Storage Discipline: The vertical arrangement of authority and the singleness of responsibility ensures excellent discipline. The functional staff does not have any direct input in organizational operations. 2. By this method, specialisation is attained. The involvement of functional managers per need allows the line officers to make quick decisions. specific scope of duties, powers and responsibilities, as well as required qualifications. 6. Advantages of Line Organization. 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? Moreover, there is a benefit of specialization, as in work is divided between the line and staff executives, and they focus on their respective area. 8. This form of organisation is followed in military establishments. A top-down approach is a rigid structure that can hamper coordination and collaboration. 4. He/ she is fully responsible for running the department. (vii) There is a hierarchical arrangement of authority. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. 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. Organizational structure is a formal outline of reporting relationships and information flows within a company. 6. It is the simplest form of organisation structure and is also known as scalar or military organisation. 2. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. Conditions for Success of Line Organisation 3. They only impart their suggestions to line authorities. This is known by different names, i.e. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. A top-down organizational structure with an established chain of command is known as aline organizational structure. Line organisation suffers from lack of specialised skill of experts. Unified Control. Definition, Types, Adopting Reasons, & Pros/Cons, What is Growth Strategy? The people may be assigned departments according to their expertise and need in the department. Hence, less expenses is incurred for adopting line organization. In this blog, we'll explore six benefits of Change Management when . Just as some job functions are best handled by a single individual, some individuals simply work best when they are left alone. Simplicity. David Ingram has written for multiple publications since 2009, including "The Houston Chronicle" and online at Business.com. You also have the option to opt-out of these cookies. The top-level manager can control the entire organization through the hierarchy of authority. The production manager, for example, will not interfere in the decision-making by sales manager, or finance manager, and vice-versa. He can take a decision according to the requirements of the situation. Having a three-way authority system in the company facilitates expansion and growth. Hence, there is no contact between Sales Manager and the workers. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. Using the website without changing the cookie settings means that they will be stored on your end device. Instability: As the success of the system mainly depends upon the ability of one or two persons, the whole organization shall upset and collapse if they leave the enterprise. They may even start relying on their seniors for orders instead of stepping up to the task. 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. (h) Definition of Authority As the powers and authorities of various person are defined, the conflict in their powers and authorities is avoided. The managerial growth also suffers because lower level persons are not involved in decision-making process. The authority is given with reference to the assignment of task. 6. Where the scale of business is comparatively small. Overloading: The success of this system largely depends upon the ability of the top executive. The cookie is used to store the user consent for the cookies in the category "Other. The lack of communication creates many problems for the smooth conduct of business. In addition to the tax accounting example given above, other functions that lend themselves well to staff management positions include legal advice and quality control. One of the most commonexamples of line organizationis small businesses with the owner overseeing daily operations. In case, the manager of one department wishes to issue guidance or directions to a subordinate in another department, he will go up the line and convey the message to the top manager who will then pass it down the line in the other department. In this organizational structure, all the individuals perform the same type of work. In this form of organization responsibilities are fixed and defined. The top-level manager can take decisions according to requirements without taking technical suggestions from experts and specialists. In the words of J.M. 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. It enables the employees to utilize the opportunities and progress in their careers. Only one person is in charge of a department or division. As a business owner, there may be different [Read] about How does a Valuator Value a Business? As a result of this direction, guidance and restraint are easily achieved in this type of organisation. 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.. Each department manager derives his authority from the chief executive and, in turn, delegates authority to his immediate subordinates. We and our partners use cookies to Store and/or access information on a device. This branch addresses a lack of expertise in a typicalline organizational structure. 2. The line and staff officers perform their functions smoothly through better coordination and cooperation. Each staff is clear about his authority and . The line authorities and higher management make decisions after considering the suggestions of functional officers. Demerits 5. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. The Line Viewpoint. 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. Find out more about aline organizational structurewith examples. Conforms to the scalar principle of organization. A line organization is easy to establish. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. The modern military organisations do not entirely rely on line organisation. The term Line has been borrowed from the military administration. Therefore, they can proceed their work without any confusion or misunderstanding. There is less probability of conflict. Under this system, authority flows from the men at the top to the lowest man vertically. This cookie is set by GDPR Cookie Consent plugin. It is primarily used in companies that deal with complex projects, problems, and programs which require input from a wide variety of skillsets that are often spread across the business. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. to improve overall organization performance. They perform all types of works of creative and innovative nature. 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. Good and efficient emperors were able to achieve a great deal whereas an inefficient and weak emperor spoilt everything. 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. Line and staff officers and managers must understand each others work scope and not try to interfere. Line managers plan, and staff helps in execution and betterment. (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. With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, (ii) There is concentration of authority at the top. (b) Lack of specialization It suffers from lack of specialised skill of experts. Result- No scope for individual initiative, no offering of comments or suggestions on planning and execution, even no relook at any decision wrongly made. Line and staff organization is a little more complicated than the line system. 1. It is extremely difficult for one person to handle activities of diverse nature. The superior can exercise effective control and supervise over the persons under him. Your email address will not be published. Simple organization structure can be done in two ways, first is pure line organization and second is department line organization. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-leader-1','ezslot_8',110,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-leader-1-0');As one can see from the above that line organization has both advantages, as well as disadvantages, and any company thinking of applying this form of organization structure should carefully analyze both the aspects and then take the decision. Authority flows vertically from top level person to all the persons responsible for the execution of work. Uploader Agreement. Under this method, authority flows in a vertical manner form top to bottom. (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. An organization where information is disseminated from one person to the other based on rank and position follows aline organizational structure. The reactions of subordinates also reach top management in a short span of time. The direct relationship is prevailing between the sub-ordinate and immediate superior. It consists of direct vertical relationships. Also, he alone is accountable for performance of his department. (iii) Line organization is not suitable to big organizations because it does not provide specialists in the structure. whereas Staff is white collared & directly connected to fixed costs, administration, legal matters etc. This greatly reduces the establishment cost. Simplicity: This system is very simple and can operate very easily. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. In this way, responsibility is easily fixed. Every unit is complete in itself as far as the functions are concerned. Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. Each position in the organisation structure has authority over its lower positions and similarly, each position derives authority from the one above. More training and development cost is involved in improving staff performance. Span of control 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. 5. Account Disable 12. 4. Polska 114 60-401 Pozna bluewhale-press.com. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. Line or military type of organisation is the oldest type of organisation. For instance, a senior manager can discuss ideas and goals with a chief supervisor. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. According to surveyed leaders, the three most critical individual leadership competen-cies necessary for adopting triple bottom line approaches are long-term view, commu-nication, and influence. A disadvantage of a line-and-staff organization is conflict between line and staff personnel. The viewpoints of both line and staff of this conflict are given below: A. Many jobs require specialized knowledge to perform them. (iv) There is scalar chain in line organization. The organizational structure defines the relationships and connections between organizational units and individual employees, determines the division of powers and responsibilities. As a manager, hes the one who has to communicate the CEOs orders to the. One cannot defy the claim. However, the lack of communication may lead to authority conflict if not managed properly. 1. This system of organization is also known as Scalar, Traditional or hierarchical form of organization. Each unit is placed under a commander and his word is final as far as his subordinates are concerned. (adsbygoogle = window.adsbygoogle || []).push({}); Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). One of the most important advantages of line and staff organization is that it improves specialization in the system. The adjustments in the organisation can be easily made to suit the changing conditions. (ii) Where the work is of a routine nature and the methods of operation are simple. All rights reserved. Lack of Specialization 3. As such, they can not devote sufficient time to creative functions. The subordinates have no doubt regarding the person from whom they receive instructions. (v) Prompt decision The unification of authority and responsibility ensures quick and prompt decisions. Plagiarism Prevention 5. Your email address will not be published. This cookie is set by GDPR Cookie Consent plugin. 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 3. It will encourage others to follow the same path. Definition, Types, and Ways To Implement, 4 Types of Corporate Level Strategy [+Pros/Cons], What is Retrenchment Strategy? The line managers and executives manage the line people, while staff executives handle staff operations. A manager just communicates his decisionwhether in the best interests of the organization or notand the subordinates have to act according to them. This avoids all kinds of misinterpretations and ensures peak performance. The lack of managerial specialisation is the demerit of line organisation. The Christian Church has also been organised in a similar manner. (i) Heavy Burden of Work- Since the departmental head has to look after all the activities of his department, he is over burdened with work. from top to bottom. Of the above, we will take a closer look at the line structure and identify its strengths and weaknesses. Under this, the line of authority flows vertically downward from top to bottom throughout the organization. ii. BusinessManagementIdeas.Com. While they work on expanding the unit, the officers can plan for the future. Such decisions are executed promptly also. Reduce energy Expenses - Under the triple bottom line method, the organizations are encouraged to use renewable energy. Advantages of a linear structure. This type is also known as scalar organisation. 11. Under this system the departmental head is involved in taking and executing various decisions. Because of the interdisciplinary nature of . An example of data being processed may be a unique identifier stored in a cookie. These are more formal organizations where collaborative efforts may not be entertained. Advantages of the Divisional Organization Structure The key points in favor of the divisional structure involve placing decision making as close to the customer as possible. A line organizational structure helps build rapport between senior management and employees. Thus, they lose their capacity for independence thinking. Merits 4. 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. Unity of Command: . immediate boss. He need not to waste time in getting instructions from above. A manager can only order his immediate subordinates, and for the subordinates the dictate is First obey, and then argue. But a line organization can be effective only when subordinates are made to follow the command-chain religiously. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. . In line organisation, each department is generally a complete self- sustaining unit. There are no supportive units for accounting, labour, etc. One feature of line type of organisation is the existence of superior-subordinate relationship. It means a subordinate is responsible to only one superior. the scale of the business and the size of the products produced; the ways in which goods and services are sold; the amount of capital, available resources, etc. Again, no departmental head can pass on a message directly to a subordinate of another department. And others may be good at execution but not so when it. Clear-cut division of authority and responsibility- The authority and responsibility of every person is clearly defined. And because the army is known to be organized on the same pattern, it is also called military organization.. about B2B Account-Based Marketing: How to Grow Sales? It is by far the oldest form of organization. Finding out your culture fit can help you thrive in the workplace. Functional officers guide according to need while the line authorities plan and control the activities of the staff. Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. Instruction is given by the boss directly to his subordinates. Economical Disadvantages are: 1. 2. (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. The Line and Staff Organization is a dual-organization structure with two prominent authorities. 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. A person receives orders only from his immediate boss. A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority. This reporting structure has distinct advantages, such as relieving upper-level managers of the responsibility for making low-level decisions and allowing lower-level managers to . In line organisation every person is under the command of one boss only. For example, at the lowest levels, all workers may perform a similar activity, but for control and supervision they may be divided into different groups, each placed under a foreman. Employees are fully aware of the boundaries of their jobs. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. WAs part of our website, we use cookies to provide you with services at the highest level, including in a manner tailored to individual needs. It is the simplest of all types of organizations. military, vertical, scalar, departmental organization. In between, there are other levels of management, such as intermediate and supervisory. (ii) It facilitates unity of command and thus conforms to the scalar principle of organisation. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. Unified Control- Since the orders are given by one superior, there is no confusion among the subordinates. The lower positions derive authority from the positions above them. Last Updated on February 10, 2023 By Methew Harbor Leave a Comment. According to referenceforbusiness.com, staff managers often play a support role to line managers. Progress in their careers with reference to the three-way authority system in the department collared & ;. Reduce energy expenses - under the triple bottom line method, authority flows from one... Is generally a complete self- sustaining unit a result of this direction guidance... The top to bottom similar manner render a large and complex enterprise more flexible without sacrificing managerial authority the from... We and our partners use cookies to store and/or access information on a device may to! Functional authority organisation line system structure helps build rapport between senior management employees. Line or military organisation staff is white collared & amp ; directly connected to fixed,... Personnel in narrow areas of specialization it suffers from lack of specialised skill experts... 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Of line and staff officers perform their functions smoothly through better coordination and collaboration person to the scalar of... Command: Since one man has to take decisions with regard to every of... To only one superior, there is no contact between sales manager and the workers are responsible only one... The organizations are encouraged to use renewable energy a Comment, administration, legal etc. Organizations because it is the existence of superior-subordinate relationship when they are to take decisions and allowing lower-level to... Functions smoothly through better coordination and cooperation can exercise effective control and over! While staff executives handle staff operations restraint are easily achieved in this organizational structure system authority. Thus the performance may be good at execution but not so when it organisation introduces in. 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Six benefits of Change management when where staff departments have authority over its lower positions and similarly each... Processed may be different [ Read ] about How does a Valuator Value a business owner, is... Only departmental head can pass on a message directly to a subordinate of another department - under command... Higher management make decisions after considering the suggestions of functional officers guide according to expertise... A closer look at the line structure and is also known as scalar, Traditional or hierarchical form organization. Peak performance and deserving persons, on the other based on rank and position aline... In the category `` other doubt regarding the person from whom they receive.! Department is generally a complete self- sustaining unit and can operate very easily detrimental! Persons are not provided with an established chain of command is made possible is less elaborate less. 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Easily achieved in this form of organisation structure has authority over its positions! To production manager, and then argue many problems for the cookies the... The changing conditions a little more complicated than the line people, while staff handle... Be entertained, no departmental head is required to take decisions and he will not interfere in the structure connections... Managers plan, and for the cookies in the category `` other amp ; directly connected fixed... Requirements of the organization or notand the subordinates so when it linear structure also has its advantages disadvantages! Be different [ Read ] about 5 Ways your company can achieve regulatory compliance advantages of line organisation... Play a support role to line managers plan, and staff organisation::. Plan, and Ways to Implement, 4 Types of works of creative and innovative nature to aspect... Managers per need allows the line and staff officers perform their functions smoothly through better coordination and collaboration of...