The line management must give appropriate reasons in case of rejection. The hierarchy in management helps in achieving effective coordination. The lower positions derive authority from the positions above them. (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. An executive cannot shift his decision-making to others, nor can the blame be shifted. This enables a manager to take prompt decisions. Among the advantages of a line structure, experts most often include: Among the disadvantages of the line structure, it is primarily indicated: A linear organizational structure is therefore simple, easy to understand and transparent to all its participants. Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. What are the advantages and disadvantages of line and staff organization? 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. 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. While many organizations follow a line organization system, a line and staff system is not suitable for small businesses. (f) Flexibility This type of organisation is elastic. Further promotion of the workers would depend upon the reports made about them by the foreman concerned. Another benefit of line organizations is that they tend to be relatively efficient and decisive in their decision-making and implementation. Some of them are inherent while some others are due to peculiar failings of human beings. The modern military organisations do not entirely rely on line organisation. One can not operate without the o. The line organisation can be of two types, viz. One of the advantages of the line organization structure is simplicity. Simple To Operate Simplicity is one of the major benefits of line organization. The Organization: The Workers Safety and Insurance BoardFounded 1915 Location Toronto Employees 5,000 1999 premiums revenue $2.7 million 1999 benefits . This is known by different names, i.e. (iv) Fixed responsibility Everybody in this type of organisation knows to whom he is responsible, and who are responsible to him. This structure involves more money and might not be the best choice for small organizations. 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. On the contrary, project organization structures like the matrix structure distribute power between functional and project managers. Sometimes, several sub-departments are formed within one department for effective administration purposes. One of the most important advantages of line and staff organization is that it improves specialization in the system. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. Even within a department, there may be several sub-departments or units. He communicates his decisions and orders to his subordinates. It is also easy to explain to the workers. 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. Subordinates have no freedom to do their job. Each of these departments will report directly to the supervisor above them. All persons at the same level of authority should be independent of one another. The links in the chain of command should not be skipped. Each level of management has equal rights. In this organizational structure, all the individuals perform the same type of work. The work load of executives goes on increasing with the expansion and diversification of the unit. This kind of authority flows down the line. Your email address will not be published. There are a number of benefits of line and staff organization, in the sense that it gives relief to the line managers and they can concentrate on the implementation of policies and plans. It is primarily used in companies that deal with complex projects, problems, and programs which require input from a wide variety of skillsets that are often spread across the business. This cookie is set by GDPR Cookie Consent plugin. Your email address will not be published. Department Managers Function Independently of One Another: All department managers enjoy equal status and authority; also, they function independently of one another. Under this system, authority flows from the men at the top to the lowest man vertically. Some authorities viewed that no organizational structure can be based on line authority alone and it is unrealistic to speak of a structure as line organization. One person should get orders from one supervisor only. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. Simplicity: This system is very simple and can operate very easily. It is extremely difficult for one person to handle activities of diverse nature. Similarly, each person derives authority from the superior above him. Two types of managerial authority are granted by an organizational structure. 3. The executive authority of the enterprise is concentrated only on the top-level management. The general manager is in charge of all the departments and he can easily co-ordinate the work of various departments. (iii) Where continuous processes are employed as in the case of cement and sugar industry. Your email address will not be published. Merits 4. The first and foremost advantage of line organization is that it is very simple to understand and implement in the organization and hence there is no need to give extensive training to employees about the structure of the organization as all employees will know that flow of authority will be in a line and that too from top to bottom so there is Similarly, a manager has to look after various departments and functions at a time. 4. Organizational structures significantly impact performance and outcomes. In this type, a greater variety of responsible jobs are available and this provides more opportunities for advancement of capable workers. Heres a breakdown of the power in each. The line officers may become autocratic and start deciding things without consulting their subordinates. There should be a single line of command. Expensive: This type requires the appointment of a large number of experts involving heavy expenditure. vi. All other types of organization structure have mostly been either modifications of this organization. Often the managers are not able to communicate the job roles to the employees. A line and staff organizational structure is a variation of the original structure. Each section in charge has direct control over his section. The subordinates should get commands only through their immediate superiors. Among the advantages of a line structure, experts most often include: (b) It facilitates unity of control and the presence of scalar principle. Hence, this system over loads him and consumes most of his energy with the details of the operation. List of the Advantages of a Line of Credit. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_1628583994") }). 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. The adjustments in the organisation can be easily made to suit the changing conditions. It depends on the type of work, functions and industry the organization operates in. 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. This form of organisation is followed in military establishments. 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. There is usually no communication from the lower ranks upwards so that if the officers were to make a wrong decision it would be still carried out without anybody having the courage to point out that the decision was wrong. Autocratic Leadership 4. 7. 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. 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. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. Understanding the difference in the role of staff and line functions makes the best use of the workforce within the organization. Under this system, each employee is responsible to his immediate superior. This always includes production and sales, and sometimes marketing. You have to be mindful of the levels of management when you want to communicate or exchange ideas. For example, quality control officers may guide the production department in improving the stability of the product. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. It is also worth mentioning here that the co-ordination on the basis of cooperation is rather enforced by the supervisor who will be in charge of two or three units. There is no provision for growth and development. This means relying a little too much on their individual capability, knowledge and experience. 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. To achieve organizational goals and objectives, individual work needs to be coordinated and managed. 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 consent submitted will only be used for data processing originating from this website. It is headed by a director, followed by department heads, and then by serial employees. In a line organization, authority follows the chain of command. Line organisation suffers from a number of drawbacks. c. Responsibility is fixed and unified at each level and authority and accountability This branch addresses a lack of expertise in a typicalline organizational structure. The Line and Staff Organization is a dual-organization structure with two prominent authorities. Quick Decision. If a decision making process involves the consultation of a number of persons then there are likely to be delays in deciding things. 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. He/ she is fully responsible for running the department. Lets explore the pros and cons of aline organizational structure. Effective Management 7. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Reference for Business: Line-and-Staff Organizations, TransTutors.com: Advantages of Line and Staff Structure Organization, Disadvantages of a Line & Staff Organization Structure, Organizational Structures in the Workplace, Features of the Line & Staff Organization Structure, Forms and Characteristics of an Organizational Structure. Line managers may create new line departments according to requirements. Unified Control- Since the orders are given by one superior, there is no confusion among the subordinates. Due to the fact that decision-making authority is. In a simple organization, there is a chain of command from the top level to the bottom level management. Every person is accountable to only one person i.e. 5. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. It is the simplest form of organization and very simple to understand and implement. Everybody knows his work and also to whom he is responsible. (iv) Advice given by the staff is not always sound. whereas Staff is white collared & directly connected to fixed costs, administration, legal matters etc. 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. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Features of Line Organisation 2. (4) Line Manager may Take Decisions Arbitrarily: A line manager has authority to make decisions. This may lead to wrong adjustments or wrong decision-making on the part of the executives. Organizational structure refers to how individual and team work within an organization are coordinated. (iii) Strong discipline It ensures excellent discipline. This type of organization is highly suitable to the small size business organization. Decision-making responsibilities are static with limited flexibility. For example, the owner of a small business acts as the leader or manager of inline systems. In line organisation every person is under the command of one boss only. But a line organization can be effective only when subordinates are made to follow the command-chain religiously. Line and staff structure is adapted by medium to large organizations with several employees. 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. Since authority and responsibility flow in an unbroken straight line, it is called line organisation. The line and staff officers perform their functions smoothly through better coordination and cooperation. 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