And the same route will be followed by any message from the subordinate concerned. Thus, the main object is to achieve the unity of control and responsibility right up from the top of organisation to its bottom. Maintain Discipline 4. By this method, specialisation is attained. Definition, Types, Reasons, and Pros/Cons. Lack of Initiative: Since there is utmost concentration of authority in the hands of the top management, the section heads will lose their initiative. Hence, less expenses is incurred for adopting line organization. Simplicity: This system is very simple and can operate very easily. 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. An example of data being processed may be a unique identifier stored in a cookie. 2. Business Models & Organizational Structure. 5. Harappas Navigating Workplaces course is a self-paced online course thatll teach you everything you need to know about optimizing your work life. Source: accountlearning.com. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. Red Tapism and Bureaucracy: Concentration of authority in the hands of a single man shall result in red tapism at all levels. The line is divided into different groups for effective control and supervision. Most of the work done in aline organizational structureis routine. So within the limits of his authority, he feels free to adjust and adapt his activities to realize the objectives set for him by his superior. 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. It is extremely difficult for one person to handle activities of diverse nature. The leaders follow the line, staff, and functional authority. 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? Experienced employees with specialized knowledge are given functional authority in the organization. Each position in the organisation structure has authority over its lower positions and similarly, each position derives authority from the one above. Line officers take their own decisions without looking to specialised personnel. Hence, there is greater flexibility in the organisation. The term military organisation is, therefore, rather misleading. This also helps in having better control because the subordinates will be under constant watch. Line departments perform tasks that reflect the organization's primary goal and mission; line departments make and sell products. 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. If they are not able the enterprise will not be successful. This cookie is set by GDPR Cookie Consent plugin. The production manager, for example, will not interfere in the decision-making by sales manager, or finance manager, and vice-versa. A group of employees is controlled by one individual. There is thus a hierarchical arrangement of authority. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. 2. 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. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. 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. iv. This is the simplest and the oldest type of all organisational forms and is popularly called or known as military organisation. In spite of many limitations, the importance of line organisation cannot be minimised. Staff include all of those that provide specialized skills in support of the line departments. How Does a Human Resource Manager Have Line, Staff & Implied Authority? Economical: . is the oldest form of organization. For this reason, it is given the name line organization. The cookie is used to store the user consent for the cookies in the category "Analytics". Some of the advantages of implementing the matrix organizational structure include: 1. In setting the departments, the similarity of function is taken into account. It also allows quick decisions and efficient coordination. 5. 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. (3) Limited Superior-Subordinate Communication, (4) Line Manager may Take Decisions Arbitrarily, With Features, Advantages and Limitations. In this type, a greater variety of responsible jobs are available and this provides more opportunities for advancement of capable workers. about Can a Healthy Lifestyle Save Money on Life Insurance? An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. The line organization structure is very simple to understand and simple to operate. ADVERTISEMENTS: (ii) In this organisation, there is no difficulty in fixing the responsibilities at various levels of organisation. 5. Line and staff structure is adapted by medium to large organizations with several employees. They must stay within the limit of their authority and act accordingly. However, a line and staff. Simple To Operate Simplicity is one of the major benefits of line organization. 3. The general manager is in charge of all the departments and he can easily co-ordinate the work of various departments. Sometimes, several sub-departments are formed within one department for effective administration purposes. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. It explains the tasks of every worker in an organization. (c) Inadequacy of communication There is a failure to get correct information and to act upon it. Staff officers do not have the authority to implement their opinions and recommendations without the line officers approval. He may neglect some of the duties and there may be inefficiency in management. The line managers may sometimes ignore the advice offered by staff officers. It will hamper their effectiveness. 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. Line organization enables the staff to work more toward the execution of tasks. At departmental level manager is in charge and he can direct the activities of his juniors. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Line managers sit directly in the chain of command in a company's hierarchy, and are responsible for overseeing subordinates and reporting to their own managers. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. 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. First, commands should be given to subordinates through the immediate superior- there should be no skipping of links in the chain of command. 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? The line authorities and higher management make decisions after considering the suggestions of functional officers. Simplicity. Publisher Blue Whale Press sp. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. Hierarchy of Authority Levels 7. For example, Sales Department. (iv) Which are engaged in the work which is largely of a routine nature. Chain of Command in Organizational Structure, Advantages & Disadvantages of an Egalitarianism Company. We also use third-party cookies that help us analyze and understand how you use this website. Academic library - free online college e textbooks - info{at}ebrary.net - 2014 - 2023. v. Prompt Decisions- As the superiors enjoy full authority, quick decisions are taken by them. 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 planning. 3. Thus, it permits flexibility in operation. Conforms to the scalar principle of organization. Simple and Easy To Understand 2. Advantages of Line Organisation: ADVERTISEMENTS: Line organisation offers the following advantages: (a) It is simple to operate and easy to understand. This type of organisation is largely existing in modern industry. And others may be good at execution but not so when it. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. You may choose the one that suits your companys needs the best. Minimum number of employees are required to adopt line organization. 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. Line officers should give due consideration to staff advice. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. D. core competencies., Companies benefit today by inter-firm cooperation. A line manager is responsible of achieving the main objectives of the organization by executing main functions such as policy making, target setting and decision making. (v) Scope for Favouritism- Since the departmental head is almost all-in-all for the activities of his department. The subordinates start keeping distance from the superiors. They judge the performance of persons according to their own likings. Each man will, more or less, have the same kind of work to perform up to the higher levels. Everyone knows as to whom he can issue orders and to whom he is accountable. It is the simplest form of organisation structure and is also known as scalar or military organisation. Heres a breakdown of the power in each. 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. Just as some job functions are best handled by a single individual, some individuals simply work best when they are left alone. Your email address will not be published. Definition, Types, Adopting Reasons, & Pros/Cons, What is Growth Strategy? For example, a production officer may allow the production supervisor to take care of another aspect outside his job description. It is also worth mentioning here that the co-ordination on the basis of cooperation is rather enforced by the supervisor who will be in charge of two or three units. 10. (i) Less Expensive It is less expensive as no expenditure on staff personnel is involved. There should be a hierarchical arrangement of giving commands. Similarly, a manager has to look after various departments and functions at a time. Slowly but steadily, cryptos are becoming a part [Read] about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? Learn about:- 1. 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. Reduce energy Expenses - Under the triple bottom line method, the organizations are encouraged to use renewable energy. All organizations follow specific organizational structures to run the company smoothly. 1. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. Similarly, each group of activities will be a complete unit by itself being adequate for performing the assigned tasks. A number of organizations do not even employ staff managers, relying solely on their line managers to accomplish business objectives. Line organisation suffers from lack of specialised skill of experts. Even the workers at the lower level can understand the structure of this organization. They should state reasons in case they cannot accept the advice. Workplace adaptability is a key skill that gives you a better understanding of a fulfilling professional life. 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