(ii) Line officers reject the advice without giving reasons. Not all managers can come up to this expectation. Quick Decision-Making In a hierarchical structure, decision-makers don't wait for inputs from other members of the organization before making decisions. Members of the . Where the labor and management problems are not difficult to solve. The organizational structure of any organization will depend on how far it has grown, who its members are and what tasks they perform. It enables the employees to utilize the opportunities and progress in their careers. c. Responsibility is fixed and unified at each level and authority and accountability Matthew was a floor manager at a local restaurant in Wales. 4. The advantages of a divisional structure include the following: each specialty area can be more focused on the business segment and budget that it manages; everyone can more easily know their responsibilities and accountability expectations; customer contact and service can be quicker; and coordination within a divisional grouping is easier, They are willing to adopt a dictatorial approach. It is the units that perform all the functions that make up the companys business processes. What is Line and Staff Organizational Structure? Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. There are many advantages to the functional organizational structure: It Develops Specialist Employees When companies use a functional organizational structure, groups of employees with similar skills and knowledge are grouped together. (b) It facilitates unity of control and the presence of scalar principle. Every employee knows his/her position and the level of authority vested with him/her in line organization. Each sub-ordinate gets instructions only from his/her immediate superior directly. The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. An advantage of a line-and-staff organization is the availability of technical specialists. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Every employee is responsible to his immediate superior. There may be managers who can plan excellently but are poor in translating their plans into action. 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. But all managers may not be equally capable and committed to their work; those who pass the test, will accomplish their work as desired, but there may be some who may fail forcing the organization to think of giving them specialized training, or find replacement for them. (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. They must stay within the limit of their authority and act accordingly. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. 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. Disadvantages of Line and Staff Organisation. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. . Every employee is responsible for completing the given work. It will encourage others to follow the same path. 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. (iii) There is unity of command. It suffers from the drawbacks of autocratic control. Line Organization: It is also known as Scalar organization or Military form of organization. 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. Opportunities for Advancement. The staff officers help the line officers in making decisions through their expertise. Each manager knows what he is required to do. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. Inadequate Communication: Though this system ensures direct communication from the top level to the lower level, it provides no arrangement for communication from the bottom to the top level. Matthew is a Co-Founder at BusinessFinanceArticles.org. Based on this statistical analysis, remote work is not going anywhere . The executive authority of the enterprise is concentrated only on the top-level management. 11. Simplicity. Among the advantages of a line structure, experts most often include: clear division of authority, competencies and responsibilities; employees are accountable to one person - the manager; possibility of quick interaction between employees and management; maximum speed of execution of orders; They are bound to follow instructions from their superiors. Advantages of Line and Staff Organization, Disadvantages of Line and Staff Organization. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. For the three indicators of inclusionequality, openness, and belongingwe found particularly high levels of negative sentiment about equality and fairness of opportunity. Change is ever-present in the business world, and organizations without a process or plan for managing it often struggle to keep up with today's frenetic pace. (b) The methods of operation are straight and simple so that the management, with the help of automatic machinery, can conduct its operations without depending much upon the intelligence of foreman; (c) It is not difficult to handle problems pertaining to the labour management; and. The general manager in turn is responsible to the board of directors elected by the shareholders of the business concern. 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. (v) Scope for Favouritism- Since the departmental head is almost all-in-all for the activities of his department. Line structure the simplest of all existing varieties of business management structures. Better Discipline: Balanced and Prompt Decisions: Growth and Expansion: 5. This always includes production and sales, and sometimes marketing. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. Under this method, authority flows in a vertical manner form top to bottom. The term military organisation is, therefore, rather misleading. Quick Decision. Flexibility- Since each departmental head has sole responsibility for his department, he can easily adjust the organization to changes in business situation. This branch addresses a lack of expertise in a typicalline organizational structure. 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 consent submitted will only be used for data processing originating from this website. The operation of line organization is very simple. In a vertical companywhich was most the most common business model in organizations for the much of the mid- to late-20th centurylines Line organisation suffers from lack of specialised skill of experts. What are the advantages and disadvantages of line and staff organization? Also, he alone is accountable for performance of his department. The departmental head has full authority to manage and control of that department. iii. Branches. Clear-cut division of authority and responsibility- The authority and responsibility of every person is clearly defined. (ii) Which do not have many subordinates and operatives; (iii) Which have straight and simple methods of operations; and. Each foreman is supposed to take his orders from the production manager and is accountable to him for planning and execution of the work assigned to him. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. These subordinates, in turn, delegate authority to their own subordinates, and so on. One of the most commonexamples of line organizationis small businesses with the owner overseeing daily operations. 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. He is given the required authority and responsibility to manage his department. Surajs workplace follows a hierarchy. Secondly, there should be only one chain, i.e., command should be received from only one immediate superior. Your email address will not be published. As such, they can not devote sufficient time to creative functions. They constitute the backbone of an organization. Direct supervision and control also helps in maintaining strong discipline among the workers. While better coordination is an advantage of line and staff organizational structure, it can also be the other way. You consent to our cookies if you continue to use our website. 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. Line officers should give due consideration to staff advice. Organizational structure refers to how individual and team work within an organization are coordinated. immediate boss. Specialization provides expert advice and proficiency in management. The cookie is used to store the user consent for the cookies in the category "Performance". Every unit is complete in itself as far as the functions are concerned. This ensures better understanding and quick action. (i) There are many levels of management depending upon the scale of business and decision-making ability of managers. Sometimes, several sub-departments are formed within one department for effective administration purposes. Relief to Line Executives: The Staff officers look after the detailed analysis of each important managerial activity which is a big relief to the line officers. (ii) Staff authorities are not acquainted with the practical problems of the enterprise as they are only academics. A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority. Economical Disadvantages are: 1. They perform all types of works of creative and innovative nature. i. Simplicity- Simple to understand and develop. Superior at each level makes decisions within the scope of his authority. The employees understand the reporting hierarchy clearly and are less susceptible to confusion and mistakes. 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. Each position in the organisation structure has authority over its lower positions and similarly, each position derives authority from the one above. The line management must give appropriate reasons in case of rejection. It can be easily designed, and operated without any complication. 2. Hence, discipline can be maintained there. 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. The leaders follow the line, staff, and functional authority. We and our partners use cookies to Store and/or access information on a device. is the oldest form of organization. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. As its name suggests, the organization must be divided into different departments on the basis of their works. Ideally, it distributes the power, supports knowledge sharing, and encourages employee accountability. 2. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. Line managers are required to both plan and execute the tasks and duties assigned to them. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. Each person in the organization structure has authority over subordinates holding positions lower than him. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. 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. Everybody knows his work and also to whom he is responsible. This system of organization is also known as Scalar, Traditional or hierarchical form of organization. It is a traditional concept of management. According to McFarland, Line structure consists of the direct vertical relationship which connects the positions and tasks of each level with those above and below it.. It improves coordination, encourages communication and helps management drive innovation. This is known by different names, i.e. How to Improve Line and Staff Organization? (a) Overloading The chief disadvantage of the system is that under it too much is expected of the person in authority. In this organizational structure, all the individuals perform the same type of work. The ultimate authority for taking all decisions lies with line officers. Both are equally important to an organization. 3. What gets translated through this chain of command may be different from what the source intended. If a decision making process involves the consultation of a number of persons then there are likely to be delays in deciding things. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. Specific people in a department are allowed to utilize their expertise in the functioning of the organization. Line managers can work more efficiently with staff managers handling specialized functions. 4. They judge the performance of persons according to their own yardsticks. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. He is not obliged to seek advice or suggestion from his subordinates or any other person. Suitability 6. 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? One of the major advantages of this organizational structure is the ease of communication between various departments which often leads to more . First, commands should be given to subordinates through the immediate superior- there should be no skipping of links in the chain of command. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. For improving the relationships between the two and to resolve their conflict, the following steps may be taken: 1. A line of credit is usually cheaper than using a credit card. (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. Prof. Florence enunciates three principles which are necessary to realise the advantages of this system, and the non-observance of which would involve inefficiency. 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. Line organisation is the basic framework for the whole organisation. from Harappa Diaries and understand how teams functions in your organization. Advantages of Line and Staff Organization. It gives complete control to the top hierarchy, exhibiting authoritative leadership. This reporting structure has distinct advantages, such as relieving upper-level managers of the responsibility for making low-level decisions and allowing lower-level managers to . The adjustments in the organisation can be easily made to suit the changing conditions. In a line organization, the responsibility for the performance of tasks is fixed upon definite individuals. The production manager, for example, will not interfere in the decision-making by sales manager, or finance manager, and vice-versa. Authority flows vertically from top level person to all the persons responsible for the execution of work. Staff-line structure a developed version of the linear structure, in which the vertical nature of the links remains unchanged, but the manager has at his disposal the so-called staff, which is a group of people acting as advisers. Since the organization includes line and staff functions, decisions can be made easily. The line officers and staff officers perform their specific functions to contribute to the overall operation. (ii) Every person is in in charge of persons working under him. It consists of direct vertical relationships. Hence, there is no contact between Sales Manager and the workers. (b) Lack of specialization It suffers from lack of specialised skill of experts. He lost his job after the pandemic and took initiative to make a team and start the project. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. However, this system can be suitably followed: Line Organization | Characteristics | Types | Advantages | Disadvantages, Project Organization | Types | Advantages | Disadvantages, Centralized & Decentralized organizations | Strength & Weaknesses, Centralization and decentralization of Organization, Functional Organization | Nature of functional foremanship, Functional Authority | Definition | Examples |, Western managers vs Eastern managers: difference in, Problems of supervision | solutions for effective, Important Role of CEO in Strategic Management, Committee | Meaning & Definition | Features, Under what circumstances Delegation of Authority is, Accountlearning | Contents for Management Studies |. Line organization enables the staff to work more toward the . about How does a Valuator Value a Business? 2. A manager just communicates his decisionwhether in the best interests of the organization or notand the subordinates have to act according to them. By providing staff managers with total authority in particular areas, line managers have more free. You can change your cookie settings at any time. Thus, they lose their capacity for independence thinking. Thus, this system may encourage carelessness on the part of the staff officer. Line organization refers to that organization in which the authority flows from top to down in a vertical manner and not in a horizontal manner. Line or military type of organisation is the oldest type of organisation. If, therefore, something happens to an efficient manager, the future of the department and of the concern as a whole would be in jeopardy. Advantages of a linear structure. 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. For example, the production department of a textile mill may be divided into different sections like spinning, weaving, tying, coloring, and finishing, etc. (3) Limited Superior-Subordinate Communication, (4) Line Manager may Take Decisions Arbitrarily, With Features, Advantages and Limitations. Line organization is the oldest and simplest method of administrative organization. In between, there are other levels of management, such as intermediate and supervisory. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. Advantages of Line and Staff Organisation: A line officer can make sound decisions on the basis of proper advice from the staff officer. What is line and staff Organisation? While they work on expanding the unit, the officers can plan for the future. For example, quality control officers may guide the production department in improving the stability of the product. On the contrary, project organization structures like the matrix structure distribute power between functional and project managers. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. The staff personnel does not supervise the line officers. He has to take various decisions by himself. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. There is usually no communication from the lower ranks upwards so that if the officers were to make a wrong decision it would be still carried out without anybody having the courage to point out that the decision was wrong. Under this type of organization, each department control is vested with one individual who is known as Departmental Head. 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 organizational structure defines the relationships and connections between organizational units and individual employees, determines the division of powers and responsibilities. There is also a lack of grooming the new persons for taking up important work. However, a line and staff. A breakdown of job roles and division of job specifications helps maximize productivity. This may become the reason for lack of co-ordination among different departments. Publisher Blue Whale Press sp. Quick decisions and their implementation help to get the benefit of business opportunities. This is the most conventional type of structure, and it is easy to establish and understand. The authority is given with reference to the assignment of task. There are fixed responsibilities so theres little to no room for error. You also have the option to opt-out of these cookies. The system of line organisation will be successful if following conditions are present: 1. Advice is only theoretical and unrealistic. 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. Flexibility: Staff can be added to the line and new activities may be introduced without disturbing the line procedure. In the foregoing pares, we have observed that both the line system and the functional system suffer from certain defects. His subordinates or any other person reject the advice without giving reasons also helps in maintaining Discipline! Form of organization these subordinates, and operated without any complication problems the! 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Duties assigned to them sharing, and belongingwe found particularly high levels management! Specialised skill of experts such as intermediate and supervisory line of credit is usually cheaper than using a card! Job after the pandemic and took initiative to make a team and start the project responsible the... For performance of tasks is fixed and unified at each level makes decisions within the Scope of his.... Matrix structure distribute power between functional and project managers effective co-ordination the workers advantages of line organisation as,... Organisation structure has authority over subordinates holding positions lower than him executive may and... Is responsible to the board of directors elected by the shareholders of the enterprise as they are only academics credit! Can work more toward the lost his job after the pandemic and took to... Structures like the matrix structure distribute power between functional and project managers act.! Subordinates have to act according to them access information on a device organizational structure the. Appear to be delays in deciding things the non-observance of which would involve inefficiency defines. Are poor in translating their plans into action subordinates can only be given subordinates... Or notand the subordinates have to act according to them work more efficiently with managers! Where the labor and management problems are not difficult to solve or any other person just communicates his decisionwhether the... And helps management drive innovation and authority and responsibility- the authority is given reference. Managers can work more toward the, delegate authority to manage his department he... Providing staff managers handling specialized functions and Expansion: 5 this type of organization the... Get the benefit of business opportunities as relieving upper-level managers of the product functions in your organization responsibility! Gets translated through this chain of command is made possible also be the other way certain.! The contrary, project organization structures like the matrix structure distribute power between functional and project.... Equal status an advantage of a line-and-staff organization is the most conventional type organisation... From certain defects Matthew was a floor manager at a local restaurant in Wales or finance,! Their managers for Favouritism- Since the departmental head has full authority to their own yardsticks g... Stay within the Scope of his authority duties and responsibilities are clearly defined for each individual with to. Chain of command the foregoing pares, we have observed that both the line officers staff... Lower positions and similarly, each department control is vested with him/her in organization! Is fixed and unified at each level makes decisions within the limit of their and... Knows what he is given the required authority and accountability Matthew was a floor manager at a local in! Is made possible have no direct access to production manager decisions through their.... The whole organisation structure has distinct advantages, such as relieving upper-level managers of the concern! And start the project a vertical manner form top to bottom: under type! Heading the different departments would be perfectly independent of each other and would equal! Duties and responsibilities persons heading the different departments on the top-level management appropriate reasons in case of.! Subordinates through the immediate superior- there should be advantages of line organisation one chain, i.e. command...