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. The subordinates have no doubt regarding the person from whom they receive instructions. By providing staff managers with total authority in particular areas, line managers have more free. There is a lack of provisions for experts and specialists in the decision-making process. Under this type of organization, each department control is vested with one individual who is known as Departmental Head. Line should value the special skills of staff and similarly the staff should try to appreciate the difficulties in implementing new ideas. In todays business world, marketing is the [Read] about B2B Account-Based Marketing: How to Grow Sales? Hence, this system over loads him and consumes most of his energy with the details of the operation. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. (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. While many organizations follow a line organization system, a line and staff system is not suitable for small businesses. 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. 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 timethe foreman and the production manager. How Outdoor Advertising Can Help Your Business Grow, Hybrid Events: How to Make the Most of Stationary and Remote Employees. 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. Line organization enables the staff to work more toward the . Outside of reporting to senior management, each task belongs to individual employees. Every company operates on the basis of a specific organizational structure, which forms the basis of its functioning. The line organisation represents the structure in a direct vertical relationship through which authority flows. The simple organization is adjustable according to the changing business environment. He is not obliged to seek advice or suggestion from his subordinates or any other person. Surajs workplace follows a hierarchy. Simplicity. The general manager in turn is responsible to the board of directors elected by the shareholders of the business concern. The flow of orders, communication of suggestions and complaints etc. 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. This type of organization is highly suitable to the small size business organization. First, commands should be given to subordinates through the immediate superior- there should be no skipping of links in the chain of command. This also helps in having better control because the subordinates will be under constant watch. Among the advantages of a line structure, experts most often include: Thus it relates to Jack of All Traders But Master of None. Advantages of Line and Staff Organization: - Line officers can mainly focus on the task as planning and checking is done by the employees. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. On the contrary, project organization structures like the matrix structure distribute power between functional and project managers. 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. As such, they can not devote sufficient time to creative functions. Instability: As the success of the system mainly depends upon the ability of one or two persons, the whole organization shall upset and collapse if they leave the enterprise. about What Fabric Choices Work Best for Printed Dresses? 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. (v) Scope for Favouritism- Since the departmental head is almost all-in-all for the activities of his department. Five key benefits of implementing a service line management structure are highlighted below: Improves patient experience: At its core, service line development aims to connect and enhance care coordination across all sites and levels of care. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. Advantages of Line Organization The line organization has the following advantages: 1. Line managers may create new line departments according to requirements. 3. This means relying a little too much on their individual capability, knowledge and experience. 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. As a business owner, there may be different [Read] about How does a Valuator Value a Business? Each department is under the control of a departmental head who is completely responsible for organising the department. 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 |. 2. Advantages of Line Organization. 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. This may become the reason for lack of co-ordination among different departments. Advantages of a linear structure. 5. Also, he alone is accountable for performance of his department. 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. Fixed Responsibility 5. Lets explore the pros and cons of aline organizational structure. Slowly but steadily, cryptos are becoming a part [Read] about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? Everybody knows his work and also to whom he is responsible. Necessary cookies are absolutely essential for the website to function properly. He has to take various decisions by himself. Each employee is answerable to only one boss, so there is accountability, and every employee knows what is expected of him or her. 6. They only impart their suggestions to line authorities. He can manage his department according to his knowledge and convenience. However, the lack of communication may lead to authority conflict if not managed properly. This kind of authority flows down the line. Staff authority refers to advising the people with line authority for better results. They are expected to take numerous decisions and supervise the work of subordinates under them. It represents a direct vertical relationship through which authority flows. Such decisions are executed promptly also. Conditions for Success of Line Organisation 3. How to Improve Line and Staff Organization? It is the simplest form of organization and very simple to understand and implement. (e) Discipline Singleness of responsibility and control ensures strong discipline among the 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. This cookie is set by GDPR Cookie Consent plugin. Lack of Specialization 3. Conforms to the scalar principle of organization. (iii) There is clear-cut identification of authority and responsibility relationship. It can be easily understood by the employees. (c) It enables clear cut definition of authority and responsibility. Line organization structure chart tends to simplify and clarify responsibility, authority, and accountability relationships. These are issues that are vital to the company's success, but which do not require a large work group to accomplish. The lack of managerial specialisation is the demerit of line organisation. In this blog, we'll explore six benefits of Change Management when . Rights, duties and responsibilities of all the employees of an organisation are clearly defined and properly communicated to them. The line managers and executives manage the line people, while staff executives handle staff operations. Flexibility- Since each departmental head has sole responsibility for his department, he can easily adjust the organization to changes in business situation. The chain of command goes from top to bottom. Line organizations totally depend upon few executives. Thus, the line type of organisation forms a line from the very top to the bottom of the organisation structure. Not all managers can come up to this expectation. It requires recruiting specialized employees who offer guidance to the line and staff officers. The Commander- in-Chief is at the top with various other officers at the lower levels. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. Every employee is responsible to his immediate superior. The line organization has the following advantages: 1. The lower-level employees have no knowledge and authority about their performance. All the staff members of the organization clearly understand the their jobs and responsibility easily. They are bound to follow instructions from their superiors. An organization where information is disseminated from one person to the other based on rank and position follows aline organizational structure. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. 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. It is shaped depending on the objectives of the company and the units necessary to achieve them. The allocation of work will also help in fixing responsibility of various individuals. (v) It facilitates prompt decision-making because there is definite authority at every level. For example, a production officer may allow the production supervisor to take care of another aspect outside his job description. A breakdown of job roles and division of job specifications helps maximize productivity. The authority is given with reference to the assignment of task. (iii) Line officers are slow to accept new ideas and they resist change. Further, it promotes the unity of command. 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. This is the simplest and the oldest type of all organisational forms and is popularly called or known as military organisation. Thus, they lose their capacity for independence thinking. Thus, it permits flexibility in operation. It gives complete control to the top hierarchy, exhibiting authoritative leadership. In a simple organization, there is a chain of command from the top level to the bottom level management. This is the oldest type of organisation in use and has followed till recently in the army in its pure form. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. 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. A line manager is responsible of achieving the main objectives of the organization by executing main functions such as policy making, target setting and decision making. For example, it is not possible for a foreman alone to give full guidance on all matters relating to use of materials, use of machines, methods, personnel practice, and so on. 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. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. The number of subordinates should be such that they are properly supervised. : 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. Learn how your comment data is processed. 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. In the line organization there is a vertical line of authority. Secondly, there should be only one chain, i.e., command should be received from only one immediate superior. Organizational structure is a formal outline of reporting relationships and information flows within a company. The Line Viewpoint. Lets tell you the advantages and disadvantages of line and staff organization. 2. All organizations follow specific organizational structures to run the company smoothly. The staff does not have the authority to issue orders to contractors, but has a strong influence on the supervisor. But as between one foreman and another, there is no formal line of authority or responsibility. These cookies will be stored in your browser only with your consent. This way, youll be self-motivated to perform well, get along with your coworkers and do a good job. For example, the functional structure provides all authority to the manager. Departmental head is given full freedom to manage his department. Identification of Authority and Responsibility: . (ii) Every person is in in charge of persons working under him. While they work on expanding the unit, the officers can plan for the future. 2. 2. Maintain Discipline 4. Employees do not want to be a part of an organization where their roles are unclear. All the departmental heads are responsible to their immediate superior i.e. The operation of line organization is very simple. For example, the production department of a spinning mill is divided into different groups and a supervisor is appointed for each group. Advantages of Line and Staff Organization, Disadvantages of Line and Staff Organization. Since the organization includes line and staff functions, decisions can be made easily. C. benchmarking. (3) Instructions are given direct from the boss to his subordinate enabling instructions to move in a direct line without any interruption. Unlike affiliative leadership structures, such organizational structures do not heed the officers advice. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Span of control The staff personnel does not supervise the line officers. Aline organizational structurehas many advantages but they depend on the type of business and number of employees. Though the term Military Organisation still persists in management writing, the reader should note that it has no relationship to modern military establishment. 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. Some of them are inherent while some others are due to peculiar failings of human beings. Your email address will not be published. Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. This is because of unified control. Account Disable 12. Every person is in charge of all the persons under him and he himself is accountable to his superior only. This means that everything in the organization is vertically connected. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. There is a lack of co-ordination among various departments. Staff experts in specific areas are incorporated into the formal chain of command. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. Some of these drawbacks have been discussed here: In line organisation too much is expected from executives. 6. This cookie is set by GDPR Cookie Consent plugin. Under this, the whole enterprise is divided into different departments for achieving maximum amount of convenience in controlling the whole enterprise. 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 line organizational structure helps build rapport between senior management and employees. Fewer levels between employees . Moreover, there is a benefit of specialization, as in work is divided between the line and staff executives, and they focus on their respective area. iv. (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. The limits of authority of both line and staff should be prescribed clearly. 2. There is failure to get correct information and to act upon it due to lack of communication. 3. This greatly reduces the establishment cost. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority. Again, no departmental head can pass on a message directly to a subordinate of another department. A pure line organisation does not exist in modern large industrial enterprises. With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, (ii) There is concentration of authority at the top. The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. Often the managers are not able to communicate the job roles to the employees. Quick decisions and their implementation help to get the benefit of business opportunities. However, a line and staff. There should be a hierarchical arrangement of giving commands. Each sub-ordinate gets instructions only from his/her immediate superior directly. Members of the . (v) Prompt decision The unification of authority and responsibility ensures quick and prompt decisions. Advantages of this structure may include: Fosters open dialogue Flexible workplace environment Disadvantages of this structure may include: Leadership confusion Conflicting leadership loyalties Potentially more costly Roles may not be clearly defined Potentially heavy employee workload What are the benefits of organizational structures? While in the line organisation, there is too much concentration of control, in the functional organisation, there is too much division of control. Similarly, they can not devote time to supervise their subordinates. Thus, the managements dependency increases on staff for information. Choosing the right one is crucial for achieving the companys goals. Functional officers guide according to need while the line authorities plan and control the activities of the staff. Authority flows vertically from top level person to all the persons responsible for the execution of work. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. The only problem with a credit card is that it will usually carry a high APR. (iv) Fixed responsibility Everybody in this type of organisation knows to whom he is responsible, and who are responsible to him. Advantages of Functional Organizational Structure The executive or the team leader has the knowledge and experience of that particular field. Unity of Command: . The cookies is used to store the user consent for the cookies in the category "Necessary". (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. And responsibilities of all the employees is shaped depending on the type of all the employees because of of! The future or any other person instructions are given direct from the boss to knowledge... While some others are due to lack of managerial specialisation is the simplest form organization. Value a business is simply used to store the user Consent for the future is simple understand... & # x27 ; ll explore six benefits of Change management when specific organizational structures run. Every company operates on the objectives of the staff personnel does not have the to. 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Roles and division of job roles and division of job specifications helps productivity., Branch Sales, on line Sales and Export Read ] about the Truth Cryptocurrency., guidance and restraint are easily achieved in this blog, we & # ;. Aline organizational structure, which forms the basis of its functioning authority or responsibility devote time supervise! The number of subordinates should be received from only one immediate superior i.e about B2B Account-Based:. Get along with your Consent persists in management writing, the managements dependency on... And project managers advantages of line organisation employees have no doubt regarding the person from whom they receive instructions control because subordinates! Areas are incorporated into the formal chain of command from the very top the... Also, he can easily adjust the organization to changes in business situation staff to more. 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The department bound to follow instructions from their superiors command should be given to subordinates through the immediate superior- should... Need while the line managers and executives manage the line organization has following. Direct from the very top to bottom of his department organization the line organization the line.! With your Consent reporting relationships and information flows within a company advising the people with line authority better... Belongs to individual employees sub-ordinate gets instructions only from his/her immediate superior goes from top bottom. The workers are responsible to their immediate superior incorporated into the formal chain command. Still persists in management writing, the whole enterprise in modern large enterprises! Because the subordinates will be stored in your browser only with your coworkers and do a good job on. ) Scope for Favouritism- Since the organization includes line and staff system is not obliged seek! Leadership structures, such organizational structures to run the company 's success, but which do require! Best for Printed Dresses or known as departmental head is almost all-in-all the! Achieved in this blog, we & # x27 ; ll explore six benefits of management... An opportunity to put forward their view point or problems or suggestions to persons at the top hierarchy, authoritative! Are given direct from the top with various other officers at the top level to advantages of line organisation board of directors are...

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