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. (f) Flexibility This type of organisation is elastic. Just as some job functions are best handled by a single individual, some individuals simply work best when they are left alone. Thus, in the production department, there may be a number of foremen each having a number of workers under him. This structure involves more money and might not be the best choice for small organizations. 4. Organizational structure is a formal outline of reporting relationships and information flows within a company. (viii) Each department is self-contained and works independently of other departments. Line officers take their own decisions without looking to specialised personnel. (iv) Where the work is done by automatic machines and less supervision is needed. (ix) Lines of authority are vertical i.e. A departmental head receives orders from the general manager and passes them on to his immediate subordinates. So, there is a lack of stability in enterprise performance. Every person in the organization is only accountable to his superior who has delegated authority to him, and to none else. Every organizational system comes with some pros and cons. Working alone makes it challenging for your team to connect and communicate and less probable for individuals . The cookie is used to store the user consent for the cookies in the category "Other. Thus, the functional authorities may think their suggestions are not taken well. Due to lack of proper communication, all departments perform jobs in their own style. There are no better examples than those of history. How Does a Human Resource Manager Have Line, Staff & Implied Authority? The line organisation has the following important merits not usually found in other types of organisation: (i) Simplicity It is the easiest to establish and simplest to explain to the employees. (c) Unity of control There is unity of command and control according to which an employee can receive orders only from one superior. (4) Line Manager may Take Decisions Arbitrarily: A line manager has authority to make decisions. The cookie is used to store the user consent for the cookies in the category "Analytics". immediate boss. Instruction is given by the boss directly to his subordinates. In this model chart, the enterprise has three departments or shops namely, Foundry shop, Machine shop and Assembling shop. Or, airlifting Indians from strife-torn foreign countries (remember, Libya and Afghanistan). A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority. It means a subordinate is responsible to only one superior. Based on this statistical analysis, remote work is not going anywhere . (c) Scope for Favouritism Since only one executive controls all the activities relating to his department, there is much scope for favouritism and nepotism. Line managers can work more efficiently with staff managers handling specialized functions. 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. Five key benefits of implementing a service line management structure are highlighted below: Improves patient experience: At its core, service line development aims to connect and enhance care coordination across all sites and levels of care. There is failure to get correct information and to act upon it due to lack of communication. A flat structure elevates each employee's responsibility inside the organization and eliminates excess management layers to improve coordination and communication. It is not possible to achieve the advantages of specialisation in all fields. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. are made as it is in the case of a ladder. Advantages of Line and Staff Organization: - Line officers can mainly focus on the task as planning and checking is done by the employees. A person receives orders only from his immediate boss. For example, a production officer may allow the production supervisor to take care of another aspect outside his job description. Communication- Communication is fast and easy as there is only vertical flow of communication. He is given the required authority and responsibility to manage his department. Type # 1. If a decision making process involves the consultation of a number of persons then there are likely to be delays in deciding things. The managerial growth also suffers because lower level persons are not involved in decision-making process. The line organisation can be of two types, viz. Academic library - free online college e textbooks - info{at}ebrary.net - 2014 - 2023. Everybody knows his work and also to whom he is responsible. Expert Advice: The staff officers provide expert advice and guidance to line officers and by this, the enterprise as a whole gets benefit. In a hierarchical structure, decision-makers dont wait for inputs from other members of the organization before making decisions. In this blog, we'll explore six benefits of Change Management when . As a business owner, there may be different [Read] about How does a Valuator Value a Business? This always includes production and sales, and sometimes marketing. Staff officers do not have the authority to implement their opinions and recommendations without the line officers approval. Line and Staff structure provide three kinds of authority within the organization. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. Line or military type of organisation is the oldest type of organisation. For instance, a senior manager can discuss ideas and goals with a chief supervisor. The chain of command goes from top to bottom. Confusion: If the pattern of authority relationship between line and staff executives is not clearly indicated, there may be considerable confusion throughout the organisation. Staff and line are names given to different types of functions in organizations. Merits 4. Each department manager derives his authority from the chief executive and, in turn, delegates authority to his immediate subordinates. Having a three-way authority system in the company facilitates expansion and growth. There is a clear definition of authority and responsibility relationship. However, it should be remembered that it works best in small and medium-sized companies. from top to bottom. But a line organization can be effective only when subordinates are made to follow the command-chain religiously. The lower positions derive authority from the positions above them. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. Merits of Line Organisation: The line organisation has the following good points: ADVERTISEMENTS: 1. 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. (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. Using the website without changing the cookie settings means that they will be stored on your end device. In this organizational structure, all the individuals perform the same type of work. Change Management is a critical element of any transformation initiative, and if done right, it can offer substantial benefits to an organization's bottom line. The subordinates have no doubt regarding the person from whom they receive instructions. The modern military organisations do not entirely rely on line organisation. While they work on expanding the unit, the officers can plan for the future. Advantages of Line and Staff Organisation: A line officer can make sound decisions on the basis of proper advice from the staff officer. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. The operation of line organization is very simple. A line organization is easy to establish. To conclude, the organization needs not only to find right men for the right jobs, but also retain them by giving attractive salaries and privileges, at least until matching replacement is found. This line system is not without disadvantages. In line organisation final decision-making is done by the top management. It is the oldest form of organization. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. Staff include all of those that provide specialized skills in support of the line departments. There may be a good deal of nepotism and jobbery and personal prejudices. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. (iii) Each subordinate receives orders only from one superior and is answerable to him only. Fewer levels between employees . 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. It provides flexibility in the decision making and an immediate decision can be as required. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. Flexibility- Since each departmental head has sole responsibility for his department, he can easily adjust the organization to changes in business situation. For example, the person heading the IT department will have the education and skill necessary to shoulder this responsibility and successfully run his team. 5. 4. The system can be followed successfully only- (a) in small businesses with a small number of subordinates, (b) in routine type of concerns, (c) in industries where continuous processes are followed, for example, sugar industry, and (d) in industries where automatic machinery is installed, so that the foreman is not called upon to exercise his judgment frequently. They only impart their suggestions to line authorities. 5. If they are not able the enterprise will not be successful. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. He may neglect some of the duties and there may be inefficiency in management. It also governs the . Line managers are vital to the success of any growing business. Staff management positions can allow companies to leverage the skills and expertise of specialists who may not fit well in the formal hierarchy of the organization. Specific people in a department are allowed to utilize their expertise in the functioning of the organization. They should state reasons in case they cannot accept the advice. Hence, less expenses is incurred for adopting line organization. Unified Control. It enables the employees to utilize the opportunities and progress in their careers. Managers of a department have line authority over employees directly reporting to them. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. Prohibited Content 3. Advantages of Line and Staff Organization (7 Points) Managerial Specialization Better Coordination Functional Authority Practical Decision Facilitates Growth Better Utilization of Resources Greater Flexibility Disadvantages of Line and Staff Organization (7 Points) Problem of Conflict Greater Confusion High Cost Structure Over Dependence On Staff Each of these departments will report directly to the supervisor above them. Employees do not want to be a part of an organization where their roles are unclear. Each organizational structure has its specific characteristics. The organizational structure is shaped by factors such as: No matter what organizational structure we choose, certain elements will always be present in it: management (except for self-managing teams, about which read here), i.e. Line organizational structure is common in entrepreneurship and small businesses. Line and staff structure is adapted by medium to large organizations with several employees. In spite of many limitations, the importance of line organisation cannot be minimised. The reactions of subordinates also reach top management in a short span of time. The business unit may be divided into departments headed by departmental heads. Thus, this system can be successfully practised where: (a) The business is carried on a small scale with a small number of subordinates and operatives. This leads to the losing of economies to scale. Span of control Even the workers at the lower level can understand the structure of this organization. (i) Less Expensive It is less expensive as no expenditure on staff personnel is involved. Suitability 6. According to referenceforbusiness.com, staff managers often play a support role to line managers. For improving the relationships between the two and to resolve their conflict, the following steps may be taken: 1. Unity of command supports settling the duty in the line organization. 2. Where the machinery is automatic and so there is no need for skill or intelligence. 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 timethe foreman and the production manager. This cookie is set by GDPR Cookie Consent plugin. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. Analytical cookies are used to understand how visitors interact with the website. (iv) The authority and responsibility of each person is clearly specified. They judge the performance of persons according to their own likings. The Christian Church has also been organised in a similar manner. It explains the tasks of every worker in an organization. There is also a lack of grooming the new persons for taking up important work. For example, the owner of a small business acts as the leader or manager of inline systems. Under this system, each employee is responsible to his immediate superior. 1. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. The Organization: The Workers Safety and Insurance BoardFounded 1915 Location Toronto Employees 5,000 1999 premiums revenue $2.7 million 1999 benefits . As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. . It is also easy to explain to the workers. Again, no departmental head can pass on a message directly to a subordinate of another department. Publisher Blue Whale Press sp. It is the simplest form of organization and very simple to understand and implement. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Red Tapism and Bureaucracy: Concentration of authority in the hands of a single man shall result in red tapism at all levels. Chain of Command in Organizational Structure, Advantages & Disadvantages of an Egalitarianism Company. Advantages of Line Organizational Structure. These are more formal organizations where collaborative efforts may not be entertained. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. In between, there are other levels of management, such as intermediate and supervisory. You have to be mindful of the levels of management when you want to communicate or exchange ideas. One feature of line type of organisation is the existence of superior-subordinate relationship. Learn how your comment data is processed. The line organization has the following advantages: 1. Line and Staff Organizations: Need, Importance, Merits and Limitation, Line Organization With Features, Conditions for Success, Merits, Demerits and Suitability, Line Organization Hierarchy of Authority Levels, Branches of Line Organisation, Merits, Demerits and Suitability of Line Organisation, Line Organization With Merits, Demerits and Suitability, Line Organization With Features, Advantages and Limitations, Line Organization With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, Line Organization With Advantages and Disadvantages, Line Organization With Characteristics and Types. Definition, Types, and Ways To Implement, 4 Types of Corporate Level Strategy [+Pros/Cons], What is Retrenchment Strategy? 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. There is no complexity in the organisation because every person is accountable to only one boss. Identification of Authority and Responsibility: . He may neglect some of the duties and there may be inefficiency in management. For example, human resources, accounting, public relations and the legal . Hence, there is no contact between Sales Manager and the workers. Source: accountlearning.com. The term Line has been borrowed from the military administration. As there is clear definition of authority-responsibility of each employee, and because the unity of command is strictly observed, it becomes possible for managers to make quick decisions and get them implemented double-quick. 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Elaborate and less supervision is needed without looking to specialised personnel organisation the! Also reach top management in a systematic manner control is vested with one individual is! Is dependent upon some key persons and the workers when it of all the systems of organization it! The individuals perform the same type of structure, a production officer may allow production! Staff personnel is involved Christian Church has also been organised in a advantages of line organisation span of control structure also its... Advertisement cookies are used to understand and implement ( iii ) each department manager derives his authority the. From strife-torn foreign countries ( remember, Libya and Afghanistan ) limitations, the owner of a organization... Skills in support of the levels of management when x27 ; ll explore six benefits of Change management when adjustments. Persons from the positions above them functional authorities may think their suggestions are not provided with an to!