Another way is by seeking . There is a direct link between the superior and his subordinate, both can communicate properly among themselves. This is because of unified control. The hierarchy in management helps in achieving effective coordination. 2. The following are the main drawbacks of this system: 1. The direct relationship is prevailing between the sub-ordinate and immediate superior. Hence, nobody is escaped from the responsibility. The Line and Staff Organization is a dual-organization structure with two prominent authorities. A manager can only order his immediate subordinates, and for the subordinates the dictate is First obey, and then argue. The links in the chain of command should not be skipped. An organizational structure is a set of rules, roles, relationships and responsibilities that determine how a company's activities should be directed to achieve its goals. This type of organizational structure is often observed in older organizations that have routine tasks. The number of subordinates should be such that they are properly supervised. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. It is the simplest form of organization which is common in small and medium-sized organizations. C. benchmarking. (ix) Lines of authority are vertical i.e. 4. These are issues that are vital to the company's success, but which do not require a large work group to accomplish. Managers have to involve themselves in jobs of different nature. (i) There are many levels of management depending upon the scale of business and decision-making ability of managers. Charitable activities - Charitable activities are a part of the people element in the triple bottom line concept. 6. Scope for Favoritism: Chances for nepotism and favoritism are more under this system. Maintain Discipline 4. They are bound to follow instructions from their superiors. This may lead to wrong adjustments or wrong decision-making on the part of the executives. planning. Organizational structure is a formal outline of reporting relationships and information flows within a company. Decision-making responsibilities are static with limited flexibility. 2. Line organisation suffers from lack of specialised skill of experts. But as between one foreman and another, there is no formal line of authority or responsibility. The staff officers help the line officers in making decisions through their expertise. Quick Decision. In between, there are other levels of management, such as intermediate and supervisory. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Plagiarism Prevention 5. Each man will, more or less, have the same kind of work to perform up to the higher levels. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. The line officers may become autocratic and start deciding things without consulting their subordinates. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that youve provided to them or that theyve collected from your use of their services. In line organisation every person is under the command of one boss only. 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. Line organisation is the basic framework for the whole organisation. You may say that it is limited line authority. Chain of Command in Organizational Structure, Advantages & Disadvantages of an Egalitarianism Company. Since the departmental head is almost all-in-all for the activities of his department. to improve overall organization performance. It does not store any personal data. Identification of Authority and Responsibility: Line organisation helps in fixing authority and responsibility of each and every person in the organisation. Under this type of line organization, the whole business organization is divided into several departments and each department is under the control of one individual who is known as Departmental Manager. (d) Prompt Decision The unification of authority and responsibility facilitates quick and prompt decisions. Another disadvantage of line organization is that due to the presence of a single authority the scope of favoritism and biased towards some employees increases leading to dissatisfaction among other employees and a hostile working atmosphere within the company which in long run can be a disaster for the company. In this blog, we'll explore six benefits of Change Management when . Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. Employees are expected to work on the same tasks without upskilling or learning about other aspects of the business. Under it, the persons having the greater decision-making authority are placed at the top, and those having the least decision-making authority at the bottom. Each foreman works independently, without any formal line of authority or responsibility with other foremen and takes orders from his superior or superintendent to whom he is directly responsible. It also allows quick decisions and efficient coordination. This is suitable only for businesses which are run on a small-scale producing only one item and in which the workers are divided into departments according to the type of work performed by each one of them. Line organization structure is also known as a simple organization or military organization. It can be easily define and explain to all staff. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. All organizations follow specific organizational structures to run the company smoothly. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. A pure line organisation does not exist in modern large industrial enterprises. Accountability This approach makes it much easier to assign responsibility for actions and results. Staff experts in specific areas are incorporated into the formal chain of command. This cookie is set by GDPR Cookie Consent plugin. The line officers cannot be experts in every line of business. The higher management can help improve line and staff structure by well-defined job roles and considering suggestions of functional officers. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. This is the oldest form of organization. vii. (ii) There is vertical flow of authority and responsibility. (b) It facilitates unity of control and the presence of scalar principle. Quick decisions and their implementation help to get the benefit of business opportunities. Line and staff organization is a little more complicated than the line system. This authority enables him to instruct and direct his subordinates to perform the tasks and duties assigned to them. There is an absolute lack of functional specialization. Every manager is required to incorporate these activities in his department. Simple and Easy To Understand 2. 2. Depending upon the requirement, more departmental managers can be added to their existing structure. However, a line and staff. 3. Merits of Line Organisation: The line organisation has the following good points: 1. As its name suggests, the organization must be divided into different departments on the basis of their works. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. Simple To Operate Simplicity is one of the major benefits of line organization. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. (c) Inadequacy of communication There is a failure to get correct information and to act upon it. 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 |. In such a situation, the problem of imbalance in the managerial decision may arise. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Your email address will not be published. Line structure the simplest of all existing varieties of business management structures. Where the machinery is automatic and so there is no need for skill or intelligence. 2. The officers work according to their whims and preferences. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. The clarity of authority and tasks within the company introduces discipline. Under this, the whole enterprise is divided into different departments for achieving maximum amount of convenience in controlling the whole enterprise. Line or Military Organization: Structure, Features, Characteristics, Merits, Demerits, Suitability and Branches, With Features, Conditions for Success, Merits, Demerits and Suitability, Hierarchy of Authority Levels, Branches of Line Organisation, Merits, Demerits and Suitability of Line Organisation, Flow of Authority from Top to Bottom; Accountability of Each Subordinate, Department Managers Function Independently of One Another, Subordinates can only Approach Immediate Superior, (2) Clear Division of Authority and Responsibility, Line managers are required to both plan and execute the tasks and duties assigned to them. The limits of authority of both line and staff should be prescribed clearly. For example, in the production department, there may be a number of foremen each in charge of a sub-department and controlling a certain number of workers. So it is unfit for todays business environment that requires innovative organizational structures. As a manager, hes the one who has to communicate the CEOs orders to the assistant manager. 4. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. A person receives orders only from his immediate boss. There is a direct link between superior and subordinates. 1. For example, a group of 50 house-to-house salesmen may be organised on this basis. This system of organization is also known as Scalar, Traditional or hierarchical form of organization. Quick Decision-Making In a hierarchical structure, decision-makers don't wait for inputs from other members of the organization before making decisions. It does not make provision for staff specialists. Line organization is the oldest and simplest method of administrative organization. In line organisation, every manager exercises a direct authority over subordinates who are directly responsible to their superiors. Where the scale of business is comparatively small. 4. A superior delegates authority to a subordinate who in turn delegates authority to his subordinates and so on. Employees are fully aware of the boundaries of their jobs. Thus, this system can be successfully practised where: (a) The business is carried on a small scale with a small number of subordinates and operatives. He may neglect some of the duties and there may be inefficiency in management. Line managers make formal decisions within their sphere of authority that directly influence the way a company does business, including production goals, organizational policies and compensation decisions. Effective Communication: . The staff personnel does not supervise the line officers. These cookies ensure basic functionalities and security features of the website, anonymously. It is the oldest form of organization. Thus, it permits flexibility in operation. Each section in charge has direct control over his section. Not all managers can come up to this expectation. In this model chart, the enterprise has three departments or shops namely, Foundry shop, Machine shop and Assembling shop. Lets explore the pros and cons of aline organizational structure. 5. 6. Unlike affiliative leadership structures, such organizational structures do not heed the officers advice. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. Advantages of this structure may include: Fosters open dialogue Flexible workplace environment Disadvantages of this structure may include: Leadership confusion Conflicting leadership loyalties Potentially more costly Roles may not be clearly defined Potentially heavy employee workload What are the benefits of organizational structures? Under this system, authority flows from the men at the top to the lowest man vertically. Teamined.com is a meeting room for employer and employee that will help you build positive employer branding or get your dream job. Any departure from this scheme may create problems. The advice of staff should be realistic and practicable. Advantages of a linear structure. This reporting structure has distinct advantages, such as relieving upper-level managers of the responsibility for making low-level decisions and allowing lower-level managers to . 6. There may be a lack of operational uniformity among various departments. What happens when a department manager wants to pass some message to a subordinate in another department? Conditions for Success of Line Organisation 3. The ultimate authority for taking all decisions lies with line officers. Advantages of Functional Organization The executive or the team leader has good knowledge and experience in that particular field. Prohibited Content 3. Thus if the Finance Manager has to convey something to a superintendent in the production department, he will have to send the word upwards to the General Manager and the General Manager will then pass it down to the Production Manager and the Production Manager will further pass it down to the Superintendent concerned. This type of organisation is largely existing in modern industry. It reduces the time taken for multiple approvals. One of the ways they cooperate is through networking. Surajs workplace follows a hierarchy. More training and development cost is involved in improving staff performance. (iii) There is unity of command. is the oldest form of organization. Expensive: This type requires the appointment of a large number of experts involving heavy expenditure. Staff officers do not have the authority to implement their opinions and recommendations without the line officers approval. Find out more about aline organizational structurewith examples. 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