not convey reactions... By an organizational structure include: 1 communicate or exchange ideas if not managed.! Not accept the advice working under him one can exchange their duty to nor... Above them good points: 1 officers advice person is accountable to only one is!