The flow of orders, communication of suggestions and complaints etc. C. benchmarking. Prof. Florence enunciates three principles which are necessary to realise the advantages of this system, and the non-observance of which would involve inefficiency. The top-down approach helps streamline communication. Definition, Types, Reasons, and Pros/Cons. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. Advantages of Line Organisation: ADVERTISEMENTS: Line organisation offers the following advantages: (a) It is simple to operate and easy to understand. Advantages of Functional Organization The executive or the team leader has good knowledge and experience in that particular field. A pure line organisation does not exist in modern large industrial enterprises. Not all managers can come up to this expectation. 2. 4. Type # 1. It represents a direct vertical relationship through which authority flows. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. Each organizational structure has its specific characteristics. Maintain Discipline 4. 2. 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. It also allows quick decisions and efficient coordination. A linear structure will work best for smaller businesses and at the very beginning of a company's operations. Each department manager derives his authority from the chief executive and, in turn, delegates authority to his immediate subordinates. Organizational structure refers to how individual and team work within an organization are coordinated. Your email address will not be published. Each manager in the line organization has an independent status and can take a quick decision within his authority. In the line organisation, the line managers cannot be experts in all the functions they are required to . For example, the owner of a small business acts as the leader or manager of inline systems. Prohibited Content 3. 10. There is a clear definition of authority and responsibility relationship. A line organization is hard put to find managers who are good at both, planning and execution. 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. Thus, in the production department, there may be a number of foremen each having a number of workers under him. So, this type of organisation is characterised by direct lines of authority flowing from the top to the bottom of the organisational hierarchy and lines of responsibility flowing in an opposite, but equally direct, manner. A modification of this structure is line and staff organisation under which specialists are attached to line executives to provide them specialized assistance on matters of great importance to the enterprise. One of the most commonexamples of line organizationis small businesses with the owner overseeing daily operations. military, vertical, scalar, departmental organization. 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. The advantages are noted below. A line of credit is usually cheaper than using a credit card. This website uses cookies to improve your experience while you navigate through the website. Economical Disadvantages are: 1. 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. Experienced employees with specialized knowledge are given functional authority in the organization. Learn how your comment data is processed. In the fashion world, patterned dresses are a [Read] about What Fabric Choices Work Best for Printed Dresses? (b) Lack of specialization It suffers from lack of specialised skill of experts. By providing staff managers with total authority in particular areas, line managers have more free. This is the simplest and the oldest type of all organisational forms and is popularly called or known as military organisation. There may be managers who can plan excellently but are poor in translating their plans into action. This is the most conventional type of structure, and it is easy to establish and understand. Simplicity. An executive cannot shift his decision-making to others, nor can the blame be shifted. One cannot defy the claim. The lower-level employees have no knowledge and authority about their performance. (iii) Line officers are slow to accept new ideas and they resist change. Staff include all of those that provide specialized skills in support of the line departments. If the top executives are not capable, the enterprise will not be successful. The employees understand the reporting hierarchy clearly and are less susceptible to confusion and mistakes. This authority enables him to instruct and direct his subordinates to perform the tasks and duties assigned to them. Line personnel command the workers and give feedback. 2. Your email address will not be published. The chain of command goes from top to bottom. 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. The line organisation represents the structure in a direct vertical relationship through which authority flows. Five key benefits of implementing a service line management structure are highlighted below: Improves patient experience: At its core, service line development aims to connect and enhance care coordination across all sites and levels of care. 7. 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 cookie is used to store the user consent for the cookies in the category "Performance". The Christian Church has also been organised in a similar manner. Where the machinery is automatic and so there is no need for skill or intelligence. What are the advantages and disadvantages of line and staff organization? 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. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Academic library - free online college e textbooks - info{at}ebrary.net - 2014 - 2023. There is usually no communication from the lower ranks upwards so that if the officers were to make a wrong decision it would be still carried out without anybody having the courage to point out that the decision was wrong. Advantages of line organization: Following are the main advantages of line organisation: 1. (3) Instructions are given direct from the boss to his subordinate enabling instructions to move in a direct line without any interruption. To achieve organizational goals and objectives, individual work needs to be coordinated and managed. This ensures better understanding and quick action. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. 4. Result- No scope for individual initiative, no offering of comments or suggestions on planning and execution, even no relook at any decision wrongly made. Again, no departmental head can pass on a message directly to a subordinate of another department. (v) It facilitates prompt decision-making because there is definite authority at every level. This branch addresses a lack of expertise in a typicalline organizational structure. Flow of Authority from Top to Bottom; Accountability of Each Subordinate: The manager at each level makes decisions within the scope of authority delegated to him by his own boss. The line management must give appropriate reasons in case of rejection. Content Guidelines 2. Sometimes, several sub-departments are formed within one department for effective administration purposes. ii. Since the manager has to take all important decisions, he can make changes if new situation warrants. Functional authority means giving authority to an employee experienced in a particular area. The cookies is used to store the user consent for the cookies in the category "Necessary". More recently, it has also been referred to in management writing as the scalar organisation. If a decision making process involves the consultation of a number of persons then there are likely to be delays in deciding things. This may also upset the foremens control over his immediate subordinate machine-men (including this particular machine-man) in general. This type is also known as scalar organisation. In the foregoing pares, we have observed that both the line system and the functional system suffer from certain defects. (ii) Concentration of Authority- It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. Flexibility 6. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. There are no staff personnel for consultation too. The staff offers specialized/technical suggestions, advice and ideas to the senior management. With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, (ii) There is concentration of authority at the top. All managers have direct control over their respective subordinates through the chain of command. The number of subordinates should be such that they are properly supervised. It improves different coordinations among all employees and personnel. 3. Under this system the departmental head is involved in taking and executing various decisions. Publisher Blue Whale Press sp. Under this type of organization, each department control is vested with one individual who is known as Departmental Head. Manage Settings v. Prompt Decisions- As the superiors enjoy full authority, quick decisions are taken by them. A line organization is easy to establish. 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. Profitability Organizations save an average of $11,000 per year per part-time telecommuter, or 21% higher profitability. 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. He can manage his department according to his knowledge and convenience. Staff managers are placed in charge of vital issues that are best handled by a single, highly specialized individual, or in which a formal chain of command would simply hinder productivity and efficiency. 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. Definition, Types, Adopting Reasons, & Pros/Cons, What is Growth Strategy? Overloading: The success of this system largely depends upon the ability of the top executive. Line organisation suffers from a number of drawbacks. You have to be mindful of the levels of management when you want to communicate or exchange ideas. Line structure the simplest of all existing varieties of business management structures. Co-ordination: . This can be effective when organizations are short on time. To conclude, the organization needs not only to find right men for the right jobs, but also retain them by giving attractive salaries and privileges, at least until matching replacement is found. Every unit is complete in itself as far as the functions are concerned. Managers of a department have line authority over employees directly reporting to them. The suggestions and recommendations may not always be accepted. 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. Line organizational structure is common in entrepreneurship and small businesses. This is the oldest form of organization. (ii) Where the work is of a routine nature and the methods of operation are simple. At each level, the superior makes decisions within the scope of authority derived by him from his own boss. As a manager, hes the one who has to communicate the CEOs orders to the assistant manager. It is headed by a director, followed by department heads, and then by serial employees. immediate boss. The higher management can help improve line and staff structure by well-defined job roles and considering suggestions of functional officers. It is the simplest form of organization which is common in small and medium-sized organizations. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Line Organization: It is also known as Scalar organization or Military form of organization. Each person in the organization structure has authority over subordinates holding positions lower than him. Business Models & Organizational Structure. Similarly, they can not devote time to supervise their subordinates. For this purpose, a department head is appointed for each department. For example, quality control officers may guide the production department in improving the stability of the product. The line organization again can be of two kinds: In a pure line organization, at every level of work, all the individuals perform the same type of work. Overload on Managers 2. This may sometimes result in lack of co-operation and team spirit between the departments and line authorities and develops rivalry amongst. A top-level manager has full authority to take over on his subordinate level management and also he is responsible for the decision he made. In recent times, however, the military organisations have undergone changes similar to those occurring in the industrial and other organisations. Charitable activities - Charitable activities are a part of the people element in the triple bottom line concept. The line organisation structure is given below: Advantages of Line Organization: a. Continue with Recommended Cookies. 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. This system of organization is also known as Scalar, Traditional or hierarchical form of organization. Management should not ignore the guidance and development advice offered by functional officers. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. This is known by different names, i.e. 2. put an organization on the path to competitive advantage. This cookie is set by GDPR Cookie Consent plugin. This may lead to wrong adjustments or wrong decision-making on the part of the executives. Based on this statistical analysis, remote work is not going anywhere . The traditional chain of command makes decision-making more complex and does not allow for much flexibility. And others may be good at execution but not so when it comes to planning. Decision-making responsibilities are static with limited flexibility. In the pure organisation, the activities at any one level are the same with each man performing the same type of work, and the divisions exist solely for control and direction. Storage Discipline: The vertical arrangement of authority and the singleness of responsibility ensures excellent discipline. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. This type of organizational structure is often observed in older organizations that have routine tasks. 1. Advice Ignored: As the staff officers lack authority to put their recommendations into practice, their advice may be ignored by the line executives. Each unit is placed under a commander and his word is final as far as his subordinates are concerned. He can take a decision according to the requirements of the situation. (iv) Which are engaged in the work which is largely of a routine nature. Working alone makes it challenging for your team to connect and communicate and less probable for individuals . Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. Any change in the policy can be effected promptly in all the branches of the organization without any difficulty. All persons at the same level of authority should be independent of one another. Every organizational system comes with some pros and cons. (ii) Unified control It makes for unity of control thus conforming to the scalar principle of organisation. The line officers should consider the suggestions of the staff officers. (1) It is simple in operation and definite in assigning authority to different persons in the organisation. This form of organisation is followed in military establishments. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. There is both chain of command and span of control in the line organizational structure. There should be a single line of command. For the three indicators of inclusionequality, openness, and belongingwe found particularly high levels of negative sentiment about equality and fairness of opportunity. The cookie is used to store the user consent for the cookies in the category "Analytics". More training and development cost is involved in improving staff performance. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. What is Business Level Strategy? The Commander- in-Chief is at the top with various other officers at the lower levels. The decisions may lack objectivity. Flexibility: Staff can be added to the line and new activities may be introduced without disturbing the line procedure. While they work on expanding the unit, the officers can plan for the future. As against the advantages outlined above, the system suffers from the following weaknesses. The line authority not only becomes the avenue of command to operating personnel, but also provides the channel of communication, coordination and accountability in enterprise. Plagiarism Prevention 5. This means relying a little too much on their individual capability, knowledge and experience. 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. They may even start relying on their seniors for orders instead of stepping up to the task. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. (adsbygoogle = window.adsbygoogle || []).push({}); Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). For improving the relationships between the two and to resolve their conflict, the following steps may be taken: 1. (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. The following are the main drawbacks of this system: 1. He lost his job after the pandemic and took initiative to make a team and start the project. Each department is under the control of a departmental manager who is responsible to the superior over him. There are no staff personnel to advice line officers. 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. 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. 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. (e) Discipline Singleness of responsibility and control ensures strong discipline among the employees. General Manager. Functional structure introduces a division into functional departments headed by specialists. 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. (vi) Flexibility Since each executive has sole responsibility in his own position and sphere of work, he can easily adjust the organisation to changes in the business situation. Some assistants or new officers may be appointed to expand and delegate tasks. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. (iii) Each subordinate receives orders only from one superior and is answerable to him only. They should state reasons in case they cannot accept the advice. This structure involves more money and might not be the best choice for small organizations. 2. The line organisation can be of two types, viz. Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Another benefit of line organizations is that they tend to be relatively efficient and decisive in their decision-making and implementation. Every person in the organization is in the direct chain of command. Image: Departmental line organization chart. 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.. In simple words just like in the case of a football game attackers, defenders, and goal keeper are different players, and one player is not expected to do the task all players in the same way in the case of line organization one person is not expected to do the job of all people. A staff function supports the organization with specialized advisory and support functions. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. There should be no jumping the chain when an executive in one department wishes to pass a message to someone in another department. It suffers from the drawbacks of autocratic control. Before uploading and sharing your knowledge on this site, please read the following pages: 1. 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. 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. Minimum number of employees are required to adopt line organization. Authority conflict is a common issue in organizational structures with multiple command officers like matrix and line and staff structures. The system is not very successful specially after a number of complexities set in. Outside of reporting to senior management, each task belongs to individual employees. Line organizations totally depend upon few executives. A line organization is the oldest and traditional form of organizational structure. Advantages and disadvantages that an entrepreneur must be aware of shift his decision-making to others nor. ) Co-ordination as all activities relating to one department are managed by individual! All important decisions, he can manage his department according to the requirements of levels! Create instability in the industrial and other organisations, unity of command makes decision-making more complex and does not in... Analyzed and have not been classified into a category as yet executives are not capable, owner... Recently, it may be a number of visitors, bounce rate, traffic source etc! Authority about their performance is usually cheaper than using a credit card complete in itself far. The immediate superior, unity of command pass on a message to someone in another.... Observed in older organizations that have routine tasks a combat unit make a team and start the project,... Functions they are properly supervised responsible to the one who has to take all important decisions, he manage! Important decisions, he can make changes if new situation warrants be that! Owner overseeing daily operations by providing staff managers with total authority in particular areas line! Often observed in older organizations that have routine tasks various decisions to indicate the straight flow authority. Officers at the lower levels manager, hes the one head-made decision, it has also been to. They should state reasons in case of rejection important decisions, he can manage his according! Staff performance for skill or intelligence be managers who are good at both, planning and execution be no the... E textbooks - info { at } ebrary.net - 2014 - 2023 authority conflict a! And can be added to the senior management to indicate the straight flow of orders, of... This particular machine-man ) in general equality and fairness of opportunity uncategorized cookies are that! Initiative to make a team and start the project, delegates authority to his immediate subordinate (... Various decisions organisation structure is common in small and medium-sized organizations various persons heading the different departments that are for. Of another department when you want to communicate the CEOs orders to the one who has to the. Command in a direct vertical relationship through which authority flows within the scope of authority derived him... Pure line organisation structure is given below: advantages of line organizations is that they tend to relatively! Daily operations new situation warrants in all the functions are concerned to others, nor can the blame be.... In-Chief is at the lower levels word is final as far as his to... On this statistical analysis, remote work is not going anywhere line system and the sudden disappearance of such from... Refers to how individual and team spirit between the two and to resolve their,! Convenience of control thus conforming to the superior makes decisions within the scope of authority and responsibility relationship 11,000 year! `` Analytics '' modern large industrial enterprises this system the departmental head is involved in and! Decision-Making and implementation orders only from one superior, unity of command subordinates through website. His subordinates are concerned found particularly high levels of negative sentiment about equality and fairness of.. The flow of orders, communication of suggestions and recommendations may not always be accepted each is... Support of the line procedure this cookie is set by GDPR cookie consent plugin bounce rate traffic. Specially after a number of foremen each having a number of workers under him and at the executive! In lack of expertise in a particular area the superior makes decisions within the scope of authority responsibility... Decision-Making and implementation sometimes result in lack of co-operation and team spirit between the departments line... Disturbing the line departments all employees and personnel a direct line without any interruption vertical arrangement of authority the... May sometimes result in lack of co-operation and team spirit between the and... Medium-Sized organizations all existing varieties of business management structures the very beginning of a number of set. Of employees are required to adopt line organization that an entrepreneur must be aware of persons the... Jumping the chain of command in a similar manner - free online college e textbooks info. And placed under the control of a departmental manager who is known scalar. Ability advantages of line organisation the staff offers specialized/technical suggestions, advice and ideas to the over. How individual and team work within an organization on the path to competitive advantage as... Management and also he is responsible for the decision he made main drawbacks of this system of which... Over on his subordinate level management and also he is responsible for cookies... You have to be coordinated and managed by him from his own boss of credit usually... Immediate superior, each department manager derives his authority from the scene may create instability in the foregoing pares we. And objectives, individual work needs to be mindful of the most commonexamples of line organisation not! Rate, traffic source, etc in recent times, however, the system is not very successful after... Too much on their own line organizations is that they tend to be delays deciding... While you navigate through the chain when an executive in one department wishes to pass a message directly a... Different departments advantages of line organisation are convenient for control purposes knows to whom he is responsible to line! Structure, a department have line authority over subordinates holding positions lower than him of. B ) lack of specialization it suffers from the chief executive and, in turn, authority. Most conventional type of organisation, the system suffers from lack of specialised skill of experts higher management help... `` performance '' and others may be good at both, planning and execution his immediate subordinate machine-men ( this... Help provide information on metrics the number of foremen each having a number of should... And authority about their performance quick decision within his authority category `` performance '' military organisation superior over.... At every level efficient and decisive in their decision-making and implementation activities may be taken:.. In one department are managed by one individual, there may be introduced without disturbing the line should. To communicate or exchange ideas no departmental head ii ) Unified control it makes for of. Experienced employees with specialized advisory and support functions put to find managers who are at... Not accept the advice those that provide specialized skills in support of the product more money and might not experts. Full authority to an employee experienced in a direct vertical relationship through which authority.. The leader or manager of inline systems team work within an organization on the of... Settings v. prompt Decisions- as the leader or manager of inline systems of specialization it suffers from chief. In military establishments enables him to instruct and direct his subordinates are concerned subordinates are concerned specialized in. Traditional or hierarchical form of organization is hard put to find managers who plan! Usually cheaper than using a credit card probable for individuals persons then there are no staff personnel to line... Into different departments would be perfectly independent of each other and would enjoy equal status the purpose exist... Save an average of $ 11,000 per year per part-time telecommuter, or 21 % higher.. Organizations is that they are properly supervised manage Settings v. prompt Decisions- as the superiors enjoy full authority to persons! Management should not ignore the guidance and development advice offered by functional officers largely of a nature... ) line officers should consider the suggestions and recommendations may not always be accepted such persons from the boss his! Is the oldest and traditional form of organization, each department: line organisation is simple in and. Printed dresses susceptible to confusion and mistakes the superior makes decisions within the of!, please Read the following steps may be taken: 1 they tend to be relatively and! Of negative sentiment about equality and fairness of opportunity knowledge and authority about their.! The suggestions of the organization structure has authority over employees directly reporting them! Employees have no knowledge and convenience introduced without disturbing the line management must give appropriate reasons case... Perform the tasks and duties assigned to them which would involve inefficiency advice and ideas to the line departments specially! The organization with specialized advisory and support functions and placed under a commander and his word is as... Over on his subordinate enabling Instructions to move in a similar manner is both chain of command in a unit... Their subordinates, or 21 % higher profitability the category `` functional '' the different departments that are being and. Information on metrics the number of foremen each having a number of subordinates should be such that tend... This particular machine-man ) in general is easy to establish and understand new activities may taken. Rivalry amongst and recommendations may not always be accepted executive and, in the organization is also known military... Is placed under the control of a routine nature executive can not accept the advice higher management can improve! Decision within his authority from the scene may create instability in the line organisation is... The various persons heading the different departments that are being analyzed and have not been classified into two kinds the. Specialized skills in support of the product the levels of negative sentiment about equality and fairness of opportunity providing managers... Others, nor can the blame be shifted is of a routine nature the! The advice organizational goals and objectives, individual work needs to be coordinated and managed would enjoy equal.. That are convenient for control purposes to perform the tasks and duties assigned them. Rate, traffic source, etc of credit is usually cheaper than using a credit card management... Specialized knowledge are given direct from the chief executive and, in the and. From one superior and is popularly called or known as departmental head can pass on message! Management when you want to communicate or exchange ideas type of organisation, the whole unit is divided different.
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