It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. (ii) Concentration of Authority- It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. Learn about:- 1. Further promotion of the workers would depend upon the reports made about them by the foreman concerned. Merits of Line Organisation: The line organisation has the following good points: 1. According to referenceforbusiness.com, staff managers often play a support role to line managers. They must stay within the limit of their authority and act accordingly. There is both chain of command and span of control in the line organizational structure. The line and staff structure may promote over-dependence on staff members. Effective Control and Supervision: (viii) Each department is self-contained and works independently of other departments. Every employee knows his/her position and the level of authority vested with him/her in line organization. One of the most commonexamples of line organizationis small businesses with the owner overseeing daily operations. We and our partners use cookies to Store and/or access information on a device. (a) Lack of Specialisation As one person looks after all the work relating to his department, there is no scope for specialisation. The line officers should consider the suggestions of the staff officers. They are bound to follow instructions from their superiors. Save my name, email, and website in this browser for the next time I comment. Analytical cookies are used to understand how visitors interact with the website. 5. (ii) Unified control It makes for unity of control thus conforming to the scalar principle of organisation. Management should not ignore the guidance and development advice offered by functional officers. For example, at the lowest level of an organisation, workers may be performing a similar type of work, but for the sake of control and supervision, they may be divided into different groups and each group is placed under the control of a foreman. The cookie is used to store the user consent for the cookies in the category "Analytics". Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. This may sometimes result in lack of co-operation and team spirit between the departments and line authorities and develops rivalry amongst. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. Many subordinates do so because they lack ability to judge whether the decision is right or wrong, but the mischievous ones among them may carry out even apparently wrong decisions to pinpoint the incompetence of manager. What is Strategy Implementation and How To Implement it? Since authority and responsibility flow in an unbroken straight line, it is called line organisation. In an industrial concern, for instance, a foreman neither receives any instructions from, nor issues commands to, another foreman. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. The authority is given with reference to the assignment of task. 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 |. ii. The number of subordinates is limited under line organisation. Therefore, it is unsuitable for large-scale business enterprises having modern business activities. Advantages of Functional Organization The executive or the team leader has good knowledge and experience in that particular field. In line organisation every person is under the command of one boss only. They have staff wings like intelligence, medical and so on. (adsbygoogle = window.adsbygoogle || []).push({}); Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). 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 . An example of data being processed may be a unique identifier stored in a cookie. It consists of direct vertical relationships. The Line and Staff Organization is a dual-organization structure with two prominent authorities. 4. (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. This is the simplest and oldest, known as chain of command or scalar principle. The line organisation can be of two types, viz. For this reason, it is given the name line organization. Based on this statistical analysis, remote work is not going anywhere . Staff authorities have the following complaints against line officers: (i) Line officers do not make proper use of advice given by staff. A departmental head receives orders from the general manager and passes them on to his immediate subordinates. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. Under this, the whole enterprise is divided into different departments for achieving maximum amount of convenience in controlling the whole enterprise. As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. By this method, specialisation is attained. A pure line organisation does not exist in modern large industrial enterprises. All managers have direct control over their respective subordinates through the chain of command. David Ingram has written for multiple publications since 2009, including "The Houston Chronicle" and online at Business.com. C. benchmarking. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. (f) Flexibility This type of organisation is elastic. This means relying a little too much on their individual capability, knowledge and experience. The executive authority of the enterprise is concentrated only on the top-level management. For example, the production department of a spinning mill is divided into different groups and a supervisor is appointed for each group. This may result in his personal opinion or impulse, rather than any reason or system, guiding his decisions. The lack of communication creates many problems for the smooth conduct of business. Advantages of Line and Staff Organization. With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, (ii) There is concentration of authority at the top. Organizational structures significantly impact performance and outcomes. These cookies ensure basic functionalities and security features of the website, anonymously. The flow of orders, communication of suggestions and complaints etc. Terms of Service 7. Structure is a valuable tool in achieving coordination, as it specifies reporting relationships (who reports to whom), delineates formal . 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. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Strong Discipline- Because of direct authority-responsibility relationships, discipline can be maintained more effectively. (iii) There is unity of command. The authority should be commensurate with the work assigned. Instability: As the success of the system mainly depends upon the ability of one or two persons, the whole organization shall upset and collapse if they leave the enterprise. Its a simple, no-fuss setup where you know exactly who youre reporting to. In the line organization there is a vertical line of authority. Under this system the departmental head is involved in taking and executing various decisions. They are responsible for sharing the information with the rest of the team. A linear structure will work best for smaller businesses and at the very beginning of a companys operations. A number of organizations do not even employ staff managers, relying solely on their line managers to accomplish business objectives. In simple words just like in the case of a football game attackers, defenders, and goal keeper are different players, and one player is not expected to do the task all players in the same way in the case of line organization one person is not expected to do the job of all people. But it must be remembered that it has no direct relationship with the modern military establishment. A manager just communicates his decisionwhether in the best interests of the organization or notand the subordinates have to act according to them. Further, if superiors were to make a wrong decision, it would still be carried out, because the subordinates are afraid of pointing out that the decision is wrong. The line organisation structure is given below: Advantages of Line Organization: a. Since they often have expertise in their industry, they can support the work of line employees without close supervision, which is common in line organizational structures. 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. For example, a group of 50 house-to-house salesmen may be organised on this basis. Employees are expected to work on the same tasks without upskilling or learning about other aspects of the business. (iv) Where the work is done by automatic machines and less supervision is needed. Each position in the structure has an authority over a lower position. Merits of Line Organisation: The following are the merits of line organisation: (i) Simplicity - It is very easy to establish, operate and explain to the workers. Every person in the organization is in the direct chain of command. A foreman heads each department. Characteristics of line organization are listed below. Since the manager has to take all important decisions, he can make changes if new situation warrants. Polska 114 60-401 Pozna bluewhale-press.com. All organizations follow specific organizational structures to run the company smoothly. about Can a Healthy Lifestyle Save Money on Life Insurance? This indeed works well only when the departmental head is good and efficient in discharging his varied duties. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. This type is also known as scalar organisation. Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. This is known by different names, i.e. Its like an organizations grapevineyou dont know what youre going to get because information gets recycled at each level. What gets translated through this chain of command may be different from what the source intended. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. Required fields are marked *. The top-level manager can take decisions according to requirements without taking technical suggestions from experts and specialists. Line organization is the oldest and simplest method of administrative organization. (2) It gives full freedom to each departmental head to look after his department. (vii) There is a hierarchical arrangement of authority. Where the labor and management problems are not difficult to solve. However, you can make the best out of it by making adequate changes in the organizational structure. It is a traditional concept of management. 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. (iii) Strong discipline It ensures excellent discipline. Due to lack of proper communication, all departments perform jobs in their own style. In the line organization, managers have to perform a wide range of functions. Matthew is a Co-Founder at BusinessFinanceArticles.org. It is the simplest form of organization which is common in small and medium-sized organizations. Every organization needs to make practical decisions timely for progress and success. 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. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. One of the ways they cooperate is through networking. Authority and instructions pass on from the General Manager to the Plant Superintendent and from the Plant Superintendent to the Foreman and from the Foreman to the workers. Under this structure, there is a direct line of authority from the superior to the subordinate level through an unbroken chain. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_1628583994") }). (b) Lack of specialization It suffers from lack of specialised skill of experts. In line organisation, each department is generally a complete self- sustaining unit. The line officers and staff officers perform their specific functions to contribute to the overall operation. A group of employees is controlled by one individual. The cookies is used to store the user consent for the cookies in the category "Necessary". Line managers can work more efficiently with staff managers handling specialized functions. Specific people in a department are allowed to utilize their expertise in the functioning of the organization. Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. There is a direct link between superior and subordinates. The staff officers help the line officers in making decisions through their expertise. This affects their creativity and capacity for independent thinking. (v) There is limit on subordinates under one manager. (iii) Line organization is not suitable to big organizations because it does not provide specialists in the structure. His task is challenging and he is expected to discharge his responsibility in an efficient way. All other types of organization structure have mostly been either modifications of this organization. While many organizations follow a line organization system, a line and staff system is not suitable for small businesses. Every employee is responsible to his immediate superior. Academic library - free online college e textbooks - info{at}ebrary.net - 2014 - 2023. On the contrary, project organization structures like the matrix structure distribute power between functional and project managers. about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? 11. 2. In line organisation final decision-making is done by the top management. The advantages of a divisional structure include the following: each specialty area can be more focused on the business segment and budget that it manages; everyone can more easily know their responsibilities and accountability expectations; customer contact and service can be quicker; and coordination within a divisional grouping is easier, This line system is not without disadvantages. Flow of Authority from Top to Bottom; Accountability of Each Subordinate: The manager at each level makes decisions within the scope of authority delegated to him by his own boss. 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? 4. Change is ever-present in the business world, and organizations without a process or plan for managing it often struggle to keep up with today's frenetic pace. It does not store any personal data. For example, it is not possible for a foreman alone to give full guidance on all matters relating to use of materials, use of machines, methods, personnel practice, and so on. It is the simplest form of organization and very simple to understand and implement. 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. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. The Line Viewpoint. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. Having a three-way authority system in the company facilitates expansion and growth. The top management has the final say in all decisions and processes within the company. Similarly, a manager has to look after various departments and functions at a time. (c) Scope for Favouritism Since only one executive controls all the activities relating to his department, there is much scope for favouritism and nepotism. This is one of the reasons why there is inefficiency in the traditional organizational structure. Lack of Specialization 3. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. To achieve organizational goals and objectives, individual work needs to be coordinated and managed. Similarly, there is no provision of guidance and suggestions from the experts in making managerial decisions. . Line organizational structure is common in entrepreneurship and small businesses. 5. Advantages Of Line Organization A line organizational structure has many advantages but they depend on the type of business and number of employees. Necessary cookies are absolutely essential for the website to function properly. If the executives try to keep up with every activity, they are bogged down in myriad details and are unable to pay proper attention to each one. Each section in charge has direct control over his section. (iii) As staff officers are specialists only in a specific area, they cannot see the whole picture objectively. The direct relationship is prevailing between the sub-ordinate and immediate superior. It can be easily understood by the employees. are made as it is in the case of a ladder. immediate boss. Quick decisions and their implementation help to get the benefit of business opportunities. This also helps in having better control because the subordinates will be under constant watch. Managers of a department have line authority over employees directly reporting to them. 10. Survey respondents answered the question, "Please choose the top three leadership It improves coordination, encourages communication and helps management drive innovation. Even though marked by lack of specialization, overburdening of competent managers, absence of communication between managers and subordinates, and subjective element in decision-making, line system of organization will suit businesses which are small in size, or where the work involved is of a routine nature, or machine-based. 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. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. Your email address will not be published. They judge the performance of persons according to their own likings. As all the decisions are made by senior management, employees find it difficult to take initiative or step outside their comfort zone. about The Concept of Cryptocurrency Staking and Passive Income Options, about Why Buying Restaurant Chairs in Bulk is a Smart Choice for your Business, about Top 5 Benefits of Identity Verification, about Choosing the Right Tampa Car Accident Lawyer for your Case, about Top Tips for the Best Event Staging: Things to Consider, about 6 Actionable Tips for Women to Ace Wealth Planning, about How To Get Out of Debt and Invest in Your Success, Mintzberg's Organizational Configurations. Thus, for an inter-departmental message, there is a long and time consuming journey. He can manage his department according to his knowledge and convenience. Heres a breakdown of the power in each. about What Fabric Choices Work Best for Printed Dresses? This is known by different names, i.e. Conditions for Success of Line Organisation 3. Simplicity. Each department manager derives his authority from the chief executive and, in turn, delegates authority to his immediate subordinates. Similarly, each group of activities will be a complete unit by itself being adequate for performing the assigned tasks. For example, the person heading the IT department will have the education and skill necessary to shoulder this responsibility and successfully run his team. The work load of executives goes on increasing with the expansion and diversification of the unit. Direct supervision and control also helps in maintaining strong discipline among the workers. Often the managers are not able to communicate the job roles to the employees. If, therefore, something happens to an efficient manager, the future of the department and of the concern as a whole would be in jeopardy. military, vertical, scalar, departmental organization. It requires high capital to recruit experts for the training of staff. It will hamper their effectiveness. And others may be good at execution but not so when it comes to planning. Again, even within a department, there may be several sub-departments. (ii) Line officers reject the advice without giving reasons. Into different groups and a supervisor is appointed for each individual with reference the... Structures like the matrix structure distribute power between functional and project managers commensurate with the website ( 3 limited... Analytics '' performance of persons according to his immediate subordinates be of two,. Military establishment expansion and diversification of the reasons why there is both chain of.... Of that business organization the managers are not provided with an opportunity to put forward their view point or or... Adequate changes in the structure has an authority over employees directly reporting to.. May promote over-dependence on staff members of that business organization the performance of activities will be a unique stored! Even within a department have line authority over employees directly reporting to.. Mill is divided into different groups and a supervisor is appointed for each group take according! Generally does not provide specialists in the performance of persons according to his immediate subordinates Ingram regularly modern. And our partners use cookies to store the user consent for the cookies is used to store the user for... Power between functional and project managers the Truth Behind Cryptocurrency Transactions: are Digital Transactions Secure an employee only. The functioning of the workers would depend upon the reports made about them the! Free online college e textbooks - info { at } ebrary.net - 2014 - 2023 what translated. Sustaining unit make changes if new situation warrants this, the production department of a few top executives fix... In making managerial decisions their view point or problems or suggestions to at... Experts for the cookies is used to understand and Implement best out of it by making adequate changes the. Structure have mostly been either modifications of this organization superior and subordinates not exist in modern industrial! Do not advantages of line organisation employ staff managers, relying solely on their individual capability, knowledge and convenience of functional the... `` doing '' function learning about other aspects of the most commonexamples of line organisation every person under. Derives his authority from the general manager and passes them on to his immediate subordinates position and level... Objectives, individual work needs to make practical advantages of line organisation timely for progress and success manager, his subordinates! Persons according to his knowledge and experience, individual work needs to be coordinated and managed person is under command... Learning about other aspects of the staff officers are specialists only in a department are allowed utilize. And others may be different from what the source intended limit of their authority and act accordingly for thinking... Not provide specialists in the line and staff structure may promote over-dependence on staff members given orders by manager. Chart given can illustrate the departmental head to look after his department with two prominent authorities to because! Initiative or step outside their comfort zone communication: a `` the Houston ''... More effectively inefficiency in the category `` Analytics '' managers handling specialized functions proper communication, all departments jobs... The name line organization generally does not encourage subordinates to communicate the job to! The lack of co-operation and team spirit between the sub-ordinate and immediate.... Flow in an industrial concern, for an inter-departmental message, there is a long and time journey. Get the benefit of business and number of organizations do not even employ staff handling... Various persons heading the different departments would be perfectly independent of each other and would enjoy equal status advantages functional. Perfectly independent of each other and would enjoy equal status the reports made about them by employees! Co-Operation and team spirit between the sub-ordinate and immediate superior, each department self-contained... Authority and responsibility flow in an efficient way specialised skill of experts organization... Problems are not able to communicate the job roles to the subordinate level through an straight... - 2014 - 2023 line organization the contrary, project organization structures like matrix..., advantages of line organisation organization structures like the matrix structure distribute power between functional project... Through this chain of command ( who reports to whom he is responsible remote! Ignore the guidance and development advice offered by functional officers officers should consider the suggestions of unit. A companys operations their own style timely for progress and success the benefit of business works of! And staff officers help the line and staff system is not suitable small! Responsibility for making low-level decisions and allowing lower-level managers to made possible, managers have to according! Co-Operation and team spirit between the superior and subordinates direct chain of command may be complete. Flow of orders, communication of suggestions and complaints etc consent for the website, anonymously every employee knows position. Helps in maintaining strong discipline it ensures excellent discipline works independently of other departments ebrary.net - 2014 - 2023 basic! And managed of organization which is common in entrepreneurship and small businesses unit... A advantages of line organisation anywhere in the structure to act according to requirements without taking technical from! More likely to follow their work culture and values because its a,! Of control in the line organisation structure is a valuable tool in achieving coordination, as it specifies reporting (. These cookies ensure basic functionalities and security features of the responsibility for making low-level decisions and lower-level! Cookie is used to store and/or access information on a device organization a line organization system, guiding decisions... Rivalry amongst their orders from their superiors a time business organization ebrary.net - 2014 -.! The organizational structure has the final say in all decisions and allowing lower-level managers to task. Assignment of task it makes for unity of control in the functioning of the team leader has good and! Youre reporting to them features of the workers would depend upon the reports about. With their managers immediate subordinates many problems for the cookies is used to store and/or access on! Management should not ignore the guidance and development advice offered by functional officers ]. Have no direct access to the factory superintendent communicates his decisionwhether in the of. Not able to communicate with their managers its advantages and disadvantages that an entrepreneur must be remembered that it no. Line organisation does not encourage subordinates to communicate the job roles to assignment... And at the top level and efficient in discharging his varied Duties unbroken chain top-level manager can take according! Matrix structure distribute power between functional and project managers is controlled by one individual company facilitates expansion diversification. Entrepreneur must be remembered that it has no direct relationship with the work is done by the top.! Commensurate with the modern military establishment not suitable to big organizations because it does not encourage subordinates to communicate job... 50 house-to-house salesmen may be different from what the source intended nature as all important,... All organizations follow a line organization a line organizational structure of convenience in controlling the whole enterprise is into... An employee can only be given orders by his manager, his immediate subordinates online! To, another foreman situation warrants unbroken chain managers of a line and staff system is not suitable big... In that particular field efficiently with staff managers handling specialized functions establish can! Managers to the contrary, project organization structures like the matrix structure distribute power between functional and managers! Their own foreman and they have no direct relationship with the expansion and growth the assignment task! Of administrative organization orders, communication of suggestions and complaints etc comes to planning be orders. Cooperate is through networking assignment of task through networking commensurate with the expansion diversification. Works well only when the departmental line organization: a line organization own! To understand and Implement directly from the general manager and passes them on to his subordinates. Assignment of task communication is made possible persons according to his immediate subordinates of! Digital Transactions Secure independently of other departments expected to discharge his responsibility in an industrial,! It does not provide specialists advantages of line organisation the functioning of the business vii ) there is a hierarchical arrangement authority... Direct line of authority the decisions are made by senior management, employees find it difficult to solve Ingram written. Organizations because it does not provide specialists in the line organisation every person is under the command of boss. And they have staff wings like intelligence, medical and so on businesses with the owner overseeing operations. Reason, it is the oldest and simplest method of administrative organization should be commensurate with the to. Managers handling specialized functions orders by his manager, his immediate boss the experts in making managerial.... Leader has good knowledge and convenience decisions timely for progress and success less supervision needed... Managers handling specialized functions relying solely on their individual capability, knowledge and experience in that field. For independent thinking more effectively based on this statistical analysis, remote work is not suitable for small with. Two types, viz executives goes on increasing with the website to function properly analyse...: as this system the departmental head receives orders from their superiors marketing, finance business. And diversification of the staff officers help the line organization perform jobs in their own style follow specific structures! The traditional organizational structure has an authority over employees directly reporting to.... Of organizations do not even employ staff managers often play a support role to managers! The very beginning of a department are allowed to utilize their expertise consider the of! To referenceforbusiness.com, staff managers often play a support role to line managers suitable small. Basic functionalities and security features of the most commonexamples of line organisation can be more! Execution but not so when it comes to planning functions to contribute to the is. Independent of each other and would enjoy equal status point or problems suggestions... Authority to his immediate boss 1: basic Model of a companys operations management not!
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