If they are not able the enterprise will not be successful. This may become the reason for lack of co-ordination among different departments. The subordinates start keeping distance from the superiors. military, vertical, scalar, departmental organization. Line or military type of organisation is the oldest type of organisation. The principle of unity of command is not applied in his type of organizational structure. (ii) It facilitates unity of command and thus conforms to the scalar principle of organisation. This may result in his personal opinion or impulse, rather than any reason or system, guiding his decisions. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. Report a Violation 11. vii. 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. (iv) There is scalar chain in line organization. from top to bottom. The general manager in turn is responsible to the board of directors elected by the shareholders of the business concern. Every person in the organization is in the direct chain of command. Many subordinates do so because they lack ability to judge whether the decision is right or wrong, but the mischievous ones among them may carry out even apparently wrong decisions to pinpoint the incompetence of manager. The decisions may lack objectivity. Instruction is given by the boss directly to his subordinates. Many jobs require specialized knowledge to perform them. 7. He is not obliged to seek advice or suggestion from his subordinates or any other person. There can be feedback and suggestion with orders too. Plagiarism Prevention 5. The line organisation represents the structure in a direct vertical relationship through which authority flows. 7. Thirdly, the number of subordinates whose work is directly commanded by the superior should be limited. are made as it is in the case of a ladder. Every unit is complete in itself as far as the functions are concerned. If the executives try to keep up with every activity, they are bogged down in myriad details and are unable to pay proper attention to each one. The organisational structure is primarily concerned with the allocation of activities or tasks and delegation of authority. (ix) Lines of authority are vertical i.e. 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. 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. The self-contained department structure can be seen as its main characteristic. Suitability 6. This is the most traditional of the organizational structures that businesses use. Line organization is the most oldest and simplest method of administrative organization. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. Every person is accountable to only one person i.e. No, he cannot have any direct communication with the said subordinate. 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. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. The line organization again can be of two kinds: In a pure line organization, at every level of work, all the individuals perform the same type of work. (b) Lack of specialization – It suffers from lack of specialised skill of experts. Since the departmental head has to look after all the activities of his department, he is over burdened with work. (ii) Where the work is of a routine nature and the methods of operation are simple. Under this, the line of authority flows vertically downward from top to bottom throughout the organization. Merits of line organization: 1. The main advantag… Thus if the Finance Manager has to convey something to a superintendent in the production department, he will have to send the word upwards to the General Manager and the General Manager will then pass it down to the Production Manager and the Production Manager will further pass it down to the Superintendent concerned. 4. Authority travels downwards from top and accountability upwards from bottom along the chain of command, and each department manager has control over his or her department 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. If the top– executives are not capable, the enterprise will not be successful. Prohibited Content 3. The general manager is in charge of all the departments and he can easily co-ordinate the work of various departments. Organisation Structure Type # 1. At each level, the superior makes decisions within the scope of authority derived by him from his own boss. (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. There is better decision taking and improvement in efficiency. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. It is suitable for large organization 8. All decisions about the departments are also taken with the help of specialists. The number of subordinates should be such that they are properly supervised. There may be a good deal of nepotism and jobbery and personal prejudices. Each person in the ‘organization structure’ has authority over subordinates holding positions lower than him. 3. It represents a direct vertical relationship through which authority flows. Line and staff organization is the organization structure, in which there is a normal departmentation of the regular business operations, and there is the functional specialist to perform specialised activities. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Line or Military Organization: Structure, Features, Characteristics, Merits, Demerits, Suitability and Branches, – With Features, Conditions for Success, Merits, Demerits and Suitability, – Hierarchy of Authority Levels, Branches of Line Organisation, Merits, Demerits and Suitability of Line Organisation, Flow of Authority from Top to Bottom; Accountability of Each Subordinate, Department Managers Function Independently of One Another, Subordinates can only Approach Immediate Superior, (2) Clear Division of Authority and Responsibility, Line managers are required to both plan and execute the tasks and duties assigned to them. 1. There is concentration of authority at top-level only. All problems are handled with care and are tries to solve with the help of staff specialists.. 5. All activities relating to single department are managed by one individual. His task is challenging and he is expected to discharge his responsibility in an efficient way. Privacy Policy 9. It does not make provision for staff specialists. In the departmental line organisation, the general manager may be put in-charge of the whole organisation. The authority responsibility relationship is clearly established. It is extremely difficult for one person to handle activities of diverse nature. This makes the line of authority straight and vertical. Every manager is required to incorporate these activities in his department. There is a direct link between superior and subordinates. 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 time—the foreman and the production manager. How to Draw Organizational Lines. Principes des structures hiérarchiques et fonctionnelles. Moreover, it is easily understood by workers. (3) Instructions are given direct from the boss to his subordinate enabling instructions to move in a direct line without any interruption. It is suitable for large organization. (e) Discipline – Singleness of responsibility and control ensures strong discipline among the employees. There is also a lack of grooming the new persons for taking up important work. Uploader Agreement. Line organization definition is - the part of a business organization that forms an integrated whole concerned with the production of the goods or services that are the stock in trade of the organization —often distinguished from staff. 4. One person should get orders from one supervisor only. (adsbygoogle = window.adsbygoogle || []).push({}); It is the simplest and oldest form of organizational structure. At departmental level manager is in charge and he can direct the activities of his juniors. There is possibility of nepotism and favoritism. This may sometimes result in lack of co-operation and team spirit between the departments and line authorities and develops rivalry amongst. It is the simplest form of organisation structure and is also known as scalar or military organisation. Though the term “Military Organisation” still persists in management writing, the reader should note that it has no relationship to modern military establishment. This type of organisation helps in co-ordination and control. The officers work according to their whims and preferences. If a decision making process involves the consultation of a number of persons then there are likely to be delays in deciding things. (ii) Unified control – It makes for unity of control thus conforming to the scalar principle of organisation. Staff specialists give relief in critical matters. There is better utilization of personnel skills and knowledge. (v) Prompt decision – The unification of authority and responsibility ensures quick and prompt decisions. Direct supervision and control also helps in maintaining strong discipline among the workers. 6. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. Staff authorities’ means authority to advice, support and serve the line managers. Le line est le système fonctionnel et hiérarchisé d'une organisation sur un modèle pyramidal. Since authority and responsibility flow in an ‘unbroken straight line’, it is called line organisation. Everyone knows as to whom he can issue orders and to whom he is accountable. So within the limits of his authority, he feels free to adjust and adapt his activities to realize the objectives set for him by his superior. Line organizational structure is one of the simplest types of organizational structures. 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). 1. In between, there are other levels of management, such as intermediate and supervisory. An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. This also helps in having better control because the subordinates will be under constant watch. Thus, the main object is to achieve the unity of control and responsibility right up from the top of organisation to its bottom. Demerits of line and staff organization 1. There is delay in decision-making. 5. 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. Under it, the persons having the greater decision-making authority are placed at the top, and those having the least decision-making authority at the bottom. While line authority relies on command, line and staff authority is based on command and advise. The authority flows from top to the lower levels. (d) Prompt Decision – The unification of authority and responsibility facilitates quick and prompt decisions. This organisation is a vertical structure where one person delegates authority to his subordinate and who in turn delegates to his subordinate and so on. Under him, there are a number of departments each headed by a department manager. It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. 4. 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. Content Guidelines 2. In spite of many limitations, the importance of line organisation cannot be minimised. This is known by different names, i.e. Here each department is given under supervision of specialist. Business or industry structure with self-contained departments. Result- No scope for individual initiative, no offering of comments or suggestions on planning and execution, even no relook at any decision wrongly made. It is also known as scalar organisation or military type of organisation. There are no staff personnel to advice line officers. (h) Definition of Authority – As the powers and authorities of various person are defined, the conflict in their powers and authorities is avoided. (ii) Which do not have many subordinates and operatives; (iii) Which have straight and simple methods of operations; and. 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. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. Line authority refers to the direct authority of a manager over his subordinates. Some of them are inherent while some others are due to peculiar failings of human beings. This enables a manager to take prompt decisions. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. He need not to waste time in getting instructions from above. There is a scope for favouritism in line organisation. (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. It will hamper their effectiveness. 6. Line organisation suffers from a number of drawbacks. He communicates his decisions and orders to his subordinates. The message can be passed on only through the manager who has the authority over both the departments. There is more specialization and division of work. In line organisat… Today we will learn a little more about the functional organizational structure. The lower positions derive authority from the positions above them. 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. The line authority not only becomes the avenue of command to operating personnel, but also provides the channel of communication, coordination and accountability in enterprise. Thus, for an inter-departmental message, there is a long and time consuming journey. This is the oldest form of organization. In a departmental line organization, there is a chief executive at the top. Line managers may ignore staff’s advice and complain that staff doesn’t give right type of advice. Line and staff organization structure In this type of organization structure two type of authority relationship exists. Demerits of line organization 1. (ii) Concentration of Authority- It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. : 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. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. Where, managers have direct authority over their respective subordinates through the chain of command. If superiors take a wrong decision, it would be carried out without anybody having the courage to point out its deficiencies. (ii) There is vertical flow of authority and responsibility. Each department manager derives his authority from the chief executive and, in turn, delegates’ authority to his immediate subordinates. Managers have exclusive authority over their unit, so they can easily make changes in the functioning of the unit when required 5. The basic of scalar organization i… But a line organization can be effective only when subordinates are made to follow the command-chain reli­giously. And because the army is known to be organized on the same pattern, it is also called “military organization.”. The authority is embedded in the hierarchical structure and it flows in a direct line from the top of the managerial hierarchy down to different levels of managers and subordinates and further down to the operative levels of workers. READ MORE on smallbusiness.chron.com. The Christian Church has also been organised in a similar manner. (ii) There is concentration of authority at the top. Superior at each level makes decisions within the scope of his authority. Only one person is in charge of a department or division. For example, a company could have a group working in information technology, another in marketing and another in finance.Each department has a manager or director who answers to an executive a level up in the hierarchy who may … There is scope for favouritism. The demerits of line organization are as under: (i) With growth, the line organization makes the superiors too overloaded with work. i. Simplicity- Simple to understand and develop. Tyrocity.com envisions the education system of the country to be redefined through active engagement, discussions, required assistance and by bringing the right information to your fingertips. There is no concentration of authority at top-level only. 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. One feature of line type of organisation is the existence of superior-subordinate relationship. Every employee knows to whom he/she is responsible and from whom they receive their orders. There should be a hierarchical arrangement of giving commands. Line organisation is easy to operate and less expensive. commonly used organizational structure where direct lines of authority flow from top management and the lines of responsibility flow in the opposite direction This is the simplest and oldest, known as chain of command or scalar principle. This type of organisation is largely existing in modern industry. (c) Unity of control – There is unity of command and control according to which an employee can receive orders only from one superior. 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. They are expected to take numerous decisions and supervise the work of subordinates under them. (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. Although positions within a line-and-staff organization can be differentiated in several ways, the simplest approach classifies them as being either line or staff. (vii) There is a hierarchical arrangement of authority. A "line function" is one that directly advances an organization in its core work. iii. 2. 2. So it can be operated simply and clearly. (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. An executive cannot shift his decision-making to others, nor can the blame be shifted. (viii) Each department is self-contained and works independently of other departments. In line organisation final decision-making is done by the top management. The allocation of work will also help in fixing responsibility of various individuals. Staff managers and line managers are distinguished on the basis of their role. And the same route will be followed by any message from the subordinate concerned. 2. 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. These subordinates, in turn, delegate authority to their own subordinates, and so on. There is only one way communication i.e. In line organisation, authority flows from the man at the top to the lowest man vertically. Unlike other structures, specialized and supportive services do not take place in these organizations. This form of organisation is followed in military establishments. Employees are fully aware of the boundaries of their jobs. Independent decisions can be taken by line officers because of its unified structure. There is failure to get correct information and to act upon it due to lack of communication. (c) Inadequacy of communication – There is a failure to get correct information and to act upon it. This type of organisation is in accordance with the principle of scalar chain. Again, even within a department, there may be several sub-departments. Each foreman works independently, without any formal line of authority or responsibility with other foremen and takes orders from his superior or superintendent to whom he is directly responsible. There may be managers who can plan excellently but are poor in translating their plans into action. It is also known as ‘Military Organisation’, because it originated in the army. 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. Under this, the whole enterprise is divided into different departments for achieving maximum amount of convenience in controlling the whole enterprise. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. The line organization structure is the simplest and oldest, known as the chain of command or scalar principle. 9. The line officers cannot be experts in every line of business. Responsibility, on the other hand, flows upwards. Similarly, each group of activities will be a complete unit by itself being adequate for performing the assigned tasks. military, vertical, scalar, departmental organization. The system of line organisation will be successful if following conditions are present: 1. Displaying the positions within an organization, an organizational chart shows a company's structure. (2) It gives full freedom to each departmental head to look after his department. This affects their creativity and capacity for independent thinking. The line executives are generalists and staff executives are specialists and they work together with coordination 2. 4. And so it goes on. The lack of communication creates many problems for the smooth conduct of business. (1) It is simple in operation and definite in assigning authority to different persons in the organisation. Staff and line are names given to different types of functions in organizations. military, vertical, scalar, departmental organization. Thus, they lose their capacity for independence thinking. A line organization is easy to establish. Merits 4. (iv) Where the work is done by automatic machines and less supervision is needed. It means a subordinate is responsible to only one superior. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. In line organisation, each department is generally a complete self- sustaining unit. The whole organization is divided into different functional areas to which staff specialists are attached. Departmental head is given full freedom to manage his department. The functions are divided into units like marketing, production, research and development, human resource etc. Solid lines represent your primary reporting path. The line of command is carried out from top to bottom. The subordinates do not convey their reactions or the reactions of workers to the superiors. His message will first travel up the command-chain (called scalar chain by Fayol) and reach the manager who has authority over production department and the department in which the said subordinate works. Or, airlifting Indians from strife-torn foreign countries (remember, Libya and Afghanistan). Functional organization In functional organization all business activities of an enterprise are divided into number of fractions and each function is entrusted to a specialist, each specialist is known as functional specialist and authority delegated to him is known as functional authority. 2. There can be reduction of initiative power o line authority. The boxes represent employees, teams or departments, and lines show who they report to. It clearly defines the authority, responsibility and accountability of a job 3. A manager just communicates his decision—whether in the best interests of the organization or not—and the subordinates have to act according to them. It provides benefits of specialist. in line organization department are created for basic activities and departmental heads are responsible for all activities performed in the department. (g) Co-ordination – As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. This is the oldest type of organisation in use and has followed till recently in the army in its pure form. Each manager knows what he is required to do. Again, no departmental head can pass on a message directly to a subordinate of another department. Unified Control- Since the orders are given by one superior, there is no confusion among the subordinates. 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. (iii) There is clear-cut identification of authority and responsibility relationship. Every manager is expert in his own field of knowledge. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. According to this type of organization, the authority flows from top to bottom in a concern. It is the simplest form of organisation structure and is also known as scalar or military organisation. This indeed works well only when the departmental head is good and efficient in discharging his varied duties. There should be a single line of command. All other types of organization structure have mostly been either modifications of this organization. Functional organization provides preference for growth and expansion of business activity. There is separation of mental and manual work. It clearly identifies authority, responsibility and accountability at each level.These relationships in the hierar… It is modification of line organization and is more complex than it. Division of work and specialization takes place in line and staff organization. The chain of command and each department head has control over their departments. 8. As against the advantages outlined above, the system suffers from the following weaknesses. The number of subordinates is limited under line organisation. 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. Copyright 10. Line Organization: Meaning: ‘Line Organisation’ is the oldest and simplest form of organisation struc­ture. Each level of management has equal rights. All managerial functions are practiced by line authority with the help of specialized skill of staff authority. It is by far the oldest form of organization. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. The work load of executives goes on increasing with the expansion and diversification of the unit. Similarly, each person derives authority from the superior above him. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Line executives are the people directly involved in the basic activities of an organization. They pointed out that “the degree of authority exists in all organization as on uninterrupted scale or series. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Image Guidelines 4. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. If top-level managers are not capable there may be failure. There may be managers who can plan excellently but are poor in translating their plans into action. 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. 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