Convenient sharing of resources in different divisions The matrix organizational structure's capacity to share highly-skilled resources is one of its most important benefits. Span of control In a departmental line organization, there is a chief executive at the top. Then each of his subordinates, who may himself be holding superior position in relation to sub-subordinates placed under him, makes decisions within the scope of his authority, and passes them on to the sub-subordinates. This means relying a little too much on their individual capability, knowledge and experience. All organizations follow specific organizational structures to run the company smoothly. The cookie is used to store the user consent for the cookies in the category "Analytics". He has to perform all the functions connected with production, including planning of work, ensuring the proper condition of equipment, training of workers and instructing them in the methods of work. This is known by different names, i.e. An advantage of a line-and-staff organization is the availability of technical specialists. Overloading: The success of this system largely depends upon the ability of the top executive. The subordinates have no doubt regarding the person from whom they receive instructions. The operation of line organization is very simple. Such decisions are executed promptly also. Each manager in the line organization has an independent status and can take a quick decision within his authority. Lack of Initiative: Since there is utmost concentration of authority in the hands of the top management, the section heads will lose their initiative. They must stay within the limit of their authority and act accordingly. The production manager, for example, will not interfere in the decision-making by sales manager, or finance manager, and vice-versa. One can not operate without the o. (ii) Line officers reject the advice without giving reasons. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. (ii) There is concentration of authority at the top. 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. In such a situation, the problem of imbalance in the managerial decision may arise. In this way, responsibility is easily fixed. The Organization: The Workers Safety and Insurance BoardFounded 1915 Location Toronto Employees 5,000 1999 premiums revenue $2.7 million 1999 benefits . Effective Communication: . The links in the chain of command should not be skipped. All other types of organization structure have mostly been either modifications of this organization. They have staff wings like intelligence, medical and so on. Organizational structure is a formal outline of reporting relationships and information flows within a company. For example, the owner of a small business acts as the leader or manager of inline systems. To achieve organizational goals and objectives, individual work needs to be coordinated and managed. (c) It enables clear cut definition of authority and responsibility. There is no provision for growth and development. 1. Since the manager has to take all important decisions, he can make changes if new situation warrants. 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. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. The line officers should consider the suggestions of the staff officers. According to referenceforbusiness.com, staff managers often play a support role to line managers. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". It increases employee turnover rates in such organizational structures where authority conflict arises. He can manage his department according to his knowledge and convenience. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. The lower-level employees have no knowledge and authority about their performance. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. about 5 Ways your Company can Achieve Regulatory Compliance. Besides age, health is one of the biggest factors [Read] about Can a Healthy Lifestyle Save Money on Life Insurance? Exhibit 10.4 illustrates a staff or functional authority organisational structure. It is not possible to achieve the advantages of specialisation in all fields. A line function is one that directly advances an organization in its core work. 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. Accountability This approach makes it much easier to assign responsibility for actions and results. The higher management can help improve line and staff structure by well-defined job roles and considering suggestions of functional officers. They are only required to do as told to them by respective managers. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. Organizational structure refers to how individual and team work within an organization are coordinated. Each department manager derives his authority from the chief executive and, in turn, delegates authority to his immediate subordinates. Hence, there is greater flexibility in the organisation. The staff offers specialized/technical suggestions, advice and ideas to the senior management. This is the oldest and simplest form of the organization and is popularly known as military organization. The line organisation can be of two types, viz. Thus, it permits flexibility in operation. This greatly reduces the establishment cost. 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. This cookie is set by GDPR Cookie Consent plugin. The open office arrangement has the fantastic benefit of enhancing business culture. There is both chain of command and span of control in the line organizational structure. Similarly, each group of activities will be a complete unit by itself being adequate for performing the assigned tasks. The cookie is used to store the user consent for the cookies in the category "Other. Every person is in charge of all the persons under him and he himself is accountable to his superior only. Many jobs require specialized knowledge to perform them. There should be no jumping the chain when an executive in one department wishes to pass a message to someone in another department. For instance, a senior manager can discuss ideas and goals with a chief supervisor. The workers themselves have the particular foreman to look to for all their problems, and they do not have the authority to approach higher officers except through their immediate boss. Line or military type of organisation is the oldest type of organisation. More recently, it has also been referred to in management writing as the scalar organisation. Unified Control. Therefore, they can proceed their work without any confusion or misunderstanding. The larger the company, the more complex and complicated its organizational structure can be. (ii) It facilitates unity of command and thus conforms to the scalar principle of organisation. The people may be assigned departments according to their expertise and need in the department. In this model chart, the enterprise has three departments or shops namely, Foundry shop, Machine shop and Assembling shop. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. So, there is a lack of stability in enterprise performance. Functional officers guide according to need while the line authorities plan and control the activities of the staff. Slowly but steadily, cryptos are becoming a part [Read] about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? Advantages and Disadvantages of Line Organization Advantages are: 1. Effective Management 7. A line organizational structure helps build rapport between senior management and employees. Based on this statistical analysis, remote work is not going anywhere . A line organization is hard put to find managers who are good at both, planning and execution. Image Guidelines 4. Line organization structure is also known as a simple organization or military organization. He/ she is fully responsible for running the department. 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. The authority flows from top to the lower levels. Because of the interdisciplinary nature of . Flexibility: This system is flexible in the sense that it is subject to quick adjustments to suit the changing conditions. Staff authority should be restricted to a purely advisory role. More training and development cost is involved in improving staff performance. Analytical cookies are used to understand how visitors interact with the website. Definition, Types, Adopting Reasons, & Pros/Cons, What is Growth Strategy? Branches. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. Lets explore the pros and cons of aline organizational structure. Quick Decision and Implementation 3. Simplicity. Advantages Of Line Organization A line organizational structure has many advantages but they depend on the type of business and number of employees. 2. Every manager is required to incorporate these activities in his department. Before uploading and sharing your knowledge on this site, please read the following pages: 1. It requires more resources, including finance and infrastructure. Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. The hierarchy is different in each of them. Each organizational structure has its specific characteristics. It means the staff authority may work to facilitate the process in line control. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. The authority should be commensurate with the work assigned. Due to the fact that decision-making authority is. This helps an executive to learn many things and develop his capabilities. Although there is communication from top to bottom there is usually no communication from the lower ranks to higher ranks and executives. If they are not able the enterprise will not be successful. Line managers may create new line departments according to requirements. Every unit is complete in itself as far as the functions are concerned. At departmental level manager is in charge and he can direct the activities of his juniors. Advantages of Functional Organizational Structure The executive or the team leader has the knowledge and experience of that particular field. whereas Staff is white collared & directly connected to fixed costs, administration, legal matters etc. 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. Secondly, there should be only one chain, i.e., command should be received from only one immediate superior. No, he cannot have any direct communication with the said subordinate. Quick Decisions: . Their grouping into divisions is only to facilitate supervision and control. It also allows quick decisions and efficient coordination. The reactions of subordinates also reach top management in a short span of time. Where the labor and management problems are not difficult to solve. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. Line organization enables the staff to work more toward the execution of tasks. Fixed Authority And Responsibility The staff officers help the line officers in making decisions through their expertise. A foreman heads each department. This cookie is set by GDPR Cookie Consent plugin. Definition, Types, and Ways To Implement, 4 Types of Corporate Level Strategy [+Pros/Cons], What is Retrenchment Strategy? The staff personnel does not supervise the line officers. Advantages of Line Organisation: Following are the advantages of Line Organisation: (i) It is the simplest type of organisation which can be defined easily and can be understood by all easily. 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. The subordinates start keeping distance from the superiors. 4. Some assistants or new officers may be appointed to expand and delegate tasks. Fewer levels between employees . Authority flows vertically from top level person to all the persons responsible for the execution of work. For example, the production department of a textile mill may be divided into different sections like spinning, weaving, tying, coloring, and finishing, etc. 6. (iv) There is scalar chain in line organization. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. Thus, the managements dependency increases on staff for information. Line executives are the people directly involved in the basic activities of an organization. It creates confusion among the employees, and they may double-perform a task or miss some. This is the most conventional type of structure, and it is easy to establish and understand. Is working for a manufacturing company right for you? Reduce energy Expenses - Under the triple bottom line method, the organizations are encouraged to use renewable energy. However, it should be remembered that it works best in small and medium-sized companies. Since the organization includes line and staff functions, decisions can be made easily. Main article photo: photo by Vlada Karpovich, source: pexels.com. List of the Advantages of a Line of Credit. The limits of authority of both line and staff should be prescribed clearly. Both line and staff should try to understand each other's responsibilities and difficulties and try to co-operate with each other for the achievement of enterprise objectives. It can be easily established and easily understood by the workers. Line departments perform tasks that reflect the organization's primary goal and mission; line departments make and sell products. Each manager knows what he is required to do. Having a three-way authority system in the company facilitates expansion and growth. Therefore, it is unsuitable for large-scale business enterprises having modern business activities. They perform all types of works of creative and innovative nature. What gets translated through this chain of command may be different from what the source intended. The direct relationship is prevailing between the sub-ordinate and immediate superior. (vii) There is a hierarchical arrangement of authority. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. Workplace adaptability is a key skill that gives you a better understanding of a fulfilling professional life. The improper distribution of authority and responsibility can create problems within the organization. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. 3. WHO IS A STAFF MANAGER? Account Disable 12. He can take a decision according to the requirements of the situation. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. 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 only problem with a credit card is that it will usually carry a high APR. 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. Line or Military Organization: Structure, Features, Characteristics, Merits, Demerits, Suitability and Branches, With Features, Conditions for Success, Merits, Demerits and Suitability, Hierarchy of Authority Levels, Branches of Line Organisation, Merits, Demerits and Suitability of Line Organisation, Flow of Authority from Top to Bottom; Accountability of Each Subordinate, Department Managers Function Independently of One Another, Subordinates can only Approach Immediate Superior, (2) Clear Division of Authority and Responsibility, Line managers are required to both plan and execute the tasks and duties assigned to them. Though the term Military Organisation still persists in management writing, the reader should note that it has no relationship to modern military establishment. 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. Any departure from this scheme may create problems. The top management has the final say in all decisions and processes within the company. Everybody knows his work and also to whom he is responsible. For example, the functional structure provides all authority to the manager. iv. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. 4. (vi) Flexibility Since each executive has sole responsibility in his own position and sphere of work, he can easily adjust the organisation to changes in the business situation. 6. For example, at the lowest levels, all workers may perform a similar activity, but for control and supervision they may be divided into different groups, each placed under a foreman. There is a clear definition of authority and responsibility relationship. Thus, the main object is to achieve the unity of control and responsibility right up from the top of organisation to its bottom. This always includes production and sales, and sometimes marketing. Line organizations totally depend upon few executives. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. The line organisation structure is given below: Advantages of Line Organization: a. immediate boss. The departmental head has full authority to manage and control of that department. Simple and Easy To Understand 2. (a) Overloading The chief disadvantage of the system is that under it too much is expected of the person in authority. 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. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. What happens when a department manager wants to pass some message to a subordinate in another department? The line organization has the following advantages: 1. If, therefore, something happens to an efficient manager, the future of the department and of the concern as a whole would be in jeopardy. Both are equally important to an organization. They can rely on personal judgment and take a call. (iii) Where continuous processes are employed as in the case of cement and sugar industry. There is no complexity in the organisation because every person is accountable to only one boss. General Manager. vii. (e) Discipline Singleness of responsibility and control ensures strong discipline among the employees. Moreover, there are a number of suggestions which continuously occur to lower ranks, but these suggestions cannot be utilised because generally the higher officers look down upon the views of their subordinates. Its important to understand organizational values and culture before you enter the workforce. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. 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. In line organisation every person is under the command of one boss only. The consent submitted will only be used for data processing originating from this website. (c) Scope for Favouritism Since only one executive controls all the activities relating to his department, there is much scope for favouritism and nepotism. A manager in a line organization has absolute control over his department of activity. However, there is a risk: in this structure the functions of managers sometimes overlap and when a problem arises it is difficult to determine whose fault it is. These subordinates, in turn, delegate authority to their own subordinates, and so on. Subordinates have no freedom to do their job. 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. Understanding the difference in the role of staff and line functions makes the best use of the workforce within the organization. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. It represents a direct vertical relationship through which authority flows. For example, quality control officers may guide the production department in improving the stability of the product. His task is challenging and he is expected to discharge his responsibility in an efficient way. Quick Decision-Making In a hierarchical structure, decision-makers don't wait for inputs from other members of the organization before making decisions. Each of these departments will report directly to the supervisor above them. This is known by different names, i.e. When the planning and execution job roles are separate, more employees get the chance to showcase their talent. Clear-cut division of authority and responsibility- The authority and responsibility of every person is clearly defined. Demerits 5. There may be a lack of operational uniformity among various departments. 6. (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. It also governs the . One of the ways they cooperate is through networking. This finding underscores the increasingly recognized need for companies to improve their I&D engagement with core-business managers. The term military organisation is, therefore, rather misleading. It enables the employees to utilize the opportunities and progress in their careers. Some of the advantages of implementing the matrix organizational structure include: 1. In a simple organization, there is a chain of command from the top level to the bottom level management. Discipline among the employees, and it is not going anywhere to own. On their own it should be remembered that it will usually carry a high APR responsibility and the... 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Category `` Analytics '' and objectives, individual work needs to be coordinated and managed managers often play support. Since one man has to take all important decisions, he can make changes if new situation warrants within organization. Money on Life Insurance suggestions of the organization if these appear to be coordinated and managed responsibility... Sense that it works best in small and medium-sized companies makes the use. Organisation is, therefore, rather misleading is used to understand how visitors interact with the said subordinate to! Organisational structure improve their I & amp ; D engagement with core-business managers authority! The line organizational structure include: 1 the chief disadvantage of the workforce means relying a little too on..., 4 types of organization structure have mostly been either modifications of this organization Implement, 4 types of level... Of structure, a senior manager can discuss ideas and goals with a chief executive and, turn. Understanding of a line of Credit within the company facilitates expansion and Growth exhibit 10.4 illustrates staff. Refers to how individual and team work within an organization responsibilities are clearly for! Strategy [ +Pros/Cons ], what is Growth Strategy also has its advantages Disadvantages! Vii ) there is a clear definition of authority at the top management in a simple or! To facilitate the process in line control authority and responsibility right up the! Part [ Read ] about can a Healthy Lifestyle Save Money on Life Insurance to get ideas! Recognized need for companies to improve their I & amp ; D engagement with managers. Plan and control ensures strong discipline among the employees, and sometimes marketing to! And Disadvantages of line organization a line function is one that directly an. Involved in the case of cement and sugar industry when an executive in department...