advantages of line organisation

Advice Ignored: As the staff officers lack authority to put their recommendations into practice, their advice may be ignored by the line executives. (ii) There is concentration of authority at the top. The managerial growth also suffers because lower level persons are not involved in decision-making process. This always includes production and sales, and sometimes marketing. [Read] about 6 Actionable Tips for Women to Ace Wealth Planning, We are constantly looking for that extra income [Read] about 8 Ways to Earn Passive Income, Debt can be a major source of stress and anxiety [Read] about How To Get Out of Debt and Invest in Your Success. 7. This helps an executive to learn many things and develop his capabilities. 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. Line organization enables the staff to work more toward the execution of tasks. Answer (1 of 3): Line is blue collar & directly connected to variable costs, production, storage, security, etc. The Commander- in-Chief is at the top with various other officers at the lower levels. Another benefit of line organizations is that they tend to be relatively efficient and decisive in their decision-making and implementation. Workplace adaptability is a key skill that gives you a better understanding of a fulfilling professional life. Before uploading and sharing your knowledge on this site, please read the following pages: 1. The involvement of functional managers per need allows the line officers to make quick decisions. This also helps in having better control because the subordinates will be under constant watch. The top-level manager can control the entire organization through the hierarchy of authority. The cookie is used to store the user consent for the cookies in the category "Other. A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority. Line organisation is the basic framework for the whole organisation. In a vertical companywhich was most the most common business model in organizations for the much of the mid- to late-20th centurylines 4. Staff officers do not have the authority to implement their opinions and recommendations without the line officers approval. What is line and staff Organisation? Improving Line and Staff Relationship 1. 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. The line organisation has the following important merits not usually found in other types of organisation: (i) Simplicity It is the easiest to establish and simplest to explain to the employees. To give an exact idea of a line type of organisation an illustration of a departmental store will serve the purpose. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that youve provided to them or that theyve collected from your use of their services. One of the most important advantages of line and staff organization is that it improves specialization in the system. Advantages and Disadvantages of Line Organization. Enterprises are rapidly transitioning to thin [Read] about A Comprehensive Guide to Enterprise Thin Client Systems. It can be easily understood by the employees. The line organization structure is very simple to understand and simple to operate. In addition to the tax accounting example given above, other functions that lend themselves well to staff management positions include legal advice and quality control. The people may be assigned departments according to their expertise and need in the department. It allows them to look for plans for the growth of the company. Line and staff officers and managers must understand each others work scope and not try to interfere. The following are the main drawbacks of this system: 1. There is a clear definition of authority and responsibility relationship. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Report a Violation 11. In the line organization there is a vertical line of authority. Each section in charge has direct control over his section. Based on this statistical analysis, remote work is not going anywhere . Hence, it is quite expensive and small and medium-sized concerns cannot afford it. This is the oldest form of organization. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. (ii) Which do not have many subordinates and operatives; (iii) Which have straight and simple methods of operations; and. These cookies will be stored in your browser only with your consent. It also allows quick decisions and efficient coordination. Minimum number of employees are required to adopt line organization. Unified Control. Harappas Navigating Workplaces course is a self-paced online course thatll teach you everything you need to know about optimizing your work life. (c) Unity of control There is unity of command and control according to which an employee can receive orders only from one superior. (v) Prompt decision The unification of authority and responsibility ensures quick and prompt decisions. This cookie is set by GDPR Cookie Consent plugin. Finding out your culture fit can help you thrive in the workplace. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Staff manager acts as a support system to the line executives by providing information and advice to the line executives. Source: accountlearning.com. about How does a Valuator Value a Business? 4. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. As a manager, hes the one who has to communicate the CEOs orders to the. They are willing to adopt a dictatorial approach. According to Allen, Organizationally, the line is the chain of command that extends from the board of directors through the various delegations and re-delegation of authority and responsibility to the point where the primary activities of the enterprise are performed.. Advantages of Line and Staff Organization, Disadvantages of Line and Staff Organization. Conflict between Line and Staff: One more important disadvantage is the conflict between the line and staff officers. (v) There is limit on subordinates under one manager. Hence, there is greater flexibility in the organisation. Even though marked by lack of specialization, overburdening of competent managers, absence of communication between managers and subordinates, and subjective element in decision-making, line system of organization will suit businesses which are small in size, or where the work involved is of a routine nature, or machine-based. There are no staff personnel to advice line officers. If the managers treat the employees as a pendulum between them, they will most likely get tired of their job roles. Line organization is the oldest and simplest method of administrative organization. Every employee is responsible to his immediate superior. There is a direct link between superior and subordinates. (1) It is simple in operation and definite in assigning authority to different persons in the organisation. Staff include all of those that provide specialized skills in support of the line departments. Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. Since the departmental head has to look after all the activities of his department, he is over burdened with work. The officers will have to depend heavily on subordinates for advice. 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. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. Your email address will not be published. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. For this purpose, a department head is appointed for each department. All rights reserved. It means the staff authority may work to facilitate the process in line control. Fewer levels between employees . A departmental head receives orders from the general manager and passes them on to his immediate subordinates. Merits of Line Organisation: The line organisation has the following good points: ADVERTISEMENTS: 1. The organizational structure defines the relationships and connections between organizational units and individual employees, determines the division of powers and responsibilities. This cookie is set by GDPR Cookie Consent plugin. The Line Viewpoint. Red Tapism and Bureaucracy: Concentration of authority in the hands of a single man shall result in red tapism at all levels. But as between one foreman and another, there is no formal line of authority or responsibility. Where the process of production is continuous or special. Departmental head is given full freedom to manage his department. However, you can make the best out of it by making adequate changes in the organizational structure. (5) Co-ordination between different units is being achieved by co-operation between departmental heads or executives responsible to conduct different units. (iii) Each subordinate receives orders only from one superior and is answerable to him only. When the planning and execution job roles are separate, more employees get the chance to showcase their talent. 1. 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? Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. The lower level officials do not show initiative in suggesting new things. A linear structure will work best for smaller businesses and at the very beginning of a company's operations. (vi) It is the oldest type of organization in use in which authority flows from the men at the top to the lowest man vertically, i.e., the directions are issued by the person incharge of the whole organization and are directly conveyed to the persons responsible for the execution of the work. Image: Line Organization Characteristics, Types, Advantages and Disadvantages. You may choose the one that suits your companys needs the best. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. General Manager. Hence, less expenses is incurred for adopting line organization. As its name suggests, the organization must be divided into different departments on the basis of their works. Expensive: This type requires the appointment of a large number of experts involving heavy expenditure. 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. This is because of unified control. 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. The functional staff does not have any direct input in organizational operations. Therefore, they can proceed their work without any confusion or misunderstanding. As a manager, hes the one who has to communicate the CEOs orders to the assistant manager. Identification of Authority and Responsibility: Line organisation helps in fixing authority and responsibility of each and every person in the organisation. (i) Less Expensive It is less expensive as no expenditure on staff personnel is involved. The top management has the final say in all decisions and processes within the company. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Each department is under the control of a departmental manager who is responsible to the superior over him. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. 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. The line officers only have to perform the routine work and leave the rest to staff officers. This means that everything in the organization is vertically connected. D. core competencies., Companies benefit today by inter-firm cooperation. Also, he alone is accountable for performance of his department. Under this, the whole enterprise is divided into different departments for achieving maximum amount of convenience in controlling the whole enterprise. All persons at the same level of authority should be independent of one another. They should state reasons in case they cannot accept the advice. These subordinates, in turn, delegate authority to their own subordinates, and so on. They judge the performance of persons according to their own yardsticks. Since the manager has to take all important decisions, he can make changes if new situation warrants. 2. Every person is in charge of all the persons under him and he himself is accountable to his superior only. An executive cannot shift his decision-making to others, nor can the blame be shifted. Similarly, each person derives authority from the superior above him. Everybody knows his work and also to whom he is responsible. Line-staff organization, in management, approach in which authorities The only problem with a credit card is that it will usually carry a high APR. Having a three-way authority system in the company facilitates expansion and growth. The work load of executives goes on increasing with the expansion and diversification of the unit. An organization where information is disseminated from one person to the other based on rank and position follows aline organizational structure. In line organisation, every manager exercises a direct authority over subordinates who are directly responsible to their superiors. 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. They can rely on personal judgment and take a call. (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. There is no formal line of authority or responsibility basis of their job roles separate... Many things and develop his capabilities is disseminated from one superior and subordinates rapidly to. Executives by providing information and advice to the line departments helps in having better control because subordinates. The oldest and simplest method of administrative organization the planning and execution job roles businesses and at the very of. 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Economical because it is less elaborate and less complicated is simple in operation and definite in assigning to... For consent the best is appointed for each department of executives goes on increasing the. Of his department, he is over burdened with work organisation helps in having better control the! For this purpose, a department head is given full freedom to manage his.... Some of our partners may process your data as a result of this system 1...
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