(iv) Staff authorities feel that they do not have authority to get their ideas implemented. However, it should be remembered that it works best in small and medium-sized companies. Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. So, learning more about different organizational structures, stakeholders and power structures will help you navigate your workplace. Business Models & Organizational Structure. All organizations follow specific organizational structures to run the company smoothly. Advantages of a linear structure. Employees are fully aware of the boundaries of their jobs. In this type, a greater variety of responsible jobs are available and this provides more opportunities for advancement of capable workers. When the planning and execution job roles are separate, more employees get the chance to showcase their talent. He has to take various decisions by himself. There may be a lack of operational uniformity among various departments. ADVERTISEMENTS: (ii) In this organisation, there is no difficulty in fixing the responsibilities at various levels of organisation. (c) Inadequacy of communication There is a failure to get correct information and to act upon it. In a departmental line organization, there is a chief executive at the top. Rights, duties and responsibilities of all the employees of an organisation are clearly defined and properly communicated to them. For example, a group of 50 house-to-house salesmen may be organised on this basis. (1) It is simple in operation and definite in assigning authority to different persons in the organisation. It will encourage others to follow the same path. There is no complexity in the organisation because every person is accountable to only one boss. 3. The departmental head has full authority to manage and control of that department. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. Quick Decision and Implementation 3. Where the machinery is automatic and so there is no need for skill or intelligence. Its a simple, no-fuss setup where you know exactly who youre reporting to. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. Overloading: The success of this system largely depends upon the ability of the top executive. Experienced employees with specialized knowledge are given functional authority in the organization. Structure is a valuable tool in achieving coordination, as it specifies reporting relationships (who reports to whom), delineates formal . Each position in the organisation structure has authority over its lower positions and similarly, each position derives authority from the one above. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Save my name, email, and website in this browser for the next time I comment. Everyone knows as to whom he can issue orders and to whom he is accountable. Advantages of line organization: Following are the main advantages of line organisation: 1. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. 3. Besides age, health is one of the biggest factors [Read] about Can a Healthy Lifestyle Save Money on Life Insurance? Lack of Specialization 3. Some assistants or new officers may be appointed to expand and delegate tasks. Exhibit 10.4 illustrates a staff or functional authority organisational structure. 4. (adsbygoogle = window.adsbygoogle || []).push({}); Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). It is extremely difficult for one person to handle activities of diverse nature. This kind of authority flows down the line. Staff officers do not have the authority to implement their opinions and recommendations without the line officers approval. Where the labor and management problems are not difficult to solve. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. The modern military organisations do not entirely rely on line organisation. What is Strategy Implementation and How To Implement it? Unified Control. You also have the option to opt-out of these cookies. Polska 114 60-401 Pozna bluewhale-press.com. Every organizational system comes with some pros and cons. It is extremely difficult for one person to handle activities of diverse nature. If they are not able the enterprise will not be successful. (a) Lack of Specialisation As one person looks after all the work relating to his department, there is no scope for specialisation. In an industrial concern, for instance, a foreman neither receives any instructions from, nor issues commands to, another foreman. Study with Quizlet and memorize flashcards containing terms like The process of rating an organization's practices, processes, and products against the best of the world is known as: A. webworking. 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. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. This type of organisation is largely existing in modern industry. The managerial growth also suffers because lower level persons are not involved in decision-making process. By providing staff managers with total authority in particular areas, line managers have more free. 1. (d) Scope for favouritism There may be a good deal of nepotism and jobbery. A line organization is hard put to find managers who are good at both, planning and execution. It requires more resources, including finance and infrastructure. (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. Image: Line Organization Characteristics, Types, Advantages and Disadvantages. By this method, specialisation is attained. 6. In the words of J.M. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. (a) Pure Line Organisation: In pure line organisation, the activities at any one level are the same and all the individuals perform the same type of work and the divisions or departments are made for the sake of control and direction. Main article photo: photo by Vlada Karpovich, source: pexels.com. 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. Similarly, each group of activities will be a complete unit by itself being adequate for performing the assigned tasks. Source: accountlearning.com. It can be easily established and easily understood by the workers. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. The line organization has the following advantages: 1. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. (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. Continue with Recommended Cookies. Each manager in the line organization has an independent status and can take a quick decision within his authority. Hence, less expenses is incurred for adopting line organization. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. The cookies is used to store the user consent for the cookies in the category "Necessary". In setting the departments, the similarity of function is taken into account. This always includes production and sales, and sometimes marketing. Flexibility: This system is flexible in the sense that it is subject to quick adjustments to suit the changing conditions. It means the staff authority may work to facilitate the process in line control. The line staff organizational structure offers more flexibility than others. from top to bottom. In a simple organization, there is a chain of command from the top level to the bottom level management. However, you can make the best out of it by making adequate changes in the organizational structure. 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. Advantages and Disadvantages of Line Organization. APR what is it and how to calculate it for a loan? Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. The open office arrangement has the fantastic benefit of enhancing business culture. (iii) Strong discipline It ensures excellent discipline. Each foreman is supposed to take his orders from the production manager and is accountable to him for planning and execution of the work assigned to him. There should be a single line of command. It reduces the time taken for multiple approvals. In this organizational structure, all the individuals perform the same type of work. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. He can manage his department according to his knowledge and convenience. This structure is suitable for large organizations but not the best choice for small businesses. immediate boss. It depends on the type of work, functions and industry the organization operates in. 6. The line organisation can be of two types, viz., (a) pure line organisation and (b) departmental line organisation. So it is unfit for todays business environment that requires innovative organizational structures. 6. The hierarchy is different in each of them. Merits of Line Organization: Simplicity: Line organization is simple to establish and can be easily understood by the employees. Each sub-department is look after by one supervisor and adequate number of workers are working under them. Definition, Types, Reasons, and Pros/Cons. Specialization provides expert advice and proficiency in management. (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. A line organization is hard put to find managers who are good at both, planning and execution. Even the workers at the lower level can understand the structure of this organization. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. (2) It gives full freedom to each departmental head to look after his department. 6. Development of Executives: This system offers more opportunities to the executives for training and development. (b) It facilitates unity of control and the presence of scalar principle. It can be easily designed, and operated without any complication. The employees understand the reporting hierarchy clearly and are less susceptible to confusion and mistakes. Expensive: This type requires the appointment of a large number of experts involving heavy expenditure. 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