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. Each position in the structure has an authority over a lower position. So, there is a lack of stability in enterprise performance. This type of organisation helps in co-ordination and control. Line managers plan, and staff helps in execution and betterment. Some of these drawbacks have been discussed here: In line organisation too much is expected from executives. Image Guidelines 4. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. Autocratic Leadership 4. iii. 1. One of the advantages of the line organization structure is simplicity. (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. 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. (3) Instructions are given direct from the boss to his subordinate enabling instructions to move in a direct line without any interruption. The staff offers specialized/technical suggestions, advice and ideas to the senior management. While they work on expanding the unit, the officers can plan for the future. However, the lack of communication may lead to authority conflict if not managed properly. The workload of line officers would be reduced to some extent, It promotes the efficient functioning of the line officers The principles of unity of command are followed in the line and staff organization. It is also easy to explain to the workers. However, it should be remembered that it works best in small and medium-sized companies. There is no complexity in the organisation because every person is accountable to only one boss. 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. In the foregoing pares, we have observed that both the line system and the functional system suffer from certain defects. Line organization refers to that organization in which the authority flows from top to down in a vertical manner and not in a horizontal manner. about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? Merits 4. The viewpoints of both line and staff of this conflict are given below: A. Plagiarism Prevention 5. At departmental level manager is in charge and he can direct the activities of his juniors. As such, they can not devote sufficient time to creative functions. 6. Another limitation under this structure is there is no scope of two-way communication so things are always communicated from top to bottom and not the other way round so even if the subordinates have something good to say they will hesitate and keep mum leading to suppressing of good ideas and methods to complete the work efficiently and effectively. 3. 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. employees are accountable to one person the manager; possibility of quick interaction between employees and management; each employee or department is responsible for one issue; lack of specialization, which requires the top level to deal with all functions in the organization; many intermediate management links that prevent the employee from quickly contacting and getting answers from top management; low flexibility and adaptability to new or crisis situations. While many organizations follow a line organization system, a line and staff system is not suitable for small businesses. It gives complete control to the top hierarchy, exhibiting authoritative leadership. The Staff Viewpoint. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. Hence, nobody is escaped from the responsibility. Survey respondents answered the question, "Please choose the top three leadership 5. Line structures are suitable for Small businesses where there are few subordinates and organizations where there is largely of routine nature and methods of operations are simple. They are responsible for sharing the information with the rest of the team. 2. Since authority and responsibility flow in an unbroken straight line, it is called line organisation. Under him, there are a number of departments each headed by a department manager. 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. This finding underscores the increasingly recognized need for companies to improve their I&D engagement with core-business managers. Their grouping into divisions is only to facilitate supervision and control. By this method, specialisation is attained. So it can be operated simply and clearly. b. Communication is fast and easy and feedback can be acted upon faster. Heres a breakdown of the power in each. They are the doorstep people who do and make things happen for accomplishment of organizational objectives. Hence, this is unstable. In smaller organizations, where the work is streamlined and tasks are assigned, its the most effective way to achieve your goals. (iii) Line organization is not suitable to big organizations because it does not provide specialists in the structure. Responsibility is fixed. Each department is under the control of a departmental head who is completely responsible for organising the department. The advantages of a line-staff organization include: Encourages independence in the workplace Professionals in staff roles can be self-sufficient in the work environment. Any departure from this scheme may create problems. Classical theories of organization associated with Henri Fayol, Frederick W . The operation of line organization is very simple. Every organizational system comes with some pros and cons. 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, the functional structure provides all authority to the manager. Many jobs require specialized knowledge to perform them. Staff authority refers to advising the people with line authority for better results. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_1628583994") }). Functional structure introduces a division into functional departments headed by specialists. They must stay within the limit of their authority and act accordingly. 2. 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. Finding out your culture fit can help you thrive in the workplace. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. Line organization structure chart tends to simplify and clarify responsibility, authority, and accountability relationships. Advantages of Line Organisation: ADVERTISEMENTS: Line organisation offers the following advantages: (a) It is simple to operate and easy to understand. And others may be good at execution but not so when it comes to planning. Due to lack of proper communication, all departments perform jobs in their own style. Thus, they lose their capacity for independence thinking. Where the number of subordinates and operatives is less. Every organization needs to make practical decisions timely for progress and success. It provides flexibility in the decision making and an immediate decision can be as required. Authority flows vertically from top level person to all the persons responsible for the execution of work. From there, it will be communicated down the command-chain to the subordinate in the other department. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. General Manager. But opting out of some of these cookies may affect your browsing experience. The lack of communication creates many problems for the smooth conduct of business. This enables a manager to take prompt decisions. Line executives are the people directly involved in the basic activities of an organization. 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. All the employees are performing the same type of work at one level. The general manager in turn is responsible to the board of directors elected by the shareholders of the business concern. Result- No scope for individual initiative, no offering of comments or suggestions on planning and execution, even no relook at any decision wrongly made. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. Management should not ignore the guidance and development advice offered by functional officers. The subordinates should get commands only through their immediate superiors. Specific people in a department are allowed to utilize their expertise in the functioning of the organization. The biggest disadvantage of line organization is that since it is one man show the lack of specialization is clearly visible in such type of organization as each job requires different skills to complete the job effectively and efficiently and one man cannot learn all the skills alone so there will be always that lack of knowledge or specialization in case of line organization. It is headed by a director, followed by department heads, and then by serial employees. Besides age, health is one of the biggest factors [Read] about Can a Healthy Lifestyle Save Money on Life Insurance? 6. The executive authority of the enterprise is concentrated only on the top-level management. It means a subordinate is responsible to only one superior. It does not make provision for staff specialists. (iii) Each subordinate receives orders only from one superior and is answerable to him only. If they are not able the enterprise will not be successful. Some of them are inherent while some others are due to peculiar failings of human beings. This branch addresses a lack of expertise in a typicalline organizational structure. (v) There is limit on subordinates under one manager. Every employee is responsible to his immediate superior. The top-level manager can control the entire organization through the hierarchy of authority. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. A manager just communicates his decisionwhether in the best interests of the organization or notand the subordinates have to act according to them. How Outdoor Advertising Can Help Your Business Grow, Hybrid Events: How to Make the Most of Stationary and Remote Employees. Your email address will not be published. As a manager, hes the one who has to communicate the CEOs orders to the. 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. (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. The modern military organisations do not entirely rely on line organisation. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. 2. (ii) There is concentration of authority at the top. What Are the Tasks of Organizational Structure? military, vertical, scalar, departmental organization. The simple organization is adjustable according to the changing business environment. 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. This structure brings in specialized or supporting staff to aid line executives. Specialization. Necessary cookies are absolutely essential for the website to function properly. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. What is Strategy Implementation and How To Implement it? (iv) Fixed responsibility Everybody in this type of organisation knows to whom he is responsible, and who are responsible to him. (iii) Line officers are slow to accept new ideas and they resist change. Demerits 5. Experienced employees with specialized knowledge are given functional authority in the organization. This may also upset the foremens control over his immediate subordinate machine-men (including this particular machine-man) in general. Superior at each level makes decisions within the scope of his authority. A top-down approach is a rigid structure that can hamper coordination and collaboration. Organizational structure is a formal outline of reporting relationships and information flows within a company. Moreover, an employee knows to whom he/she is responsible and who are responsible to him/her. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. 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. 6. Main article photo: photo by Vlada Karpovich, source: pexels.com. The Christian Church has also been organised in a similar manner. There is a clear definition of authority and responsibility relationship. Thus, in the production department, there may be a number of foremen each having a number of workers under him. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. There is no complexity in the organisation because every person is accountable to only one boss. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. Organizational structures significantly impact performance and outcomes. Based on this statistical analysis, remote work is not going anywhere . To achieve organizational goals and objectives, individual work needs to be coordinated and managed. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. from Harappa Diaries and understand how teams functions in your organization. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. Maintain Discipline 4. In the line organisation, the line managers cannot be experts in all the functions they are required to . Line and staff organization is an expensive organizational structure. He may neglect some of the duties and there may be inefficiency in management. Each section in charge has direct control over his section. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. Line and staff organization is a little more complicated than the line system. Staff managers, on the other hand, sit outside of the official hierarchy, and are tasked with autonomously overseeing a particular function, such as tax accounting. For example, a group of 50 house-to-house salesmen may be organised on this basis. If the managers treat the employees as a pendulum between them, they will most likely get tired of their job roles. 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. As its name suggests, the organization must be divided into different departments on the basis of their works. 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. In spite of many limitations, the importance of line organisation cannot be minimised. 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. 3. Members of the . Line and staff officers and managers must understand each others work scope and not try to interfere. Line organisation suffers from a number of drawbacks. An executive cannot shift his decision-making to others, nor can the blame be shifted. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Where the process of production is continuous or special. It also allows quick decisions and efficient coordination. A departmental head receives orders from the general manager and passes them on to his immediate subordinates. These cookies will be stored in your browser only with your consent. Line Organisation is the oldest form of organization. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. (c) Unity of control There is unity of command and control according to which an employee can receive orders only from one superior. Simplicity. For example, at the lowest levels, all workers may perform a similar activity, but for control and supervision they may be divided into different groups, each placed under a foreman. Similarly, each person derives authority from the superior above him. (i) Less Expensive It is less expensive as no expenditure on staff personnel is involved. You consent to our cookies if you continue to use our website. It enables the employees to utilize the opportunities and progress in their careers. When we draw the line it is always straight the only point is it can be either be drawn vertically or horizontally and in the case of the company that follows the line organization structure same thing applies. They judge the performance of persons according to their own likings. All the departmental heads are responsible to their immediate superior i.e. The top-down approach helps streamline communication. Everybody knows his work and also to whom he is responsible. The only problem with a credit card is that it will usually carry a high APR. Publisher Blue Whale Press sp. iv. Departmental head is given full freedom to manage his department. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. 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. Unified Control. Thus it relates to Jack of All Traders But Master of None. (iii) Strong discipline It ensures excellent discipline. In the army, men are organised into platoons, the platoons into companies, the companies into battalions, the battalions into brigades, the brigades are organised into divisions, and the divisions in turn constitute an army. (ii) There is vertical flow of authority and responsibility. Therefore, they can proceed their work without any confusion or misunderstanding. An example of data being processed may be a unique identifier stored in a cookie. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. Conflict between Line and Staff: One more important disadvantage is the conflict between the line and staff officers. He need not to waste time in getting instructions from above. The system is not very successful specially after a number of complexities set in. (ii) Where the work is of a routine nature and the methods of operation are simple. It means the staff authority may work to facilitate the process in line control. Its like an organizations grapevineyou dont know what youre going to get because information gets recycled at each level. Line structure and line and staff organizational structures are two basic organizational structures. 3. This is because of unified control. They judge the performance of persons according to their own yardsticks. 5. The line officers cannot be experts in every line of business. There is thus a hierarchical arrangement of authority. Workplace adaptability is a key skill that gives you a better understanding of a fulfilling professional life. Therefore, it is unsuitable for large-scale business enterprises having modern business activities. (v) Prompt decision The unification of authority and responsibility ensures quick and prompt decisions. Employees are fully aware of the boundaries of their jobs. Disclaimer 8. (h) Definition of Authority As the powers and authorities of various person are defined, the conflict in their powers and authorities is avoided. One of the most commonexamples of line organizationis small businesses with the owner overseeing daily operations. A line function is one that directly advances an organization in its core work. No one can exchange their duty to others nor can they avoid it. Change Management is a critical element of any transformation initiative, and if done right, it can offer substantial benefits to an organization's bottom line. 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. Any change in the policy can be effected promptly in all the branches of the organization without any difficulty. (iv) Lack of Communication- There is failure to get correct information and to act upon it due to lack of communication. The number of subordinates should be such that they are properly supervised. (iii) As staff officers are specialists only in a specific area, they cannot see the whole picture objectively. i. Simplicity- Simple to understand and develop. 2. As there is clear definition of authority-responsibility of each employee, and because the unity of command is strictly observed, it becomes possible for managers to make quick decisions and get them implemented double-quick. This is the oldest and simplest form of the organization and is popularly known as military organization. According to referenceforbusiness.com, staff managers often play a support role to line managers. It is the oldest form of organization. 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. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. In a simple organizational structure, various departments are autonomous, and there is little communication with each other. 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. Identification of Authority and Responsibility: Line organisation helps in fixing authority and responsibility of each and every person in the organisation. (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. Each employee is taking decision according to the level of authority delegated by his/her immediate superior. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation.
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