There should be a single line of command. Functional structure introduces a division into functional departments headed by specialists. There is a clear definition of authority and responsibility relationship. Since the departmental head has to look after all the activities of his department, he is over burdened with work. This will help to reduce the energy expenses and also it will preserve energy sources for future generations. There should be no jumping the chain when an executive in one department wishes to pass a message to someone in another department. A top-level manager has full authority to take over on his subordinate level management and also he is responsible for the decision he made. It is the simplest form of organization and very simple to understand and implement. They may even start relying on their seniors for orders instead of stepping up to the task. There may be managers who can plan excellently but are poor in translating their plans into action. On the contrary, project organization structures like the matrix structure distribute power between functional and project managers. What are the advantages and disadvantages of line and staff organization? military, vertical, scalar, departmental organization. Rights, duties and responsibilities of all the employees of an organisation are clearly defined and properly communicated to them. Many jobs require specialized knowledge to perform them. It is primarily used in companies that deal with complex projects, problems, and programs which require input from a wide variety of skillsets that are often spread across the business. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Line officers should give due consideration to staff advice. The line organisation can be of two types, viz., (a) pure line organisation and (b) departmental line organisation. 5. (iii) Where continuous processes are employed as in the case of cement and sugar industry. However, the lack of communication may lead to authority conflict if not managed properly. Ideally, it distributes the power, supports knowledge sharing, and encourages employee accountability. This structure is suitable for large organizations but not the best choice for small businesses. Staff authority refers to advising the people with line authority for better results. Every employee is responsible to his immediate superior. Staff include all of those that provide specialized skills in support of the line departments. One can not operate without the o. At each level, the superior makes decisions within the scope of authority derived by him from his own boss. (v) It facilitates prompt decision-making because there is definite authority at every level. The functional staff does not have any direct input in organizational operations. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. Specialisation: The staff officers concentrate mainly on the planning function and the line officers on the "doing" function. They may move higher in the hierarchy by correctly implementing their skills in the processes. An organizational structure is a set of rules, roles, relationships and responsibilities that determine how a company's activities should be directed to achieve its goals. 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. A linear structure will work best for smaller businesses and at the very beginning of a company's operations. (f) Lack of Co-operation One executive controls the various activities of a department and gets undue importance while the importance of other people in the department is not recognised. On the contrary, modern approaches strive to enhance employee autonomy and avoid micromanagement. In this way, responsibility is easily fixed. For this reason, it is given the name line organization. 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. He is given the required authority and responsibility to manage his department. Unified Control- Since the orders are given by one superior, there is no confusion among the subordinates. (adsbygoogle = window.adsbygoogle || []).push({}); Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). In such a situation, the problem of imbalance in the managerial decision may arise. Every organizational system comes with some pros and cons. Terms of Service 7. Having a three-way authority system in the company facilitates expansion and growth. Telegram ChannelJoin telegram channel https://t.me/skillicsFunctional Structure https://youtu.be/CkmjGWAv5t4Divisional Structurehttps://youtu.be/SxCT5cRuGPAM. Simplicity: It is very simple to establish and operate. Save my name, email, and website in this browser for the next time I comment. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons. 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. A line organizational structure helps build rapport between senior management and employees. c. Responsibility is fixed and unified at each level and authority and accountability Where the machinery is automatic and so there is no need for skill or intelligence. Advantages and Disadvantages of Line Organization. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. Decision-making responsibilities are static with limited flexibility. Any change in the policy can be effected promptly in all the branches of the organization without any difficulty. Further, the span of supervision theory says no executive in a line organization should be burdened with supervising more than a manageable number of subordinates. (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. It is a different matter though that our armed forces, particularly the army, are increasingly asked to rescue civilians in times of natural or man-made disasters, such as floods (remember, Mumbai, Chennai, Uttarakhand, and Allahabad), earthquake (remember, Nepal and Uttarakhand), civil strife (remember, handling separatists in Kashmir and insurgents in Chhatisgarh, Telangana and Andhra Pradesh). military, vertical, scalar, departmental organization. More training and development cost is involved in improving staff performance. 3. The officers work according to their whims and preferences. The improper distribution of authority and responsibility can create problems within the organization. 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. The consent submitted will only be used for data processing originating from this website. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. A top-down approach is a rigid structure that can hamper coordination and collaboration. The staff officers help the line officers in making decisions through their expertise. Advantages of Line Organization The line organization has the following advantages: 1. The matrix organizational structure is a hybrid combination of functional and project based organization structures. Their grouping into divisions is only to facilitate supervision and control. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. Some of them are inherent while some others are due to peculiar failings of human beings. Privacy Policy 9. There is also a lack of grooming the new persons for taking up important work. Business Models & Organizational Structure. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. 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. If the managers treat the employees as a pendulum between them, they will most likely get tired of their job roles. 2. There may be managers who can plan excellently but are poor in translating their plans into action. 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It is by far the oldest form of organization. It can be easily understood by the employees. It will encourage others to follow the same path. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. The various persons heading the different departments would be perfectly independent of each other and would enjoy equal status. Improving Line and Staff Relationship 1. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. In the line organization, there is one head for decision making and the rest are the followers of that decision. This cookie is set by GDPR Cookie Consent plugin. whereas Staff is white collared & directly connected to fixed costs, administration, legal matters etc. Again, even within a department, there may be several sub-departments. Each department is under the control of a departmental head who is completely responsible for organising the department. Advantages of Line Organisation: ADVERTISEMENTS: Line organisation offers the following advantages: (a) It is simple to operate and easy to understand. They have staff wings like intelligence, medical and so on. For the three indicators of inclusionequality, openness, and belongingwe found particularly high levels of negative sentiment about equality and fairness of opportunity. It improves different coordinations among all employees and personnel. It is extremely difficult for one person to handle activities of diverse nature. Study with Quizlet and memorize flashcards containing terms like The process of rating an organization's practices, processes, and products against the best of the world is known as: A. webworking. Every unit is complete in itself as far as the functions are concerned. Line organization structure chart tends to simplify and clarify responsibility, authority, and accountability relationships. Lack of Specialization 3. 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. Since the departmental head is almost all-in-all for the activities of his department. 7. Identification of Authority and Responsibility: Line organisation helps in fixing authority and responsibility of each and every person in the organisation. Matthew is a Co-Founder at BusinessFinanceArticles.org. i. Simplicity- Simple to understand and develop. Line organization enables the staff to work more toward the . Have staff wings like intelligence, medical and so on unified Control- since the departmental head to. The departmental head who is completely responsible for organising the department move higher in the hierarchy correctly. Their skills in the organisation of stepping up to the task, is! Responsibility: line organisation helps in fixing authority and responsibility of each other would... 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