advantages of line organisation

To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. For example, a production officer may allow the production supervisor to take care of another aspect outside his job description. In simple words just like in the case of a football game attackers, defenders, and goal keeper are different players, and one player is not expected to do the task all players in the same way in the case of line organization one person is not expected to do the job of all people. Advantages of Line and Staff Organization: - Line officers can mainly focus on the task as planning and checking is done by the employees. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. There is a scope for favouritism in line organisation. (ii) Concentration of Authority- It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. Quick Decision. You consent to our cookies if you continue to use our website. 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. Staff officers do not have the authority to implement their opinions and recommendations without the line officers approval. The direct relationship is prevailing between the sub-ordinate and immediate superior. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. This way, youll be self-motivated to perform well, get along with your coworkers and do a good job. Lack of Specialization 3. Business Models & Organizational Structure. In spite of many limitations, the importance of line organisation cannot be minimised. Continue with Recommended Cookies. The organizational structure is shaped by factors such as: No matter what organizational structure we choose, certain elements will always be present in it: management (except for self-managing teams, about which read here), i.e. He can manage his department according to his knowledge and convenience. What Are the Tasks of Organizational Structure? The cookies is used to store the user consent for the cookies in the category "Necessary". Then each of his subordinates, who may himself be holding superior position in relation to sub-subordinates placed under him, makes decisions within the scope of his authority, and passes them on to the sub-subordinates. The number of subordinates should be such that they are properly supervised. (ii) Which do not have many subordinates and operatives; (iii) Which have straight and simple methods of operations; and. This may become the reason for lack of co-ordination among different departments. Where the labor and management problems are not difficult to solve. 9. 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. Merits of Line Organization: Simplicity: Line organization is simple to establish and can be easily understood by the employees. A manager in a line organization has absolute control over his department of activity. No, he cannot have any direct communication with the said subordinate. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Each of these departments will report directly to the supervisor above them. 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. Heres a breakdown of the power in each. Effective Control and Supervision: This is the oldest and simplest form of the organization and is popularly known as military organization. from top to bottom. There is no complexity in the organisation because every person is accountable to only one boss. military, vertical, scalar, departmental organization. Thus, in the production department, there may be a number of foremen each having a number of workers under him. Find out more about aline organizational structurewith examples. Since authority and responsibility flow in an unbroken straight line, it is called line organisation. In this way, responsibility is easily fixed. ii. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. (iv) Lack of Communication- There is failure to get correct information and to act upon it due to lack of communication. Existence of superior-subordinate relationship. This also helps in having better control because the subordinates will be under constant watch. Line Organisation is suitable in the following cases: (i) Where the business is on a small scale and number of subordinates is less. This means relying a little too much on their individual capability, knowledge and experience. Or, airlifting Indians from strife-torn foreign countries (remember, Libya and Afghanistan). The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. Depending upon the requirement, more departmental managers can be added to their existing structure. Superior at each level makes decisions within the scope of his authority. The ultimate authority for taking all decisions lies with line officers. (ii) There is concentration of authority at the top. This greatly reduces the establishment cost. In setting the departments, the similarity of function is taken into account. B. outsourcing. As a business owner, there may be different [Read] about How does a Valuator Value a Business? 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The simple organization is economical in operation. The demerits of line organization are as under: (i) With growth, the line organization makes the superiors too overloaded with work. 3. This will help to reduce the energy expenses and also it will preserve energy sources for future generations. c. Responsibility is fixed and unified at each level and authority and accountability Since the departmental head is almost all-in-all for the activities of his department. C. benchmarking. 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. about A Comprehensive Guide to Enterprise Thin Client Systems. 6. The cookie is used to store the user consent for the cookies in the category "Other. The general manager is in charge of all the departments and he can easily co-ordinate the work of various departments. The cookie is used to store the user consent for the cookies in the category "Analytics". But opting out of some of these cookies may affect your browsing experience. There are no supportive units for accounting, labour, etc. 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. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. Hence, less expenses is incurred for adopting line organization. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. And others may be good at execution but not so when it comes to planning. Thus, the functional authorities may think their suggestions are not taken well. The subordinates do not convey their reactions or the reactions of workers to the superiors. All the departmental managers enjoy equal status and work independently. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. Advantages of a linear structure. How Does a Human Resource Manager Have Line, Staff & Implied Authority? Some of the advantages of line organisation are as follows: (a) Simplicity It is easy to establish and operate. What is line and staff Organisation? Staff authority refers to advising the people with line authority for better results. 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. Two types of managerial authority are granted by an organizational structure. Uploader Agreement. The staff does not have the authority to issue orders to contractors, but has a strong influence on the supervisor. This authority enables him to instruct and direct his subordinates to perform the tasks and duties assigned to them. 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. Every organization needs to make practical decisions timely for progress and success. This may lead to wrong adjustments or wrong decision-making on the part of the executives. Having a three-way authority system in the company facilitates expansion and growth. Its like an organizations grapevineyou dont know what youre going to get because information gets recycled at each level. In simple words when you are driving a car and the brake of the car is not working then you know that it is you who has to handle this situation as you are in the driver seat a and you cannot escape the situation in the same way in case of line organization the top management has to face and solve the problems as they cannot rely on others for solving the problem. They must stay within the limit of their authority and act accordingly. The consent submitted will only be used for data processing originating from this website. All the departmental heads are responsible to their immediate superior i.e. This can lead to an increased load on the top management to solve these conflicts. A staff function supports the organization with specialized advisory and support functions. By this method, specialisation is attained. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Flow of Authority from Top to Bottom; Accountability of Each Subordinate: The manager at each level makes decisions within the scope of authority delegated to him by his own boss. One of the major advantages of this organizational structure is the ease of communication between various departments which often leads to more . The subordinates should get commands only through their immediate superiors. The top-down approach helps streamline communication. It provides flexibility in the decision making and an immediate decision can be as required. Demerits 5. Definition, Types, and Ways To Implement, 4 Types of Corporate Level Strategy [+Pros/Cons], What is Retrenchment Strategy? (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. Functional authority means giving authority to an employee experienced in a particular area. Prohibited Content 3. There should be a hierarchical arrangement of giving commands. 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 They have staff wings like intelligence, medical and so on. Every employee is responsible to his immediate superior. ul. 1. Source: accountlearning.com. Identification of Authority and Responsibility: . Thus, it permits flexibility in operation. There are no complications in defining the authority-responsibility relationships. They are only required to do as told to them by respective managers. They judge the performance of persons according to their own yardsticks. 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But opting out of some of the advantages of line organization, there may be a number of should... Need of additional employees may suffer areas of Specialization 3. Business Models & organizational structure immediate superior i.e be. Authority enables him to instruct and direct his subordinates to communicate with managers. Control over his department according to their existing structure moreover, whenever the adjustments are made line! Cookies is used to store the user consent for the cookies in the hands of a few top.! Ways to implement their opinions and recommendations without the line officers forward their view point or or... Leads to more immediate decision can be as required to advising the people with line for.

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