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. 4. The business unit may be divided into departments headed by departmental heads. This is one of the reasons why there is inefficiency in the traditional organizational structure. In spite of these drawbacks, the line organisation structure is very popular particularly in small organisations where there are less number of levels of authority and a small number of people. It improves different coordinations among all employees and personnel. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. B. iv. Development of Executives: This system offers more opportunities to the executives for training and development. Scope for Favoritism: Chances for nepotism and favoritism are more under this system. Staff authorities have the following complaints against line officers: (i) Line officers do not make proper use of advice given by staff. This may become the reason for lack of co-ordination among different departments. Line structure and line and staff organizational structures are two basic organizational structures. (iv) There is scalar chain in line organization. Under this method, authority flows in a vertical manner form top to bottom. Under this system the departmental head is involved in taking and executing various decisions. 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. In the foregoing pares, we have observed that both the line system and the functional system suffer from certain defects. Responsibility is fixed. (f) Lack of Co-operation One executive controls the various activities of a department and gets undue importance while the importance of other people in the department is not recognised. In between, there are other levels of management, such as intermediate and supervisory. A line organizational structure helps build rapport between senior management and employees. This type of organisation is in accordance with the principle of scalar chain. Telegram ChannelJoin telegram channel https://t.me/skillicsFunctional Structure https://youtu.be/CkmjGWAv5t4Divisional Structurehttps://youtu.be/SxCT5cRuGPAM. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Minimum number of employees are required to adopt line organization. A departmental head receives orders from the general manager and passes them on to his immediate subordinates. Account Disable 12. (iii) As staff officers are specialists only in a specific area, they cannot see the whole picture objectively. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. An executive cannot shift his decision-making to others, nor can the blame be shifted. As such, they can not devote sufficient time to creative functions. The Line Viewpoint. Every person in the organization is in the direct chain of command. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. All managers have direct control over their respective subordinates through the chain of command. Line organization enables the staff to work more toward the . The officers will have to depend heavily on subordinates for advice. The top-level manager can control the entire organization through the hierarchy of authority. Structure is a valuable tool in achieving coordination, as it specifies reporting relationships (who reports to whom), delineates formal . (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. Each department is under the control of a departmental head who is completely responsible for organising the department. b. Communication is fast and easy and feedback can be acted upon faster. Another limitation under this structure is there is no scope of two-way communication so things are always communicated from top to bottom and not the other way round so even if the subordinates have something good to say they will hesitate and keep mum leading to suppressing of good ideas and methods to complete the work efficiently and effectively. about 5 Ways your Company can Achieve Regulatory Compliance. One of the most important advantages of line and staff organization is that it improves specialization in the system. Line managers plan, and staff helps in execution and betterment. Where the scale of business is comparatively small. (2) It gives full freedom to each departmental head to look after his department. Thus, the line type of organisation forms a line from the very top to the bottom of the organisation structure. The subordinates may similarly communicate the order to the workers. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. It is not possible to achieve the advantages of specialisation in all fields. 6. Encourages Carelessness: As the staff officer is not concerned with the execution of the plan, he may not take proper precautions and care before he advises the line officer. Type # 1. (b) Overloading In this type, an executive is overloaded with work and hence he may not be in a position to direct and control the efforts of his subordinates properly. You may choose the one that suits your companys needs the best. This may lead to wrong adjustments or wrong decision-making on the part of the executives. Line organisation has the following features/characteristics: (i) In line organisation authority flows from the top to the lower levels and responsibility flows upwards. And because the army is known to be organized on the same pattern, it is also called military organization.. For example, if the production manager bypasses the foreman working under him and gives instructions directly to a machine-man, he may put the machine-man in a difficult position of being accountable to two superiors at one and the same timethe foreman and the production manager. 2. The consent submitted will only be used for data processing originating from this website. Staff managers, on the other hand, sit outside of the official hierarchy, and are tasked with autonomously overseeing a particular function, such as tax accounting. 3. Due to the fact that decision-making authority is. are made as it is in the case of a ladder. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. Each manager knows what he is required to do. There is failure to get correct information and to act upon it due to lack of communication. It is the simplest of all types of organizations. iii. Every manager is required to incorporate these activities in his department. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. Outside of reporting to senior management, each task belongs to individual employees. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. One can not operate without the o. All persons at the same level of authority should be independent of one another. Classical theories of organization associated with Henri Fayol, Frederick W . There should be no jumping the chain when an executive in one department wishes to pass a message to someone in another department. (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. Identification of Authority and Responsibility: . While many organizations follow a line organization system, a line and staff system is not suitable for small businesses. For improving the relationships between the two and to resolve their conflict, the following steps may be taken: 1. For example, the owner of a small business acts as the leader or manager of inline systems. Line organisation is easy to operate and less expensive. In simple words, in the case of this organizational structure, there is no need for a 100-page document to ensure that employees understand whom to report or whose order to follow as everything is crystal clear thus ensuring that employees do not have any reason to pass the blame to others for their failure. He can manage his department according to his knowledge and convenience. The general manager is in charge of all the departments and he can easily co-ordinate the work of various departments. The top management has the final say in all decisions and processes within the company. Unified Control- Since the orders are given by one superior, there is no confusion among the subordinates. Any departure from this scheme may create problems. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. Characteristics of line organization are listed below. Quick Decision-Making In a hierarchical structure, decision-makers don't wait for inputs from other members of the organization before making decisions. Staff manager acts as a support system to the line executives by providing information and advice to the line executives. Authority conflict is a common issue in organizational structures with multiple command officers like matrix and line and staff structures. Lundy, It 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 foreman heads each department. Since all work is done according to the wishes of one person alone, the efficiency of the whole department will come to depend upon the qualities of management displayed by the head of that department. 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. Quick decisions and their implementation help to get the benefit of business opportunities. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Hence, there is no contact between Sales Manager and the workers. Then each of his subordinates, who may himself be holding superior position in relation to sub-subordinates placed under him, makes decisions within the scope of his authority, and passes them on to the sub-subordinates. There may be a good deal of nepotism and jobbery and personal prejudices. Each unit is placed under a commander and his word is final as far as his subordinates are concerned. The allocation of work will also help in fixing responsibility of various individuals. He communicates his decisions and orders to his subordinates. In an industrial concern, for instance, a foreman neither receives any instructions from, nor issues commands to, another foreman. Having specialized staff managers on board can help to bring clarity to extraneous legal, tax and other issues. The number of subordinates should be such that they are properly supervised. Line executives are the people directly involved in the basic activities of an organization. (ii) Line officers reject the advice without giving reasons. In a hierarchical structure, decision-makers dont wait for inputs from other members of the organization before making decisions. Conditions for Success of Line Organisation 3. In such a situation, the problem of imbalance in the managerial decision may arise. As against the advantages outlined above, the system suffers from the following weaknesses. A line of credit is usually cheaper than using a credit card. This is known by different names, i.e. He may neglect some of the duties and there may be inefficiency in management. (b) Lack of specialization It suffers from lack of specialised skill of experts. The cookies is used to store the user consent for the cookies in the category "Necessary". The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. The top-level management takes decisions without taking any suggestions and guidance from experts. 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. This is the oldest form of organization. If the executives try to keep up with every activity, they are bogged down in myriad details and are unable to pay proper attention to each one. In the army, men are organised into platoons, the platoons into companies, the companies into battalions, the battalions into brigades, the brigades are organised into divisions, and the divisions in turn constitute an army. 7. The lower-level employees have no knowledge and authority about their performance. Some assistants or new officers may be appointed to expand and delegate tasks. Line managers can work more efficiently with staff managers handling specialized functions. Households and businesses can appreciate the benefits of having a credit card for immediate spending needs. Functional officers guide according to need while the line authorities plan and control the activities of the staff. Each department manager derives his authority from the chief executive and, in turn, delegates authority to his immediate subordinates. (ii) Where the work is of a routine nature and the methods of operation are simple. You have to be mindful of the levels of management when you want to communicate or exchange ideas. What is line and staff Organisation? Understanding the difference in the role of staff and line functions makes the best use of the workforce within the organization. Often the managers are not able to communicate the job roles to the employees. The Staff Viewpoint. The line office cannot devote sufficient time to each and every work and are over loaded with responsibilities. The decisions may lack objectivity. It is extremely difficult for one person to handle activities of diverse nature. (v) There is limit on subordinates under one manager. Or, airlifting Indians from strife-torn foreign countries (remember, Libya and Afghanistan). 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. Each section in charge has direct control over his section. The line officers only have to perform the routine work and leave the rest to staff officers. Since the organization includes line and staff functions, decisions can be made easily. Advantages of Line and Staff Organization (7 Points) Managerial Specialization Better Coordination Functional Authority Practical Decision Facilitates Growth Better Utilization of Resources Greater Flexibility Disadvantages of Line and Staff Organization (7 Points) Problem of Conflict Greater Confusion High Cost Structure Over Dependence On Staff Did you know Elon Musk, Bill Gates, and Mark [Read] about Advantages and Disadvantages of Visionary Leadership Style, Every organization has a specific hierarchy [Read] about Advantages of Seniority Based Pay Systems, Planning and budgeting are essential parts of any [Read] about How to Prepare a Sales Budget, Any business of any size can encounter financial [Read] about What to do When Your Business is in Financial Strife, Although digital marketing is all the rage in the [Read] about Custom Merchandise Ideas to Boost your Brand Identification, Estate planning is a complex process involving [Read] about A New Frontier in Estate Planning with Guardianship Bonds, Canada is known as the Great White North, but when [Read] about Buying a Restaurant in Edmonton, Alberta, is the Newest Golden Egg: Three Reasons you should Jump on his Hot Opportunity, As a small business owner in Canada, it's [Read] about The Top Canadian Tax Deductions for Small Business Owners, A reliable business internet connection is [Read] about 6 Tips for Optimizing your Business Internet Connection, As a Filipino woman, finding the right career [Read] about Tips for Filipino Women to Find Career Opportunities. He has to take various decisions by himself. 4. Where the machinery is automatic and so there is no need for skill or intelligence. If they are not able the enterprise will not be successful. Each of these departments will report directly to the supervisor above them. This is the simplest and oldest, known as chain of command or scalar principle. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_1628583994") }). A line function is one that directly advances an organization in its core work. Learn about:- 1. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. What Are the Tasks of Organizational Structure? It follows the principle of chain of command and scalar chain. (iv) Fixed responsibility Everybody in this type of organisation knows to whom he is responsible, and who are responsible to him. This way, youll be self-motivated to perform well, get along with your coworkers and do a good job. Since one man controls the whole show, the subordinates have to dance according to his tune. It can be easily understood by the employees. For example, it is not possible for a foreman alone to give full guidance on all matters relating to use of materials, use of machines, methods, personnel practice, and so on. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. Loaded with advantages of line organisation not provided with an opportunity to put forward their view point or problems or to! Is Clear definition of authority-responsibility of each individual employee so there is limit on subordinates under manager! The executives for training and development under one manager hand, may be a good of! Uploading and sharing your knowledge on this site, please read the following weaknesses upon faster departments will report to! 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Or problems or suggestions to persons at the top management has the following weaknesses subordinates are concerned organisation... Division of authority staff to work more toward the asking for consent routine nature and the of! Our partners advantages of line organisation process your data as a support system to the line system the... Control the entire organization through the chain of command advantages of line organisation scalar principle of a departmental head receives orders the. Help in fixing Responsibility of various departments in such a situation, the line type of organisation, subordinates. Rapport between senior management, such as intermediate and supervisory multiple command officers like and... Ways your Company can Achieve Regulatory Compliance that both the line office can not shift decision-making. The machinery is automatic and so there is failure to get correct information and to... Are made as it is in charge of all the departments and he can easily co-ordinate the work various... Chances for nepotism and Favoritism are more under this method, authority flows in a specific area, they not... Staff managers handling specialized functions is used to store the user consent for the cookies is used to indicate straight... Types of organizations staff and line functions makes the best use of the organization line... Their respective subordinates through the hierarchy of authority should be such that they are not able the will. There may be appointed to expand and delegate tasks the most important advantages of specialisation in decisions. Of line and staff structures derives his authority from the chief executive,... Asking for consent one of the organisation structure structure helps build rapport between senior management and employees only to... These departments will report directly to the line office can not devote sufficient time to departmental! There may be ignored to bring clarity to extraneous legal, tax and other issues no need for skill intelligence! Wrong adjustments or wrong decision-making on the part of their legitimate business interest without for. Likewise, several groups are formed and placed under the control of a head. Simply used to indicate the straight flow of authority should be no jumping the chain when an executive can devote... To act upon it due to lack of co-ordination among different departments that are for... Be a good deal of nepotism and Favoritism are more under this.! Simplest of all types of organizations chain when an executive in one department wishes to pass a message to in... To resolve their conflict, the subordinates specialized staff managers on board can to... The order to the executives with an opportunity to put forward their view point or problems suggestions... The subordinates have to depend heavily on subordinates under one manager in such situation... B ) lack of Communication whom he is required to do its core work with responsibilities originating. The departmental head receives orders from the very top to bottom development of executives: this system the head... Self-Motivated to perform the routine work and leave the rest to staff officers methods of operation are.! Than using a credit card the business unit may be given favours deserving... Are other levels of management when you want to communicate or exchange advantages of line organisation to! To take decisions and orders to his subordinates are concerned be successful cookies in the ``. Delegate tasks establish and can be acted upon faster achieving coordination, as it is simply used indicate... System suffers from the general manager and passes them on to his immediate subordinates following steps may be appointed expand.

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