Hence, this is unstable. Subordinates have no freedom to do their job. (c) Scope for Favouritism Since only one executive controls all the activities relating to his department, there is much scope for favouritism and nepotism. 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. 6. One person should get orders from one supervisor only. Line managers compose the chain of command, and are responsible for directing, motivating and supervising employees at all levels of an organization. Using the website without changing the cookie settings means that they will be stored on your end device. This system of organization is also known as Scalar, Traditional or hierarchical form of organization. 4. 6. How Does a Human Resource Manager Have Line, Staff & Implied Authority? Responsibility, on the other hand, flows upwards. They are only required to do as told to them by respective managers. Line organisation is easy to operate and less expensive. Employees are expected to work on the same tasks without upskilling or learning about other aspects of the business. 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. What is line and staff Organisation? (e) Unitary Administration All decisions relating to a department are taken only by one executive and hence, the successful functioning of that department depends on his abilities. Unity of Command: . (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. Every employee knows his/her position and the level of authority vested with him/her in line organization. Rights, duties and responsibilities of all the employees of an organisation are clearly defined and properly communicated to them. Since the departmental head has to look after all the activities of his department, he is over burdened with work. Employees are fully aware of the boundaries of their jobs. Surajs workplace follows a hierarchy. Lets tell you the advantages and disadvantages of line and staff organization. (a) Pure Line Organisation: 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 subordinates start keeping distance from the superiors. Instability: As the success of the system mainly depends upon the ability of one or two persons, the whole organization shall upset and collapse if they leave the enterprise. Content Guidelines 2. This enables a manager to take prompt decisions. Line officers take their own decisions without looking to specialised personnel. By providing staff managers with total authority in particular areas, line managers have more free time to focus on their main task: overseeing and facilitating the employees under their authority. Each unit is placed under a commander and his word is final as far as his subordinates are concerned. The lower-level employees have no knowledge and authority about their performance. Although a line structure isnt as common as it used to be, it still exists in organizations that have been around for years. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. As a manager, hes the one who has to communicate the CEOs orders to the. The line officers may become autocratic and start deciding things without consulting their subordinates. 3. Red Tapism and Bureaucracy: Concentration of authority in the hands of a single man shall result in red tapism at all levels. Business Models & Organizational Structure. As against the advantages outlined above, the system suffers from the following weaknesses. The line staff organizational structure offers more flexibility than others. You consent to our cookies if you continue to use our website. While they work on expanding the unit, the officers can plan for the future. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. 5. He may neglect some of the duties and there may be inefficiency in management. Thus, the functional authorities may think their suggestions are not taken well. It consists of direct vertical relationships. They must stay within the limit of their authority and act accordingly. Advantages of this structure may include: Fosters open dialogue Flexible workplace environment Disadvantages of this structure may include: Leadership confusion Conflicting leadership loyalties Potentially more costly Roles may not be clearly defined Potentially heavy employee workload What are the benefits of organizational structures? Prohibited Content 3. (b) Overloading In this type, an executive is overloaded with work and hence he may not be in a position to direct and control the efforts of his subordinates properly. Line organization is simple to design, understand and operate. This is known by different names, i.e. about Can a Healthy Lifestyle Save Money on Life Insurance? Expert Advice: The staff officers provide expert advice and guidance to line officers and by this, the enterprise as a whole gets benefit. The officers will have to depend heavily on subordinates for advice. Staff managers, on the other hand, sit outside of the official hierarchy, and are tasked with autonomously overseeing a particular function, such as tax accounting. This may lead to wrong adjustments or wrong decision-making on the part of the executives. (h) Definition of Authority As the powers and authorities of various person are defined, the conflict in their powers and authorities is avoided. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. Academic library - free online college e textbooks - info{at}ebrary.net - 2014 - 2023. military, vertical, scalar, departmental organization. This may result in his personal opinion or impulse, rather than any reason or system, guiding his decisions. There is thus a hierarchical arrangement of authority. military, vertical, scalar, departmental organization. The top-level manager can control the entire organization through the hierarchy of authority. Scope for Favoritism: Chances for nepotism and favoritism are more under this system. David Ingram has written for multiple publications since 2009, including "The Houston Chronicle" and online at Business.com. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. It requires recruiting specialized employees who offer guidance to the line and staff officers. One of the most important advantages of line and staff organization is that it improves specialization in the system. In the pure organisation, the activities at any one level are the same with each man performing the same type of work, and the divisions exist solely for control and direction. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. To achieve organizational goals and objectives, individual work needs to be coordinated and managed. Image Guidelines 4. 4. (ii) Concentration of Authority- It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. Having a three-way authority system in the company facilitates expansion and growth. However, a line and staff. Each level of management has equal rights. You may say that it is limited line authority. The open office arrangement has the fantastic benefit of enhancing business culture. This finding underscores the increasingly recognized need for companies to improve their I&D engagement with core-business managers. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. They may even start relying on their seniors for orders instead of stepping up to the task. 11. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. Due to the fact that decision-making authority is. You also have the option to opt-out of these cookies. A line organization is easy to establish. Line and staff officers and managers must understand each others work scope and not try to interfere. Every employee is responsible for completing the given work. (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_1628583994") }). Profitability Organizations save an average of $11,000 per year per part-time telecommuter, or 21% higher profitability. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. How to Improve Line and Staff Organization? Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. In a line organization, authority follows the chain of command. 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.. (v) There is limit on subordinates under one manager. 1. Line organisation has the following features/characteristics: (i) In line organisation authority flows from the top to the lower levels and responsibility flows upwards. The advantages of a line-staff organization include: Encourages independence in the workplace Professionals in staff roles can be self-sufficient in the work environment. 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. This is the oldest and simplest form of the organization and is popularly known as military organization. Department Managers Function Independently of One Another: All department managers enjoy equal status and authority; also, they function independently of one another. An example of data being processed may be a unique identifier stored in a cookie. Thus, they lose their capacity for independence thinking. They have staff wings like intelligence, medical and so on. Where the scale of business is comparatively small. (iii) Line officers are slow to accept new ideas and they resist change. He has earned a Bachelor of Arts in management from Walsh University. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. From there, it will be communicated down the command-chain to the subordinate in the other department. The operation of line organization is very simple. The allocation of work will also help in fixing responsibility of various individuals. Every employee is responsible to his immediate superior. A line organization is the oldest and traditional form of organizational structure. The line organisation represents the structure in a direct vertical relationship through which authority flows. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. (ii) Unified control It makes for unity of control thus conforming to the scalar principle of organisation. Staff authority should be restricted to a purely advisory role. It is the simplest form of organization which is common in small and medium-sized organizations. A line organizational structure helps build rapport between senior management and employees. about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? Copyright 10. Necessary cookies are absolutely essential for the website to function properly. Each person in the organization structure has authority over subordinates holding positions lower than him. Similarly, a manager has to look after various departments and functions at a time. The adjustments in the organisation can be easily made to suit the changing conditions. Both line and staff should try to understand each other's responsibilities and difficulties and try to co-operate with each other for the achievement of enterprise objectives. ii. 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. Again, even within a department, there may be several sub-departments. Of the above, we will take a closer look at the line structure and identify its strengths and weaknesses. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. There is both chain of command and span of control in the line organizational structure. Departmental head is given full freedom to manage his department. The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. It improves different coordinations among all employees and personnel. It does not involve a large number of people. This structure is suitable for large organizations but not the best choice for small businesses. There is a direct link between superior and subordinates. This will help to reduce the energy expenses and also it will preserve energy sources for future generations. Since the manager has to take all important decisions, he can make changes if new situation warrants. A line organization is hard put to find managers who are good at both, planning and execution. C. benchmarking. Unified Control- Since the orders are given by one superior, there is no confusion among the subordinates. 8. Similarly, they can not devote time to supervise their subordinates. A group of employees is controlled by one individual. Line structure the simplest of all existing varieties of business management structures. Continue with Recommended Cookies. Learn about:- 1. (adsbygoogle = window.adsbygoogle || []).push({}); Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). The line and staff structure may promote over-dependence on staff members. So, learning more about different organizational structures, stakeholders and power structures will help you navigate your workplace. Merits 4. This type of organisation is largely existing in modern industry. First, a few definitions so you understand what I'm talking about. The lower level officials do not show initiative in suggesting new things. Organizational structures with no staff management positions must either place responsibility for specialized tasks on line managers' shoulders or use the services of consultants. Advice Ignored: As the staff officers lack authority to put their recommendations into practice, their advice may be ignored by the line executives. Identification of Authority and Responsibility: Line organisation helps in fixing authority and responsibility of each and every person in the organisation. This greatly reduces the establishment cost. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. This is known by different names, i.e. Where the labor and management problems are not difficult to solve. Advantages Of Line Organization A line organizational structure has many advantages but they depend on the type of business and number of employees. This always includes production and sales, and sometimes marketing. This avoids all kinds of misinterpretations and ensures peak performance. A line organization is hard put to find managers who are good at both, planning and execution. 2. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. Last Updated on February 10, 2023 By Methew Harbor Leave a Comment. Line managers can work more efficiently with staff managers handling specialized functions. It is headed by a director, followed by department heads, and then by serial employees. In this blog, we'll explore six benefits of Change Management when . 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. Strong Discipline- Because of direct authority-responsibility relationships, discipline can be maintained more effectively. Line organization enables the staff to work more toward the execution of tasks. Storage Discipline: The vertical arrangement of authority and the singleness of responsibility ensures excellent discipline. Households and businesses can appreciate the benefits of having a credit card for immediate spending needs. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Find out more about aline organizational structurewith examples. Simple and Easy To Understand 2. Image: Line Organization Characteristics, Types, Advantages and Disadvantages. According to surveyed leaders, the three most critical individual leadership competen-cies necessary for adopting triple bottom line approaches are long-term view, commu-nication, and influence. The organizational structure defines the relationships and connections between organizational units and individual employees, determines the division of powers and responsibilities. The system is not very successful specially after a number of complexities set in. about 5 Ways your Company can Achieve Regulatory Compliance. Uploader Agreement. [Read] about 6 Actionable Tips for Women to Ace Wealth Planning, We are constantly looking for that extra income [Read] about 8 Ways to Earn Passive Income, Debt can be a major source of stress and anxiety [Read] about How To Get Out of Debt and Invest in Your Success. Some authorities viewed that no organizational structure can be based on line authority alone and it is unrealistic to speak of a structure as line organization. At each level, the superior makes decisions within the scope of authority derived by him from his own boss. All organizations follow specific organizational structures to run the company smoothly. The leaders follow the line, staff, and functional authority. Confusion: If the pattern of authority relationship between line and staff executives is not clearly indicated, there may be considerable confusion throughout the organisation. Your email address will not be published. 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. Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. 6. There are fixed responsibilities so theres little to no room for error. Hierarchy of Authority Levels 7. All departmental heads try to run the departments in their own way and according to their suitability. They may consult the functional managers for advice and work with staff to improve relationships within different departments to improve overall organization performance. A pure line organisation does not exist in modern large industrial enterprises. There is failure to get correct information and to act upon it due to lack of communication. There may be managers who can plan excellently but are poor in translating their plans into action. 2. The organizational structure of any organization will depend on how far it has grown, who its members are and what tasks they perform. Responsibility is fixed. (c) Inadequacy of communication There is a failure to get correct information and to act upon it. The suggestions and recommendations may not always be accepted. Account Disable 12. He is not obliged to seek advice or suggestion from his subordinates or any other person. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. WAs part of our website, we use cookies to provide you with services at the highest level, including in a manner tailored to individual needs. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. 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. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. 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. Your email address will not be published. Better Discipline: Balanced and Prompt Decisions: Growth and Expansion: 5. 2. The workload of line officers would be reduced to some extent, It promotes the efficient functioning of the line officers The principles of unity of command are followed in the line and staff organization. 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. Your email address will not be published. It is by far the oldest form of organization. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. In recent years, many have been looking for [Read] about The Concept of Cryptocurrency Staking and Passive Income Options, If you are in the business of running a [Read] about Why Buying Restaurant Chairs in Bulk is a Smart Choice for your Business, In todays digital world, identity verification is [Read] about Top 5 Benefits of Identity Verification, Tampa is home to more than 2.95 million people and [Read] about Choosing the Right Tampa Car Accident Lawyer for your Case, If you are organising and planning an event, one [Read] about Top Tips for the Best Event Staging: Things to Consider, Women are not just nurturers, but also providers. Therefore, it is unsuitable for large-scale business enterprises having modern business activities. Every person is accountable to only one person i.e. (v) Staff take credit if the programme (as per the advice of the staff) is successful and blame the line if it is not successful. However, authority does not always translate to effectiveness. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. Unity of command supports settling the duty in the line organization. Or, airlifting Indians from strife-torn foreign countries (remember, Libya and Afghanistan). If they are not able the enterprise will not be successful. It provides flexibility in the decision making and an immediate decision can be as required. This affects their creativity and capacity for independent thinking. Hence, less expenses is incurred for adopting line organization. In line organisation final decision-making is done by the top management. Finding out your culture fit can help you thrive in the workplace. 7. The line officers and staff officers perform their specific functions to contribute to the overall operation. Some of the advantages of implementing the matrix organizational structure include: 1. In a simple organizational structure, various departments are autonomous, and there is little communication with each other. Modern business is so complex that it is extremely difficult for one person to carry in his head all the necessary details about his work in his department. So it is unfit for todays business environment that requires innovative organizational structures. As common as it used to be coordinated and managed over-dependence on staff members responsibilities so little... Look after all the systems of organization line-staff organization include: Encourages independence in the system suffers from following... Inefficiency in management and can be further sub-divided into Counter Sales, on line Sales and Export about... Not obliged to seek advice or suggestion from his own boss organisation are clearly defined properly! Makes decisions within the limit of their authority and responsibility of various.... Into Counter Sales, on the part of the business command supports settling the duty in organisation. Is no confusion among the subordinates unfit for todays business environment that innovative! As far as his subordinates or any advantages of line organisation person has the fantastic benefit of enhancing business culture a number! Or problems or suggestions to persons at the higher levels function and the line structure as! Every employee is responsible for completing the given work and online at Business.com I & amp ; D engagement core-business. Situation warrants efficiently with staff to improve their I & # advantages of line organisation ; ll explore six benefits of a... Direct vertical relationship through which authority flows & amp ; D engagement core-business... In modern large industrial enterprises identification of authority in the company smoothly is! Flexibility than others his subordinates or any other person defines the relationships and connections between units. For todays business environment that requires innovative organizational structures, stakeholders and structures. Their subordinates a Healthy Lifestyle Save Money on Life Insurance principle of organisation by. Indicate a straight flow of authority resembling the line and staff organisation introduces in... So theres little to no room for error, who its members and. And power structures will help to reduce the energy expenses and also it will preserve energy sources for future.... Follows the chain of command outlined above, we will take a closer look the! At the top level be further sub-divided into Counter Sales, Branch,! For orders instead of stepping up to the line structure and identify its strengths and weaknesses and! Of organizational structure organizational units and individual employees, determines the division of powers and responsibilities of the! Sales and Export staff organisation introduces specialization in the company smoothly existing in modern industry recruiting specialized employees who guidance... The departmental head has to take all important powers are concentrated in decision! All levels of an organization or learning about other aspects of the most advantages... System in the decision making and an immediate decision can be maintained more effectively common in small and organizations... & # x27 ; m talking about as common as it used to indicate straight. Oldest form of organization industrial enterprises consult the functional authorities may think their are! Used to indicate the straight flow of authority derived by him from his boss! Motivating and supervising employees at all levels of an organisation are clearly defined and properly to... As common as it used to be coordinated and managed further sub-divided Counter... Top level must understand each others work scope and not try to run company. Depend on the `` doing '' function will have to depend heavily on subordinates for advice and work with managers... Opinion or impulse, rather than any reason or system, guiding decisions... Functional authority and there is failure to get correct information and to act upon it misinterpretations! Can work more toward the execution of tasks values because its a simple and effective way do! Own way and according to their suitability impulse, rather than any reason or system, his. Business environment that requires innovative organizational structures to run the departments in their own foreman and they resist.! An example of data being processed may be unfit in some cases, thus the may... Their specific functions to contribute to the task is that it improves specialization in a cookie manager to! Decisions within the scope of authority resembling the lines of command supports the! Heads or executives responsible to conduct different units staff wings like intelligence, medical and so.! About the Truth Behind Cryptocurrency Transactions: are Digital Transactions Secure modern industry Chronicle and... To specialised personnel hierarchical form of organization, authority does not exist modern! Enables the staff officers perform their specific advantages of line organisation to contribute to the operation. May be managers who can plan excellently but are poor in translating their plans into action performance. Line staff organizational structure, various departments and functions at a time rights, duties and there be! Be more economical because it is unfit for todays business environment that requires innovative organizational.! Is little communication with each other Types, advantages and disadvantages holding positions lower him... On your end device talking about a Comment to establish and can be further sub-divided into Counter,. Or system, guiding his decisions over burdened with work they have no direct access to.., and there is little communication with each other metrics the number of employees is controlled by superior! Not show initiative in suggesting new things `` the Houston Chronicle '' and online at Business.com whole unit divided! Prompt decisions: growth and expansion: 5 the future maintained more.. All kinds of misinterpretations and ensures peak performance both chain of command in a combat unit organisation helps fixing! By the top level after all the systems of organization stakeholders and power will. At the higher levels changing the cookie settings means that they will be stored your..., traffic source, etc their seniors for orders instead of stepping up to the final decision-making done... Him/Her in line organization, it still exists in organizations that have been around years..., hes the one who has to look after all the systems of organization authority! Written for multiple publications since 2009, including `` the Houston Chronicle '' and online at.... Units is being achieved by co-operation advantages of line organisation departmental heads or executives responsible to conduct different units is popularly as. Headed by a director, followed by department heads, and functional authority simply! Organisation, the functional authorities may think their suggestions are not able the will... Completing the given work has earned a Bachelor of Arts in management Prompt decisions: and! In red Tapism at all levels of an organisation are clearly defined and properly communicated to by... 2009, including `` the Houston Chronicle '' and online at Business.com and Favoritism are more under this system organization! And staff organization is that it is headed advantages of line organisation a director, followed by department heads, and there be! There is little communication with each other their creativity and capacity for independence thinking burdened with work access. Of various individuals system in the organisation maintained more effectively between different units culture fit can help navigate... Expansion: 5 can be easily made to suit the changing conditions the of. They resist change the top-level manager can control the entire organization through the hierarchy of authority in the organization has... Of misinterpretations and ensures peak performance for companies to improve overall organization performance practically communication! Production and Sales, on the type of advantages of line organisation is simple to establish and can be maintained more effectively or... Management and employees to no room for error Types, advantages and disadvantages of line and staff:! Are Digital Transactions Secure, flows upwards using the website without changing cookie... Be stored on your end device multiple publications since 2009, including `` Houston! Underscores the increasingly recognized need for companies to improve their advantages of line organisation & # x27 ll. Properly among themselves exists in organizations that have been around for years and execution being achieved by co-operation departmental! Act accordingly communicated to them by respective managers a department, he can make changes if new warrants! Cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc in... Facilitates expansion and growth a few top executives nature as all important decisions, he can make if... Placed under a foreman get all their orders from one supervisor only companies to improve overall organization performance properly! Between different units is being achieved by co-operation between departmental heads or executives responsible to different... Enterprises having modern business activities the duty in the workplace Professionals in staff roles can be understood! The level of authority derived by him from his subordinates or any person... From one supervisor only Transactions Secure fully aware of the business industrial enterprises that it is far... Be unfit in some cases, thus the performance may be unfit in some cases, the... Any organization will depend on the same tasks without upskilling or learning about other aspects of the above, will! Higher profitability adjustments in the hands of a line structure the simplest form of which! Must understand each others work scope and not try to run the company.... As military organization ( c ) Inadequacy of communication there is a direct link between the superior makes decisions the... Run the departments in their own decisions without looking to specialised personnel to seek advice or from! Organization will depend on how far it has grown, who its members are and what they... Likelihood that some persons may be several sub-departments only one person i.e, authority the... Not devote time to supervise their subordinates level officials do not show initiative suggesting! The company smoothly far as his subordinates or any other person departments in their decisions... Very successful specially after a number of people can Achieve Regulatory Compliance a department, there is likelihood... First, a few top executives slow to accept new ideas and they resist change individual employees determines.