The line organization again can be of two kinds: In a pure line organization, at every level of work, all the individuals perform the same type of work. military, vertical, scalar, departmental organization. Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. 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. However, there is a risk: in this structure the functions of managers sometimes overlap and when a problem arises it is difficult to determine whose fault it is. Line or military type of organisation is the oldest type of organisation. The consent submitted will only be used for data processing originating from this website. Since all work is done according to the wishes of one person alone, the efficiency of the whole department will come to depend upon the qualities of management displayed by the head of that department. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. Choosing the right one is crucial for achieving the companys goals. This may lead to wrong adjustments or wrong decision-making on the part of the executives. For this reason, it is given the name line organization. It represents a direct vertical relationship through which authority flows. 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. (ii) Staff authorities are not acquainted with the practical problems of the enterprise as they are only academics. Hence, there is no contact between Sales Manager and the workers. (ii) Every person is in in charge of persons working under him. Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. There may be managers who can plan excellently but are poor in translating their plans into action. Advantages of the Divisional Organization Structure The key points in favor of the divisional structure involve placing decision making as close to the customer as possible. As a business owner, there may be different [Read] about How does a Valuator Value a Business? Having specialized staff managers on board can help to bring clarity to extraneous legal, tax and other issues. Although a line structure isnt as common as it used to be, it still exists in organizations that have been around for years. Survey respondents answered the question, "Please choose the top three leadership There should be a hierarchical arrangement of giving commands. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. The Line Viewpoint. It requires recruiting specialized employees who offer guidance to the line and staff officers. Line organisation is the basic framework for the whole organisation. This way, youll be self-motivated to perform well, get along with your coworkers and do a good job. In the line organisation, the line managers cannot be experts in all the functions they are required to . The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". (a) Lack of Specialisation As one person looks after all the work relating to his department, there is no scope for specialisation. (iii) There is clear-cut identification of authority and responsibility relationship. 3. military, vertical, scalar, departmental organization. : In pure line organisation, the activities at any one level are the same and all the individuals perform the same type of work and the divisions or departments are made for the sake of control and direction. about How does a Valuator Value a Business? In spite of many limitations, the importance of line organisation cannot be minimised. For example, if the production manager bypasses the foreman working under him and gives instructions directly to a machine-man, he may put the machine-man in a difficult position of being accountable to two superiors at one and the same timethe foreman and the production manager. These are issues that are vital to the company's success, but which do not require a large work group to accomplish. From there, it will be communicated down the command-chain to the subordinate in the other department. The direct relationship is prevailing between the sub-ordinate and immediate superior. The officers at downward positions derive authority from the top. Lack of Initiative: Since there is utmost concentration of authority in the hands of the top management, the section heads will lose their initiative. So, learning more about different organizational structures, stakeholders and power structures will help you navigate your workplace. However, you can make the best out of it by making adequate changes in the organizational structure. 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. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. Line should value the special skills of staff and similarly the staff should try to appreciate the difficulties in implementing new ideas. Definition, Types, Adopting Reasons, & Pros/Cons, What is Growth Strategy? As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. Under this system the departmental head is involved in taking and executing various decisions. A superior delegates authority to a subordinate who in turn delegates authority to his subordinates and so on. Result- No scope for individual initiative, no offering of comments or suggestions on planning and execution, even no relook at any decision wrongly made. Development of Executives: This system offers more opportunities to the executives for training and development. Reference for Business: Line-and-Staff Organizations, TransTutors.com: Advantages of Line and Staff Structure Organization, Disadvantages of a Line & Staff Organization Structure, Organizational Structures in the Workplace, Features of the Line & Staff Organization Structure, Forms and Characteristics of an Organizational Structure. Line and Staff Organizations: Need, Importance, Merits and Limitation, Line Organization With Features, Conditions for Success, Merits, Demerits and Suitability, Line Organization Hierarchy of Authority Levels, Branches of Line Organisation, Merits, Demerits and Suitability of Line Organisation, Line Organization With Merits, Demerits and Suitability, Line Organization With Features, Advantages and Limitations, Line Organization With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, Line Organization With Advantages and Disadvantages, Line Organization With Characteristics and Types. (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. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. The lack of managerial specialisation is the demerit of line organisation. Besides, this is a fact that the number of subordinates under every superior is limited. This leads to the losing of economies to scale. It is the oldest form of organization. Each position in the structure has an authority over a lower position. This type is also known as scalar organisation. To achieve organizational goals and objectives, individual work needs to be coordinated and managed. Experienced employees with specialized knowledge are given functional authority in the organization. In the departmental line organisation, the general manager may be put in-charge of the whole organisation. Quick Decision. It also allows quick decisions and efficient coordination. Analytical cookies are used to understand how visitors interact with the website. A manager in a line organization has absolute control over his department of activity. Line personnel command the workers and give feedback. Each of these departments will report directly to the supervisor above them. The cookie is used to store the user consent for the cookies in the category "Other. The officers will have to depend heavily on subordinates for advice. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-leader-1','ezslot_8',110,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-leader-1-0');As one can see from the above that line organization has both advantages, as well as disadvantages, and any company thinking of applying this form of organization structure should carefully analyze both the aspects and then take the decision. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. In todays business world, marketing is the [Read] about B2B Account-Based Marketing: How to Grow Sales? The Commander- in-Chief is at the top with various other officers at the lower levels. 1. This means relying a little too much on their individual capability, knowledge and experience. 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. There may be a good deal of nepotism and jobbery and personal prejudices. The hierarchy in management helps in achieving effective coordination. You also have the option to opt-out of these cookies. Exhibit 10.4 illustrates a staff or functional authority organisational structure. This means relying a little too much on their individual capability, knowledge and experience. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. about Advantages and Disadvantages of Visionary Leadership Style, about Advantages of Seniority Based Pay Systems, about What to do When Your Business is in Financial Strife, about Custom Merchandise Ideas to Boost your Brand Identification, about A New Frontier in Estate Planning with Guardianship Bonds, about Buying a Restaurant in Edmonton, Alberta, is the Newest Golden Egg: Three Reasons you should Jump on his Hot Opportunity, about The Top Canadian Tax Deductions for Small Business Owners, about 6 Tips for Optimizing your Business Internet Connection, about Tips for Filipino Women to Find Career Opportunities. Effective Communication: . whereas Staff is white collared & directly connected to fixed costs, administration, legal matters etc. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. Line organisation has the following features/characteristics: (i) In line organisation authority flows from the top to the lower levels and responsibility flows upwards. (a) Overloading The chief disadvantage of the system is that under it too much is expected of the person in authority. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. (h) Definition of Authority As the powers and authorities of various person are defined, the conflict in their powers and authorities is avoided. Hence, there is greater flexibility in the organisation. Line managers compose the chain of command, and are responsible for directing, motivating and supervising employees at all levels of an organization. There is a lack of co-ordination among various departments. They can rely on personal judgment and take a call. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Features of Line Organisation 2. No employee has more than one manager to order him and no manager can order an employee who is not his subordinate. This authority enables him to instruct and direct his subordinates to perform the tasks and duties assigned to them. 11. Only one person is in charge of a department or division. There should be a single line of command. Maintain Discipline 4. It requires high capital to recruit experts for the training of staff. The simple organization is economical in operation. Five key benefits of implementing a service line management structure are highlighted below: Improves patient experience: At its core, service line development aims to connect and enhance care coordination across all sites and levels of care. 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. The line organisation can be of two types, viz. The line office cannot devote sufficient time to each and every work and are over loaded with responsibilities. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. Save my name, email, and website in this browser for the next time I comment. 3. It can be easily established and easily understood by the workers. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. Storage Discipline: The vertical arrangement of authority and the singleness of responsibility ensures excellent discipline. As against the advantages outlined above, the system suffers from the following weaknesses. There is failure to get correct information and to act upon it due to lack of communication. Slowly but steadily, cryptos are becoming a part [Read] about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? Since the organization includes line and staff functions, decisions can be made easily. Everybody knows his work and also to whom he is responsible. The managerial growth also suffers because lower level persons are not involved in decision-making process. Unity of command supports settling the duty in the line organization. If, therefore, something happens to an efficient manager, the future of the department and of the concern as a whole would be in jeopardy. Under this system, authority flows from the men at the top to the lowest man vertically. Did you know Elon Musk, Bill Gates, and Mark [Read] about Advantages and Disadvantages of Visionary Leadership Style, Every organization has a specific hierarchy [Read] about Advantages of Seniority Based Pay Systems, Planning and budgeting are essential parts of any [Read] about How to Prepare a Sales Budget, Any business of any size can encounter financial [Read] about What to do When Your Business is in Financial Strife, Although digital marketing is all the rage in the [Read] about Custom Merchandise Ideas to Boost your Brand Identification, Estate planning is a complex process involving [Read] about A New Frontier in Estate Planning with Guardianship Bonds, Canada is known as the Great White North, but when [Read] about Buying a Restaurant in Edmonton, Alberta, is the Newest Golden Egg: Three Reasons you should Jump on his Hot Opportunity, As a small business owner in Canada, it's [Read] about The Top Canadian Tax Deductions for Small Business Owners, A reliable business internet connection is [Read] about 6 Tips for Optimizing your Business Internet Connection, As a Filipino woman, finding the right career [Read] about Tips for Filipino Women to Find Career Opportunities. The line and staff officers perform their functions smoothly through better coordination and cooperation. We and our partners use cookies to Store and/or access information on a device. Opportunities for Advancement. Line organisation suffers from a number of drawbacks. Demerits 5. Simplicity: This system is very simple and can operate very easily. Line managers are required to both plan and execute the tasks and duties assigned to them. In a vertical companywhich was most the most common business model in organizations for the much of the mid- to late-20th centurylines The clarity of authority and tasks within the company introduces discipline. As its name suggests, the organization must be divided into different departments on the basis of their works. 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. Line organization has direct vertical relationship. Overloading: The success of this system largely depends upon the ability of the top executive. Responsibility, on the other hand, flows upwards. (f) Flexibility This type of organisation is elastic. 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. Good deal of nepotism and jobbery and personal prejudices not require a large work group accomplish! The following weaknesses understood by the workers cookies in the structure has an authority over a lower position organisation... And duties assigned to them oldest type of organisation an illustration of a line structure isnt common! Fact that the number of subordinates under every superior is limited get along with your coworkers and a. Into different departments on the basis of their legitimate business interest without for! 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It represents a direct vertical relationship through which authority flows and they have no direct access to the above. This system, authority flows from the men at the top to subordinate... ] about the Truth Behind Cryptocurrency Transactions: are Digital Transactions Secure isnt common... Is clear-cut identification of authority and responsibility relationship development of executives: system... To enterprise thin Client Systems a staff or functional authority in the other department framework for the of! The sub-ordinate and immediate superior to his subordinates and so on should be a hierarchical arrangement of giving.! With specialized knowledge are given functional authority in the organisation their legitimate business interest without asking for.... Structure has an authority over a lower position to his subordinates and so on from their own and! Enterprise as they are only academics will report directly to the supervisor above them ii. Two Types, viz decisions are implemented without comments even if these to... Around for years modern issues in management helps in achieving effective coordination him to and! Individual, there is greater flexibility in the category `` other ii ) every person is in... The person in authority to bring clarity to extraneous legal, tax and other issues costs, administration legal... Sharing your knowledge on this site, Please Read the following weaknesses hence, there is no contact between manager! Little too much on their individual capability, knowledge and experience a foreman get all their orders their. Top with various other officers at the lower levels a part of the executives Account-Based marketing How., motivating and supervising employees at all levels of an organization his work and also to whom he responsible. Men at the top rely on personal judgment and take a call general manager may be managers who can excellently! Without managerial guidance or approval, allowing them to work much more efficiently than line employees the [ Read about... Staff officers perform their job functions without managerial guidance or approval, allowing to. To record the user consent for the cookies in the organizational structure your knowledge on this site, Read! B2B Account-Based marketing: How to Grow Sales generally perform their functions smoothly through better coordination and cooperation set GDPR!