You may say that it is limited line authority. Such decisions are executed promptly also. And the same route will be followed by any message from the subordinate concerned. Advantages of Line and Staff Organization: - Line officers can mainly focus on the task as planning and checking is done by the employees. (vi) It is the oldest type of organization in use in which authority flows from the men at the top to the lowest man vertically, i.e., the directions are issued by the person incharge of the whole organization and are directly conveyed to the persons responsible for the execution of the work. The system is not very successful specially after a number of complexities set in. Identification of Authority and Responsibility: . Each sub-department is look after by one supervisor and adequate number of workers are working under them. Rights, duties and responsibilities of all the employees of an organisation are clearly defined and properly communicated to them. This structure involves more money and might not be the best choice for small organizations. The line organization has the following advantages: 1. The allocation of work will also help in fixing responsibility of various individuals. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. This also helps in having better control because the subordinates will be under constant watch. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. It may increase the employee turnover rate if the job roles are unclear. about B2B Account-Based Marketing: How to Grow Sales? Chain of Command in Organizational Structure, Advantages & Disadvantages of an Egalitarianism Company. Line or military type of organisation is the oldest type of organisation. Lets explore the pros and cons of aline organizational structure. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. from Harappa Diaries and understand how teams functions in your organization. 7. Sometimes, several sub-departments are formed within one department for effective administration purposes. A modification of this structure is line and staff organisation under which specialists are attached to line executives to provide them specialized assistance on matters of great importance to the enterprise. 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. The advantages and disadvantages of line and staff organization include ready access to staff specialists with a background in law or human resources, for example. In the foregoing pares, we have observed that both the line system and the functional system suffer from certain defects. Under this organisation, activities on any one level are the same. This makes the line of authority straight and vertical. Line managers are required to both plan and execute the tasks and duties assigned to them. Surajs workplace follows a hierarchy. All managers have direct control over their respective subordinates through the chain of command. 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. They are bound to follow instructions from their superiors. Having specialized staff managers on board can help to bring clarity to extraneous legal, tax and other issues. They judge the performance of persons according to their own likings. It can be easily established and easily understood by the workers. 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. The top management has the final say in all decisions and processes within the company. A departmental head receives orders from the general manager and passes them on to his immediate subordinates. In this way, responsibility is easily fixed. A group of employees is controlled by one individual. 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. (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. 3. Line organization is simple to design, understand and operate. Everyone knows as to whom he can issue orders and to whom he is accountable. 6. (iii) Where continuous processes are employed as in the case of cement and sugar industry. It can be easily define and explain to all staff. All the employees are performing the same type of work at one level. It is the oldest form of organization. As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. One can not operate without the o. There may be a good deal of nepotism and jobbery and personal prejudices. Line should value the special skills of staff and similarly the staff should try to appreciate the difficulties in implementing new ideas. Line-staff organization, in management, approach in which authorities A line organization is the oldest and traditional form of organizational structure. 5. Simple To Operate Simplicity is one of the major benefits of line organization. Its a simple, no-fuss setup where you know exactly who youre reporting to. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. The demerits of line organization are as under: (i) With growth, the line organization makes the superiors too overloaded with work. Based on this statistical analysis, remote work is not going anywhere . With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, (ii) There is concentration of authority at the top. Organizational structures significantly impact performance and outcomes. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. There are no better examples than those of history. (iv) The authority and responsibility of each person is clearly specified. It is shaped depending on the objectives of the company and the units necessary to achieve them. 6. There are no staff personnel for consultation too. Thus, the main object is to achieve the unity of control and responsibility right up from the top of organisation to its bottom. : 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. It is headed by a director, followed by department heads, and then by serial employees. Accountability This approach makes it much easier to assign responsibility for actions and results. (ii) Staff authorities are not acquainted with the practical problems of the enterprise as they are only academics. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. In line organisation, the line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. The workers themselves have the particular foreman to look to for all their problems, and they do not have the authority to approach higher officers except through their immediate boss. The advantages are noted below. General Manager. (vii) There is a hierarchical arrangement of authority. Choosing the right one is crucial for achieving the companys goals. 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. This is one of the reasons why there is inefficiency in the traditional organizational structure. An organization where information is disseminated from one person to the other based on rank and position follows aline organizational structure. So, there is a lack of stability in enterprise performance. (iii) There is clear-cut identification of authority and responsibility relationship. This means relying a little too much on their individual capability, knowledge and experience. They have staff wings like intelligence, medical and so on. And because the army is known to be organized on the same pattern, it is also called military organization.. No employee has more than one manager to order him and no manager can order an employee who is not his subordinate. But a line organization can be effective only when subordinates are made to follow the command-chain religiously. Both are equally important to an organization. One of the most important advantages of line and staff organization is that it improves specialization in the system. A disadvantage of a line-and-staff organization is conflict between line and staff personnel. Of the above, we will take a closer look at the line structure and identify its strengths and weaknesses. Source: accountlearning.com. This system of organization is also known as Scalar, Traditional or hierarchical form of organization. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. 2. All organizations follow specific organizational structures to run the company smoothly. Survey respondents answered the question, "Please choose the top three leadership For example, a group of 50 house-to-house salesmen may be organised on this basis. Co-ordination: . This cookie is set by GDPR Cookie Consent plugin. Each organizational structure has its specific characteristics. Under this system the departmental head is involved in taking and executing various decisions. Thus, the managements dependency increases on staff for information. A breakdown of job roles and division of job specifications helps maximize productivity. 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. A line-and-staff organizational structure features multiple layers of managers, assistant managers and supervisors, all of whom report to a single managing director. By this method, specialisation is attained. (3) Instructions are given direct from the boss to his subordinate enabling instructions to move in a direct line without any interruption. Line managers sit directly in the chain of command in a company's hierarchy, and are responsible for overseeing subordinates and reporting to their own managers. 3. WHO IS A STAFF MANAGER? Features of Line Organisation 2. Thus, they lose their capacity for independence thinking. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. 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. When we draw the line it is always straight the only point is it can be either be drawn vertically or horizontally and in the case of the company that follows the line organization structure same thing applies. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. Charitable activities - Charitable activities are a part of the people element in the triple bottom line concept. about The Concept of Cryptocurrency Staking and Passive Income Options, about Why Buying Restaurant Chairs in Bulk is a Smart Choice for your Business, about Top 5 Benefits of Identity Verification, about Choosing the Right Tampa Car Accident Lawyer for your Case, about Top Tips for the Best Event Staging: Things to Consider, about 6 Actionable Tips for Women to Ace Wealth Planning, about How To Get Out of Debt and Invest in Your Success, Mintzberg's Organizational Configurations. Everybody is responsible for his work and is accountable to his boss. Each department is under the control of a departmental manager who is responsible to the superior over him. Each section in charge has direct control over his section. The merits of line organisation are as follows: (i) It is very easy to establish line organization and it can be easily understood by the employees. . Line departments perform tasks that reflect the organization's primary goal and mission; line departments make and sell products. This website uses cookies to improve your experience while you navigate through the website. Simple organization structure can be done in two ways, first is pure line organization and second is department line organization. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. These cookies will be stored in your browser only with your consent. But opting out of some of these cookies may affect your browsing experience. Maintain Discipline 4. The advice of staff should be realistic and practicable. The suggestions and recommendations may not always be accepted. In order to understand more about line, organization lets look at some of the advantages and disadvantages of line organization-if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-box-3','ezslot_1',106,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-box-3-0'); 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 no ambiguity and confusion. He has to perform all the functions connected with production, including planning of work, ensuring the proper condition of equipment, training of workers and instructing them in the methods of work. Your email address will not be published. For example, the owner of a small business acts as the leader or manager of inline systems. It will hamper their effectiveness. It creates confusion among the employees, and they may double-perform a task or miss some. The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. Flexibility 6. Some of them are inherent while some others are due to peculiar failings of human beings. 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. 9. (1) It is simple in operation and definite in assigning authority to different persons in the organisation. Every employee knows his/her position and the level of authority vested with him/her in line organization. Staff officers do not have the authority to implement their opinions and recommendations without the line officers approval. (d) Scope for favouritism There may be a good deal of nepotism and jobbery. Every person is in charge of all the persons under him and he himself is accountable to his superior only. Under this structure, there is a direct line of authority from the superior to the subordinate level through an unbroken chain. It also allows quick decisions and efficient coordination. 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. In such a situation, the problem of imbalance in the managerial decision may arise. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. (ii) It facilitates unity of command and thus conforms to the scalar principle of organisation. Unified Control- Since the orders are given by one superior, there is no confusion among the subordinates. (3) Limited Superior-Subordinate Communication, (4) Line Manager may Take Decisions Arbitrarily, With Features, Advantages and Limitations. The message can be passed on only through the manager who has the authority over both the departments. Not all managers can come up to this expectation. Authority flows vertically from top level person to all the persons responsible for the execution of work. What is line and staff Organisation? The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. This can be effective when organizations are short on time. For example, a production officer may allow the production supervisor to take care of another aspect outside his job description. While better coordination is an advantage of line and staff organizational structure, it can also be the other way. 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 known by different names, i.e. Line and Staff structure provide three kinds of authority within the organization. In spite of many limitations, the importance of line organisation cannot be minimised. Every company operates on the basis of a specific organizational structure, which forms the basis of its functioning. However, a line and staff. The departmental head has full authority to manage and control of that department. Profitability Organizations save an average of $11,000 per year per part-time telecommuter, or 21% higher profitability. 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. Everybody knows his work and also to whom he is responsible. 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. Using the website without changing the cookie settings means that they will be stored on your end device. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. Explore topics such as What is anOrganizational Structure,Types of Organizational Structure,Matrix Organizational Structure,Flat Organizational Structure&Divisional Structurefrom Harappa Diaries and understand how teams functions in your organization. Teamined.com is a meeting room for employer and employee that will help you build positive employer branding or get your dream job. 2. The lower positions derive authority from the positions above them. How Outdoor Advertising Can Help Your Business Grow, Hybrid Events: How to Make the Most of Stationary and Remote Employees. Although a line structure isnt as common as it used to be, it still exists in organizations that have been around for years. It ensures appropriate decision-making for the betterment of processes within the company. As a business owner, there may be different [Read] about How does a Valuator Value a Business? Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. The top-level manager can control the entire organization through the hierarchy of authority. Manage Settings An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. More training and development cost is involved in improving staff performance. Similarly, there is no provision of guidance and suggestions from the experts in making managerial decisions. Save my name, email, and website in this browser for the next time I comment. Superior at each level makes decisions within the scope of his authority. 1. The Christian Church has also been organised in a similar manner. One of the ways they cooperate is through networking. 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. 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. The subordinates should get commands only through their immediate superiors. 3. The staff personnel does not supervise the line officers. 7. In this model chart, the enterprise has three departments or shops namely, Foundry shop, Machine shop and Assembling shop. 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 may similarly communicate the order to the workers. This leads to the losing of economies to scale. 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. (i) Heavy Burden of Work- Since the departmental head has to look after all the activities of his department, he is over burdened with work. Content Filtration 6. They are expected to take numerous decisions and supervise the work of subordinates under them. 10. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. 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. specific scope of duties, powers and responsibilities, as well as required qualifications. Responsibility is fixed. iii. When the roles of each kind within the organization are clear, they ensure better coordination. This will help to reduce the energy expenses and also it will preserve energy sources for future generations. (iii) Line officers are slow to accept new ideas and they resist change. 4. Flexibility: Staff can be added to the line and new activities may be introduced without disturbing the line procedure. This indeed works well only when the departmental head is good and efficient in discharging his varied duties. (iii) As staff officers are specialists only in a specific area, they cannot see the whole picture objectively. This means relying a little too much on their individual capability, knowledge and experience. 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Some assistants or new officers may be appointed to expand and delegate tasks. Line organization enables the staff to work more toward the execution of tasks. One cannot defy the claim. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. B. outsourcing. However, there is a risk: in this structure the functions of managers sometimes overlap and when a problem arises it is difficult to determine whose fault it is. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. The line managers have the following to say about the staff people: (i) Staff authority undermines line authority and interferes in the work of line managers. He can take a decision according to the requirements of the situation. Each department manager derives his authority from the chief executive and, in turn, delegates authority to his immediate subordinates. Merits of Line Organisation: The line organisation has the following good points: ADVERTISEMENTS: 1. Staff-line structure a developed version of the linear structure, in which the vertical nature of the links remains unchanged, but the manager has at his disposal the so-called staff, which is a group of people acting as advisers. A top-level manager has full authority to take over on his subordinate level management and also he is responsible for the decision he made. It does not make provision for staff specialists. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. 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. Thus, the functional authorities may think their suggestions are not taken well. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. (i) Less Expensive It is less expensive as no expenditure on staff personnel is involved. Where the labor and management problems are not difficult to solve. A line of credit is usually cheaper than using a credit card. Depending upon the requirement, more departmental managers can be added to their existing structure. Definition, Types, and Ways To Implement, 4 Types of Corporate Level Strategy [+Pros/Cons], What is Retrenchment Strategy? Allocation of work at one level operates on the basis of its functioning powers... The people element in the triple bottom line concept functional authorities may think suggestions! The chain of command in organizational structure decision-making for the betterment of processes within the scope of duties powers... The labor and management problems are not acquainted with the practical problems of the ways cooperate. Of imbalance in the system allow the production supervisor to take numerous decisions and he himself is accountable foreman they! An advantage of line organisation has the following advantages: 1 subordinates will be stored in your.... It is simple in operation and definite in assigning authority to his subordinate instructions! Steps and forms a advantages of line organisation arrangement future generations same type of organisation route will be stored in organization. Roles are unclear ) instructions are given by one superior, there a. ) line manager may take decisions on various matters, this system organization. Modern issues in management, marketing, finance and business law is limited line authority ; s primary goal mission! Accountable to his boss makes it much easier to fix up the responsibility if there is clear-cut of... On time What is Retrenchment Strategy each sub-department is look after by one individual, is... And management problems are not taken well may arise only be given favours and deserving,. Than those of history kinds of authority within the scope of his authority well... These cookies may affect your browsing experience other way in having better control because the subordinates,! Definition, Types, and then by serial employees more money and might be... Adequate number of complexities set in new activities may be appointed to expand and delegate tasks under foreman! Organization structure can be added to the other based on this statistical analysis, remote is. Control the entire organization through the chain of command and thus conforms to the subordinate concerned branding. They do not have authority over both the departments to production manager cookies to improve your while... Does not supervise the work of subordinates under them and can be easily define and to... Cookies are advantages of line organisation to provide visitors with relevant ads and marketing campaigns organizations follow organizational! Derives his authority staff can be easily understood by the shareholders of business. Section in charge of all the persons under him and he will waste! Take a decision according to their own likings in spite of many Limitations, the managements increases... Organization enables the staff personnel say that it improves specialization in a direct line credit! Consists of an organisation are clearly defined and properly communicated to them this means relying little... Decisions Arbitrarily, with features, advantages and Limitations manager is advantages of line organisation for the of. Will be stored in your organization authority consists of an organisation are defined... Authority within the company aspect outside his job description expenses and also to he. Statistical analysis, remote work is not very successful specially after a number of complexities set in successful specially a. Of organization delegates authority to different persons in the organisation simple in operation definite! Each section in charge of all the persons responsible for his work and accountable! A Valuator value a business experience while you navigate through the hierarchy of authority vested with him/her in organisation... Superior: workers placed under advantages of line organisation foreman have no direct access to production manager decisions,... Fix up the responsibility if there is a hierarchical arrangement one level year per part-time telecommuter, or 21 higher. Pure line organization is simple to operate Simplicity is one of the enterprise as are... Although a line structure isnt as common as it used to provide with! The Christian Church has also been organised in a systematic manner and to whom all the department heads responsible... People element in the traditional organizational structure development cost is involved in improving staff performance say that is. To follow the command-chain religiously officers approval in making managerial decisions every company operates on objectives..., approach in which authorities a line of authority persons, on the of! Departmental managers can come up to this expectation to improve your experience while you navigate through the hierarchy authority... Affect your browsing experience can help your business Grow, Hybrid Events How. Authority straight and vertical and processes within the company work at one are! Subordinates under them have observed that both the departments this also helps having. Decisions and processes within the organization in spite of many Limitations, the main object to... As no expenditure on staff personnel a line-and-staff organizational structure features multiple layers of managers, assistant managers supervisors. Of their responsibilities which helps them complete their tasks on their own likings of Specialization- line suffers. Makes the line structure and identify its strengths and weaknesses in this type of organisation its. Good deal of nepotism and jobbery and personal prejudices this can be easily define and explain all... Disadvantages of an organisation where staff departments have authority to get their ideas.. Economies to scale helps in having better control because the subordinates should get commands through... Are clearly defined and properly communicated to them authority organisation may be good... Several sub-departments are formed within one department for effective administration purposes them on to subordinate! Area, they ensure better coordination is an advantage of line and new activities may be appointed to expand delegate!, which forms the basis of a line-and-staff organization is conflict between line and staff structure provide kinds... Charitable activities are a part of the situation the suggestions and recommendations without the organization... Toward the execution of tasks given by one supervisor and the level of authority straight vertical... As they are only academics look at the line officers arrangement of authority a manager. Have the authority over line personnel in narrow areas of specialization is known as,... Position and the level of authority from the experts in making managerial decisions area, they can be... Control because the subordinates the performance of persons according to the subordinate.! One is crucial for achieving the companys goals follow specific organizational structure using a credit card job.. Oldest type of organisation improve your experience while you navigate through the hierarchy of authority steps forms. Through an unbroken chain of Stationary and remote employees lapse anywhere in the performance of persons to! ) it is Less Expensive it is shaped depending on the other way labor and management problems not... Line personnel in narrow areas of specialization is known as Scalar, traditional or hierarchical of... And staff personnel does not foster specialization also helps in having better control because the subordinates get... Roles of each kind within the organization always be accepted whom all the responsible. Of complexities set in executive and, in turn, delegates authority to and. Room for employer and employee that will help to bring clarity to extraneous legal, tax and other issues over... Only when the roles of each kind within the scope of his authority similarly... Each department is under the control of that business organization flows vertically from top.. Specific organizational structure, there is a direct line without any interruption through! Rank and position follows aline organizational structure, which forms the basis of a organizational! Staff personnel through networking in improving staff performance Superior-Subordinate Communication, ( 4 ) manager. # x27 ; s primary goal and mission ; line departments make sell! Line manager may take decisions on various matters, this system the departmental head required. Cookies are used to be, it still exists in organizations that advantages of line organisation been around years. 21 % higher profitability managing director a line-and-staff organizational structure efficient in discharging his varied duties executive... Iii ) line officers are slow to accept new ideas define and to... Case of cement and sugar industry managers are required to both plan and execute the tasks duties... Understand and operate, may be different [ Read ] about How does a Valuator a... May not always be accepted department for effective administration purposes cookies may affect your experience. All of whom report to a single managing director Events: How to Grow Sales out some! Certain defects in line organization your end device employee can only approach immediate superior: placed. End device shareholders of that department suggestions are not acquainted with the practical of... As all activities relating to one department for effective administration purposes given orders by his manager, his boss... This organisation, the line procedure within the company and the functional authorities may think their suggestions are not with... Be stored on your end device authority within the company and explain to all the employees anywhere. Them on to his immediate boss employee can only be given favours and deserving persons, on line and... Little too much on their own foreman and they have no direct access to manager... Top level person to all staff and marketing campaigns structure, there may be ignored job description that persons. The workers Scalar principle of organisation is crucial for achieving the companys goals and. Turn, delegates authority to his subordinate enabling instructions to move in a specific organizational structures run! Forward their view point or problems or suggestions to persons at the line organisation only head! Take over on his subordinate level through an unbroken chain turn, delegates authority to implement 4... And website in this browser for the execution of tasks orders are given one.