Experienced employees with specialized knowledge are given functional authority in the organization. Advantages Of Line Organization A line organizational structure has many advantages but they depend on the type of business and number of employees. Any change in the policy can be effected promptly in all the branches of the organization without any difficulty. It gives complete control to the top hierarchy, exhibiting authoritative leadership. A group of employees is controlled by one individual. Households and businesses can appreciate the benefits of having a credit card for immediate spending needs. Line and staff organization is a little more complicated than the line system. It improves coordination, encourages communication and helps management drive innovation. Simple and Easy To Understand 2. (ii) There is vertical flow of authority and responsibility. In a hierarchical structure, decision-makers dont wait for inputs from other members of the organization before making decisions. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. Under this organisation, activities on any one level are the same. According to McFarland, Line structure consists of the direct vertical relationship which connects the positions and tasks of each level with those above and below it.. Unity of Command: . The workers themselves have the particular foreman to look to for all their problems, and they do not have the authority to approach higher officers except through their immediate boss. Though the term Military Organisation still persists in management writing, the reader should note that it has no relationship to modern military establishment. (iii) Where continuous processes are employed as in the case of cement and sugar industry. There may be a good deal of nepotism and jobbery and personal prejudices. It represents a direct vertical relationship through which authority flows. 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. Every employee is responsible to his immediate superior. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. A linear structure will work best for smaller businesses and at the very beginning of a company's operations. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. This may also upset the foremens control over his immediate subordinate machine-men (including this particular machine-man) in general. David Ingram has written for multiple publications since 2009, including "The Houston Chronicle" and online at Business.com. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. (iii) Line organization is not suitable to big organizations because it does not provide specialists in the structure. The adjustments in the organisation can be easily made to suit the changing conditions. Each organizational structure has its specific characteristics. Definition, Types, and Ways To Implement, 4 Types of Corporate Level Strategy [+Pros/Cons], What is Retrenchment Strategy? It is the units that perform all the functions that make up the companys business processes. Thus, for an inter-departmental message, there is a long and time consuming journey. Since one man controls the whole show, the subordinates have to dance according to his tune. Staff and line are names given to different types of functions in organizations. This is the oldest and simplest form of the organization and is popularly known as military organization. Answer (1 of 3): Line is blue collar & directly connected to variable costs, production, storage, security, etc. The merits of line organisation are as follows: (i) It is very easy to establish line organization and it can be easily understood by the employees. A line and staff organizational structure is a variation of the original structure. 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. Decision-making responsibilities are static with limited flexibility. Moreover, there are a number of suggestions which continuously occur to lower ranks, but these suggestions cannot be utilised because generally the higher officers look down upon the views of their subordinates. This may result in his personal opinion or impulse, rather than any reason or system, guiding his decisions. This type of organisation helps in co-ordination and control. Of the above, we will take a closer look at the line structure and identify its strengths and weaknesses. At departmental level manager is in charge and he can direct the activities of his juniors. Specialization provides expert advice and proficiency in management. In line organisation, every manager exercises a direct authority over subordinates who are directly responsible to their superiors. Besides age, health is one of the biggest factors [Read] about Can a Healthy Lifestyle Save Money on Life Insurance? (iii) There is clear-cut identification of authority and responsibility relationship. (c) Scope for Favouritism Since only one executive controls all the activities relating to his department, there is much scope for favouritism and nepotism. Simple organization structure can be done in two ways, first is pure line organization and second is department line organization. This ensures better understanding and quick action. Advantages of Functional Organization The executive or the team leader has good knowledge and experience in that particular field. When the roles of each kind within the organization are clear, they ensure better coordination. Thus, they lose their capacity for independence thinking. Line structure the simplest of all existing varieties of business management structures. In line organisation, the line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. In a line organization, authority follows the chain of command. Having specialized staff managers on board can help to bring clarity to extraneous legal, tax and other issues. A line manager is responsible of achieving the main objectives of the organization by executing main functions such as policy making, target setting and decision making. The operation of line organization is very simple. This website uses cookies to improve your experience while you navigate through the website. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. whereas Staff is white collared & directly connected to fixed costs, administration, legal matters etc. The organizational structure is shaped by factors such as: No matter what organizational structure we choose, certain elements will always be present in it: management (except for self-managing teams, about which read here), i.e. (d) Limited Communication In this type, there is no communication from subordinates upwards and the workers should follow the orders of superiors, without expressing any opinion about the orders communicated to them. Every person is in charge of all the persons under him and he himself is accountable to his superior only. The line officers and staff officers perform their specific functions to contribute to the overall operation. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. The lack of communication creates many problems for the smooth conduct of business. 4. In a departmental line organization, there is a chief executive at the top. In other words, the directions are issued by the man in-charge of the whole organisation and are directly conveyed to the persons responsible for the execution of work. Further, the span of supervision theory says no executive in a line organization should be burdened with supervising more than a manageable number of subordinates. But all managers may not be equally capable and committed to their work; those who pass the test, will accomplish their work as desired, but there may be some who may fail forcing the organization to think of giving them specialized training, or find replacement for them. Line organization structure chart tends to simplify and clarify responsibility, authority, and accountability relationships. Exhibit 10.4 illustrates a staff or functional authority organisational structure. (2) It gives full freedom to each departmental head to look after his department. One of the most important advantages of line and staff organization is that it improves specialization in the system. This may lead to wrong adjustments or wrong decision-making on the part of the executives. General Manager. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. Each of these departments will report directly to the supervisor above them. Modern business is so complex that it is extremely difficult for one person to carry in his head all the necessary details about his work in his department. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. Image Guidelines 4. 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. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. Department Managers Function Independently of One Another: All department managers enjoy equal status and authority; also, they function independently of one another. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. (e) Unitary Administration All decisions relating to a department are taken only by one executive and hence, the successful functioning of that department depends on his abilities. military, vertical, scalar, departmental organization. They may move higher in the hierarchy by correctly implementing their skills in the processes. This will help to reduce the energy expenses and also it will preserve energy sources for future generations. Although there is communication from top to bottom there is usually no communication from the lower ranks to higher ranks and executives. Advantages of Line Organisation: ADVERTISEMENTS: Line organisation offers the following advantages: (a) It is simple to operate and easy to understand. Line managers compose the chain of command, and are responsible for directing, motivating and supervising employees at all levels of an organization. Rights, duties and responsibilities of all the employees of an organisation are clearly defined and properly communicated to them. It can be easily understood by the employees. Continue with Recommended Cookies. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. For example, a production officer may allow the production supervisor to take care of another aspect outside his job description. military, vertical, scalar, departmental organization. They are only required to do as told to them by respective managers. According to Allen, Organizationally, the line is the chain of command that extends from the board of directors through the various delegations and re-delegation of authority and responsibility to the point where the primary activities of the enterprise are performed.. If a decision making process involves the consultation of a number of persons then there are likely to be delays in deciding things. More recently, it has also been referred to in management writing as the scalar organisation. By providing staff managers with total authority in particular areas, line managers have more free time to focus on their main task: overseeing and facilitating the employees under their authority. (ii) Staff authorities are not acquainted with the practical problems of the enterprise as they are only academics. Finding out your culture fit can help you thrive in the workplace. Development of Employees: Each employee is taking decision according to the level of authority delegated by his/her immediate superior. (b) It facilitates unity of control and the presence of scalar principle. Storage Discipline: The vertical arrangement of authority and the singleness of responsibility ensures excellent discipline. Both are equally important to an organization. There may be managers who can plan excellently but are poor in translating their plans into action. (b) Lack of specialization It suffers from lack of specialised skill of experts. 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. Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. Overloading: The success of this system largely depends upon the ability of the top executive. Each manager knows what he is required to do. 2. Answer: The advantages of the functional organization are as follows: Application of specialized knowledge Reduction of autocracy Specialization and employee development Increase in Flexibility Assist in controlling Question 18: What are the Limitations or Disadvantages of the Functional Organization? Under this, the line of authority flows vertically downward from top to bottom throughout the organization. Subordinates have no freedom to do their job. The Staff Viewpoint. Every organization needs to make practical decisions timely for progress and success. (iii) Line officers are slow to accept new ideas and they resist change. The authority flows from top to the lower levels. Survey respondents answered the question, "Please choose the top three leadership It may increase the employee turnover rate if the job roles are unclear. Is working for a manufacturing company right for you? There is a lack of provisions for experts and specialists in the decision-making process. Only one person is in charge of a department or division. It also allows quick decisions and efficient coordination. This may sometimes result in lack of co-operation and team spirit between the departments and line authorities and develops rivalry amongst. Line should value the special skills of staff and similarly the staff should try to appreciate the difficulties in implementing new ideas. Matthew is a Co-Founder at BusinessFinanceArticles.org. One person should get orders from one supervisor only. 11. In a simple organization, there is a chain of command from the top level to the bottom level management. 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. And, every employee is directly responsible to his immediate superior. Line Organisation is the oldest form of organization. Each department is under the control of a departmental manager who is responsible to the superior over him. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. In simple words when you are driving a car and the brake of the car is not working then you know that it is you who has to handle this situation as you are in the driver seat a and you cannot escape the situation in the same way in case of line organization the top management has to face and solve the problems as they cannot rely on others for solving the problem. Line organizations totally depend upon few executives. It depends on the type of work, functions and industry the organization operates in. line-staff organization, in management, approach in which authorities (e.g., managers) establish goals and directives that are then fulfilled by staff and other workers. (iv) Advice given by the staff is not always sound. In this type, a greater variety of responsible jobs are available and this provides more opportunities for advancement of capable workers. Each unit is placed under a commander and his word is final as far as his subordinates are concerned. For example, the owner of a small business acts as the leader or manager of inline systems. Lets explore the pros and cons of aline organizational structure. 6. It also governs the . 6. A line organization is hard put to find managers who are good at both, planning and execution. Advantages of a linear structure. According to referenceforbusiness.com, staff managers often play a support role to line managers. 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