This always includes production and sales, and sometimes marketing. In setting the departments, the similarity of function is taken into account. Advantages of Line and Staff Organization, Disadvantages of Line and Staff Organization. This means relying a little too much on their individual capability, knowledge and experience. Line Organization: It is also known as Scalar organization or Military form of organization. He is given the required authority and responsibility to manage his department. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. As a manager, hes the one who has to communicate the CEOs orders to the assistant manager. There is scope for favouritism. The suggestions and recommendations may not always be accepted. Figure 1: Basic Model of a Line Organization, Discourages Employees From Being Proactive. Organizational structure is a formal outline of reporting relationships and information flows within a company. Staff managers are placed in charge of vital issues that are best handled by a single, highly specialized individual, or in which a formal chain of command would simply hinder productivity and efficiency. In case, the manager of one department wishes to issue guidance or directions to a subordinate in another department, he will go up the line and convey the message to the top manager who will then pass it down the line in the other department. At each level, the superior makes decisions within the scope of authority derived by him from his own boss. Everybody knows his work and also to whom he is responsible. Each unit is placed under a commander and his word is final as far as his subordinates are concerned. What is line and staff Organisation? This can be effective when organizations are short on time. For example, human resources, accounting, public relations and the legal . Having a three-way authority system in the company facilitates expansion and growth. Features of Line Organisation 2. The involvement of functional managers per need allows the line officers to make quick decisions. Quick Decision. 5. A group of employees is controlled by one individual. Therefore, it is unsuitable for large-scale business enterprises having modern business activities. The general manager in turn is responsible to the board of directors elected by the shareholders of the business concern. Advantages of a Line Organization Simple to work Economical and effective. This may also upset the foremens control over his immediate subordinate machine-men (including this particular machine-man) in general. The biggest disadvantage of line organization is that since it is one man show the lack of specialization is clearly visible in such type of organization as each job requires different skills to complete the job effectively and efficiently and one man cannot learn all the skills alone so there will be always that lack of knowledge or specialization in case of line organization. Another limitation under this structure is there is no scope of two-way communication so things are always communicated from top to bottom and not the other way round so even if the subordinates have something good to say they will hesitate and keep mum leading to suppressing of good ideas and methods to complete the work efficiently and effectively. (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. Employees are expected to work on the same tasks without upskilling or learning about other aspects of the business. For example, the owner of a small business acts as the leader or manager of inline systems. It does not involve a large number of people. For this reason, it is given the name line organization. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. Under this system, each employee is responsible to his immediate superior. It explains the tasks of every worker in an organization. specific scope of duties, powers and responsibilities, as well as required qualifications. The allocation of work will also help in fixing responsibility of various individuals. (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. This type of organisation helps in co-ordination and control. More recently, it has also been referred to in management writing as the scalar organisation. A breakdown of job roles and division of job specifications helps maximize productivity. (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. Matthew is a Co-Founder at BusinessFinanceArticles.org. 2. They should state reasons in case they cannot accept the advice. When the planning and execution job roles are separate, more employees get the chance to showcase their talent. about 5 Ways your Company can Achieve Regulatory Compliance. There may be managers who can plan excellently but are poor in translating their plans into action. 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. General Manager. They constitute the backbone of an organization. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. All the departmental managers enjoy equal status and work independently. It will encourage others to follow the same path. 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Simple organization structure can be done in two ways, first is pure line organization and second is department line organization. The line officers only have to perform the routine work and leave the rest to staff officers. about How does a Valuator Value a Business? Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. 9. 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. Responsibility, on the other hand, flows upwards. All the departmental heads are responsible to their immediate superior i.e. 2. Using the website without changing the cookie settings means that they will be stored on your end device. Quick decisions and their implementation help to get the benefit of business opportunities. The Staff Viewpoint. 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. Similarly, there is no provision of guidance and suggestions from the experts in making managerial decisions. (vii) There is a hierarchical arrangement of authority. In todays business world, marketing is the [Read] about B2B Account-Based Marketing: How to Grow Sales? These are issues that are vital to the company's success, but which do not require a large work group to accomplish. It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. Merits of Line Organisation: The line organisation has the following good points: 1. Merits of Line Organisation: The line organisation has the following good points: ADVERTISEMENTS: 1. (iii) Each subordinate receives orders only from one superior and is answerable to him only. A flat structure elevates each employee's responsibility inside the organization and eliminates excess management layers to improve coordination and communication. 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. (f) Flexibility This type of organisation is elastic. This affects their creativity and capacity for independent thinking. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. 1. Everyone knows as to whom he can issue orders and to whom he is accountable. Unity of command supports settling the duty in the line organization. The line officers may become autocratic and start deciding things without consulting their subordinates. The term military organisation is, therefore, rather misleading. 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. Specialization. Line officers take their own decisions without looking to specialised personnel. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. Account Disable 12. Or, airlifting Indians from strife-torn foreign countries (remember, Libya and Afghanistan). These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. (v) Prompt decision The unification of authority and responsibility ensures quick and prompt decisions. military, vertical, scalar, departmental organization. Advantages of Line and Staff Organization: - Line officers can mainly focus on the task as planning and checking is done by the employees. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. It can be easily understood by the employees. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. There is failure to get correct information and to act upon it due to lack of communication. This is because of unified control. Also, he alone is accountable for performance of his department. (iv) There is scalar chain in line organization. . Identification of Authority and Responsibility: . Analytical cookies are used to understand how visitors interact with the website. The only problem with a credit card is that it will usually carry a high APR. Many jobs require specialized knowledge to perform them. The Christian Church has also been organised in a similar manner. Classical theories of organization associated with Henri Fayol, Frederick W . It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. In a departmental line organization, there is a chief executive at the top. The line organisation can be of two types, viz. A line-and-staff organizational structure features multiple layers of managers, assistant managers and supervisors, all of whom report to a single managing director. This type of organisation is largely existing in modern industry. One of the ways they cooperate is through networking. 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. Everybody is responsible for his work and is accountable to his boss. 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 Quick Decision-Making In a hierarchical structure, decision-makers don't wait for inputs from other members of the organization before making decisions. According to referenceforbusiness.com, staff managers often play a support role to line managers. Answer: The advantages of the functional organization are as follows: Application of specialized knowledge Reduction of autocracy Specialization and employee development Increase in Flexibility Assist in controlling Question 18: What are the Limitations or Disadvantages of the Functional Organization? Better Discipline: Balanced and Prompt Decisions: Growth and Expansion: 5. Fixed Responsibility 5. 3. WHO IS A STAFF MANAGER? The viewpoints of both line and staff of this conflict are given below: A. Privacy Policy 9. is the oldest form of organization. Flexibility 6. Merits of Line Organization: Simplicity: Line organization is simple to establish and can be easily understood by the employees. A line organizational structure helps build rapport between senior management and employees. Moreover, there is a benefit of specialization, as in work is divided between the line and staff executives, and they focus on their respective area. 7. (h) Definition of Authority As the powers and authorities of various person are defined, the conflict in their powers and authorities is avoided. Some assistants or new officers may be appointed to expand and delegate tasks. put an organization on the path to competitive advantage. Each of these departments will report directly to the supervisor above them. Since authority and responsibility flow in an unbroken straight line, it is called line organisation. There is a lack of co-ordination among various departments. Line organization enables the staff to work more toward the execution of tasks. Again, no departmental head can pass on a message directly to a subordinate of another department. Telegram ChannelJoin telegram channel https://t.me/skillicsFunctional Structure https://youtu.be/CkmjGWAv5t4Divisional Structurehttps://youtu.be/SxCT5cRuGPAM. In a simple organizational structure, various departments are autonomous, and there is little communication with each other. The merits of line organisation are as follows: (i) It is very easy to establish line organization and it can be easily understood by the employees. If the top. Employees do not want to be a part of an organization where their roles are unclear. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. The links in the chain of command should not be skipped. 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. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. This line system is not without disadvantages. The staff does not have the authority to issue orders to contractors, but has a strong influence on the supervisor. The subordinates have no doubt regarding the person from whom they receive instructions. Simple and Easy To Understand 2. The chain of command goes from top to bottom. c. Responsibility is fixed and unified at each level and authority and accountability It is headed by a director, followed by department heads, and then by serial employees. Each department manager derives his authority from the chief executive and, in turn, delegates authority to his immediate subordinates. (v) It facilitates prompt decision-making because there is definite authority at every level. 8. Simple To Operate Simplicity is one of the major benefits of line organization. Responsibility is fixed. Thirdly, the number of subordinates whose work is directly commanded by the superior should be limited. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Structure is a valuable tool in achieving coordination, as it specifies reporting relationships (who reports to whom), delineates formal . It is not possible to achieve the advantages of specialisation in all fields. 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