Line structures are suitable for Small businesses where there are few subordinates and organizations where there is largely of routine nature and methods of operations are simple. Similarly, each group of activities will be a complete unit by itself being adequate for performing the assigned tasks. Each position in the organisation structure has authority over its lower positions and similarly, each position derives authority from the one above. It can be easily established and easily understood by the workers. The subordinates may similarly communicate the order to the workers. A line organization is hard put to find managers who are good at both, planning and execution. 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. There is possibility of conflict between the line managers and staff managers. The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. At departmental level manager is in charge and he can direct the activities of his juniors. (f) Flexibility – This type of organisation is elastic. 1. When developing your organizational structure, consider how you can make it easy for your team to work together while removing any obstacles they may encounter. READ MORE on smallbusiness.chron.com. Before uploading and sharing your knowledge on this site, please read the following pages: 1. This is the oldest form of organization. 3. (ii) There is concentration of authority at the top. It is extremely difficult for one person to handle activities of diverse nature. Although there is communication from top to bottom there is usually no communication from the lower ranks to higher ranks and executives. The line officers cannot be experts in every line of business. (i) Less Expensive – It is less expensive as no expenditure on staff personnel is involved. All problems are handled with care and are tries to solve with the help of staff specialists.. 5. It is suitable for large organization. The adjustments in the organisation can be easily made to suit the changing conditions. The ‘Commander- in-Chief’ is at the top with various other officers at the lower levels. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. The chain of command goes from top to bottom. Line managers may ignore staff’s advice and complain that staff doesn’t give right type of advice. Demerits 5. (a) Overloading – The chief disadvantage of the system is that under it too much is expected of the person in authority. Business or industry structure with self-contained departments. is the oldest form of organization. Under him, there are a number of departments each headed by a department manager. 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 system is not very successful specially after a number of complexities set in. The line of authority flows vertically from top most executive to the lowest subordinate throughout the organization. Merits 4. If, therefore, something happens to an efficient manager, the future of the department and of the concern as a whole would be in jeopardy. It is by far the oldest form of organization. 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. Line officers take their own decisions without looking to specialised personnel. The organizational structure of your business helps your employees achieve company goals. It provides benefits of specialist. 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. Line organization is also known as vertical organization or departmental organization. 4. Organizational structure is only one of many aspects of organizational design. Conditions for Success of Line Organisation 3. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. It is the simplest form of organisation structure and is also known as scalar or military organisation. Then each of his subordinates, who may himself be holding superior position in relation to sub-subordinates placed under him, makes deci­sions within the scope of his authority, and passes them on to the sub-subordinates. This is known by different names, i.e. The officers will have to depend heavily on subordinates for advice. Narrow vision of departmental specialist creates problems in functional organizational. Everyone knows as to whom he can issue orders and to whom he is accountable. The business unit may be divided into departments headed by departmental heads. This is the oldest form of organization. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. Further, if superiors were to make a wrong decision, it would still be carried out, because the subordinates are afraid of pointing out that the decision is wrong. In line organisation, authority flows from the man at the top to the lowest man vertically. In spite of these drawbacks, the line organisation structure is very popular particularly in small organisations where there are less number of levels of authority and a small number of people. Organisation Structure Type # 1. vi. (3) Instructions are given direct from the boss to his subordinate enabling instructions to move in a direct line without any interruption. 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. Even though marked by lack of specialization, overburdening of competent managers, absence of communication between managers and subordinates, and subjective element in decision-making, line system of organization will suit businesses which are small in size, or where the work involved is of a routine nature, or machine-based. Taylor’s scientific management concept ... ChadaniChowk, Tyanglaphat, Kritipur, Nepal. Where, managers have direct authority over their respective subordinates through the chain of command. For this reason, it is given the name “line organization”. In the words of J.M. This greatly reduces the establishment cost. Moreover, it is easily understood by workers. The functions are divided into units like marketing, production, research and development, human resource etc. This video explains the different forms of organisation structure in great detail. Report a Violation 11. Similarly, each person derives authority from the superior above him. However, conflict may arise between line and staff authority. (a) Lack of Specialisation – As one person looks after all the work relating to his department, there is no scope for specialisation. This affects their creativity and capacity for independent thinking. It can be easily adapted to the requirement of the organization. J.D Mooney and A.C Reiley introduced the idea of line organization. Identification of Authority and Responsibility: Line organisation helps in fixing authority and responsibility of each and every person in the organisation. The subordinates should get commands only through their immediate superiors. 5. 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. No employee has more than one manager to order him and no manager can order an employee who is not his subordinate. This is known by different names, i.e. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. 5. Even if top-level managers are not capable there is no failure because functional managers can help to overcome the problematic issues through proper decisions and specialization. 2. 2. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. Not all managers can come up to this expectation. The flow of orders, communication of suggestions and complaints etc. (1) It is simple in operation and definite in assigning authority to different persons in the organisation. Even within a department, there may be several sub-depart­ments or units. Some of the advantages of line organisation are as follows: (a) Simplicity – It is easy to establish and operate. 4. A superior delegates authority to a subordinate who in turn delegates authority to his subordinates and so on. (ii) There is vertical flow of authority and responsibility. Each person in the ‘organization structure’ has authority over subordinates holding positions lower than him. It is not suitable for large organization 7. (d) Scope for favouritism – There may be a good deal of nepotism and jobbery. The ultimate authority for taking all decisions lies with line officers. A manager has control only over the subordinates of his department. 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 subordinates do not convey their reactions or the reactions of workers to the superiors. There is only one way communication i.e. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. The flow of this authority is always downwards. A line position is directly involved in the day-to-day operations of the organizatio… First, commands should be given to subordinates through the immediate superior- there should be no skipping of links in the chain of command. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. 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