It gives complete control to the top hierarchy, exhibiting authoritative leadership. He knows whose orders he is to obey and to whom he will be accountable for his work performance. The line organisation represents the structure in a direct vertical relationship through which authority flows. (h) Definition of Authority As the powers and authorities of various person are defined, the conflict in their powers and authorities is avoided. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. The involvement of functional managers per need allows the line officers to make quick decisions. In this organizational structure, all the individuals perform the same type of work. Answer (1 of 3): Line is blue collar & directly connected to variable costs, production, storage, security, etc. (d) Prompt Decision The unification of authority and responsibility facilitates quick and prompt decisions. Quick Decisions: . Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. 6. Flexibility: This system is flexible in the sense that it is subject to quick adjustments to suit the changing conditions. Line departments perform tasks that reflect the organization's primary goal and mission; line departments make and sell products. There is scope for favouritism. 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. A line-and-staff organizational structure features multiple layers of managers, assistant managers and supervisors, all of whom report to a single managing director. 1. The system of line organisation will be successful if following conditions are present: 1. line-staff organization, in management, approach in which authorities (e.g., managers) establish goals and directives that are then fulfilled by staff and other workers. Everything you need to know about the line organisational . Line managers can work more efficiently with staff managers handling specialized functions. The number of subordinates is limited under line organisation. There is no provision for growth and development. (d) Limited Communication In this type, there is no communication from subordinates upwards and the workers should follow the orders of superiors, without expressing any opinion about the orders communicated to them. Identification of Authority and Responsibility: . Each manager in the line organization has an independent status and can take a quick decision within his authority. The line organization has the following advantages: 1. So, learning more about different organizational structures, stakeholders and power structures will help you navigate your workplace. This may become the reason for lack of co-ordination among different departments. You have to be mindful of the levels of management when you want to communicate or exchange ideas. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. Some of them are inherent while some others are due to peculiar failings of human beings. Quick decisions and their implementation help to get the benefit of business opportunities. Staff managers are placed in charge of vital issues that are best handled by a single, highly specialized individual, or in which a formal chain of command would simply hinder productivity and efficiency. Where the labor and management problems are not difficult to solve. All the departmental heads are responsible to their immediate superior i.e. Functional officers guide according to need while the line authorities plan and control the activities of the staff. Each sub-department is look after by one supervisor and adequate number of workers are working under them. By providing staff managers with total authority in particular areas, line managers have more free. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. Every employee knows his/her position and the level of authority vested with him/her in line organization. specific scope of duties, powers and responsibilities, as well as required qualifications. First, a few definitions so you understand what I'm talking about. 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. Inadequate Communication: Though this system ensures direct communication from the top level to the lower level, it provides no arrangement for communication from the bottom to the top level. The superior can exercise effective control and supervise over the persons under him. (ii) There is concentration of authority at the top. However, you can make the best out of it by making adequate changes in the organizational structure. The officers will have to depend heavily on subordinates for advice. Continue with Recommended Cookies. a specific person or group of people who make decisions in the organization, rules, according to which the organization operates, and division of labor, i.e. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. By this method, specialisation is attained. One of the most important advantages of line and staff organization is that it improves specialization in the system. Thus, this system may encourage carelessness on the part of the staff officer. Line managers can work more efficiently with staff managers handling specialized functions. A staff function supports the organization with specialized advisory and support functions. Improving Line and Staff Relationship 1. D. core competencies., Companies benefit today by inter-firm cooperation. (d) Scope for favouritism There may be a good deal of nepotism and jobbery. You may choose the one that suits your companys needs the best. Among the advantages of a line structure, experts most often include: Two types of managerial authority are granted by an organizational structure. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. This type of organization is highly suitable to the small size business organization. Hierarchy of Authority Levels 7. 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(iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. Save my name, email, and website in this browser for the next time I comment. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. Opportunities for Advancement. On the contrary, modern approaches strive to enhance employee autonomy and avoid micromanagement. . Since all work is done according to the wishes of one person alone, the efficiency of the whole department will come to depend upon the qualities of management displayed by the head of that department. Your email address will not be published. The Commander- in-Chief is at the top with various other officers at the lower levels. Staff experts in specific areas are incorporated into the formal chain of command. They are willing to adopt a dictatorial approach. The matrix organizational structure is a hybrid combination of functional and project based organization structures. Line managers compose the chain of command, and are responsible for directing, motivating and supervising employees at all levels of an organization. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. 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. B. outsourcing. 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. It does not involve a large number of people. This makes the line of authority straight and vertical. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. Strong Discipline- Because of direct authority-responsibility relationships, discipline can be maintained more effectively. Lundy, It 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.. No, he cannot have any direct communication with the said subordinate. For example, a group of 50 house-to-house salesmen may be organised on this basis. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. This kind of authority flows down the line. 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. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. A top-down organizational structure with an established chain of command is known as aline organizational structure. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. (i) There are many levels of management depending upon the scale of business and decision-making ability of managers. Matthew is a Co-Founder at BusinessFinanceArticles.org. Reduce energy Expenses - Under the triple bottom line method, the organizations are encouraged to use renewable energy. Required fields are marked *. The simple organization is adjustable according to the changing business environment. Analytical cookies are used to understand how visitors interact with the website. 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. Thus, they lose their capacity for independence thinking. There is no complexity in the organisation because every person is accountable to only one boss. 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. Prof. Florence enunciates three principles which are necessary to realise the advantages of this system, and the non-observance of which would involve inefficiency. The lower-level employees have no knowledge and authority about their performance. They should state reasons in case they cannot accept the advice. Main article photo: photo by Vlada Karpovich, source: pexels.com. Because of the interdisciplinary nature of . 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. 7. Simple and Easy To Understand 2. The line and staff officers perform their functions smoothly through better coordination and cooperation. In an industrial concern, for instance, a foreman neither receives any instructions from, nor issues commands to, another foreman. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. 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