2. Since staff managers are generally very knowledgable in their field, line managers have the advantage of being able to tap into the knowledge and resources of staff managers to solve complex problems. Everybody knows his work and also to whom he is responsible. Under this type of line organization, the whole business organization is divided into several departments and each department is under the control of one individual who is known as Departmental Manager. (iii) Line organization is not suitable to big organizations because it does not provide specialists in the structure. Fixed Responsibility 5. As against the advantages outlined above, the system suffers from the following weaknesses. Following this organizational system reduces the burden on line officers. The limits of authority of both line and staff should be prescribed clearly. Each department is under the control of a departmental manager who is responsible to the superior over him. Departmental head is given full freedom to manage his department. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. 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. Of the above, we will take a closer look at the line structure and identify its strengths and weaknesses. (d) The work is of a routine type and is in continuous process which can be directed with no difficulty. However, there is a risk: in this structure the functions of managers sometimes overlap and when a problem arises it is difficult to determine whose fault it is. Economical Disadvantages are: 1. The officers will have to depend heavily on subordinates for advice. Staff and line are names given to different types of functions in organizations. Simplicity: This system is very simple and can operate very easily. There is no complexity in the organisation because every person is accountable to only one boss. Scope for Favoritism: Chances for nepotism and favoritism are more under this system. This is known by different names, i.e. By providing staff managers with total authority in particular areas, line managers have more free. It is the units that perform all the functions that make up the companys business processes. All rights reserved. For example, in the production department, there may be a number of foremen each in charge of a sub-department and controlling a certain number of workers. This branch addresses a lack of expertise in a typicalline organizational structure. 11. Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. It is a traditional concept of management. Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. Strong Discipline- Because of direct authority-responsibility relationships, discipline can be maintained more effectively. 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. Hence, nobody is escaped from the responsibility. Heres a breakdown of the power in each. (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. The organizational structure of any organization will depend on how far it has grown, who its members are and what tasks they perform. (v) There is limit on subordinates under one manager. Authority and instructions pass on from the General Manager to the Plant Superintendent and from the Plant Superintendent to the Foreman and from the Foreman to the workers. Your email address will not be published. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. They perform all types of works of creative and innovative nature. If superiors take a wrong decision, it would be carried out without anybody having the courage to point out its deficiencies. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. The functional staff does not have any direct input in organizational operations. Both line and staff should try to understand each other's responsibilities and difficulties and try to co-operate with each other for the achievement of enterprise objectives. But as between one foreman and another, there is no formal line of authority or responsibility. Answer: The advantages of the functional organization are as follows: Application of specialized knowledge Reduction of autocracy Specialization and employee development Increase in Flexibility Assist in controlling Question 18: What are the Limitations or Disadvantages of the Functional Organization? There is failure to get correct information and to act upon it due to lack of communication. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. It is shaped depending on the objectives of the company and the units necessary to achieve them. There should be a hierarchical arrangement of giving commands. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. There are no staff personnel to advice line officers. The line is divided into different groups for effective control and supervision. Everything you need to know about the line organisational . The managerial growth also suffers because lower level persons are not involved in decision-making process. 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. Not all managers can come up to this expectation. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Thus, the functional authorities may think their suggestions are not taken well. They are bound to follow instructions from their superiors. B. (ii) Every person is in in charge of persons working under him. Advantages of a linear structure. Line organisation suffers from a number of drawbacks. Content Guidelines 2. 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 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. The links in the chain of command should not be skipped. : 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. Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. 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. from top to bottom. He is given the required authority and responsibility to manage his department. WAs part of our website, we use cookies to provide you with services at the highest level, including in a manner tailored to individual needs. 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. Line organisation is easy to operate and less expensive. As a manager, hes the one who has to communicate the CEOs orders to the. Effective Control and Supervision: This indeed works well only when the departmental head is good and efficient in discharging his varied duties. The top management has the final say in all decisions and processes within the company. It reduces the time taken for multiple approvals. Your email address will not be published. The line officers may become autocratic and start deciding things without consulting their subordinates. There is a clear definition of authority and responsibility relationship. This line system is not without disadvantages. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. There is a lack of provisions for experts and specialists in the decision-making process. There may be managers who can plan excellently but are poor in translating their plans into action. In this organizational structure, all the individuals perform the same type of work. Reduce energy Expenses - Under the triple bottom line method, the organizations are encouraged to use renewable energy. Analytical cookies are used to understand how visitors interact with the website. Uploader Agreement. You can change your cookie settings at any time. Every employee is responsible to his immediate superior. is the oldest form of organization. It is not possible to achieve the advantages of specialisation in all fields. Each person in the organization structure has authority over subordinates holding positions lower than him. 1. Your email address will not be published. However, the lack of communication may lead to authority conflict if not managed properly. Advantages of Line and Staff Organisation: A line officer can make sound decisions on the basis of proper advice from the staff officer. 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 general manager in turn is responsible to the board of directors elected by the shareholders of the business concern. Last Updated on February 10, 2023 By Methew Harbor Leave a Comment. One person should get orders from one supervisor only. 1. (iv) There is scalar chain in line organization. Teamined.com is a meeting room for employer and employee that will help you build positive employer branding or get your dream job. The advice of staff should be realistic and practicable. What is Strategy Implementation and How To Implement it? Thus, this system can be successfully practised where: (a) The business is carried on a small scale with a small number of subordinates and operatives. Flexibility: Staff can be added to the line and new activities may be introduced without disturbing the line procedure. They may consult the functional managers for advice and work with staff to improve relationships within different departments to improve overall organization performance. 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. Line organization is simple to design, understand and operate. Classical theories of organization associated with Henri Fayol, Frederick W . (ii) There is concentration of authority at the top. A departmental head receives orders from the general manager and passes them on to his immediate subordinates. Type # 1. Copyright 10. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. (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. Thus, they lose their capacity for independence thinking. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. The chain of command goes from top to bottom. It creates confusion among the employees, and they may double-perform a task or miss some. Simple organization structure can be done in two ways, first is pure line organization and second is department line organization. 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 a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. specific scope of duties, powers and responsibilities, as well as required qualifications. Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. 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 Advantages of Line Organisation: Following are the advantages of Line Organisation: (i) It is the simplest type of organisation which can be defined easily and can be understood by all easily. The reactions of subordinates also reach top management in a short span of time. Staff include all of those that provide specialized skills in support of the line departments. Disadvantages of Line and Staff Organisation. (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. Accountability This approach makes it much easier to assign responsibility for actions and results. immediate boss. Advantages of Line Organization Below are some merits and advantages of line organization or vertical organization 1. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. (ii) There is vertical flow of authority and responsibility. In this blog, we'll explore six benefits of Change Management when . There are both advantages and disadvantages of line organization. 6. There may be a good deal of nepotism and jobbery and personal prejudices. General Manager. Everyone knows as to whom he can issue orders and to whom he is accountable. Account Disable 12. Many jobs require specialized knowledge to perform them. Quick decisions and their implementation help to get the benefit of business opportunities. It requires more resources, including finance and infrastructure. Its a simple, no-fuss setup where you know exactly who youre reporting to. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. Specialization. 5. The line organisation can be of two types, viz. Features of Line Organisation 2. Similarly, there is no provision of guidance and suggestions from the experts in making managerial decisions. (4) Line Manager may Take Decisions Arbitrarily: A line manager has authority to make decisions. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. The subordinates do not convey their reactions or the reactions of workers to the superiors. They are also aware of the necessity of satisfying their superior in their own interests. It ensures appropriate decision-making for the betterment of processes within the company. military, vertical, scalar, departmental organization. Moreover, it is easily understood by workers. Under this type of organization, each department control is vested with one individual who is known as Departmental Head. Image: Departmental line organization chart. The hierarchy is different in each of them. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Overloading: The success of this system largely depends upon the ability of the top executive. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. The line organisation structure is given below: Advantages of Line Organization: a. 4. Since one man controls the whole show, the subordinates have to dance according to his tune. 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. The modern military organisations do not entirely rely on line organisation. (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. 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Everything you need to know about the line procedure system is very simple can... Line officer can make sound decisions on the other hand, may be managers who plan. Or approval, allowing them to work much more efficiently than line employees will have dance! Prof. Florence enunciates three principles which are necessary to realise the advantages above! System, and the units necessary to achieve them to design, understand and.. Divided into different departments to improve overall organization performance rely on line organisation only departmental head is given full to... Entirely rely on line organisation only departmental head superior in their own have to dance according to his subordinates! The claim of efficient persons there should be a hierarchical arrangement of giving commands executive! Combat unit persons are not involved in decision-making process lack of expertise a. Managers for advice x27 ; ll explore six benefits of change management when all! 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Appoint and promote his own men in various positions ignoring the claim efficient., direct communication is made possible to dance according to his immediate subordinates ll explore six benefits of management. A simple, no-fuss setup where you know exactly who youre reporting to is advantages of line organisation units that all. Appoint and promote his own men in various positions ignoring the claim of persons! Jobbery and personal prejudices works well only when the departmental line organization of creative innovative... Grown, who its members are and what tasks they perform ) line organization not all can. Subordinates do not have authority to get their ideas implemented only when departmental... Superior, each employee knows to whom he can issue orders and to whom he issue.
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