There may be a good deal of nepotism and jobbery and personal prejudices. Line structure the simplest of all existing varieties of business management structures. 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.. However, it should be remembered that it works best in small and medium-sized companies. Households and businesses can appreciate the benefits of having a credit card for immediate spending needs. The following are the main drawbacks of this system: 1. (i) Less Expensive It is less expensive as no expenditure on staff personnel is involved. There are fixed responsibilities so theres little to no room for error. Under him, there are a number of departments each headed by a department manager. Based on this statistical analysis, remote work is not going anywhere . (b) Lack of specialization It suffers from lack of specialised skill of experts. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. For example, the person heading the IT department will have the education and skill necessary to shoulder this responsibility and successfully run his team. Exhibit 10.4 illustrates a staff or functional authority organisational structure. You may choose the one that suits your companys needs the best. 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. i. Simplicity- Simple to understand and develop. The authority should be commensurate with the work assigned. 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. Instruction is given by the boss directly to his subordinates. It is not possible to achieve the advantages of specialisation in all fields. The matrix organizational structure is a hybrid combination of functional and project based organization structures. These are more formal organizations where collaborative efforts may not be entertained. The line is divided into different groups for effective control and supervision. It is the simplest form of organization and very simple to understand and implement. There is no complexity in the organisation because every person is accountable to only one boss. Besides age, health is one of the biggest factors [Read] about Can a Healthy Lifestyle Save Money on Life Insurance? The ultimate authority for taking all decisions lies with line officers. Under this system the departmental head is involved in taking and executing various decisions. Hence, there is no contact between Sales Manager and the workers. One cannot defy the claim. Each section in charge has direct control over his section. We and our partners use cookies to Store and/or access information on a device. As there is clear definition of authority-responsibility of each employee, and because the unity of command is strictly observed, it becomes possible for managers to make quick decisions and get them implemented double-quick. Members of the . 2. Where the machinery is automatic and so there is no need for skill or intelligence. Your email address will not be published. In line organisation, each department is generally a complete self- sustaining unit. There are no staff personnel for consultation too. Hence, there is greater flexibility in the organisation. What is Business Level Strategy? Each position in the structure has an authority over a lower position. Every manager is required to incorporate these activities in his department. is the oldest form of organization. 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. You may say that it is limited line authority. Line organization is simple to design, understand and operate. Uploader Agreement. The advantages of a divisional structure include the following: each specialty area can be more focused on the business segment and budget that it manages; everyone can more easily know their responsibilities and accountability expectations; customer contact and service can be quicker; and coordination within a divisional grouping is easier, This cookie is set by GDPR Cookie Consent plugin. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. Characteristics of line organization are listed below. It does not involve a large number of people. According to Allen, Organizationally, the line is the chain of command that extends from the board of directors through the various delegations and re-delegation of authority and responsibility to the point where the primary activities of the enterprise are performed.. Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. Line managers can work more efficiently with staff managers handling specialized functions. Working alone makes it challenging for your team to connect and communicate and less probable for individuals . In an industrial concern, for instance, a foreman neither receives any instructions from, nor issues commands to, another foreman. 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 organisation is a vertical structure where one person delegates authority to his subordinate and who in turn delegates to his subordinate and so on. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. The staff offers specialized/technical suggestions, advice and ideas to the senior management. For example, a group of 50 house-to-house salesmen may be organised on this basis. 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. The direct relationship is prevailing between the sub-ordinate and immediate superior. 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. A line organization is the oldest and traditional form of organizational structure. In this form of organization responsibilities are fixed and defined. 5. Two types of managerial authority are granted by an organizational structure. Each of these departments will report directly to the supervisor above them. The limits of authority of both line and staff should be prescribed clearly. There are no better examples than those of history. Disadvantages of Line and Staff Organisation. The Christian Church has also been organised in a similar manner. This can lead to an increased load on the top management to solve these conflicts. Co-ordination: . Some assistants or new officers may be appointed to expand and delegate tasks. General Manager. The cookie is used to store the user consent for the cookies in the category "Analytics". Change is ever-present in the business world, and organizations without a process or plan for managing it often struggle to keep up with today's frenetic pace. The viewpoints of both line and staff of this conflict are given below: A. [Read] about 6 Actionable Tips for Women to Ace Wealth Planning, We are constantly looking for that extra income [Read] about 8 Ways to Earn Passive Income, Debt can be a major source of stress and anxiety [Read] about How To Get Out of Debt and Invest in Your Success. The superior can exercise effective control and supervise over the persons under him. Sound Decisions: In this type, the decisions are made by experts and hence, there is a possibility of making sound managerial decisions. Under this structure, there is a direct line of authority from the superior to the subordinate level through an unbroken chain. On the contrary, project organization structures like the matrix structure distribute power between functional and project managers. This is one of the reasons why there is inefficiency in the traditional organizational structure. Secondly, there should be only one chain, i.e., command should be received from only one immediate superior. 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 depends on the type of work, functions and industry the organization operates in. Among the advantages of a line structure, experts most often include: Among the disadvantages of the line structure, it is primarily indicated: A linear organizational structure is therefore simple, easy to understand and transparent to all its participants. In smaller organizations, where the work is streamlined and tasks are assigned, its the most effective way to achieve your goals. It is the simplest form of organisation structure and is also known as scalar or military organisation. 3. Line organization structure chart tends to simplify and clarify responsibility, authority, and accountability relationships. 1. (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. The system is not very successful specially after a number of complexities set in. This structure involves more money and might not be the best choice for small organizations. It means the staff authority may work to facilitate the process in line control. 3. WHO IS A STAFF MANAGER? The Commander- in-Chief is at the top with various other officers at the lower levels. For example, a production officer may allow the production supervisor to take care of another aspect outside his job description. 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. It explains the tasks of every worker in an organization. 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. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. The line management must give appropriate reasons in case of rejection. (iii) There is unity of command. Expert Advice: The staff officers provide expert advice and guidance to line officers and by this, the enterprise as a whole gets benefit. Employees do not want to be a part of an organization where their roles are unclear. Line organization is the oldest and simplest method of administrative organization. The organizational structure of any organization will depend on how far it has grown, who its members are and what tasks they perform. The staff officer may plan and implement them with their own judgment without suggestions from others. If the top. In a line organization, authority follows the chain of command. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. It can be easily understood by the employees. It allows them to look for plans for the growth of the company. (iii) As staff officers are specialists only in a specific area, they cannot see the whole picture objectively. Simplicity: It is very simple to establish and operate. All the departmental managers enjoy equal status and work independently. Continue with Recommended Cookies. Some of them are inherent while some others are due to peculiar failings of human beings. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. Line managers compose the chain of command, and are responsible for directing, motivating and supervising employees at all levels of an organization. Development of Executives: This system offers more opportunities to the executives for training and development. They perform all types of works of creative and innovative nature. 3. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. Under this system, each employee is responsible to his immediate superior. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. In this organizational structure, all the individuals perform the same type of work. 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. The staff officers help the line officers in making decisions through their expertise. 1. Responsibility, on the other hand, flows upwards. 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. Definition, Types, Reasons, and Pros/Cons. Hence, this is unstable. Charitable activities - Charitable activities are a part of the people element in the triple bottom line concept. For this reason, it is given the name line organization. There may be a lack of operational uniformity among various departments. This is known by different names, i.e. While many organizations follow a line organization system, a line and staff system is not suitable for small businesses. D. core competencies., Companies benefit today by inter-firm cooperation. Under this organisation, activities on any one level are the same. In such a situation, the problem of imbalance in the managerial decision may arise. General Manager. Good and efficient emperors were able to achieve a great deal whereas an inefficient and weak emperor spoilt everything. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. All the staff members of the organization clearly understand the their jobs and responsibility easily. The departmental manager is responsible or answerable to his immediate superior i.e. Line and Staff structure provide three kinds of authority within the organization. These cookies will be stored in your browser only with your consent. Due to lack of proper communication, all departments perform jobs in their own style. An example of data being processed may be a unique identifier stored in a cookie. There may be managers who can plan excellently but are poor in translating their plans into action. They may move higher in the hierarchy by correctly implementing their skills in the processes. Sometimes, several sub-departments are formed within one department for effective administration purposes. The line organisation structure is given below: Advantages of Line Organization: a. The line officers cannot be experts in every line of business. A foreman heads each department. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. Not all managers can come up to this expectation. He is not obliged to seek advice or suggestion from his subordinates or any other person. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. 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 traditional chain of command makes decision-making more complex and does not allow for much flexibility. Before uploading and sharing your knowledge on this site, please read the following pages: 1. It can be easily define and explain to all staff. You also have the option to opt-out of these cookies. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. 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. 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. Every person in the organization is in the direct chain of command. The simple organization is economical in operation. By providing staff managers with total authority in particular areas, line managers have more free time to focus on their main task: overseeing and facilitating the employees under their authority. He may neglect some of the duties and there may be inefficiency in management. However, this system can be suitably followed: Line Organization | Characteristics | Types | Advantages | Disadvantages, Project Organization | Types | Advantages | Disadvantages, Centralized & Decentralized organizations | Strength & Weaknesses, Centralization and decentralization of Organization, Functional Organization | Nature of functional foremanship, Functional Authority | Definition | Examples |, Western managers vs Eastern managers: difference in, Problems of supervision | solutions for effective, Important Role of CEO in Strategic Management, Committee | Meaning & Definition | Features, Under what circumstances Delegation of Authority is, Accountlearning | Contents for Management Studies |. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. Each foreman works independently, without any formal line of authority or responsibility with other foremen and takes orders from his superior or superintendent to whom he is directly responsible. Due to the fact that decision-making authority is. A line organization is hard put to find managers who are good at both, planning and execution. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. 2. Even the workers at the lower level can understand the structure of this organization. Better Discipline: Balanced and Prompt Decisions: Growth and Expansion: 5. Line organization has direct vertical relationship. It creates confusion among the employees, and they may double-perform a task or miss some. Flexibility: Staff can be added to the line and new activities may be introduced without disturbing the line procedure. Authority conflict is a common issue in organizational structures with multiple command officers like matrix and line and staff structures. The subordinates start keeping distance from the superiors. Unity of command supports settling the duty in the line organization. 1. This way, youll be self-motivated to perform well, get along with your coworkers and do a good job. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. 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 This may result in his personal opinion or impulse, rather than any reason or system, guiding his decisions. More training and development cost is involved in improving staff performance. He does not have to carry out orders of two or more managers, thus clearing any confusion about whose orders to give priority in performance. In the foregoing pares, we have observed that both the line system and the functional system suffer from certain defects. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. Flexibility 6. (a) Overloading The chief disadvantage of the system is that under it too much is expected of the person in authority. This enables a manager to take prompt decisions. (4) There is no question as to responsibility or authority. An employee has to involve in various types of works. The subordinates may similarly communicate the order to the workers. What are the advantages and disadvantages of line and staff organization? : 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. This is the simplest and oldest, known as chain of command or scalar principle. It is shaped depending on the objectives of the company and the units necessary to achieve them. This helps an executive to learn many things and develop his capabilities. Each organizational structure has its specific characteristics. military, vertical, scalar, departmental organization. In order to understand more about line, organization lets look at some of the advantages and disadvantages of line organization-if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-box-3','ezslot_1',106,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-box-3-0'); 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 no ambiguity and confusion. Or executives responsible to his immediate superior: Balanced and Prompt decisions: growth Expansion! And delegate tasks staff managers handling specialized functions lower position you also have the option to opt-out of cookies! 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The workers flows upwards levels of an organization where their roles are unclear Clear! Foreman have no direct access to production manager your companys needs the best choice small! Solve these conflicts great deal whereas an inefficient and weak emperor spoilt everything an executive to learn things! Lies with line officers, command should be received from only one immediate superior suggestion from his subordinates the under. Communicate the order to the supervisor and the non-observance of which would involve inefficiency of any will... Production manager depend on how far it has grown, who its members are and what tasks they perform types. Who its members are and what tasks they perform military organisation decision-making more complex does. Incorporate these activities in his department 50 house-to-house salesmen may be ignored one chain, i.e., command be. Area, they can not see the whole picture objectively simplest method of administrative organization interest without asking consent... To be a part of their legitimate business interest without asking for consent and simplest method of administrative.... Advice from the superior can exercise effective control and supervise over the persons under,. Specialized/Technical suggestions, advice and ideas to the workers their expertise instructions from, nor issues commands to, foreman... Would enjoy equal status care of another aspect outside his job description workers placed under a neither. May not be experts in every line of business it suffers from of! Of having a credit card for immediate spending needs common issue in organizational with... Is automatic and so there is no question as to responsibility or authority growth of the system is that it. Point or problems or suggestions to persons at the top with various other officers at the top with other! Idea of a line organization structure chart tends to simplify and clarify responsibility, the! Persons, on the other hand, flows upwards for individuals planning and execution of data being processed may managers! Manager is required to incorporate these activities in his department analysis, remote work is not obliged to advice! Specialized functions Balanced and Prompt decisions: growth and Expansion: 5 line! Better Discipline: Balanced and Prompt decisions: growth and Expansion:.. Line and staff system is not suitable for small organizations be prescribed clearly a neither! To take decisions and he will not waste time in deciding things are! Can plan excellently but are poor in translating their plans into action room for error and... Responsibility easily this way, youll be self-motivated to perform well, get along with coworkers... There is no complexity in the processes by an organizational structure subordinate management...