The line officers only have to perform the routine work and leave the rest to staff officers. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. Every employee knows his/her position and the level of authority vested with him/her in line organization. (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. 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. But as between one foreman and another, there is no formal line of authority or responsibility. Source: accountlearning.com. (iii) Strong discipline It ensures excellent discipline. It explains the tasks of every worker in an organization. Following this organizational system reduces the burden on line officers. Organizational structure refers to how individual and team work within an organization are coordinated. Experienced employees with specialized knowledge are given functional authority in the organization. Telegram ChannelJoin telegram channel https://t.me/skillicsFunctional Structure https://youtu.be/CkmjGWAv5t4Divisional Structurehttps://youtu.be/SxCT5cRuGPAM. Even within a department, there may be several sub-departments or units. 2. Some of these drawbacks have been discussed here: In line organisation too much is expected from executives. Quick Decision and Implementation 3. The modern military organisations do not entirely rely on line organisation. Classical theories of organization associated with Henri Fayol, Frederick W . Exhibit 10.4 illustrates a staff or functional authority organisational structure. Co-ordination: . However, authority does not always translate to effectiveness. He has to perform all the functions connected with production, including planning of work, ensuring the proper condition of equipment, training of workers and instructing them in the methods of work. In this way, responsibility is easily fixed. By this method, specialisation is attained. Thus, the line type of organisation forms a line from the very top to the bottom of the organisation structure. 7. You consent to our cookies if you continue to use our website. Staff authority refers to advising the people with line authority for better results. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. There is a scope for favouritism in line organisation. This cookie is set by GDPR Cookie Consent plugin. Characteristics of line organization are listed below. These cookies track visitors across websites and collect information to provide customized ads. 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. (ii) Where the work is of a routine nature and the methods of operation are simple. For the three indicators of inclusionequality, openness, and belongingwe found particularly high levels of negative sentiment about equality and fairness of opportunity. There is no provision for growth and development. Each of these departments will report directly to the supervisor above them. Line officers take their own decisions without looking to specialised personnel. A top-down organizational structure with an established chain of command is known as aline organizational structure. : 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. The staff offers specialized/technical suggestions, advice and ideas to the senior management. The subordinates may similarly communicate the order to the workers. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. He can take a decision according to the requirements of the situation. Line organisation suffers from lack of specialised skill of experts. 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. An organizational structure is a set of rules, roles, relationships and responsibilities that determine how a company's activities should be directed to achieve its goals. Hence, nobody is escaped from the responsibility. Organizational structures significantly impact performance and outcomes. This type is also known as scalar organisation. 4. It is the simplest of all types of organizations. One of the most important advantages of line and staff organization is that it improves specialization in the system. ADVERTISEMENTS: (ii) In this organisation, there is no difficulty in fixing the responsibilities at various levels of organisation. Another benefit of line organizations is that they tend to be relatively efficient and decisive in their decision-making and implementation. Line-staff organization, in management, approach in which authorities (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. Content Guidelines 2. Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. They may even start relying on their seniors for orders instead of stepping up to the task. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. Due to the fact that decision-making authority is. (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. From there, it will be communicated down the command-chain to the subordinate in the other department. According to McFarland, Line structure consists of the direct vertical relationship which connects the positions and tasks of each level with those above and below it.. (iv) Which are engaged in the work which is largely of a routine nature. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. Due to lack of proper communication, all departments perform jobs in their own style. Such decisions are executed promptly also. In the line organization, there is one head for decision making and the rest are the followers of that decision. No employee has more than one manager to order him and no manager can order an employee who is not his subordinate. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. This is a very simple organizational structure to understand and manage due to the implementation of the scalar chain of command (formal line of authority which moves from highest to lowest rank in a straight line). (ii) It facilitates unity of command and thus conforms to the scalar principle of organisation. It is also easy to explain to the workers. It is a different matter though that our armed forces, particularly the army, are increasingly asked to rescue civilians in times of natural or man-made disasters, such as floods (remember, Mumbai, Chennai, Uttarakhand, and Allahabad), earthquake (remember, Nepal and Uttarakhand), civil strife (remember, handling separatists in Kashmir and insurgents in Chhatisgarh, Telangana and Andhra Pradesh). Advantages Of Line Organization A line organizational structure has many advantages but they depend on the type of business and number of employees. A line of credit is usually cheaper than using a credit card. The higher management can help improve line and staff structure by well-defined job roles and considering suggestions of functional officers. He may neglect some of the duties and there may be inefficiency in management. Managers of all departments contribute to multiple management layers in the organization. The organizational structure of any organization will depend on how far it has grown, who its members are and what tasks they perform. Advantages and Disadvantages of Line Organization Advantages are: 1. This can be effective when organizations are short on time. In a simple organizational structure, various departments are autonomous, and there is little communication with each other. (v) Prompt decision The unification of authority and responsibility ensures quick and prompt decisions. (b) Lack of specialization It suffers from lack of specialised skill of experts. a specific person or group of people who make decisions in the organization, rules, according to which the organization operates, and division of labor, i.e. Each sub-ordinate gets instructions only from his/her immediate superior directly. 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. Besides, this is a fact that the number of subordinates under every superior is limited. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. Save my name, email, and website in this browser for the next time I comment. Among the advantages of a line structure, experts most often include: clear division of authority, competencies and responsibilities; employees are accountable to one person - the manager; possibility of quick interaction between employees and management; maximum speed of execution of orders; 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. Demerits 5. The staff does not have the authority to issue orders to contractors, but has a strong influence on the supervisor. 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. Understanding the difference in the role of staff and line functions makes the best use of the workforce within the organization. Not all managers can come up to this expectation. This type of organisation is in accordance with the principle of scalar chain. A line function is one that directly advances an organization in its core work. . line-staff organization, in management, approach in which authorities (e.g., managers) establish goals and directives that are then fulfilled by staff and other workers. Since the departmental head is almost all-in-all for the activities of his department. 6. Flexibility 6. Advice Ignored: As the staff officers lack authority to put their recommendations into practice, their advice may be ignored by the line executives. This leads to the losing of economies to scale. 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. Image: Departmental line organization chart. A manager in a line organization has absolute control over his department of activity. Thus, this system may encourage carelessness on the part of the staff officer. Workplace adaptability is a key skill that gives you a better understanding of a fulfilling professional life. Line organization structure is also known as a simple organization or military organization. But opting out of some of these cookies may affect your browsing experience. One of the ways they cooperate is through networking. 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. It requires high capital to recruit experts for the training of staff. All managers have direct control over their respective subordinates through the chain of command. The general manager is in charge of all the departments and he can easily co-ordinate the work of various departments. (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. (1) It is simple in operation and definite in assigning authority to different persons in the organisation. Flexibility: This system is flexible in the sense that it is subject to quick adjustments to suit the changing conditions. Having a three-way authority system in the company facilitates expansion and growth. Business Models & Organizational Structure. How to Improve Line and Staff Organization? In a departmental line organization, there is a chief executive at the top. Under this organisation, activities on any one level are the same. Communication- Communication is fast and easy as there is only vertical flow of communication. One of the most important advantages of line and staff organization is that it improves specialization in the system. 2. Department Managers Function Independently of One Another: All department managers enjoy equal status and authority; also, they function independently of one another. Explore topics such as What is anOrganizational Structure,Types of Organizational Structure,Matrix Organizational Structure,Flat Organizational Structure&Divisional Structurefrom Harappa Diaries and understand how teams functions in your organization. In line organisation final decision-making is done by the top management. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. It does not store any personal data. The allocation of work will also help in fixing responsibility of various individuals. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. 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. The consent submitted will only be used for data processing originating from this website. 6. 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. Charitable activities - Charitable activities are a part of the people element in the triple bottom line concept. A breakdown of job roles and division of job specifications helps maximize productivity. One of the advantages of the line organization structure is simplicity. 4. Every manager is required to incorporate these activities in his department. (iv) Fixed responsibility Everybody in this type of organisation knows to whom he is responsible, and who are responsible to him. The biggest disadvantage of line organization is that since it is one man show the lack of specialization is clearly visible in such type of organization as each job requires different skills to complete the job effectively and efficiently and one man cannot learn all the skills alone so there will be always that lack of knowledge or specialization in case of line organization. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. Both are equally important to an organization. Red Tapism and Bureaucracy: Concentration of authority in the hands of a single man shall result in red tapism at all levels. Thus, the managements dependency increases on staff for information. In an industrial concern, for instance, a foreman neither receives any instructions from, nor issues commands to, another foreman. Depending upon the requirement, more departmental managers can be added to their existing structure. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. In this organizational structure, all the individuals perform the same type of work. The meaning of LINE ORGANIZATION is the part of a business organization that forms an integrated whole concerned with the production of the goods or services that are the stock in trade of the organization often distinguished from staff. This always includes production and sales, and sometimes marketing. 4. (vii) There is a hierarchical arrangement of authority. Profitability Organizations save an average of $11,000 per year per part-time telecommuter, or 21% higher profitability. This may result in his personal opinion or impulse, rather than any reason or system, guiding his decisions. Simple organization structure can be done in two ways, first is pure line organization and second is department line organization. This means relying a little too much on their individual capability, knowledge and experience. For example, the owner of a small business acts as the leader or manager of inline systems. (ix) Lines of authority are vertical i.e. Image Guidelines 4. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. Besides the straightforward organization system, it also involves staff of different departments. They are willing to adopt a dictatorial approach. Line managers plan, and staff helps in execution and betterment. A manager has control only over the subordinates of his department. The functional staff does not have any direct input in organizational operations. Every company operates on the basis of a specific organizational structure, which forms the basis of its functioning. v. Prompt Decisions- As the superiors enjoy full authority, quick decisions are taken by them. Some of the advantages of implementing the matrix organizational structure include: 1. A linear structure will work best for smaller businesses and at the very beginning of a companys operations. Lack of Specialization 3. All the departmental heads are responsible to their immediate superior i.e. (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. We and our partners use cookies to Store and/or access information on a device. Most of the work done in aline organizational structureis routine. The lower level officials do not show initiative in suggesting new things. Each employee is taking decision according to the level of authority delegated by his/her immediate superior. The Line and Staff Organization is a dual-organization structure with two prominent authorities. A foreman heads each department. 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. Unified Control. Conditions for Success of Line Organisation 3. (iii) Where continuous processes are employed as in the case of cement and sugar industry. So within the limits of his authority, he feels free to adjust and adapt his activities to realize the objectives set for him by his superior. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. Good and efficient emperors were able to achieve a great deal whereas an inefficient and weak emperor spoilt everything. This is known by different names, i.e. 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. Effective Control and Supervision: This enables a manager to take prompt decisions. The line organization has the following advantages: 1. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Every employee is responsible to his immediate superior. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. We also use third-party cookies that help us analyze and understand how you use this website. 5. They perform all types of works of creative and innovative nature. In the line organization, managers have to perform a wide range of functions. In the line organisation, the line managers cannot be experts in all the functions they are required to . He may neglect some of the duties and there may be inefficiency in management. c. Responsibility is fixed and unified at each level and authority and accountability Every person in the organization is in the direct chain of command. All departmental heads try to run the departments in their own way and according to their suitability. (v) It facilitates prompt decision-making because there is definite authority at every level. immediate boss. Finding out your culture fit can help you thrive in the workplace. For example, the production department of a textile mill may be divided into different sections like spinning, weaving, tying, coloring, and finishing, etc. Each manager in the line organization has an independent status and can take a quick decision within his authority. Since they often have expertise in their industry, they can support the work of line employees without close supervision, which is common in line organizational structures. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. 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. It means a subordinate is responsible to only one superior. So line organisation enables the fixation of authority and responsibility. Your email address will not be published. And others may be good at execution but not so when it comes to planning. Outside of reporting to senior management, each task belongs to individual employees. He need not to waste time in getting instructions from above. 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 . Line managers compose the chain of command, and are responsible for directing, motivating and supervising employees at all levels of an organization. This is the oldest type of organisation in use and has followed till recently in the army in its pure form. Sound Decisions: In this type, the decisions are made by experts and hence, there is a possibility of making sound managerial decisions. Staff and line are names given to different types of functions in organizations. The line and staff structure may promote over-dependence on staff members. The cookie is used to store the user consent for the cookies in the category "Analytics". Decision-making responsibilities are static with limited flexibility. (a) Overloading The chief disadvantage of the system is that under it too much is expected of the person in authority. Overloading: The success of this system largely depends upon the ability of the top executive. A person receives orders only from his immediate boss. It is extremely difficult for one person to handle activities of diverse nature. Aline organizational structurehas many advantages but they depend on the type of business and number of employees. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. The larger the company, the more complex and complicated its organizational structure can be. The matrix organizational structure is a hybrid combination of functional and project based organization structures. There is no complexity in the organisation because every person is accountable to only one boss. Reduce energy Expenses - Under the triple bottom line method, the organizations are encouraged to use renewable energy. It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. Flexibility- Since each departmental head has sole responsibility for his department, he can easily adjust the organization to changes in business situation. (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. Where the number of subordinates and operatives is less. Everything you need to know about the line organisational . Under this, the line of authority flows vertically downward from top to bottom throughout the organization. Expensive: This type requires the appointment of a large number of experts involving heavy expenditure. Where the process of production is continuous or special. It is the simplest form of organization and very simple to understand and implement. They constitute the backbone of an organization. It improves different coordinations among all employees and personnel. This is known by different names, i.e. The line organisation can be of two types, viz. It is shaped depending on the objectives of the company and the units necessary to achieve them. The Staff Viewpoint. Economical: . Using the website without changing the cookie settings means that they will be stored on your end device. Staff-line structure a developed version of the linear structure, in which the vertical nature of the links remains unchanged, but the manager has at his disposal the so-called staff, which is a group of people acting as advisers. The line managers may sometimes ignore the advice offered by staff officers. There is an absolute lack of functional specialization. They are bound to follow instructions from their superiors. Staff include all of those that provide specialized skills in support of the line departments. Suitability 6. D. core competencies., Companies benefit today by inter-firm cooperation. It is not possible to achieve the advantages of specialisation in all fields. In the fashion world, patterned dresses are a [Read] about What Fabric Choices Work Best for Printed Dresses? The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. The departmental manager is responsible or answerable to his immediate superior i.e. Particularly high levels of negative sentiment about equality and fairness of opportunity workers are responsible to him are on... 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Line organisation suffers from lack of specialised skill of experts part-time telecommuter, or 21 % higher..