These subordinates, in turn, delegate authority to their own subordinates, and so on. 1. There is an absolute lack of functional specialization. Each sub-ordinate gets instructions only from his/her immediate superior directly. 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. Similarly, a manager has to look after various departments and functions at a time. The superior can exercise effective control and supervise over the persons under him. 1. 5. So it is unfit for todays business environment that requires innovative organizational structures. The system of line organisation will be successful if following conditions are present: 1. One of the most commonexamples of line organizationis small businesses with the owner overseeing daily operations. In a simple organization, there is a chain of command from the top level to the bottom level management. First, a few definitions so you understand what I'm talking about. 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. Your email address will not be published. Moreover, it is easily understood by workers. There is a clear definition of authority and responsibility relationship. Fixed Authority And Responsibility The departmental manager is responsible or answerable to his immediate superior i.e. These are issues that are vital to the company's success, but which do not require a large work group to accomplish. This branch addresses a lack of expertise in a typicalline organizational structure. Line authority means giving the person a particular amount of control for specific tasks. He has earned a Bachelor of Arts in management from Walsh University. Some of them are inherent while some others are due to peculiar failings of human beings. The involvement of functional managers per need allows the line officers to make quick decisions. It does not involve a large number of people. Having a three-way authority system in the company facilitates expansion and growth. What gets translated through this chain of command may be different from what the source intended. Where the labor and management problems are not difficult to solve. There is scope for favouritism. The line organization structure is very simple to understand and simple to operate. Line Organisation is the oldest form of organization. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. He may neglect some of the duties and there may be inefficiency in management. You may choose the one that suits your companys needs the best. The chain of command goes from top to bottom. Line organization structure chart tends to simplify and clarify responsibility, authority, and accountability relationships. Even though marked by lack of specialization, overburdening of competent managers, absence of communication between managers and subordinates, and subjective element in decision-making, line system of organization will suit businesses which are small in size, or where the work involved is of a routine nature, or machine-based. In a simple organizational structure, various departments are autonomous, and there is little communication with each other. about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? This means relying a little too much on their individual capability, knowledge and experience. This may become the reason for lack of co-ordination among different departments. Under this structure, there is a direct line of authority from the superior to the subordinate level through an unbroken chain. In such a situation, the problem of imbalance in the managerial decision may arise. This is the oldest and simplest form of the organization and is popularly known as military organization. (ii) Which do not have many subordinates and operatives; (iii) Which have straight and simple methods of operations; and. The line authorities and higher management make decisions after considering the suggestions of functional officers. (iv) Advice given by the staff is not always sound. B. outsourcing. It is the oldest form of organization. Line organization has direct vertical relationship. Advantages of Line and Staff Organization. The leaders follow the line, staff, and functional authority. The lower positions derive authority from the positions above them. 3. Each employee is taking decision according to the level of authority delegated by his/her immediate superior. Effective Control and Supervision: For example, the functional structure provides all authority to the manager. It requires more resources, including finance and infrastructure. Line officers should give due consideration to staff advice. This can be effective when organizations are short on time. Effective Management 7. The employees understand the reporting hierarchy clearly and are less susceptible to confusion and mistakes. 3. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. Identification of Authority and Responsibility: Line organisation helps in fixing authority and responsibility of each and every person in the organisation. 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. Everyone knows as to whom he can issue orders and to whom he is accountable. Source: accountlearning.com. Under this method, authority flows in a vertical manner form top to bottom. What is Strategy Implementation and How To Implement it? They judge the performance of persons according to their own yardsticks. In line organisation, the line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. Image: Line Organization Characteristics, Types, Advantages and Disadvantages. The following are the main drawbacks of this system: 1. Clearly defined rights and responsibilities of all managers and employees create conditions for quick decision-making. For example, Sales Department. Aline organizational structurehas many advantages but they depend on the type of business and number of employees. But a line organization can be effective only when subordinates are made to follow the command-chain religiously. (iii) There is clear-cut identification of authority and responsibility relationship. Advantages of Line Organisation: ADVERTISEMENTS: Line organisation offers the following advantages: (a) It is simple to operate and easy to understand. Line and staff officers and managers must understand each others work scope and not try to interfere. It is a traditional concept of management. One of the advantages of the line organization structure is simplicity. A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority. (c) Inadequacy of communication There is a failure to get correct information and to act upon it. 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. 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. Responsibility is fixed. In the line organization, there is one head for decision making and the rest are the followers of that decision. 2. Staff authority should be restricted to a purely advisory role. Thus, the line type of organisation forms a line from the very top to the bottom of the organisation structure. Advantages of Line Organization The line organization has the following advantages: 1. Relief to Line Executives: The Staff officers look after the detailed analysis of each important managerial activity which is a big relief to the line officers. Managers have to involve themselves in jobs of different nature. (d) Limited Communication In this type, there is no communication from subordinates upwards and the workers should follow the orders of superiors, without expressing any opinion about the orders communicated to them. It also allows quick decisions and efficient coordination. Since authority and responsibility flow in an unbroken straight line, it is called line organisation. It requires recruiting specialized employees who offer guidance to the line and staff officers. The Commander- in-Chief is at the top with various other officers at the lower levels. 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Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. All other types of organization structure have mostly been either modifications of this organization. Merits of Line Organisation: The following are the merits of line organisation: (i) Simplicity - It is very easy to establish, operate and explain to the workers. 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. If a decision making process involves the consultation of a number of persons then there are likely to be delays in deciding things. Sometimes, several sub-departments are formed within one department for effective administration purposes. This always includes production and sales, and sometimes marketing. This is because of unified control. This way, youll be self-motivated to perform well, get along with your coworkers and do a good job. to improve overall organization performance. They are bound to follow instructions from their superiors. Every manager is required to incorporate these activities in his department. Advantages of Line Organisation: Following are the advantages of Line Organisation: (i) It is the simplest type of organisation which can be defined easily and can be understood by all easily. planning. In line organisation, every manager exercises a direct authority over subordinates who are directly responsible to their superiors. Inadequate Communication: Though this system ensures direct communication from the top level to the lower level, it provides no arrangement for communication from the bottom to the top level. A superior delegates authority to a subordinate who in turn delegates authority to his subordinates and so on. There are both advantages and disadvantages of line organization. They only impart their suggestions to line authorities. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. Definition, Types, Reasons, and Pros/Cons. The cookie is used to store the user consent for the cookies in the category "Performance". Every person in the organization is in the direct chain of command. He/ she is fully responsible for running the department. Fewer levels between employees . The term Line has been borrowed from the military administration. It is extremely difficult for one person to handle activities of diverse nature. Overload on Managers 2. What is Line and Staff Organizational Structure? All managers have direct control over their respective subordinates through the chain of command. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. This cookie is set by GDPR Cookie Consent plugin. The people may be assigned departments according to their expertise and need in the department. Not all managers can come up to this expectation. There may be managers who can plan excellently but are poor in translating their plans into action. Choosing the right one is crucial for achieving the companys goals. 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. 5. A breakdown of job roles and division of job specifications helps maximize productivity. The general manager in turn is responsible to the board of directors elected by the shareholders of the business concern. 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