In line organisation, authority flows from the man at the top to the lowest man vertically. The modern military organisations do not entirely rely on line organisation. There is possibility of nepotism and favoritism. 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. Lines on the chart connect work positions, showing. All problems are handled with care and are tries to solve with the help of staff specialists.. 5. For this reason, it is given the name “line organization”. Staff and line are names given to different types of functions in organizations. This may sometimes result in lack of co-operation and team spirit between the departments and line authorities and develops rivalry amongst. Traditional line organizational structures are simplistic but rigid. The basic of scalar organization i… This may become the reason for lack of co-ordination among different departments. (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. And so it goes on. 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.”. A manager has control only over the subordinates of his department. Strong Discipline- Because of direct authority-responsibility relationships, discipline can be maintained more effectively. The adjustments in the organisation can be easily made to suit the changing conditions. Where, managers have direct authority over their respective subordinates through the chain of command. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. Every person in the organization is in the direct chain of command. (iv) Which are engaged in the work which is largely of a routine nature. It is still used by many concerns especially the small ones. The subordinates may similarly communicate the order to the workers. immediate boss. (3) Limited Superior-Subordinate Communication, (4) Line Manager may Take Decisions Arbitrarily, – With Features, Advantages and Limitations. It clearly identifies authority, responsibility and accountability at each level.These relationships in the hierar… The line office cannot devote sufficient time to each and every work and are over loaded with responsibilities. Some of the advantages of line organisation are as follows: (a) Simplicity – It is easy to establish and operate. (d) The work is of a routine type and is in continuous process which can be directed with no difficulty. This form of organisation is followed in military establishments. In setting the departments, the similarity of function is taken into account. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. It is suitable for large organization. (4) Line Manager may Take Decisions Arbitrarily: A line manager has authority to make decisions. According to this type of organization, the authority flows from top to bottom in a concern. Line Organization: Meaning: ‘Line Organisation’ is the oldest and simplest form of organisation struc­ture. If a decision making process involves the consultation of a number of persons then there are likely to be delays in deciding things. There is no concentration of authority at top-level only. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. If they are not able the enterprise will not be successful. Each level of management has equal rights. And because the army is known to be organized on the same pattern, it is also called “military organization.”. Authority flows vertically from top level person to all the persons responsible for the execution of work. Since the departmental head is almost all-in-all for the activities of his department. They are staff and line authority. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. A line organization is an organizational structure in which authority rests with the top management and flows in a chain of command to the last person in the organizational hierarchy. All other types of organization structure have mostly been either modifications of this organization. (f) Flexibility – This type of organisation is elastic. The line organisation represents the structure in a direct vertical relationship through which authority flows. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. There are no supportive units for accounting, labour, etc. And others may be good at execution but not so when it comes to planning. The decisions may lack objectivity. A "line function" is one that directly advances an organization in its core work. There is possibility of conflict between the line managers and staff managers. The subordinates have no doubt regarding the person from whom they receive instructions. The number of subordinates should be such that they are properly supervised. Instruction is given by the boss directly to his subordinates. The line organisation can be of two types, viz. (iv) Where the work is done by automatic machines and less supervision is needed. 3. In spite of many limitations, the importance of line organisation cannot be minimised. The business unit may be divided into departments headed by departmental heads. (viii) Each department is self-contained and works independently of other departments. Under this system, authority flows from the men at the top to the lowest man vertically. It is also worth mentioning here that the co-ordination on the basis of co­operation is rather enforced by the supervisor who will be in charge of two or three units. (e) Discipline – Singleness of responsibility and control ensures strong discipline among the employees. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. Thus, they lose their capacity for independence thinking. This makes the line of authority straight and vertical. 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. There is thus a hierarchical arrangement of authority. 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. Principes des structures hiérarchiques et fonctionnelles. It is also known as scalar organisation or military type of organisation. (4) There is no question as to responsibility or authority. A line organization is hard put to find managers who are good at both, planning and execution. 4. (v) There is limit on subordinates under one manager. It means a subordinate is responsible to only one superior. 2. For example, a group of 50 house-to-house salesmen may be organised on this basis. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. (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. They judge the performance of persons according to their own yardsticks. The flow of orders, communication of suggestions and complaints etc. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. 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. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. A line position is directly involved in the day-to-day operations of the organizatio… A "staff function" supports the organization with specialized advisory and support functions. 3. A wide variety of positions exist within a line-and-staff organization. It consists of direct vertical relationships. In line organisation, the line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. In the line organization there is a vertical line of authority. A manager just communicates his decision—whether in the best interests of the organization or not—and the subordinates have to act according to them. Line and Staff Organization is a compromise of line organization. He has to take various decisions by himself. Disclaimer 8. Departmental head is given full freedom to manage his department. At each level, the superior makes decisions within the scope of authority derived by him from his own boss. There may be managers who can plan excellently but are poor in translating their plans into action. iii. The chain of command goes from top to bottom. The authority responsibility relationship is clearly established. Organizational structure is only one of many aspects of organizational design. In between, there are other levels of management, such as intermediate and supervisory. Today we will learn a little more about the functional organizational structure. The principle of unity of command is not applied in his type of organizational structure. (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. Tyrocity.com envisions the education system of the country to be redefined through active engagement, discussions, required assistance and by bringing the right information to your fingertips. This type of organisation helps in co-ordination and control. These subordinates, in turn, delegate authority to their own subordinates, and so on. The Christian Church has also been organised in a similar manner. A departmental head receives orders from the general manager and passes them on to his immediate subordinates. Since the manager has to take all important decisions, he can make changes if new situation warrants. Responsibility, on the other hand, flows upwards. Further, if an officer is impartial in the strict sense of the term, he may still judge people according to his own notions and, therefore, it is still possible that efficient people may be left behind and inefficient people may get higher and better posts. Even within a department, there may be several sub-depart­ments or units. Before uploading and sharing your knowledge on this site, please read the following pages: 1. (ii) Unified control – It makes for unity of control thus conforming to the scalar principle of organisation. It can be easily adapted to the requirement of the organization. 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 functions are divided into units like marketing, production, research and development, human resource etc. Good and efficient emperors were able to achieve a great deal whereas an inefficient and weak emperor spoilt everything. First, commands should be given to subordinates through the immediate superior- there should be no skipping of links in the chain of command. Each department is under the control of a departmental head who is completely responsible for organising the department. 2. All the departmental managers enjoy equal status and work independently. One of the main features of this organization is that a functional manager can exercise functional authority over his own sub-ordinate but also over all sub ordinates in all other functional departments. There may be a good deal of nepotism and jobbery and personal prejudices. Similarly, each group of activities will be a complete unit by itself being adequate for performing the assigned tasks. Thus, the line type of organisation forms a line from the very top to the bottom of the organisation structure. Flexibility- Since each departmental head has sole responsibility for his department, he can easily adjust the organization to changes in business situation. Copyright 10. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. Unlike other structures, specialized and supportive services do not take place in these organizations. (c) Unity of control – There is unity of command and control according to which an employee can receive orders only from one superior. This ensures better understanding and quick action. Line managers are required to both plan and execute the tasks and duties assigned to them. Organisation Structure Type # 1. Each foreman is supposed to take his orders from the production manager and is accountable to him for planning and execution of the work assigned to him. The line executives are generalists and not specialists. Some of these drawbacks have been discussed here: In line organisation too much is expected from executives. All managers and supervisors handle their job on their own ways independently with grow the line organization my find it difficult to maintain effective coordination between different departments and units. Every manager is required to incorporate these activities in his department. Similarly, each person derives authority from the superior above him. This is the oldest form of organization. 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.”. (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. Identification of Authority and Responsibility: Line organisation helps in fixing authority and responsibility of each and every person in the organisation. 1. The disadvantage lies in its rigidity and the length of time needed for information to flow through the organ… Each department manager derives his authority from the chief executive and, in turn, delegates’ authority to his immediate subordinates. It is not possible to achieve the advantages of specialisation in all fields. Sometimes when staff authority do no perform well there may be failure 5. Learn about:- 1. He communicates his decisions and orders to his subordinates. It is not suitable for large organization 7. 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. : 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. Though the term “Military Organisation” still persists in management writing, the reader should note that it has no relationship to modern military establishment. 5. The line officers may become autocratic and start deciding things without consulting their subordinates. vi. The authority flows from top to the lower levels. i. Simplicity- Simple to understand and develop. Merits 4. The allocation of authority and responsibility between the line and staff official I generally not clearly defined. For example, a company could have a group working in information technology, another in marketing and another in finance.Each department has a manager or director who answers to an executive a level up in the hierarchy who may … The self-contained department structure can be seen as its main characteristic. There is better decision taking and improvement in efficiency. 3. (vii) There is a hierarchical arrangement of authority. It is also known as the military system as this type of organization is usually found in the army. (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. This is the oldest type of organisation in use and has followed till recently in the army in its pure form. The work load of executives goes on increasing with the expansion and diversification of the unit. (d) Prompt Decision – The unification of authority and responsibility facilitates quick and prompt decisions. There is advantage of the best managerial decisions 2. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. This always includes production and sales, and sometimes also marketing. Every person is accountable to only one person i.e. There’s an executive at the top of the heap, people responsible for each area (the director tier is for bigger businesses), and teams of people who do the work in each department.The advantage of this type of organizational structure lies in its simplicity. They are expected to take numerous decisions and supervise the work of subordinates under them. Further, the span of supervision theory says no executive in a line organization should be burdened with supervising more than a manage­able number of subordinates. Demerits of line organization 1. ii. In recent times, however, the military organisations have undergone changes similar to those occurring in the industrial and other organisations. This is the simplest and oldest, known as chain of command or scalar principle. (d) Scope for favouritism – There may be a good deal of nepotism and jobbery. 6. The production manager, for example, will not interfere in the decision-making by sales man­ager, or finance manager, and vice-versa. Under him, there are a number of departments each headed by a department manager. The whole organization is divided into different functional areas to which staff specialists are attached. It is by far the oldest form of organization. An executive cannot shift his decision-making to others, nor can the blame be shifted. Line organization is the most oldest and simplest method of administrative organization. Suitability 6. Line managers may be too much dependent upon the staff authority. There is wide difference between the approach of line managers and staff managers. Functional organization provides preference for growth and expansion of business activity. It is extremely difficult for one person to handle activities of diverse nature. This type of organisation is largely existing in modern industry. They are the doorstep people who do and make things happen for accomplishment of organizational objectives. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Superior at each level makes decisions within the scope of his authority. Existence of superior-subordinate relationship. There is scope for favouritism. So it can be operated simply and clearly. (g) Co-ordination – As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. The number of subordinates is limited under line organisation. Prof. Florence enunciates three principles which are necessary to realise the advantages of this system, and the non-observance of which would involve inefficiency. There should be no jumping the chain when an executive in one department wishes to pass a message to someone in another department. Although an executive can delegate authority, he has ultimate responsibility for results. Further promotion of the workers would depend upon the reports made about them by the foreman concerned. It can be autocratic. Functional organization In functional organization all business activities of an enterprise are divided into number of fractions and each function is entrusted to a specialist, each specialist is known as functional specialist and authority delegated to him is known as functional authority. The lack of communication creates many problems for the smooth conduct of business. Staff specialists give relief in critical matters. The organizational structure of your business helps your employees achieve company goals. There is a lack of co-ordination among various departments. It is more complex than line concern. are made as it is in the case of a ladder. Chacune des divisions du Line est autonome et doit respecter des objectifs à atteindre en termes de coûts, d'organisation, de nombre de salariés, de chiffre d'affaires, etc. Each manager knows what he is required to do. The subordinates do not convey their reactions or the reactions of workers to the superiors. Dotted line reporting, by … 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. 3. A person is in charge of all the persons under him, and he himself is accountable to his superior only. The subordinates start keeping distance from the superiors. It is the simplest form of organisation structure and is also known as scalar or military organisation. The organisational structure is primarily concerned with the allocation of activities or tasks and delegation of authority. (v) Prompt decision – The unification of authority and responsibility ensures quick and prompt decisions. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. Organizational structure example – Line The traditional line structure is organized in such a way that a president or CEO (Chief Executive Officer) is at the top. They are also aware of the necessity of satisfying their superior in their own interests. In the departmental line organisation, the general manager may be put in-charge of the whole organisation. 7. Demerits 5. Any departure from this scheme may create problems. Line organisation is the basic framework for the whole organisation. So line organisation enables the fixation of authority and responsibility. Every person in the organization is in the direct chain of command. This is known by different names, i.e. Line organizational structure template to design line org charts. The flow of this authority is always downwards. Even if top-level managers are not capable there is no failure because staff managers can help to overcome the problematic issues through proper decisions and specialization. 5. The boxes represent employees, teams or departments, and lines show who they report to. 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 time—the foreman and the production manager. At departmental level manager is in charge and he can direct the activities of his juniors. There are no staff personnel to advice line officers. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. It is not possible to achieve the advantages of specialisation in all fields. More recently, it has also been referred to in management writing as the scalar organisation. This may become the reason for lack of co-ordination among different departments. Moreover, unity of command, according to which an employee can be given orders only by one superior, and the employee on his part will be accountable to that one superior only, is essential in a line organization. (adsbygoogle = window.adsbygoogle || []).push({}); It is the simplest and oldest form of organizational structure. 2. There is also a lack of grooming the new persons for taking up important work. Under this, the whole enterprise is divided into different departments for achieving maximum amount of convenience in controlling the whole enterprise. military, vertical, scalar, departmental organization. Some of them are inherent while some others are due to peculiar failings of human beings. 7. military, vertical, scalar, departmental organization. (iii) Each subordinate receives orders only from one superior and is answerable to him only. (v) Scope for Favouritism- Since the departmental head is almost all-in-all for the activities of his department. Line Organization Structure: This is the oldest as well as the most common type of organization. If the top. An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. (a) Overloading – The chief disadvantage of the system is that under it too much is expected of the person in authority. Uploader Agreement. 3. A manager can only order his immediate subordinates, and for the subordinates the dictate is “First obey, and then argue”. 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. Under it, the persons having the greater decision-making authority are placed at the top, and those having the least decision-making authority at the bottom. In line organisat… (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. Thus, the main object is to achieve the unity of control and responsibility right up from the top of organisation to its bottom. (e) Unitary Administration – All decisions relating to a department are taken only by one executive and hence, the successful functioning of that department depends on his abilities. Other aspects would include the nature of an organization’ s leadership, the various systems operating in Report a Violation 11. While line authority relies on command, line and staff authority is based on command and advise. It clearly defines the authority, responsibility and accountability of a job 3. This greatly reduces the establishment cost. 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. Organizational structures developed from the ancient times of hunters and collectors in tribal organizations through highly royal and clerical power structures to industrial structures and today's post-industrial structures. 2. 3. If top-level managers are not capable there may be failure. Line or military type of organisation is the oldest type of organisation. 4. Line organization structure It is the simplest and oldest form of organizational structure. v. Prompt Decisions- As the superiors enjoy full authority, quick decisions are taken by them. – With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, (ii) There is concentration of authority at the top. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. All managers in line organization have full authority to decide things and act with respect to their related functions. This is known by different names, i.e. Each department is under the control of a departmental manager who is responsible to the superior over him. Line organization is also known as vertical organization or departmental organization. Subordinates are always in confusion to obey the orders due to multiple command system. Line organizational structure is one of the simplest types of organizational structures. 6. 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