This greatly reduces the establishment cost. Line managers are required to both plan and execute the tasks and duties assigned to them. It is headed by a director, followed by department heads, and then by serial employees. Learn about:- 1. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. Your email address will not be published. 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. Rights, duties and responsibilities of all the employees of an organisation are clearly defined and properly communicated to them. The line authorities and higher management make decisions after considering the suggestions of functional officers. Each person in the organization structure has authority over subordinates holding positions lower than him. It depends on the type of work, functions and industry the organization operates in. A line organizational structure helps build rapport between senior management and employees. What happens when a department manager wants to pass some message to a subordinate in another department? Based on this statistical analysis, remote work is not going anywhere . Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. Since the departmental head has to look after all the activities of his department, he is over burdened with work. Similarly, each group of activities will be a complete unit by itself being adequate for performing the assigned tasks. Under this, the whole enterprise is divided into different departments for achieving maximum amount of convenience in controlling the whole enterprise. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. Because of this fixed responsibility, no person can escape his own responsibility. Content Filtration 6. 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. You have to be mindful of the levels of management when you want to communicate or exchange ideas. about What Fabric Choices Work Best for Printed Dresses? What is Strategy Implementation and How To Implement it? Required fields are marked *. With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, (ii) There is concentration of authority at the top. Manage Settings The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. Simplicity: This system is very simple and can operate very easily. Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. It will encourage others to follow the same path. 8. 2. This may sometimes result in lack of co-operation and team spirit between the departments and line authorities and develops rivalry amongst. Staff authority refers to advising the people with line authority for better results. 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. 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. Departmental head is given full freedom to manage his department. Classical theories of organization associated with Henri Fayol, Frederick W . (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. Each sub-department is look after by one supervisor and adequate number of workers are working under them. And others may be good at execution but not so when it. 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. 5. Business Models & Organizational Structure. The modern military organisations do not entirely rely on line organisation. Strong Discipline- Because of direct authority-responsibility relationships, discipline can be maintained more effectively. There is scope for favouritism. You may choose the one that suits your companys needs the best. (i) There are many levels of management depending upon the scale of business and decision-making ability of managers. Moreover, it is easily understood by workers. Similarly, there is no provision of guidance and suggestions from the experts in making managerial decisions. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. 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. Since staff managers are generally very knowledgable in their field, line managers have the advantage of being able to tap into the knowledge and resources of staff managers to solve complex problems. Advantages of Line Organization. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. If, therefore, something happens to an efficient manager, the future of the department and of the concern as a whole would be in jeopardy. The operation of line organization is very simple. There are no complications in defining the authority-responsibility relationships. Staff and line are names given to different types of functions in organizations. 3. 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. Span of control (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. The line organization structure is very simple to understand and simple to operate. put an organization on the path to competitive advantage. 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. At departmental level manager is in charge and he can direct the activities of his juniors. (c) Scope for Favouritism Since only one executive controls all the activities relating to his department, there is much scope for favouritism and nepotism. Sound Decisions: In this type, the decisions are made by experts and hence, there is a possibility of making sound managerial decisions. The advantages are noted below. 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. 3. Simple and Easy To Understand 2. It is a traditional concept of management. Line should value the special skills of staff and similarly the staff should try to appreciate the difficulties in implementing new ideas. (ii) There is concentration of authority at the top. The authority is given with reference to the assignment of task. It explains the tasks of every worker in an organization. Aline organizational structurehas many advantages but they depend on the type of business and number of employees. 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. Even the workers at the lower level can understand the structure of this organization. Further promotion of the workers would depend upon the reports made about them by the foreman concerned. Definition, Types, Reasons, and Pros/Cons. Under this system the departmental head is involved in taking and executing various decisions. Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. Although an executive can delegate authority, he has ultimate responsibility for results. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. Matthew is a Co-Founder at BusinessFinanceArticles.org. Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. This cookie is set by GDPR Cookie Consent plugin. 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. The line officers only have to perform the routine work and leave the rest to staff officers. 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. In line organisation final decision-making is done by the top management. A flat structure elevates each employee's responsibility inside the organization and eliminates excess management layers to improve coordination and communication. There is no provision for growth and development. specific scope of duties, powers and responsibilities, as well as required qualifications. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. The number of subordinates is limited under line organisation. Line managers can work more efficiently with staff managers handling specialized functions. It is primarily used in companies that deal with complex projects, problems, and programs which require input from a wide variety of skillsets that are often spread across the business. from Harappa Diaries and understand how teams functions in your organization. Is a likelihood that some persons may be ignored implementing new ideas not entirely rely line! 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