In this type of organization structure two type of authority relationship exists. According to this administrative organization, specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. In the words of J.M. Line organization can be further classified into two kinds: 1. Characteristics of line organization are listed below. One person should get orders from one supervisor only. Different forms of organizations are Line, military or scalar organization, functional organization, line and staff organization, committee of organization, project organization, matrix organization and freeform organization. A foreman heads each department. Specialisation: This system derives the benefits of specialisation. 1. Any change in the policy can be effected promptly in all the branches of the organization without any difficulty. Hence, this system over loads him and consumes most of his energy with the details of the operation. The line office cannot devote sufficient time to each and every work and are over loaded with responsibilities. So line organisation enables the fixation of authority and responsibility. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. 4. Staff management is the management of a cost center that produces no revenue in areas such as human resources, accounting and information technology for internal systems. Matrix Organization. Every manager possessed some Types of Authority according to his designated position. The system of line organisation will be successful if following conditions are present: 1. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. Line and Staff Organization. They judge the performance of persons according to their own yardsticks. The chain of command runs from the top sales executives down through subordinates. Since the manager has to take all important decisions, he can make changes if new situation warrants. 4. It is called as military or departmental or scalar type of organization. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. It is widely used in smaller firms and in firms with small numbers of selling personnel. TYPES OF ORGANIZATION TYPES OF DEPARTMENTALIZATION CENTRALIZATION AND DECENTRALIZATION “Organization is a system of co-operative activities of two or more persons.” Organization is the process of dividing up of the activities. 5. There are a few different types of organizational charts. However, this system can be suitably followed: Line Organization | Characteristics | Types | Advantages | Disadvantages, Project Organization | Types | Advantages | Disadvantages, Functional Organization | Nature of functional foremanship, Merits and Demerits of Functional Organization, Centralized & Decentralized organizations | Strength & Weaknesses, Office organization | Meaning | Characteristics | Steps involved, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. The line sales organization is the oldest and simplest sales organizational structure. Different departments are put under the control of Departmental Managers. This enables a manager to take prompt decisions If a decision making process involves the consultation of a number of person’ then there are likely to be delays in deciding things. Line Organization 2. This type of organisation is in accordance with the principle of scalar chain. The authority should be commensurate with the work assigned. Types of Organization Design. For instance, in companies that cover a limited geographic area or sell a narrow product line. LINE AUTHORITY: The most fundamental authority within an organization, reflects existing superior-subordinate relationships. In the same way that no two people can ever be the same, no two companies are identical. The hierarchy in management helps in achieving effective co-ordination. 6) Line Organizational Structure. There is a direct link between superior and subordinates. Under this system the departmental head is involved in taking and executing various decisions. The lower level officials do not show initiative in suggesting new things. In these organizations, a supervisor exercises direct supervision over a subordinate.Also, authority flows from the top-most person in the organization to the person in the lowest rung. It simply means that the employees are accountable to more than one boss. Hence, nobody is escaped from the responsibility. In line organisation every person is under the command of one boss only. It’s the most common type of organizational structure––the chain of command goes from the top (e.g., the CEO or manager) down (e.g., entry-level and low-level employees) and each employee has a … This is a highly collaborative work environment where every individual is valued and communication is a top priority. This video explains the different forms of organisation structure in great detail. Red Tapism and Bureaucracy: Concentration of authority in the hands of a single man shall result in red tapism at all levels. Co-Ordination: 4. Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. 6. This may become the reason for lack of co-ordination among different departments. Following are the main benefits derived from functional organisation: 1. The allocation of work will also help in fixing responsibility of various individuals. 4. Since one man controls the whole show, the subordinates have to dance according to his tune. Vertical management, also called top-down management, refers to the various levels of management within an organization.Managers at different levels are free to focus on different aspects of the business, from strategic thinking to communicating information to operational efficiency. 1) LINE ORGANIZATION : In this type of organization, authority flows from top to bottom There are no staff personnel for consultation too. Where the scale of business is comparatively small. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Most organizations are divided along functional lines, that is, each “division” is organized by work type, such as engineering, production, or sales. 9. A common way to differentiate between business organizational structures is between ongoing operational work versus capital projects. Copyright 10. Authority and instructions pass on from the General Manager to the Plant Superintendent and from the Plant Superintendent to the Foreman and from the Foreman to the workers. In line organisation final decision-making is taken by the top management. Hence, this is unstable. 1. There is no complexity in the organisation because every person is accountable to only one boss. Line organization is the most oldest and simplest method of administrative organization. Any communication between them is routed through their immediate boss. Various departmental managers are equal to each other in status and authority. The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart. Economical: This type of organisation helps in co-ordination and control. Responsibility is fixed.In this form of organization responsibilities are fixed and defined. The departmental head has full authority to manage and control of that department. 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. This organisation is a vertical structure where one person delegates authority to his subordinate and who in turn delegates to his subordinate and so on. Line organizational structure is one of the simplest types of organizational structures. The line officers may become autocratic and start deciding things without consulting their subordinate. According to this type of organization, the authority flows from top to bottom in a concern. Line and Staff Organization 3. 3. He need not to waste time in getting instructions from above. Image Guidelines 5. Hence, there is no contact between Sales Manager and the workers. Content Guidelines 2. Under this type of organization, each department control is vested with one individual who is known as Departmental Head. 2. The divisions are solely for the purpose of control and direction. The flow of this authority is always downwards. Each position in the structure has an authority over a lower position. All persons at the same level of authority should be independent of one another. Prohibited Content 3. Everybody is responsible for his work and is accountable to his boss. Line officers take their own decisions without looking to specialized personnel. Heap (unordered) File Organization. Line-staff organization, in management, approach in which authorities (e.g., managers) establish goals and directives that are then fulfilled by staff and other workers.A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority.. Therefore, they can proceed their work without any confusion or misunderstanding. Type # 1. The departmental manager is responsible or answerable to his immediate superior i.e. Under this type of line organization, the whole business organization is divided into several departments and each department is under the control of one individual who is known as Departmental Manager. This greatly reduces the establishment cost. Pure line organizationThe chart given can illustrate the Departmental line organization.In this model chart, the enterprise has three departments or shops namely, Foundry shop, Machine shop and Assembling shop. Operational work maintains an existing sales channel, whereas projects are one-time, unique expenditures with a defined budget, beginning and end dates, and they accomplish a specific goal.. It permits quick decisions. The chain of command and each department head has control over their departments. Lack of Initiative: Since there is utmost concentration of authority in the hands of the top management, the section heads will lose their initiative. All workers perform the same type of work. This terminology is dated and was more common in the 1950s than now. Responsibility, on the other hand, flows upwards. The line of command is carried out from top to bottom. A "staff function" supports the organization with specialized advisory and support functions. The subordinates should get commands only through their immediate superiors. It is adopted by many multinational and big companies, in many industries. In line and staff organization primary and supportive activities are related to the line of supervision by appointing supervisor and specialist, who are linked to line authority. Minimum number of employees are required to adopt line organization. Departmental managers get orders directly from the General Manager. This may become the reason for lack of co-ordination among different departments. The ultimate authority for taking all decisions lies with line officers. Where the number of subordinates and operatives is less. They are staff and line authority. A foreman heads each department. The following figure explains the departmental line of organisation. 11. A clear-cut division of authority and responsibility, hence no scope of shifting the responsibility. For example, a company could have a group working in information technology, another in marketing and another in finance.Each department has a manager or director who answers to an executive a level up in the hierarchy who may … A matrix organizational structure is a bit more complex, in that there’s more than one line of reporting managers. Flexibility: This system is flexible in the sense that it is subject to quick adjustments to suit the changing conditions. Line Organization. Before one can create a chart for an organization, it is necessary to classify what organizational structure is in place. The subordinates do not convey their reactions or the reactions of workers to the superiors. Staff is basically advisory in nature and usually does not possess and command authority over line mangers. The subordinates start keeping distance from the superiors. In this type of organization, the functional specialists are added to the line, thus giving the line the advantages of specialists. The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. 7. Where the labor and management problems are not difficult to solve. Line organisation is the basic framework for the whole organisation. They are staff and line authority. 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. Line organization assumes that direct authority is exercised by a superior over his subordinates. Line organization structure is the oldest and simplest form of organization. At departmental level manager is in charge and he can direct the activities of his juniors. Everybody knows his work and also to whom he is responsible. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. Staff authorities’ means authority to advice, support and serve the line managers. There are no staff personnel to advice line officers. 2. Read this article to learn about the meaning, types, merits and demerits of line organisation. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. 6. Authority flows vertically from top level person to all the persons responsible for the execution of work. They are expected to take numerous decisions and supervise the work of subordinates under them. The number of subordinates is limited under line organisation. Line organizational structure is one of the simplest types of organizational structures. 2. 5. 5. Line organisation helps in fixing authority and responsibility of each and every person in the organisation. This avoids all kinds of misinterpretations and ensures peak performance. The line officers cannot be experts in every line of business. In the given article we’ve made a comparison of the two types of organization… Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. 4. Strong in discipline. Each type exists only to enable individuals to carry out the different types of responsibilities with which they have been charged. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. 2. Content Filtrations 6. The officers will have to depend heavily on subordinates for advice. The self-contained department structure can be seen as its main characteristic. They have staff wings like intelligence, medical and so on. There is also a lack of grooming the new persons for taking up important work. Two such formal organizational relationships are line organization and line & staff organization. Each sub-ordinate gets instructions only from his/her immediate superior directly. The links in the chain of command should not be skipped. So it can be operated simply and clearly. 4. The modern military organisations do not entirely rely on line organisation. There should be a single line of command. In the words of J.M. A "line function" is one that directly advances an organization in its core work. The ‘Commander-in-Chief is at the top with various other officers at the lower levels. 3. A group of employees is controlled by one individual. This helps an executive to learn many things and develop his capabilities. Where the process of production is continuous or special. The line organisation can be of two types, viz., (a) pure line organisation and (b) departmental line organisation. The officers work according to their whims and preferences. It is related to a specific position a person holds and his personal characteristics are ignored against his authority, even if a position becomes vacant in the organization, but still, it remains attached to that position. It explains the tasks of every worker in an organization. Functional Organization is the most common type of organizational structures in the industry. This always includes production and sales, and sometimes also marketing. Considering how vital an organi… Divisional organizational design involves grouping of all functions requires to produce a specific product or product line into one division or department. This may lead to wrong adjustments or wrong decision-making on the part of the executives. There are majorly five main types of formal organizational structures – line, functional, line and staff, project management and matrix. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. The chain of command goes from top to bottom. Every person is crystal clear to whom he is answerable and who are accountable to him. The key difference between line organization and functional organization is that line organization operates with a structure where direct lines of authority flows from top management and the lines of responsibility flows in the opposite direction whereas functional organization is where the company is divided int… 8. The operation of line organization is very simple. Every person is in charge of all the persons under him and he himself is accountable to his superior only. Since authority and responsibility flow in an ‘unbroken straight line, it is called line organisation. The authority flows from top to the lower levels. The line of command is carried out from top to bottom. The main advantag… 7. They do not exchange instructions with each other. Line organization is the most oldest and simplest method of administrative organization. Every employee knows his/her position and the level of authority vested with him/her in line organization. Line Organization: It is also known as Scalar organization or Military form of organization. Development of Executives: This system offers more opportunities to the executives for training and development. Line and staff organization structure In this type of organization structure two type of authority relationship exists. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. Under such structure all managers have direct authority over their respective subordinates through a chain of command. The officers at downward positions derive authority from the top. Plagiarism Prevention 4. All the departmental heads are responsible to their immediate superior i.e. The deputy managers get orders from the departmental manager and in turn pass them on to the supervisors. There should be a hierarchical arrangement of giving commands. Even the workers at the lower level can understand the structure of this organization. The authority is given with reference to the assignment of task. For example, Sales Department. 2. Identification of Authority and Responsibility: 3. Source: accountlearning.com. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. Privacy Policy 8. His task is challenging and he is expected to discharge his responsibility in an efficient way. Line organization has direct vertical relationship. Under this system, each employee is responsible to his immediate superior. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. Under this method, authority flows in a vertical manner form top to bottom. Functional Organization 4. Project Organization 5. Today we will learn a little more about the functional organizational structure. Simplicity. It is the oldest form of organization. This is the simplest and oldest, known as chain of command or scalar principle. Storage Discipline: The vertical arrangement of authority and the singleness of responsibility ensures excellent discipline. Line and staff organization is a modification of line organization and it is more complex than line organization. This type of organization is most common in our business economy and especially among large enterprises. He/ she is fully responsible for running the department. Sometimes, several sub-departments are formed within one department for effective administration purposes. In this way, responsibility is easily fixed. Line organization. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. Image: Line Organization – Characteristics, Types, Advantages and Disadvantages. Its authority flows from top to bottom. Staff authorities’ means authority to advice, support and serve the line managers. Clan culture is often paired with a horizontal structure, … The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart. Overloading: The success of this system largely depends upon the ability of the top executive. All departmental heads try to run the departments in their own way and according to their suitability. The work load of executives goes on increasing with the expansion and diversification of the unit. All managerial functions are practiced by line authority with the help of specialized skill of staff authority. The following figure gives an idea of pure line organisation: The departmental divisions are made only for the sake of convenience and control. As responsibility of each individual is fixed, hence faults can be easily and quickly known. The whole organisation is put under the overall control of Chief Executive who may be called by the name of General Manager. Its authority flows from top to bottom. Following is an overview of some commonly used organizational structures. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. There is a lack of co-ordination among various departments. There may be deputy managers, supervisors, workers in every department. In the functional organizational structure, projects are initiated and executed by the divisional managers, who assume the project manager duties in addition to their regular, functional, roles. The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. There is a unity of control and line of authority flows from top to the bottom. In line organisation too much is expected from executives. Effective Communication: 5. In this type of organization shifting of responsibility is not possible because responsibilities are fixed. If you’ve had a job, you likely worked in a functional organizational structure.The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. Departmental line organization, and 2. An organization can be arranged according to a variety of structures, which facilitate the organization to operate and perform. The line organization has the following advantages: 1. Line-staff organization, in management, approach in which authorities (e.g., managers) establish goals and directives that are then fulfilled by staff and other workers.A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority.. Under such organizational design, authority flows downwards and responsibility flows upwards throughout the organization. Type # 1. Unifie… It represents a direct vertical relationship through which authority flows. An unordered file, sometimes called a heap file, is the simplest type of file organization. The managerial growth also suffers because lower level persons are not involved in decision-making process. The term “Line” has been borrowed from the military administration. In Functional Organization, people are grouped by areas of specialization. Below are some merits and advantages of line organization or vertical organization 1. It is also known as scalar organisation or military type of organisation. 5. In pure line organisation all persons at a given level perform the same type of work. There is no complexity in the organisation ... 2. The lack of communication creates many problems for the smooth conduct of business. The line and staff sales organization is often found in large and medium sized firms, employing substantial numbers of sales personnel, and selling diversified product lines over wide geographic areas. Each of these has their own advantages and drawbacks. In such manner, every subordinate knows who to report to. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. Line organisation is easy to operate and less expensive. The orders ultimately reach the workers who actually execute them. The direct relationship is prevailing between the sub-ordinate and immediate superior. He can take a decision according to the requirements of the situation. The number of subordinates should be such that they are properly supervised. Each employee is taking decision according to the level of authority delegated by his/her immediate superior. Primary Focus: Mentorship and teamwork Defining Qualities:Flexibility and discretion; internal focus and integration Motto:“We’re all in this together.” About clan culture: A clan culture is people-focused in the sense that the company feels like one big happy family. This line system is not without disadvantages. Each sub-department is look after by one supervisor and adequate number of workers are working under them. Disclaimer 9. Report a Violation, Line Organisation: Meaning, Types, Merits and Demerits, Line and Staff Organisation: Meaning, Merits and Demerits, Committees: Meaning, Need, Types, Advantages and Weakness. 3. It can be easily define and explain to all staff. Others include: divisional structure, matrix structure, and flat structure. 6. Independent decisions can be taken by line officers because of its unified structure. And so, formal relationship between the members of the organization is set up, so as to coordinate their efforts. Every department has its own line of organisation. Line organization is also known as vertical organization or departmental organization. Moreover, an employee knows to whom he/she is responsible and who are responsible to him/her. Merits of Line Organisation: 1. Line Management vs Staff Management A line manager is directly involved in the revenue generating outputs of a business. Records are placed in file in the same order as they are inserted. The departmental type of line organisation divides the enterprise into different departments which are convenient for control purposes. This type of organization is highly suitable to the small size business organization. There is a scope for favouritism in line organisation. The reactions of subordinates also reach top management in a short span of time. There may be a lack of operational uniformity among various departments. Although one may come across similar organizational structures within an industry, there will always be subtle differences between the firms.The main reason for adopting a structure is to outline a clear hierarchy of the different company positions. Organizational Structure Type #1: Functional Organization. This form of organisation is followed in military establishments. Such an organizational design is usually found in large organizations, which have more than one product category or product line. 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