Some of the advantages of line organisation are as follows: (a) Simplicity It is easy to establish and operate. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. If the top executives are not capable, the enterprise will not be successful. Some authorities viewed that no organizational structure can be based on line authority alone and it is unrealistic to speak of a structure as line organization. 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. The advantages are noted below. 4. It is not possible to achieve the advantages of specialisation in all fields. Exhibit 10.4 illustrates a staff or functional authority organisational structure. In this model chart, the enterprise has three departments or shops namely, Foundry shop, Machine shop and Assembling shop. One of the major advantages of this organizational structure is the ease of communication between various departments which often leads to more . Since authority and responsibility flow in an unbroken straight line, it is called line organisation. Plagiarism Prevention 5. This type of organisation helps in co-ordination and control. 2. 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. military, vertical, scalar, departmental organization. (iii) There is clear-cut identification of authority and responsibility relationship. 3. Hierarchy of Authority Levels 7. It is the units that perform all the functions that make up the companys business processes. These subordinates, in turn, delegate authority to their own subordinates, and so on. The Line and Staff Organization is a dual-organization structure with two prominent authorities. (ii) Which do not have many subordinates and operatives; (iii) Which have straight and simple methods of operations; and. Secondly, there should be only one chain, i.e., command should be received from only one immediate superior. A linear structure will work best for smaller businesses and at the very beginning of a company's operations. All departmental heads try to run the departments in their own way and according to their suitability. Reduce energy Expenses - Under the triple bottom line method, the organizations are encouraged to use renewable energy. A superior delegates authority to a subordinate who in turn delegates authority to his subordinates and so on. Staff include all of those that provide specialized skills in support of the line departments. 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. Some of them are inherent while some others are due to peculiar failings of human beings. Everyone knows as to whom he can issue orders and to whom he is accountable. D. core competencies., Companies benefit today by inter-firm cooperation. He has earned a Bachelor of Arts in management from Walsh University. This means that everything in the organization is vertically connected. 1. 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. The work load of executives goes on increasing with the expansion and diversification of the unit. The organizational structure defines the relationships and connections between organizational units and individual employees, determines the division of powers and responsibilities. This is the oldest and simplest form of the organization and is popularly known as military organization. 4. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. 9. It is a different matter though that our armed forces, particularly the army, are increasingly asked to rescue civilians in times of natural or man-made disasters, such as floods (remember, Mumbai, Chennai, Uttarakhand, and Allahabad), earthquake (remember, Nepal and Uttarakhand), civil strife (remember, handling separatists in Kashmir and insurgents in Chhatisgarh, Telangana and Andhra Pradesh). i. Simplicity- Simple to understand and develop. Everybody knows his work and also to whom he is responsible. Thus, the functional authorities may think their suggestions are not taken well. Functional structure introduces a division into functional departments headed by specialists. Matthew was a floor manager at a local restaurant in Wales. Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. Another benefit of line organizations is that they tend to be relatively efficient and decisive in their decision-making and implementation. The lack of managerial specialisation is the demerit of line organisation. Advice Ignored: As the staff officers lack authority to put their recommendations into practice, their advice may be ignored by the line executives. It also allows quick decisions and efficient coordination. Using the website without changing the cookie settings means that they will be stored on your end device. The line managers have the following to say about the staff people: (i) Staff authority undermines line authority and interferes in the work of line managers. (ix) Lines of authority are vertical i.e. As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. The only problem with a credit card is that it will usually carry a high APR. Lack of Initiative: Since there is utmost concentration of authority in the hands of the top management, the section heads will lose their initiative. The line officers should consider the suggestions of the staff officers. One person should get orders from one supervisor only. Thus, this system can be successfully practised where: (a) The business is carried on a small scale with a small number of subordinates and operatives. Everybody is responsible for his work and is accountable to his boss. The line organisation represents the structure in a direct vertical relationship through which authority flows. The links in the chain of command should not be skipped. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. At departmental level manager is in charge and he can direct the activities of his juniors. 5. The Line Viewpoint. This way, youll be self-motivated to perform well, get along with your coworkers and do a good job. 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. Conforms to the scalar principle of organization. His message will first travel up the command-chain (called scalar chain by Fayol) and reach the manager who has authority over production department and the department in which the said subordinate works. If superiors take a wrong decision, it would be carried out without anybody having the courage to point out its deficiencies. Your email address will not be published. These are issues that are vital to the company's success, but which do not require a large work group to accomplish. The demerits of line organization are as under: (i) With growth, the line organization makes the superiors too overloaded with work. Where the labor and management problems are not difficult to solve. One cannot defy the claim. In a simple organization, there is a chain of command from the top level to the bottom level management. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. The modern military organisations do not entirely rely on line organisation. about 5 Ways your Company can Achieve Regulatory Compliance. There are both advantages and disadvantages of line organization. The staff offers specialized/technical suggestions, advice and ideas to the senior management. By clicking Accept, you consent to the use of ALL the cookies. It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. There is also a lack of grooming the new persons for taking up important work. Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. Each position in the structure has an authority over a lower position. Such decisions are executed promptly also. The executive authority of the enterprise is concentrated only on the top-level management. Quick Decision. There is a scope for favouritism in line organisation. 2. He/ she is fully responsible for running the department. 2. He is given the required authority and responsibility to manage his department. Not all managers can come up to this expectation. Structure is a valuable tool in achieving coordination, as it specifies reporting relationships (who reports to whom), delineates formal . It is suitable for concerns. However, a line and staff. There is a direct link between superior and subordinates. You have to be mindful of the levels of management when you want to communicate or exchange ideas. 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. Among the advantages of a line structure, experts most often include: clear division of authority, competencies and responsibilities; employees are accountable to one person - the manager; possibility of quick interaction between employees and management; maximum speed of execution of orders; A manager in a line organization has absolute control over his department of activity. 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. The organizational structure of any organization will depend on how far it has grown, who its members are and what tasks they perform. Line managers can work more efficiently with staff managers handling specialized functions. to improve overall organization performance. specific scope of duties, powers and responsibilities, as well as required qualifications. General Manager. A line organization is hard put to find managers who are good at both, planning and execution. 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. (iii) There is unity of command. Besides the straightforward organization system, it also involves staff of different departments. However, there is a risk: in this structure the functions of managers sometimes overlap and when a problem arises it is difficult to determine whose fault it is. (f) Flexibility This type of organisation is elastic. Teamined.com is a meeting room for employer and employee that will help you build positive employer branding or get your dream job. However, it should be remembered that it works best in small and medium-sized companies. A staff function supports the organization with specialized advisory and support functions. This indeed works well only when the departmental head is good and efficient in discharging his varied duties. All persons at the same level of authority should be independent of one another. Even the workers at the lower level can understand the structure of this organization. Accountability This approach makes it much easier to assign responsibility for actions and results. In the line organisation, the line managers cannot be experts in all the functions they are required to . Necessary cookies are absolutely essential for the website to function properly. 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. You consent to our cookies if you continue to use our website. For example, human resources, accounting, public relations and the legal . The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Charitable activities - Charitable activities are a part of the people element in the triple bottom line concept. It follows the principle of chain of command and scalar chain. There may be a good deal of nepotism and jobbery and personal prejudices. Line managers are vital to the success of any growing business. Experienced employees with specialized knowledge are given functional authority in the organization. Lack of Specialization 3. We also use third-party cookies that help us analyze and understand how you use this website. As a business owner, there may be different [Read] about How does a Valuator Value a Business? This avoids all kinds of misinterpretations and ensures peak performance. There may be a good deal of nepotism and jobbery and personal prejudices. 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. General Manager. 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