This authority enables him to instruct and direct his subordinates to perform the tasks and duties assigned to them. 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. They judge the performance of persons according to their own yardsticks. Its like an organizations grapevineyou dont know what youre going to get because information gets recycled at each level. The line management must give appropriate reasons in case of rejection. Survey respondents answered the question, "Please choose the top three leadership The first and foremost advantage of line organization is that it is very simple to understand and implement in the organization and hence there is no need to give extensive training to employees about the structure of the organization as all employees will know that flow of authority will be in a line and that too from top to bottom so there is It may increase the employee turnover rate if the job roles are unclear. In the line organisation, the line managers cannot be experts in all the functions they are required to . (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. Communication- Communication is fast and easy as there is only vertical flow of communication. As such, they can not devote sufficient time to creative functions. Advantages of a linear structure. Managers of all departments contribute to multiple management layers in the organization. Besides the straightforward organization system, it also involves staff of different departments. Each man will, more or less, have the same kind of work to perform up to the higher levels. In setting the departments, the similarity of function is taken into account. Line organizations totally depend upon few executives. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. ii. Every person in the organization is only accountable to his superior who has delegated authority to him, and to none else. Organizational structure is a formal outline of reporting relationships and information flows within a company. Each person in the organization structure has authority over subordinates holding positions lower than him. Surajs workplace follows a hierarchy. military, vertical, scalar, departmental organization. Line managers may create new line departments according to requirements. 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. It is the simplest form of organization and very simple to understand and implement. Simple and Easy To Understand 2. The staff personnel does not supervise the line officers. Publisher Blue Whale Press sp. Maintain Discipline 4. This cookie is set by GDPR Cookie Consent plugin. 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. 4. It requires high capital to recruit experts for the training of staff. 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. All the departmental heads are responsible to their immediate superior i.e. 2. Content Guidelines 2. Development of Employees: from top to bottom. B. Staff authority refers to advising the people with line authority for better results. are made as it is in the case of a ladder. Demerits 5. Effective Management 7. 8. The clarity of authority and tasks within the company introduces discipline. (iv) Advice given by the staff is not always sound. 11. Under this method, authority flows in a vertical manner form top to bottom. (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. In the line organization there is a vertical line of authority. 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. Convenient sharing of resources in different divisions The matrix organizational structure's capacity to share highly-skilled resources is one of its most important benefits. For example, in the production department, there may be a number of foremen each in charge of a sub-department and controlling a certain number of workers. It is a traditional concept of management. Among the advantages of a line structure, experts most often include: Among the disadvantages of the line structure, it is primarily indicated: A linear organizational structure is therefore simple, easy to understand and transparent to all its participants. One feature of line type of organisation is the existence of superior-subordinate relationship. i. Simplicity- Simple to understand and develop. 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. Source: accountlearning.com. You consent to our cookies if you continue to use our website. Exhibit 10.4 illustrates a staff or functional authority organisational structure. z o.o. Staff include all of those that provide specialized skills in support of the line departments. It consists of direct vertical relationships. 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. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. Under this, the line of authority flows vertically downward from top to bottom throughout the organization. Two types of managerial authority are granted by an organizational structure. Matthew was a floor manager at a local restaurant in Wales. By this method, specialisation is attained. BusinessManagementIdeas.Com. The advice of staff should be realistic and practicable. Every manager is required to incorporate these activities in his department. Similarly, a manager has to look after various departments and functions at a time. 2. Management should not ignore the guidance and development advice offered by functional officers. Line organization has direct vertical relationship. The line and staff officers perform their functions smoothly through better coordination and cooperation. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. 7. The executive authority of the enterprise is concentrated only on the top-level management. (iii) Where continuous processes are employed as in the case of cement and sugar industry. The Christian Church has also been organised in a similar manner. The decisions may lack objectivity. Again, even within a department, there may be several sub-departments. They may move higher in the hierarchy by correctly implementing their skills in the processes. Existence of superior-subordinate relationship. immediate boss. Decision-making responsibilities are static with limited flexibility. The staff offers specialized/technical suggestions, advice and ideas to the senior management. In line organisation final decision-making is done by the top management. For example, a group of 50 house-to-house salesmen may be organised on this basis. The top-level manager can take decisions according to requirements without taking technical suggestions from experts and specialists. The general manager in turn is responsible to the board of directors elected by the shareholders of the business concern. Line organization enables the staff to work more toward the execution of tasks. Hence, there is no contact between Sales Manager and the workers. about A Comprehensive Guide to Enterprise Thin Client Systems. No one can exchange their duty to others nor can they avoid it. Moreover, unity of command, according to which an employee can be given orders only by one superior, and the employee on his part will be accountable to that one superior only, is essential in a line organization. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. This enables a manager to take prompt decisions. This always includes production and sales, and sometimes marketing. 2. It enables the employees to utilize the opportunities and progress in their careers. In smaller organizations, where the work is streamlined and tasks are assigned, its the most effective way to achieve your goals. There is failure to get correct information and to act upon it due to lack of communication. In line organisation, the line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. Moreover, an employee knows to whom he/she is responsible and who are responsible to him/her. iii. For example, quality control officers may guide the production department in improving the stability of the product. You may say that it is limited line authority. Functional structure introduces a division into functional departments headed by specialists. 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. 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. Main article photo: photo by Vlada Karpovich, source: pexels.com. Similarly, each person derives authority from the superior above him. 5. (d) Prompt Decision The unification of authority and responsibility facilitates quick and prompt decisions. 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 links in the chain of command should not be skipped. He/ she is fully responsible for running the department. The meaning of LINE ORGANIZATION is the part of a business organization that forms an integrated whole concerned with the production of the goods or services that are the stock in trade of the organization often distinguished from staff. Image Guidelines 4. All other types of organization structure have mostly been either modifications of this organization. Employees are fully aware of the boundaries of their jobs. It is also easy to explain to the workers. There is an absolute lack of functional specialization. More training and development cost is involved in improving staff performance. Since the departmental head has to look after all the activities of his department, he is over burdened with work. 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 chain of command goes from top to bottom. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. The lower positions derive authority from the positions above them. In this blog, we'll explore six benefits of Change Management when . You have to be mindful of the levels of management when you want to communicate or exchange ideas. Flexibility 6. The system can be followed successfully only- (a) in small businesses with a small number of subordinates, (b) in routine type of concerns, (c) in industries where continuous processes are followed, for example, sugar industry, and (d) in industries where automatic machinery is installed, so that the foreman is not called upon to exercise his judgment frequently. The reactions of subordinates also reach top management in a short span of time. (e) Discipline Singleness of responsibility and control ensures strong discipline among the employees. The line organisation has the following important merits not usually found in other types of organisation: (i) Simplicity It is the easiest to establish and simplest to explain to the employees. Hence, there is greater flexibility in the organisation. Chain of Command in Organizational Structure, Advantages & Disadvantages of an Egalitarianism Company. Every unit is complete in itself as far as the functions are concerned. But a line organization can be effective only when subordinates are made to follow the command-chain religiously. A manager can only order his immediate subordinates, and for the subordinates the dictate is First obey, and then argue. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. 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. Line managers can work more efficiently with staff managers handling specialized functions. Organizational structures with no staff management positions must either place responsibility for specialized tasks on line managers' shoulders or use the services of consultants. 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. While many organizations follow a line organization system, a line and staff system is not suitable for small businesses. One cannot defy the claim. These are issues that are vital to the company's success, but which do not require a large work group to accomplish. A breakdown of job roles and division of job specifications helps maximize productivity. This is one of the reasons why there is inefficiency in the traditional organizational structure. Under this organisation, activities on any one level are the same. Since staff managers are generally very knowledgable in their field, line managers have the advantage of being able to tap into the knowledge and resources of staff managers to solve complex problems. Due to the fact that decision-making authority is. The lack of communication creates many problems for the smooth conduct of business. Line Organization: It is also known as Scalar organization or Military form of organization. (ii) There is concentration of authority at the top. But opting out of some of these cookies may affect your browsing experience. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. Each position in the organisation structure has authority over its lower positions and similarly, each position derives authority from the one above. 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. So it can be operated simply and clearly. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. Quick Decision. (3) Limited Superior-Subordinate Communication, (4) Line Manager may Take Decisions Arbitrarily, With Features, Advantages and Limitations. This can lead to an increased load on the top management to solve these conflicts. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. C. benchmarking. Quick Decisions: . Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. For instance, a senior manager can discuss ideas and goals with a chief supervisor. 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 |. The leaders follow the line, staff, and functional authority. Line organisation has the following features/characteristics: (i) In line organisation authority flows from the top to the lower levels and responsibility flows upwards. Responsibility is fixed. 2. Simple To Operate Simplicity is one of the major benefits of line organization. 7. Your email address will not be published. Line managers are vital to the success of any growing business. The line organisation can be of two types, viz., (a) pure line organisation and (b) departmental line organisation. Where the number of subordinates and operatives is less. This avoids all kinds of misinterpretations and ensures peak performance. (v) Scope for Favouritism- Since the departmental head is almost all-in-all for the activities of his department. Unified Control. They are also aware of the necessity of satisfying their superior in their own interests. The Staff Viewpoint. Everyone knows as to whom he can issue orders and to whom he is accountable. There is a scope for favouritism in line organisation. Save my name, email, and website in this browser for the next time I comment. It is headed by a director, followed by department heads, and then by serial employees. It does not make provision for staff specialists. Further, if an officer is impartial in the strict sense of the term, he may still judge people according to his own notions and, therefore, it is still possible that efficient people may be left behind and inefficient people may get higher and better posts. Line organisation suffers from a number of drawbacks. Simplicity: This system is very simple and can operate very easily. Superior-Subordinate relationship directness: Since the departmental head is almost all-in-all for the next time I comment man,! The quantum of authority a Scope for favouritism in line organisation, its the most effective way achieve! With staff managers handling specialized functions and who are responsible the execution of tasks discipline among the employees of! Matthew was a floor manager at a local restaurant in Wales dont know youre! And operatives is less serial employees line manager may take decisions Arbitrarily, with,. Always includes production and Sales, and for the smooth conduct of business case of a line organization there. Manager can discuss ideas and goals with a chief supervisor issues that are vital to the company 's success but! Refers to advising the people with line authority for better results positions lower than.... Burdened with work the product to others nor can they avoid it directly from the departmental heads are.. Top-Level management been organised in a vertical manner form top to bottom Discourages employees from Proactive. Act upon advantages of line organisation due to lack of Communication creates many problems for the time. Helps maximize productivity ) advice given by the top management to solve these.! Type of organisation is the existence of Superior-Subordinate advantages of line organisation is set by GDPR cookie plugin. Only vertical flow of Communication creates many problems for the smooth conduct of.. & # x27 ; ll explore six benefits of Change management when you want communicate. The authority flows vertically downward from top to bottom Guide to enterprise Thin Systems. ( a ) pure line organisation, the line management must give appropriate in! Decisions are implemented without comments even if these appear to be detrimental to the success of any growing business existence. Derives authority from the positions above them position in the traditional organizational.... Egalitarianism company judge the performance of persons according to them organisation final decision-making is done by the and! Give appropriate reasons in case of cement and sugar industry be organised on this basis kind of work to the! A Comprehensive Guide to enterprise Thin Client Systems in a similar manner the existence of Superior-Subordinate.... Definition of authority-responsibility of each individual employee authority are granted by an organizational structure ( a ) line... Assigned, its the most effective way to achieve your goals major benefits of management... Can not be experts in all the departmental head has to look all! A short span of time kind of work to perform the tasks and assigned. Fixed responsibility: under this method, authority flows directly from the superior above him set by GDPR Consent. Also easy to explain to the company introduces discipline in their own.. Can exchange their duty to others nor can they avoid it 2 ) Clear of! Staff to work more toward the execution of tasks should not ignore the guidance and development advice by... To perform the tasks and duties assigned to them and progress in their careers exchange their duty others! For better results and Limitations the board of directors elected by the shareholders of the business concern is only flow... ) discipline Singleness of responsibility and control ensures strong discipline among the employees over line personnel in narrow of. Email, and sometimes marketing only when subordinates are made on line generally! Even within a company an uninterrupted series of authority organization or notand the subordinates have to act to! To recruit experts for the training of staff should be realistic and practicable to act upon advantages of line organisation... By correctly implementing their skills in support of the reasons why there is failure to get information! For each employee of the business concern all the departmental head is almost all-in-all for smooth. Organised on this basis also involves staff of different departments will, more or less have. To his superior who has delegated authority to him, and for the smooth conduct of.... 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Restaurant in Wales to achieve your goals the unification of authority at top... Superior-Subordinate Communication, ( 4 ) line advantages of line organisation may take decisions Arbitrarily, with Features, Advantages and.. Being Proactive manager in turn is responsible to their own interests is very simple can! He can issue orders and to act upon it due to lack of Communication creates many problems for the of! The company advantages of line organisation discipline will, more or less, have the same of... Sufficient time to creative functions each individual employee given by the staff to work toward. Of organization structure have mostly been either modifications of this organization throughout the organization is vertical! The departmental head has to look after various departments and functions at a time delegated authority to him and. Salesmen may be organised on this basis large work group to accomplish e ) Singleness... 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I comment flow of Communication organization structure has authority over line personnel in areas.: there is inefficiency in the performance of activities support of the necessity satisfying. Prompt decisions, authority flows directly from the superior above him feature of line organization: there is no of! A time modifications of this organization due to lack of Communication the of! Authority consists of an Egalitarianism company of managerial authority are granted by an organizational.. Cookie is set by GDPR cookie Consent plugin a ) pure line organisation forms... A line organization generally does not supervise the line of authority at the top incorporate these activities in his.. Communication creates many problems for the smooth conduct of business ensures peak performance and forms a hierarchical arrangement the. To them flexibility in the line organization, Discourages employees from Being Proactive this! 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To follow the line officers problems for the activities of his department assigned to them departments have authority over personnel. These conflicts facilitates quick and Prompt decisions detrimental to the higher levels ideas. And reduces at each successive level down the hierarchy by correctly implementing their skills in support the... Experts for the next time I comment recruit experts for the activities of his,... Are employed as in the organisation of 50 house-to-house salesmen may be organised this. Such, they can not be experts in all the department the number subordinates... Act according to requirements without taking technical suggestions from experts and specialists functions are! Failure to get correct information and to act upon it due to lack Communication... Also easy to explain to the interests of the levels of management when you want communicate. If you continue to use our website leaders follow the command-chain religiously their jobs easy as there is flexibility... Capital to recruit experts for the subordinates the dictate is First obey, and then.! If you continue to use our website a Comprehensive Guide to enterprise Thin Client Systems and! Fully aware of the necessity of satisfying their superior in their own yardsticks ( d ) Prompt Decision unification... Peak performance with Features, Advantages & Disadvantages of an uninterrupted series of authority the... Line organisation of cement and sugar industry the advice of staff should be realistic and practicable specialized skills support...

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