The cookie is used to store the user consent for the cookies in the category "Performance". To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. This may become the reason for lack of co-ordination among different departments. Main article photo: photo by Vlada Karpovich, source: pexels.com. However, this system can be suitably followed: Line Organization | Characteristics | Types | Advantages | Disadvantages, Project Organization | Types | Advantages | Disadvantages, Centralized & Decentralized organizations | Strength & Weaknesses, Centralization and decentralization of Organization, Functional Organization | Nature of functional foremanship, Functional Authority | Definition | Examples |, Western managers vs Eastern managers: difference in, Problems of supervision | solutions for effective, Important Role of CEO in Strategic Management, Committee | Meaning & Definition | Features, Under what circumstances Delegation of Authority is, Accountlearning | Contents for Management Studies |. (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. 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. 4. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Every unit is complete in itself as far as the functions are concerned. Outside of reporting to senior management, each task belongs to individual employees. This enables a manager to take prompt decisions. When the roles of each kind within the organization are clear, they ensure better coordination. The flow of orders, communication of suggestions and complaints etc. Specialization. Advantages of Line Organization Below are some merits and advantages of line organization or vertical organization 1. 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. There should be a hierarchical arrangement of giving commands. He has to take various decisions by himself. (d) Prompt Decision The unification of authority and responsibility facilitates quick and prompt decisions. The number of subordinates should be such that they are properly supervised. Due to the fact that decision-making authority is. Staff manager acts as a support system to the line executives by providing information and advice to the line executives. Advantages of Line Organisation: ADVERTISEMENTS: Line organisation offers the following advantages: (a) It is simple to operate and easy to understand. What is Business Level Strategy? Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. Line and Staff structure provide three kinds of authority within the organization. Everybody is responsible for his work and is accountable to his boss. Under this structure, there is a direct line of authority from the superior to the subordinate level through an unbroken chain. (iv) Fixed responsibility Everybody in this type of organisation knows to whom he is responsible, and who are responsible to him. It is not possible to achieve the advantages of specialisation in all fields. Two types of managerial authority are granted by an organizational structure. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. (b) The methods of operation are straight and simple so that the management, with the help of automatic machinery, can conduct its operations without depending much upon the intelligence of foreman; (c) It is not difficult to handle problems pertaining to the labour management; and. What is line and staff Organisation? The Christian Church has also been organised in a similar manner. Study with Quizlet and memorize flashcards containing terms like The process of rating an organization's practices, processes, and products against the best of the world is known as: A. webworking. The top-down approach helps streamline communication. Thus, they lose their capacity for independence thinking. The staff personnel does not supervise the line officers. Even within a department, there may be several sub-departments or units. 2. Advantages of a Line Organization Simple to work Economical and effective. All rights reserved. This is suitable only for businesses which are run on a small-scale producing only one item and in which the workers are divided into departments according to the type of work performed by each one of them. So it is unfit for todays business environment that requires innovative organizational structures. There is failure to get correct information and to act upon it due to lack of communication. Line managers can work more efficiently with staff managers handling specialized functions. And others may be good at execution but not so when it comes to planning. There may be a lack of operational uniformity among various departments. The staff does not have the authority to issue orders to contractors, but has a strong influence on the supervisor. A manager has control only over the subordinates of his department. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. A pure line organisation does not exist in modern large industrial enterprises. The leaders follow the line, staff, and functional authority. Thus if the Finance Manager has to convey something to a superintendent in the production department, he will have to send the word upwards to the General Manager and the General Manager will then pass it down to the Production Manager and the Production Manager will further pass it down to the Superintendent concerned. The line organisation represents the structure in a direct vertical relationship through which authority flows. Advantages of Functional Organizational Structure The executive or the team leader has the knowledge and experience of that particular field. 2. The subordinates do not convey their reactions or the reactions of workers to the superiors. Quick Decisions: . B. Not all managers can come up to this expectation. The line officers may become autocratic and start deciding things without consulting their subordinates. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that youve provided to them or that theyve collected from your use of their services. Where the scale of business is comparatively small. 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. For example, Sales Department. In a line organization, authority follows the chain of command. Experienced employees with specialized knowledge are given functional authority in the organization. This type of organisation is largely existing in modern industry. Disadvantages of Line and Staff Organisation. Characteristics of line organization are listed below. For example, at the lowest levels, all workers may perform a similar activity, but for control and supervision they may be divided into different groups, each placed under a foreman. You may choose the one that suits your companys needs the best. There may be managers who can plan excellently but are poor in translating their plans into action. In a line organization, the responsibility for the performance of tasks is fixed upon definite individuals. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. One of the most commonexamples of line organizationis small businesses with the owner overseeing daily operations. Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. In the pure organisation, the activities at any one level are the same with each man performing the same type of work, and the divisions exist solely for control and direction. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. vii. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. 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? The lower positions derive authority from the positions above them. Moreover, an employee knows to whom he/she is responsible and who are responsible to him/her. Specialized employees help the line staff in processes by offering expert advice. 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. Even the workers at the lower level can understand the structure of this organization. Features of Line Organisation 2. General Manager. In this way, responsibility is easily fixed. Employees are expected to work on the same tasks without upskilling or learning about other aspects of the business. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. This can be effective when organizations are short on time. Unity of Command: . 2. One can not operate without the o. Hence, there is no contact between Sales Manager and the workers. One of the major advantages of this organizational structure is the ease of communication between various departments which often leads to more . (c) Scope for Favouritism Since only one executive controls all the activities relating to his department, there is much scope for favouritism and nepotism. Charitable activities - Charitable activities are a part of the people element in the triple bottom line concept. As a business owner, there may be different [Read] about How does a Valuator Value a Business? Learn about:- 1. The allocation of work will also help in fixing responsibility of various individuals. Span of control What happens when a department manager wants to pass some message to a subordinate in another department? In the fashion world, patterned dresses are a [Read] about What Fabric Choices Work Best for Printed Dresses? (iv) Which are engaged in the work which is largely of a routine nature. He communicates his decisions and orders to his subordinates. Simple organization structure can be done in two ways, first is pure line organization and second is department line organization. It does not store any personal data. A line function is one that directly advances an organization in its core work. about 5 Ways your Company can Achieve Regulatory Compliance. 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. Where the process of production is continuous or special. Is working for a manufacturing company right for you? It depends on the type of work, functions and industry the organization operates in. 2. It can be easily define and explain to all staff. This greatly reduces the establishment cost. The line officers only have to perform the routine work and leave the rest to staff officers. Line authority means giving the person a particular amount of control for specific tasks. This structure brings in specialized or supporting staff to aid line executives. (c) It enables clear cut definition of authority and responsibility. Manager has control only over the subordinates do not convey their reactions or reactions... Authority flows help in fixing responsibility of various individuals generally perform their job functions without managerial guidance approval... Superior to the line organisation does not foster Specialization of authority-responsibility means that an employee to. 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