4. 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. Features of Line Organisation 2. It is not possible to achieve the advantages of specialisation in all fields. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. Because of this fixed responsibility, no person can escape his own responsibility. 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. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. How Outdoor Advertising Can Help Your Business Grow, Hybrid Events: How to Make the Most of Stationary and Remote Employees. Each of these departments will report directly to the supervisor above them. First, commands should be given to subordinates through the immediate superior- there should be no skipping of links in the chain of command. He has to take various decisions by himself. Development of Executives: This system offers more opportunities to the executives for training and development. He is not obliged to seek advice or suggestion from his subordinates or any other person. Every manager is required to incorporate these activities in his department. Economical: . To conclude, the organization needs not only to find right men for the right jobs, but also retain them by giving attractive salaries and privileges, at least until matching replacement is found. Although a line structure isnt as common as it used to be, it still exists in organizations that have been around for years. It creates confusion among the employees, and they may double-perform a task or miss some. The line officers should consider the suggestions of the staff officers. The suggestions and recommendations may not always be accepted. The managerial growth also suffers because lower level persons are not involved in decision-making process. This means relying a little too much on their individual capability, knowledge and experience. Line or military type of organisation is the oldest type of organisation. The line organisation represents the structure in a direct vertical relationship through which authority flows. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Staff experts in specific areas are incorporated into the formal chain of command. There is thus a hierarchical arrangement of authority. In a line organization, the responsibility for the performance of tasks is fixed upon definite individuals. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. This cookie is set by GDPR Cookie Consent plugin. Lack of Specialization 3. Similarly, there is no provision of guidance and suggestions from the experts in making managerial decisions. The demerits of line organization are as under: (i) With growth, the line organization makes the superiors too overloaded with work. In line organisation final decision-making is done by the top management. They are also aware of the necessity of satisfying their superior in their own interests. 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. Matthew was a floor manager at a local restaurant in Wales. This form of organisation is followed in military establishments. And others may be good at execution but not so when it comes to planning. Another way is by seeking . The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. Some of these drawbacks have been discussed here: In line organisation too much is expected from executives. This means relying a little too much on their individual capability, knowledge and experience. (c) Scope for Favouritism Since only one executive controls all the activities relating to his department, there is much scope for favouritism and nepotism. Experienced employees with specialized knowledge are given functional authority in the organization. If they are not able the enterprise will not be successful. There are fixed responsibilities so theres little to no room for error. 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. Communication- Communication is fast and easy as there is only vertical flow of communication. The simple organization is economical in operation. Advantages of line organization: Following are the main advantages of line organisation: 1. The production manager, for example, will not interfere in the decision-making by sales manager, or finance manager, and vice-versa. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". 2. It improves coordination, encourages communication and helps management drive innovation. planning. They judge the performance of persons according to their own yardsticks. (3) Limited Superior-Subordinate Communication, (4) Line Manager may Take Decisions Arbitrarily, With Features, Advantages and Limitations. There are no staff personnel for consultation too. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Hence, discipline can be maintained there. Minimum number of employees are required to adopt line organization. A line of credit is usually cheaper than using a credit card. This ensures better understanding and quick action. Your email address will not be published. Experienced employees with specialized knowledge are given functional authority in the organization. It also governs the . Employees are fully aware of the boundaries of their jobs. It ensures appropriate decision-making for the betterment of processes within the company. 5. Hence, less expenses is incurred for adopting line organization. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. 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. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. This cookie is set by GDPR Cookie Consent plugin. In a simple organization, there is a chain of command from the top level to the bottom level management. All departmental heads try to run the departments in their own way and according to their suitability. General Manager. And others may be good at execution but not so when it. One of the major advantages of this organizational structure is the ease of communication between various departments which often leads to more . It increases employee turnover rates in such organizational structures where authority conflict arises. What is Business Level Strategy? This may lead to wrong adjustments or wrong decision-making on the part of the executives. It explains the tasks of every worker in an organization. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. 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.. As a manager, hes the one who has to communicate the CEOs orders to the. Organizational structures significantly impact performance and outcomes. In this way, responsibility is easily fixed. Line-staff organization, in management, approach in which authorities Every person is in charge of all the persons under him and he himself is accountable to his superior only. Line should value the special skills of staff and similarly the staff should try to appreciate the difficulties in implementing new ideas. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. Your email address will not be published. The hierarchy is different in each of them. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. 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. . He knows whose orders he is to obey and to whom he will be accountable for his work performance. If the managers treat the employees as a pendulum between them, they will most likely get tired of their job roles. Its a simple, no-fuss setup where you know exactly who youre reporting to. The functional staff does not have any direct input in organizational operations. Line organization is simple to design, understand and operate. (c) It enables clear cut definition of authority and responsibility. A top-down approach is a rigid structure that can hamper coordination and collaboration. It can be easily understood by the employees. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. 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. The top-down approach helps streamline communication. The officers will have to depend heavily on subordinates for advice. These are issues that are vital to the company's success, but which do not require a large work group to accomplish. Every employee is responsible to his immediate superior. At departmental level manager is in charge and he can direct the activities of his juniors. 5. A number of organizations do not even employ staff managers, relying solely on their line managers to accomplish business objectives. One of the ways they cooperate is through networking. (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. They are only required to do as told to them by respective managers. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. What happens when a department manager wants to pass some message to a subordinate in another department? 7. Confusion: If the pattern of authority relationship between line and staff executives is not clearly indicated, there may be considerable confusion throughout the organisation. Simple and Easy To Understand 2. A group of employees is controlled by one individual. 2. Line organizational structure is common in entrepreneurship and small businesses. A linear structure will work best for smaller businesses and at the very beginning of a company's operations. Hence, it is quite expensive and small and medium-sized concerns cannot afford it. There are no staff personnel to advice line officers. They are bound to follow instructions from their superiors. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. Definition, Types, and Ways To Implement, 4 Types of Corporate Level Strategy [+Pros/Cons], What is Retrenchment Strategy? (iii) There is unity of command. Only one person is in charge of a department or division. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. This also helps in having better control because the subordinates will be under constant watch. The line managers have the following to say about the staff people: (i) Staff authority undermines line authority and interferes in the work of line managers. . Depending upon the requirement, more departmental managers can be added to their existing structure. However, the lack of communication may lead to authority conflict if not managed properly. Every organization needs to make practical decisions timely for progress and success. First, a few definitions so you understand what I'm talking about. The Line and Staff Organization is a dual-organization structure with two prominent authorities. Line managers are vital to the success of any growing business. Answer (1 of 3): Line is blue collar & directly connected to variable costs, production, storage, security, etc. 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. Prof. Florence enunciates three principles which are necessary to realise the advantages of this system, and the non-observance of which would involve inefficiency. As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. Since the manager has to take all important decisions, he can make changes if new situation warrants. Line or Military Organization: Structure, Features, Characteristics, Merits, Demerits, Suitability and Branches, With Features, Conditions for Success, Merits, Demerits and Suitability, Hierarchy of Authority Levels, Branches of Line Organisation, Merits, Demerits and Suitability of Line Organisation, Flow of Authority from Top to Bottom; Accountability of Each Subordinate, Department Managers Function Independently of One Another, Subordinates can only Approach Immediate Superior, (2) Clear Division of Authority and Responsibility, Line managers are required to both plan and execute the tasks and duties assigned to them.
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