It also allows quick decisions and efficient coordination. Based on this statistical analysis, remote work is not going anywhere . This is known by different names, i.e. The leaders follow the line, staff, and functional authority. Continue with Recommended Cookies. Organizational structure is a formal outline of reporting relationships and information flows within a company. A manager has control only over the subordinates of his department. Report a Violation 11. APR what is it and how to calculate it for a loan? Their grouping into divisions is only to facilitate supervision and control. 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 The hierarchy is different in each of them. A group of employees is controlled by one individual. The Commander- in-Chief is at the top with various other officers at the lower levels. (4) There is no question as to responsibility or authority. 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. Merits of Line Organisation: The line organisation has the following good points: ADVERTISEMENTS: 1. By this method, specialisation is attained. A flat structure elevates each employee's responsibility inside the organization and eliminates excess management layers to improve coordination and communication. Each unit is placed under a commander and his word is final as far as his subordinates are concerned. z o.o. It is a different matter though that our armed forces, particularly the army, are increasingly asked to rescue civilians in times of natural or man-made disasters, such as floods (remember, Mumbai, Chennai, Uttarakhand, and Allahabad), earthquake (remember, Nepal and Uttarakhand), civil strife (remember, handling separatists in Kashmir and insurgents in Chhatisgarh, Telangana and Andhra Pradesh). They must stay within the limit of their authority and act accordingly. However, the lack of communication may lead to authority conflict if not managed properly. It can be easily define and explain to all staff. Moreover, there are a number of suggestions which continuously occur to lower ranks, but these suggestions cannot be utilised because generally the higher officers look down upon the views of their subordinates. One of the ways they cooperate is through networking. Overload on Managers 2. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. 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. It is the simplest form of organisation structure and is also known as scalar or military organisation. There is an absolute lack of functional specialization. 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. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. A manager in a line organization has absolute control over his department of activity. 6. However, it should be remembered that it works best in small and medium-sized companies. Every person in the organization is only accountable to his superior who has delegated authority to him, and to none else. Flexibility: Staff can be added to the line and new activities may be introduced without disturbing the line procedure. Many jobs require specialized knowledge to perform them. Every organizational system comes with some pros and cons. If they are not able the enterprise will not be successful. : 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. Not all managers can come up to this expectation. This can be effective when organizations are short on time. Chain of Command in Organizational Structure, Advantages & Disadvantages of an Egalitarianism Company. Every employee is responsible for completing the given work. Effective Communication: . 2. Unified Control. (c) It enables clear cut definition of authority and responsibility. 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. Prohibited Content 3. military, vertical, scalar, departmental organization. Superior at each level makes decisions within the scope of his authority. One person should get orders from one supervisor only. Required fields are marked *. The line organization has the following advantages: 1. Although an executive can delegate authority, he has ultimate responsibility for results. This makes the line of authority straight and vertical. All the departmental managers enjoy equal status and work independently. Line and Staff structure provide three kinds of authority within the organization. Each section in charge has direct control over his section. Matthew was a floor manager at a local restaurant in Wales. The demerits of line organization are as under: (i) With growth, the line organization makes the superiors too overloaded with work. For the three indicators of inclusionequality, openness, and belongingwe found particularly high levels of negative sentiment about equality and fairness of opportunity. If the top. It enables the employees to utilize the opportunities and progress in their careers. The Organization: The Workers Safety and Insurance BoardFounded 1915 Location Toronto Employees 5,000 1999 premiums revenue $2.7 million 1999 benefits . Where the labor and management problems are not difficult to solve. This can lead to an increased load on the top management to solve these conflicts. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_1628583994") }). The decisions may lack objectivity. The organizational structure is shaped by factors such as: No matter what organizational structure we choose, certain elements will always be present in it: management (except for self-managing teams, about which read here), i.e. Specific people in a department are allowed to utilize their expertise in the functioning of the organization. In this form of organization responsibilities are fixed and defined. This leads to the losing of economies to scale. The links in the chain of command should not be skipped. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. 5. The line office cannot devote sufficient time to each and every work and are over loaded with responsibilities. 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 lack of managerial specialisation is the demerit of line organisation. Staff management positions can allow companies to leverage the skills and expertise of specialists who may not fit well in the formal hierarchy of the organization. So it can be operated simply and clearly. There are both advantages and disadvantages of line organization. In other words, the directions are issued by the man in-charge of the whole organisation and are directly conveyed to the persons responsible for the execution of work. It is the units that perform all the functions that make up the companys business processes. Department Managers Function Independently of One Another: All department managers enjoy equal status and authority; also, they function independently of one another. But a line organization can be effective only when subordinates are made to follow the command-chain religiously. There may be a good deal of nepotism and jobbery and personal prejudices. Expert Advice: The staff officers provide expert advice and guidance to line officers and by this, the enterprise as a whole gets benefit. (iii) As staff officers are specialists only in a specific area, they cannot see the whole picture objectively. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. 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. When the roles of each kind within the organization are clear, they ensure better coordination. Managers have to involve themselves in jobs of different nature. Line managers can work more efficiently with staff managers handling specialized functions. There is a lack of co-ordination among various departments. Accountability This approach makes it much easier to assign responsibility for actions and results. Aline organizational structurehas many advantages but they depend on the type of business and number of employees. What is Strategy Implementation and How To Implement it? A manager just communicates his decisionwhether in the best interests of the organization or notand the subordinates have to act according to them. put an organization on the path to competitive advantage. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. If they are not able the enterprise will not be successful. They may move higher in the hierarchy by correctly implementing their skills in the processes. In the army, men are organised into platoons, the platoons into companies, the companies into battalions, the battalions into brigades, the brigades are organised into divisions, and the divisions in turn constitute an army. Heres a breakdown of the power in each. (ii) Which do not have many subordinates and operatives; (iii) Which have straight and simple methods of operations; and. (iv) Which are engaged in the work which is largely of a routine nature. Another way is by seeking . As all the decisions are made by senior management, employees find it difficult to take initiative or step outside their comfort zone. Advantages of Functional Organization The executive or the team leader has good knowledge and experience in that particular field. 1. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. Thus, the line type of organisation forms a line from the very top to the bottom of the organisation structure. In this organizational structure, all the individuals perform the same type of work. The top-down approach helps streamline communication. A line and staff organizational structure is a variation of the original structure. Expensive: This type requires the appointment of a large number of experts involving heavy expenditure. For example, Sales Department. In a simple organizational structure, various departments are autonomous, and there is little communication with each other. Disadvantages of Line and Staff Organisation. The line and staff structure may promote over-dependence on staff members. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies will be stored in your browser only with your consent. Line organization refers to that organization in which the authority flows from top to down in a vertical manner and not in a horizontal manner. This kind of authority flows down the line. It provides flexibility in the decision making and an immediate decision can be as required. Even the workers at the lower level can understand the structure of this organization. This is one of the reasons why there is inefficiency in the traditional organizational structure. 1. It requires more resources, including finance and infrastructure. (d) Scope for favouritism There may be a good deal of nepotism and jobbery. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. This is the oldest type of organisation in use and has followed till recently in the army in its pure form. 2. It means the staff authority may work to facilitate the process in line control. 6. There should be a single line of command. His task is challenging and he is expected to discharge his responsibility in an efficient way. There is no provision for growth and development. Since they often have expertise in their industry, they can support the work of line employees without close supervision, which is common in line organizational structures. Quick Decisions: . (ii) There is vertical flow of authority and responsibility. Flexibility: This system is flexible in the sense that it is subject to quick adjustments to suit the changing conditions. 4. In simple words, in the case of this organizational structure, there is no need for a 100-page document to ensure that employees understand whom to report or whose order to follow as everything is crystal clear thus ensuring that employees do not have any reason to pass the blame to others for their failure. They are only required to do as told to them by respective managers. 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. 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 |. Another benefit of line organizations is that they tend to be relatively efficient and decisive in their decision-making and implementation. For example, the person heading the marketing department will have the knowledge and skill necessary to carry the process with full responsibility and successfully run his team. Thus, the functional authorities may think their suggestions are not taken well. The top management has the final say in all decisions and processes within the company. 1. Only one person is in charge of a department or division. Employees are expected to work on the same tasks without upskilling or learning about other aspects of the business. This is known by different names, i.e. They only impart their suggestions to line authorities. (d) Prompt Decision The unification of authority and responsibility facilitates quick and prompt decisions. Where the machinery is automatic and so there is no need for skill or intelligence. Thus, the managements dependency increases on staff for information. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. This branch addresses a lack of expertise in a typicalline organizational structure. Manage Settings 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.. Simple To Operate Simplicity is one of the major benefits of line organization. The line officers cannot be experts in every line of business. 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. Under this method, authority flows in a vertical manner form top to bottom. Advantages of Line and Staff Organisation: A line officer can make sound decisions on the basis of proper advice from the staff officer. about How does a Valuator Value a Business? 2. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. Responsibility, on the other hand, flows upwards. In a vertical companywhich was most the most common business model in organizations for the much of the mid- to late-20th centurylines Every employee is responsible to his immediate superior. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. 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