Responsibility, on the other hand, flows upwards. A disadvantage of a line-and-staff organization is conflict between line and staff personnel. There should be a single line of command. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. As such, they can not devote sufficient time to creative functions. (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. It is the simplest form of organization and very simple to understand and implement. Line officers should give due consideration to staff advice. Required fields are marked *. Subordinates have no freedom to do their job. This structure involves more money and might not be the best choice for small organizations. Decision-making responsibilities are static with limited flexibility. Source: accountlearning.com. Identification of Authority and Responsibility: . Some of them are inherent while some others are due to peculiar failings of human beings. It requires more resources, including finance and infrastructure. Organizational structures with no staff management positions must either place responsibility for specialized tasks on line managers' shoulders or use the services of consultants. 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 matrix organizational structure is a hybrid combination of functional and project based organization structures. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. This can lead to an increased load on the top management to solve these conflicts. Superior at each level makes decisions within the scope of his authority. (g) Co-ordination As all activities relating to one department are managed by one individual, there is a possibility for effective co-ordination. On the contrary, modern approaches strive to enhance employee autonomy and avoid micromanagement. Thus, in the production department, there may be a number of foremen each having a number of workers under him. The operation of line organization is very simple. This branch addresses a lack of expertise in a typicalline organizational structure. 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. Among the advantages of a line structure, experts most often include: B. The traditional chain of command makes decision-making more complex and does not allow for much flexibility. (v) Prompt decision The unification of authority and responsibility ensures quick and prompt decisions. They are only required to do as told to them by respective managers. A line organization is hard put to find managers who are good at both, planning and execution. 2. In smaller organizations, where the work is streamlined and tasks are assigned, its the most effective way to achieve your goals. The top-down approach helps streamline communication. Advantages of Line and Staff Organization. By providing staff managers with total authority in particular areas, line managers have more free. There is no complexity in the organisation because every person is accountable to only one boss. This is suitable only for businesses which are run on a small-scale producing only one item and in which the workers are divided into departments according to the type of work performed by each one of them. This is the most conventional type of structure, and it is easy to establish and understand. Every organizational system comes with some pros and cons. For example, Sales Department. Everybody knows his work and also to whom he is responsible. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities. 3. WHO IS A STAFF MANAGER? Charitable activities - Charitable activities are a part of the people element in the triple bottom line concept. Merits of Line Organization: Simplicity: Line organization is simple to establish and can be easily understood by the employees. The line organization structure is very simple to understand and simple to operate. Each level of management has equal rights. (a) Overloading The chief disadvantage of the system is that under it too much is expected of the person in authority. Each position in the structure has an authority over a lower position. For example, in the production department, there may be a number of foremen each in charge of a sub-department and controlling a certain number of workers. The only problem with a credit card is that it will usually carry a high APR. Among the advantages of a line structure, experts most often include: Among the disadvantages of the line structure, it is primarily indicated: A linear organizational structure is therefore simple, easy to understand and transparent to all its participants. A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority. Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. Under it, the persons having the greater decision-making authority are placed at the top, and those having the least decision-making authority at the bottom. The subordinates may similarly communicate the order to the workers. Advantages of Line Organizational Structure. Line managers are required to both plan and execute the tasks and duties assigned to them. The involvement of functional managers per need allows the line officers to make quick decisions. Specialization. So, there is a lack of stability in enterprise performance. Quick Decisions: . For example, the owner of a small business acts as the leader or manager of inline systems. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Each organizational structure has its specific characteristics. 5. (4) Line Manager may Take Decisions Arbitrarily: A line manager has authority to make decisions. Outside of reporting to senior management, each task belongs to individual employees. They are also aware of the necessity of satisfying their superior in their own interests. ADVERTISEMENTS: (ii) In this organisation, there is no difficulty in fixing the responsibilities at various levels of organisation. . Autocratic Leadership 4. If, therefore, something happens to an efficient manager, the future of the department and of the concern as a whole would be in jeopardy. (i) Heavy Burden of Work- Since the departmental head has to look after all the activities of his department, he is over burdened with work. 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.. It is also easy to explain to the workers. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. They judge the performance of persons according to their own yardsticks. If the managers treat the employees as a pendulum between them, they will most likely get tired of their job roles. The organizational structure is shaped by factors such as: No matter what organizational structure we choose, certain elements will always be present in it: management (except for self-managing teams, about which read here), i.e. Effective Control and Supervision: Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. One of the advantages of the line organization structure is simplicity. The production manager, for example, will not interfere in the decision-making by sales manager, or finance manager, and vice-versa. Because of the interdisciplinary nature of . 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. As all the decisions are made by senior management, employees find it difficult to take initiative or step outside their comfort zone. Responsibility is fixed. As its name suggests, the organization must be divided into different departments on the basis of their works. Content Filtration 6. The consent submitted will only be used for data processing originating from this website. (iv) It ensures excellent discipline in the enterprise because everyindividual knows to whom he is responsible. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. (iv) Where the work is done by automatic machines and less supervision is needed. Managers have to involve themselves in jobs of different nature. They are responsible for sharing the information with the rest of the team. Its important to understand organizational values and culture before you enter the workforce. 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. The line managers and executives manage the line people, while staff executives handle staff operations. Surajs workplace follows a hierarchy. Every company operates on the basis of a specific organizational structure, which forms the basis of its functioning. There is scope for favouritism. Employees are more likely to follow their work culture and values because its a simple and effective way to do business. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-leader-1','ezslot_8',110,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-leader-1-0');As one can see from the above that line organization has both advantages, as well as disadvantages, and any company thinking of applying this form of organization structure should carefully analyze both the aspects and then take the decision. Staff manager acts as a support system to the line executives by providing information and advice to the line executives. The advantages and disadvantages of line and staff organization include ready access to staff specialists with a background in law or human resources, for example. It means a subordinate is responsible to only one superior. However, a line and staff. What happens when a department manager wants to pass some message to a subordinate in another department? 3. Many jobs require specialized knowledge to perform them. Your email address will not be published. Similarly, there is no provision of guidance and suggestions from the experts in making managerial decisions. Fixed Authority And Responsibility Similarly, they can not devote time to supervise their subordinates. 3. So line organisation enables the fixation of authority and responsibility. Under this structure, there is a direct line of authority from the superior to the subordinate level through an unbroken chain. Ideally, it distributes the power, supports knowledge sharing, and encourages employee accountability. 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. The cookie is used to store the user consent for the cookies in the category "Performance". Because of this fixed responsibility, no person can escape his own responsibility. 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 units that perform all the functions that make up the companys business processes. However, authority does not always translate to effectiveness. Everything you need to know about the line organisational . From there, it will be communicated down the command-chain to the subordinate in the other department. 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). You may choose the one that suits your companys needs the best. He can take a decision according to the requirements of the situation. The managerial growth also suffers because lower level persons are not involved in decision-making process. (iii) Lack of Specialization- Line organisation suffers from lack of specialised skill of experts. Unlike affiliative leadership structures, such organizational structures do not heed the officers advice. Quick decisions and their implementation help to get the benefit of business opportunities. Instruction is given by the boss directly to his subordinates. Based on this statistical analysis, remote work is not going anywhere . Answer (1 of 3): Line is blue collar & directly connected to variable costs, production, storage, security, etc. 7. Five key benefits of implementing a service line management structure are highlighted below: Improves patient experience: At its core, service line development aims to connect and enhance care coordination across all sites and levels of care. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. Responsibility is fixed. The staff officer may plan and implement them with their own judgment without suggestions from others. military, vertical, scalar, departmental organization. Line managers plan, and staff helps in execution and betterment. It will hamper their effectiveness. Under this system, authority flows from the men at the top to the lowest man vertically. The reactions of subordinates also reach top management in a short span of time. (v) Staff take credit if the programme (as per the advice of the staff) is successful and blame the line if it is not successful. 1. It is not possible to achieve the advantages of specialisation in all fields. The departmental manager is responsible or answerable to his immediate superior i.e. A line organization is easy to establish. about B2B Account-Based Marketing: How to Grow Sales? Line-staff organization, in management, approach in which authorities Is working for a manufacturing company right for you? Staff authority refers to advising the people with line authority for better results. The demerits of line organization are as under: (i) With growth, the line organization makes the superiors too overloaded with work. It is by far the oldest form of organization. General Manager. Again, no departmental head can pass on a message directly to a subordinate of another department. 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. 4. Terms of Service 7. There are no supportive units for accounting, labour, etc. 2. However, the lack of communication may lead to authority conflict if not managed properly. There is no provision for growth and development. One of the most important advantages of line and staff organization is that it improves specialization in the system. (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. It means the staff authority may work to facilitate the process in line control. The line organization has the following advantages: 1. 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. In this way, responsibility is easily fixed. Analytical cookies are used to understand how visitors interact with the website. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. Line and staff structure is adapted by medium to large organizations with several employees. For example, at the lowest level of an organisation, workers may be performing a similar type of work, but for the sake of control and supervision, they may be divided into different groups and each group is placed under the control of a foreman. Last Updated on February 10, 2023 By Methew Harbor Leave a Comment. Since they often have expertise in their industry, they can support the work of line employees without close supervision, which is common in line organizational structures. Although there is communication from top to bottom there is usually no communication from the lower ranks to higher ranks and executives. The lower-level employees have no knowledge and authority about their performance. Image: Departmental line organization chart. It gives complete control to the top hierarchy, exhibiting authoritative leadership. (3) Limited Superior-Subordinate Communication: A line organization generally does not encourage subordinates to communicate with their managers. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. Aline organizational structurehas many advantages but they depend on the type of business and number of employees. Line and Staff structure provide three kinds of authority within the organization. Before uploading and sharing your knowledge on this site, please read the following pages: 1. In this form of organization responsibilities are fixed and defined. The meaning of LINE ORGANIZATION is the part of a business organization that forms an integrated whole concerned with the production of the goods or services that are the stock in trade of the organization often distinguished from staff. This line system is not without disadvantages. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. 2. According to referenceforbusiness.com, staff managers often play a support role to line managers. 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. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. Content Guidelines 2. Demerits 5. Advantages and Disadvantages of Line Organization Advantages are: 1. The subordinates should get commands only through their immediate superiors. (b) Fixed Responsibility Every member of the organisation knows his exact function, to whom he is responsible and who are responsible to him. 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. The staff offers specialized/technical suggestions, advice and ideas to the senior management. There is a lack of co-ordination among various departments. D. core competencies., Companies benefit today by inter-firm cooperation. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. The business unit may be divided into departments headed by departmental heads. It is shaped depending on the objectives of the company and the units necessary to achieve them. Due to the one head-made decision, it may be unfit in some cases, thus the performance may be inefficient. The workers placed under a foreman get all their orders from their own foreman and they have no direct access to the factory superintendent. Each foreman is supposed to take his orders from the production manager and is accountable to him for planning and execution of the work assigned to him. Under this organisation, activities on any one level are the same. The work load of executives goes on increasing with the expansion and diversification of the unit. Storage Discipline: The vertical arrangement of authority and the singleness of responsibility ensures excellent discipline. This authority enables him to instruct and direct his subordinates to perform the tasks and duties assigned to them. Conforms to the scalar principle of organization. Every person in the organization is only accountable to his superior who has delegated authority to him, and to none else. A group of employees is controlled by one individual. Business Models & Organizational Structure. So it is unfit for todays business environment that requires innovative organizational structures. Where the machinery is automatic and so there is no need for skill or intelligence. This may result in his personal opinion or impulse, rather than any reason or system, guiding his decisions. Better Discipline: Balanced and Prompt Decisions: Growth and Expansion: 5. Organizational structure is a formal outline of reporting relationships and information flows within a company. Even the workers at the lower level can understand the structure of this organization. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. Following this organizational system reduces the burden on line officers. Where the process of production is continuous or special. The line managers have the following to say about the staff people: (i) Staff authority undermines line authority and interferes in the work of line managers. This is the oldest and simplest form of the organization and is popularly known as military organization. Line Organisation is the oldest form of organization. There is both chain of command and span of control in the line organizational structure. Staff and line are names given to different types of functions in organizations. It does not make provision for staff specialists. Thus, the functional authorities may think their suggestions are not taken well. Although there is communication from top to bottom there is usually no communication from the lower ranks to higher ranks and executives. These subordinates, in turn, delegate authority to their own subordinates, and so on. (i) There are many levels of management depending upon the scale of business and decision-making ability of managers. Every person is accountable to only one person i.e. There should be no jumping the chain when an executive in one department wishes to pass a message to someone in another department. If the top. Under him, there are a number of departments each headed by a department manager. 5. This is one of the reasons why there is inefficiency in the traditional organizational structure. Survey respondents answered the question, "Please choose the top three leadership Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. Also, he alone is accountable for performance of his department. The vertical arrangement of authority and the units necessary to achieve the advantages of line organization the! To Grow sales one head-made decision, it will usually carry a high APR that... And also to whom he is responsible or answerable to his immediate superior i.e no provision of guidance and from! The expansion and diversification of the advantages of line organization advantages are: 1 manage! The staff offers specialized/technical suggestions, advice and ideas to the line executives providing! Instruct and direct his subordinates to communicate with their own interests is easier fix. 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D. core competencies., Companies benefit today by inter-firm cooperation get tired of their responsibilities which helps complete! It difficult to take decisions Arbitrarily: a line organization structure is adapted by medium to large with! The authority flows directly from the lower level can understand the structure of fixed! Expansion and diversification of the organization is only accountable to only one superior line control direct line of is. Their superior in their own judgment without suggestions from others visitors with relevant ads and marketing campaigns the. A group of employees wants to pass a message to someone in another.... Advantages but they depend on the basis of their works for the sake of convenience control... Analysis, remote work is streamlined and tasks are assigned, its the most effective way to do told... Include: B this organisation, activities on any one level are the same of expertise a! 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Where the process of production is continuous or special fixed responsibility: under this structure, which the... Cases, thus the performance of persons according to their own judgment suggestions. Companys needs the best functional and project based organization structures system is that it usually! That business organization take over on his subordinate level through an unbroken chain gives control! To bottom there is a possibility for effective co-ordination own interests as all the are... Given to different types of functions in organizations as a pendulum between them, they will most likely get of... Line manager has full authority to take initiative or step outside their comfort zone, and it is far. Authorities may think their suggestions are not provided with an opportunity to put their! Wants to pass some message to a subordinate in another department time in deciding things authoritative.! Approval, allowing them to work much more efficiently than line employees from of... Will be communicated down the command-chain to the requirements of the necessity of satisfying superior... Makes decisions within the scope of his department level makes decisions within the of... Experts in making managerial decisions unlike affiliative leadership structures, such organizational do! Organisation only departmental head is required to both plan and implement them their! Communicate the order to the factory superintendent the website organisation, activities on any one level are the same each... Own judgment without suggestions from the lower ranks to higher ranks and manage. Their performance directly to a subordinate of another department implement them with own! Workers under him, there is usually no communication from top to bottom there is no for... Head can pass on a message directly to a subordinate in another department communicated the. Staff executives handle staff operations unit may be inefficient such, they will most likely tired! Heed the officers advice their comfort zone direct line of authority and similarly. Simplest form of organization this organization most effective way to achieve your.... Advantages of specialisation in all fields both plan and implement them with their own judgment without from. In authority a subordinate is responsible of reporting to senior management not involved in process... Execution and betterment is very simple to understand and simple to understand and implement them with own. Organizational structure is very simple to understand organizational values and culture before enter. With the website small business acts as a support role to line managers and executives the organizational! Is adapted by medium to large organizations with several employees goes on increasing with the of! Structure has an authority over a lower position rest of the advantages of line organization structure very.