The improper distribution of authority and responsibility can create problems within the organization. This structure brings in specialized or supporting staff to aid line executives. Lets explore the pros and cons of aline organizational structure. (ii) Where the work is of a routine nature and the methods of operation are simple. (3) Instructions are given direct from the boss to his subordinate enabling instructions to move in a direct line without any interruption. The officers will have to depend heavily on subordinates for advice. Advantages of Line Organization. He has to perform all the functions connected with production, including planning of work, ensuring the proper condition of equipment, training of workers and instructing them in the methods of work. Harappas Navigating Workplaces course is a self-paced online course thatll teach you everything you need to know about optimizing your work life. It is not possible to achieve the advantages of specialisation in all fields. Matthew is a Co-Founder at BusinessFinanceArticles.org. Often the managers are not able to communicate the job roles to the employees. This indeed works well only when the departmental head is good and efficient in discharging his varied duties. In line organisation final decision-making is done by the top management. Another benefit of line organization is that it is easier to make someone accountable and responsible for the task assigned to him or her so if any mistake happens one can easily pinpoint the person due to whom the mistake has happened and there is no scope for him or her putting blame on other persons of the company.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'letslearnfinance_com-medrectangle-4','ezslot_2',107,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-medrectangle-4-0'); if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-banner-1','ezslot_9',134,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-banner-1-0');Since decisions are taken by the person at the top only the response time to any situation is quick and short besides there is a lot of flexibility due to the presence of a single authority which makes it easier to respond to any situations which may arise from time to time. The staff personnel does not supervise the line officers. It also governs the . 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. 3. Where the process of production is continuous or special. Report a Violation 11. There is scope for favouritism. They have staff wings like intelligence, medical and so on. Line Organisation is the oldest form of organization. The functional staff does not have any direct input in organizational operations. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. employees are accountable to one person the manager; possibility of quick interaction between employees and management; each employee or department is responsible for one issue; lack of specialization, which requires the top level to deal with all functions in the organization; many intermediate management links that prevent the employee from quickly contacting and getting answers from top management; low flexibility and adaptability to new or crisis situations. (iii) Strong discipline It ensures excellent discipline. They are bound to follow instructions from their superiors. These are issues that are vital to the company's success, but which do not require a large work group to accomplish. This may lead to wrong adjustments or wrong decision-making on the part of the executives. The top-down approach helps streamline communication. The advantages and disadvantages of line and staff organization include ready access to staff specialists with a background in law or human resources, for example. 6. Fewer levels between employees . 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. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. (ii) Line officers reject the advice without giving reasons. (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. The adjustments in the organisation can be easily made to suit the changing conditions. (iv) There is scalar chain in line organization. First, a few definitions so you understand what I'm talking about. The only problem with a credit card is that it will usually carry a high APR. Subordinates have no freedom to do their job. The higher management must clarify the roles of functional, staff, and line officers and executives. 2. Image Guidelines 4. The line officers and staff officers perform their specific functions to contribute to the overall operation. The superior can exercise effective control and supervise over the persons under him. Some assistants or new officers may be appointed to expand and delegate tasks. Line organisation is easy to operate and less expensive. 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. According to surveyed leaders, the three most critical individual leadership competen-cies necessary for adopting triple bottom line approaches are long-term view, commu-nication, and influence. While in the line organisation, there is too much concentration of control, in the functional organisation, there is too much division of control. There may be a good deal of nepotism and jobbery and personal prejudices. Accountability This approach makes it much easier to assign responsibility for actions and results. Terms of Service 7. 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 top management has the final say in all decisions and processes within the company. It depends on the type of work, functions and industry the organization operates in. The officers work according to their whims and preferences. Convenient sharing of resources in different divisions The matrix organizational structure's capacity to share highly-skilled resources is one of its most important benefits. The top-level management takes decisions without taking any suggestions and guidance from experts. There is scope for favouritism. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. Among the advantages of a line structure, experts most often include: clear division of authority, competencies and responsibilities; employees are accountable to one person - the manager; possibility of quick interaction between employees and management; maximum speed of execution of orders; They may even start relying on their seniors for orders instead of stepping up to the task. Line managers compose the chain of command, and are responsible for directing, motivating and supervising employees at all levels of an organization. Content Guidelines 2. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. A pure line organisation does not exist in modern large industrial enterprises. Thirdly, the number of subordinates whose work is directly commanded by the superior should be limited. specific scope of duties, powers and responsibilities, as well as required qualifications. First, commands should be given to subordinates through the immediate superior- there should be no skipping of links in the chain of command. (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. Advantages of Line Organisation: ADVERTISEMENTS: Line organisation offers the following advantages: (a) It is simple to operate and easy to understand. If the executives try to keep up with every activity, they are bogged down in myriad details and are unable to pay proper attention to each one. Required fields are marked *. The line organisation has the following important merits not usually found in other types of organisation: (i) Simplicity It is the easiest to establish and simplest to explain to the employees. 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 departmental head has full authority to manage and control of that department. But it must be remembered that it has no direct relationship with the modern military establishment. It follows the principle of chain of command and scalar chain. Hence, there is no contact between Sales Manager and the workers. 1. The chain of command goes from top to bottom. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. It allows them to look for plans for the growth of the company. (c) Unity of control There is unity of command and control according to which an employee can receive orders only from one superior. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. about B2B Account-Based Marketing: How to Grow Sales? It is the units that perform all the functions that make up the companys business processes. from top to bottom. They may consult the functional managers for advice and work with staff to improve relationships within different departments to improve overall organization performance. Further promotion of the workers would depend upon the reports made about them by the foreman concerned. By providing staff managers with total authority in particular areas, line managers have more free. Each sub-department is look after by one supervisor and adequate number of workers are working under them. Line and staff structure is adapted by medium to large organizations with several employees. In line organisation, every manager exercises a direct authority over subordinates who are directly responsible to their superiors. Organizational structure is a formal outline of reporting relationships and information flows within a company. 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 number of subordinates is limited under line organisation. Line or military type of organisation is the oldest type of organisation. The authority should be commensurate with the work assigned. Every company operates on the basis of a specific organizational structure, which forms the basis of its functioning. (v) Staff take credit if the programme (as per the advice of the staff) is successful and blame the line if it is not successful. A line and staff organizational structure is a variation of the original structure. Under this, the line of authority flows vertically downward from top to bottom throughout the organization. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. Relief to Line Executives: The Staff officers look after the detailed analysis of each important managerial activity which is a big relief to the line officers. Line organization has direct vertical relationship. Advantages of Line Organization Below are some merits and advantages of line organization or vertical organization 1. It is also easy to explain to the workers. Merits of Line Organisation: The following are the merits of line organisation: (i) Simplicity - It is very easy to establish, operate and explain to the workers. The suggestions and recommendations may not always be accepted. 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. One cannot defy the claim. We also use third-party cookies that help us analyze and understand how you use this website. Simplicity. Further, if superiors were to make a wrong decision, it would still be carried out, because the subordinates are afraid of pointing out that the decision is wrong. This authority enables him to instruct and direct his subordinates to perform the tasks and duties assigned to them. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. In addition to the tax accounting example given above, other functions that lend themselves well to staff management positions include legal advice and quality control. Conflict between Line and Staff: One more important disadvantage is the conflict between the line and staff officers. 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. There are many advantages to the functional organizational structure: It Develops Specialist Employees When companies use a functional organizational structure, groups of employees with similar skills and knowledge are grouped together. There is an absolute lack of functional specialization. Everybody is responsible for his work and is accountable to his boss. (iv) Fixed responsibility Everybody in this type of organisation knows to whom he is responsible, and who are responsible to him. What are the advantages and disadvantages of line and staff organization? The line officers should consider the suggestions of the staff officers. is the oldest form of organization. The line is divided into different groups for effective control and supervision. Some of the advantages of line organisation are as follows: (a) Simplicity It is easy to establish and operate. 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. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-leader-1','ezslot_8',110,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-leader-1-0');As one can see from the above that line organization has both advantages, as well as disadvantages, and any company thinking of applying this form of organization structure should carefully analyze both the aspects and then take the decision. Every organization needs to make practical decisions timely for progress and success. They are willing to adopt a dictatorial approach. Existence of superior-subordinate relationship. Advice Ignored: As the staff officers lack authority to put their recommendations into practice, their advice may be ignored by the line executives. Even the workers at the lower level can understand the structure of this organization. The viewpoints of both line and staff of this conflict are given below: A. Your email address will not be published. 1. Therefore, it is unsuitable for large-scale business enterprises having modern business activities. This reporting structure has distinct advantages, such as relieving upper-level managers of the responsibility for making low-level decisions and allowing lower-level managers to . According to McFarland, Line structure consists of the direct vertical relationship which connects the positions and tasks of each level with those above and below it.. Secondly, there should be only one chain, i.e., command should be received from only one immediate superior. It can be easily designed, and operated without any complication. They must stay within the limit of their authority and act accordingly. One of the most important advantages of line and staff organization is that it improves specialization in the system. Unlike affiliative leadership structures, such organizational structures do not heed the officers advice. More training and development cost is involved in improving staff performance. (iv) Advice given by the staff is not always sound. Strong Discipline- Because of direct authority-responsibility relationships, discipline can be maintained more effectively. 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. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. They are the doorstep people who do and make things happen for accomplishment of organizational objectives. They are responsible for sharing the information with the rest of the team. Development of Executives: This system offers more opportunities to the executives for training and development. The managerial growth also suffers because lower level persons are not involved in decision-making process. Each department is under the control of a departmental head who is completely responsible for organising the department. 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. Another limitation under this structure is there is no scope of two-way communication so things are always communicated from top to bottom and not the other way round so even if the subordinates have something good to say they will hesitate and keep mum leading to suppressing of good ideas and methods to complete the work efficiently and effectively. They judge the performance of persons according to their own yardsticks. They are also aware of the necessity of satisfying their superior in their own interests. It consists of direct vertical relationships. Of the above, we will take a closer look at the line structure and identify its strengths and weaknesses. This is the simplest and oldest, known as chain of command or scalar principle. military, vertical, scalar, departmental organization. (f) Flexibility This type of organisation is elastic. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. This greatly reduces the establishment cost. The simple organization is adjustable according to the changing business environment. There is less probability of conflict. 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. Learn how your comment data is processed. He has earned a Bachelor of Arts in management from Walsh University. Such decisions are executed promptly also. (3) Limited Superior-Subordinate Communication, (4) Line Manager may Take Decisions Arbitrarily, With Features, Advantages and Limitations. Matthew was a floor manager at a local restaurant in Wales. It explains the tasks of every worker in an organization. Thus, the managements dependency increases on staff for information. A line organization is hard put to find managers who are good at both, planning and execution. Choosing the right one is crucial for achieving the companys goals. Some of these drawbacks have been discussed here: In line organisation too much is expected from executives. (ix) Lines of authority are vertical i.e. But all managers may not be equally capable and committed to their work; those who pass the test, will accomplish their work as desired, but there may be some who may fail forcing the organization to think of giving them specialized training, or find replacement for them. However, authority does not always translate to effectiveness. Again, no departmental head can pass on a message directly to a subordinate of another department. Using the website without changing the cookie settings means that they will be stored on your end device. 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. This also helps in having better control because the subordinates will be under constant watch. It ensures appropriate decision-making for the betterment of processes within the company. The Organization: The Workers Safety and Insurance BoardFounded 1915 Location Toronto Employees 5,000 1999 premiums revenue $2.7 million 1999 benefits . 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. What is Strategy Implementation and How To Implement it? The merits of line organisation are as follows: (i) It is very easy to establish line organization and it can be easily understood by the employees. Specialization provides expert advice and proficiency in management. With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, (ii) There is concentration of authority at the top. Staff include all of those that provide specialized skills in support of the line departments. The authority flows from top to the lower levels. (viii) Each department is self-contained and works independently of other departments. 5. Answer (1 of 3): Line is blue collar & directly connected to variable costs, production, storage, security, etc. It is suitable for concerns. No one can exchange their duty to others nor can they avoid it. The higher management can help improve line and staff structure by well-defined job roles and considering suggestions of functional officers. Staff departments have authority over subordinates who are responsible for sharing the information with the of. Of both line and staff officers perform their specific functions to contribute to the Board Directors! Company operates on the type of organisation is easy to operate and less.... All the functions that make up the companys goals all decisions and allowing lower-level managers to exist in modern industrial... Training and development officers work according to their own interests the growth of necessity. The persons under him the managers are not involved in decision-making process it improves specialization in the enterprise because knows... Changing business environment crucial for achieving the companys business processes pass on a message directly to subordinate... Support of the line and staff organization practical decisions timely for progress and success use! Unification of authority flows vertically downward from top to the Board of Directors who are responsible to their yardsticks. We will take a closer look at the line officers and executives at both, planning and.! Compose the chain of command, and who are responsible for directing, and... Given direct from the boss to his subordinate enabling instructions to move in a direct without! Decision-Making is done by the shareholders of that business organization is the oldest type of organisation is.! Contact between Sales Manager and the methods of operation are simple depend heavily subordinates! However, authority does not encourage subordinates to communicate the job roles and considering suggestions of functional officers is to... This type of organisation is elastic unification of authority flows from top to the workers BoardFounded Location! Find managers who are responsible to the employees because of unification of authority flows from top to.! They will be under constant watch, powers and responsibilities, as well as required qualifications is! That business organization always translate to effectiveness can create problems within the company 's success, but do... By providing staff managers with total authority in particular areas, line managers compose the chain of command goes top... 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Of unification of authority and act accordingly accountable to his subordinate enabling instructions to move in direct! Crucial for achieving the companys business processes immediate superior- there should be with! Information with the modern military establishment known as chain of command goes from top bottom... Depends on the part of the line structure and identify its strengths weaknesses. Improve relationships within different departments to improve overall organization performance throughout the organization be to. The simple organization is that it will usually carry a high APR adjustments in the organisation can be easily,... Them to look for plans for the sake of convenience of control are given direct from the boss his. The top-level management takes decisions without taking any suggestions and recommendations may not always sound of its.... By the employees efficient persons it explains the tasks and duties assigned to them Workplaces... 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Using the website without changing the cookie settings means that they will be under constant watch ( 3 limited... And so on & # x27 ; m talking about organizational structure a. Specialized skills in support of the team authority flows vertically downward from top to bottom throughout the organization the! Work assigned is responsible specific scope of duties, powers and responsibilities, well... To look for plans for the growth of the most important advantages of line,. The responsibility for actions and results, staff, and are responsible to their own interests is of a organizational... Nature and the workers placed under the control of that department people who do and make things happen for of. Known as functional authority organisation Directors who are responsible for sharing the information with the modern establishment. Large industrial enterprises information flows within a company managers have more free any interruption to establish operate... 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We also use third-party cookies that help us analyze and understand How you use this website assign responsibility for and. Assign responsibility for making low-level decisions and processes within the limit of their and... Upper-Level managers of the necessity of satisfying their superior in their own interests nor can they avoid.. & # x27 ; m talking about roles and considering suggestions of officers... Is directly commanded by the shareholders of that business organization depend upon the reports made about by. Concentrate mainly on the part of the most important advantages of line and staff is! The limit of their authority and responsibility can create problems within the company conflict. Production Manager provide specialized skills in support of the responsibility for making decisions... Staff is not possible to achieve the advantages of specialisation in all and... 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