5. It simply means that the employees are accountable to more than one boss. Staff authorities’ means authority to advice, support and serve the line managers. The work load of executives goes on increasing with the expansion and diversification of the unit. The departmental type of line organisation divides the enterprise into different departments which are convenient for control purposes. 11. The whole organisation is put under the overall control of Chief Executive who may be called by the name of General Manager. Functional Organization is the most common type of organizational structures in the industry. Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. 1. Line organizational structure is one of the simplest types of organizational structures. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. The authority should be commensurate with the work assigned. 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. Each sub-ordinate gets instructions only from his/her immediate superior directly. Matrix Organization. Line Organization. General Manager. The departmental manager is responsible or answerable to his immediate superior i.e. The number of subordinates should be such that they are properly supervised. There may be a lack of operational uniformity among various departments. The line of command is carried out from top to bottom. Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. A foreman heads each department. He has to take various decisions by himself. There are majorly five main types of formal organizational structures – line, functional, line and staff, project management and matrix. There are no staff personnel for consultation too. They are expected to take numerous decisions and supervise the work of subordinates under them. Co-Ordination: 4. Divisional organizational design involves grouping of all functions requires to produce a specific product or product line into one division or department. So it can be operated simply and clearly. This also helps in having better control because the subordinates will be under constant watch. 3. The ‘Commander-in-Chief is at the top with various other officers at the lower levels. All managerial functions are practiced by line authority with the help of specialized skill of staff authority. Staff is basically advisory in nature and usually does not possess and command authority over line mangers. 3. In this type of organization, the functional specialists are added to the line, thus giving the line the advantages of specialists. 6. 6) Line Organizational Structure. Clan culture is often paired with a horizontal structure, … Any communication between them is routed through their immediate boss. https://www.toppr.com/.../organizing/formal-organization-line-organization Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. 6. Such an organizational design is usually found in large organizations, which have more than one product category or product line. It is widely used in smaller firms and in firms with small numbers of selling personnel. This type of organization is most common in our business economy and especially among large enterprises. The line office cannot devote sufficient time to each and every work and are over loaded with responsibilities. The subordinates do not convey their reactions or the reactions of workers to the superiors. Records are placed in file in the same order as they are inserted. 2. Line and Staff Organization: This type of organization structure is an improvement over the traditional line organization. Content Guidelines 2. 4. Authority flows vertically from top level person to all the persons responsible for the execution of work. This always includes production and sales, and sometimes also marketing. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. It is called as military or departmental or scalar type of organization. A clear-cut division of authority and responsibility, hence no scope of shifting the responsibility. Hence, this is unstable. Everybody is responsible for his work and is accountable to his boss. The superior can exercise effective control and supervise over the persons under him. A new record is inserted in the last page of the file; if there is insufficient space in … Since the manager has to take all important decisions, he can make changes if new situation warrants. The subordinates should get commands only through their immediate superiors. Effective Communication: 5. 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… The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart. They judge the performance of persons according to their own yardsticks. Line organisation is easy to operate and less expensive. This is a highly collaborative work environment where every individual is valued and communication is a top priority. Under this type of organization, each department control is vested with one individual who is known as Departmental Head. This organization is based on scalar basis. In such manner, every subordinate knows who to report to. The managerial growth also suffers because lower level persons are not involved in decision-making process. This is the oldest form of organization. Every person is crystal clear to whom he is answerable and who are accountable to him. Every manager possessed some Types of Authority according to his designated position. Some authorities viewed that “no organizational structure can be based on line authority alone and it is unrealistic to speak of a structure as line organization“. 2. 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 … Line Management vs Staff Management A line manager is directly involved in the revenue generating outputs of a business. This video explains the different forms of organisation structure in great detail. Types of Organization Design. 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. This is the simplest and oldest, known as chain of command or scalar principle. Economical: Line and Staff Organization 3. Source: accountlearning.com. The officers at downward positions derive authority from the top. The authority is given with reference to the assignment of task. Under such structure all managers have direct authority over their respective subordinates through a chain of command. A "staff function" supports the organization with specialized advisory and support functions. Staff authorities’ means authority to advice, support and serve the line managers. Independent decisions can be taken by line officers because of its unified structure. Only one person is in charge of a department or division. Each type exists only to enable individuals to carry out the different types of responsibilities with which they have been charged. The officers will have to depend heavily on subordinates for advice. (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. The departmental head has full authority to manage and control of that department. Scope for Favoritism: Chances for nepotism and favoritism are more under this system. 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. Line officers take their own decisions without looking to specialized personnel. 3. Copyright 10. The number of subordinates is limited under line organisation. In the same way that no two people can ever be the same, no two companies are identical. Everybody knows his work and also to whom he is responsible. Type # 1. There is a unity of control and line of authority flows from top to the bottom. There are no staff personnel to advice line officers. A common way to differentiate between business organizational structures is between ongoing operational work versus capital projects. 4. Lundy, “It 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 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. There is also a lack of grooming the new persons for taking up important work. One person should get orders from one supervisor only. This may become the reason for lack of co-ordination among different departments. All the departmental heads are responsible to their immediate superior i.e. For instance, in companies that cover a limited geographic area or sell a narrow product line. 2. 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. Two such formal organizational relationships are line organization and line & staff organization. Under this system, each employee is responsible to his immediate superior. Where the machinery is automatic and so there is no need for skill or intelligence. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. Line organization assumes that direct authority is exercised by a superior over his subordinates. Identification of Authority and Responsibility: 3. The lack of communication creates many problems for the smooth conduct of business. 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. Image Guidelines 5. TOS 7. It is also known as scalar organisation or military type of organisation. The orders ultimately reach the workers who actually execute them. Following is an overview of some commonly used organizational structures. This may lead to wrong adjustments or wrong decision-making on the part of the executives. Plagiarism Prevention 4. The line officers cannot be experts in every line of business. Line and Staff Organization. This type of organization is highly suitable to the small size business organization. This helps an executive to learn many things and develop his capabilities. Since authority and responsibility flow in an ‘unbroken straight line, it is called line organisation. The line of command is carried out from top to bottom. Departmental managers get orders directly from the General Manager. Where the number of subordinates and operatives is less. There is a direct link between superior and subordinates. They have staff wings like intelligence, medical and so on. There should be a single line of command. They do not exchange instructions with each other. Line Organization 2. But it must be remembered that it has no direct relationship with the modern military establishment. They are staff and line authority. This avoids all kinds of misinterpretations and ensures peak performance. The authority flows from top to the lower levels. 5. Line organization has direct vertical relationship. It permits quick decisions. Today we will learn a little more about the functional organizational structure. Development of Executives: This system offers more opportunities to the executives for training and development. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. Each sub-department is look after by one supervisor and adequate number of workers are working under them. 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. The line officers may become autocratic and start deciding things without consulting their subordinate. At departmental level manager is in charge and he can direct the activities of his juniors. 7. In pure line organisation all persons at a given level perform the same type of work. He need not to waste time in getting instructions from above. In the words of J.M. The lack of managerial specialization is the demerit of line organisation. Image: Line Organization – Characteristics, Types, Advantages and Disadvantages. 4. This line system is not without disadvantages. And so, formal relationship between the members of the organization is set up, so as to coordinate their efforts. 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. 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. Others include: divisional structure, matrix structure, and flat structure. Every person is in charge of all the persons under him and he himself is accountable to his superior only. Disclaimer 9. Unlike other structures, specialized and supportive services do not take place in these organizations. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. Flexibility: This system is flexible in the sense that it is subject to quick adjustments to suit the changing conditions. This may become the reason for lack of co-ordination among different departments. 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. Overloading: The success of this system largely depends upon the ability of the top executive. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. 3. 2. The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart. Organizational Structure Type #1: Functional Organization. Content Filtrations 6. 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. In line organisation final decision-making is taken by the top management. 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. Since one man controls the whole show, the subordinates have to dance according to his tune. According to this type of organization, the authority flows from top to bottom in a concern. He can take a decision according to the requirements of the situation. 8. The managers are not dependent upon each other. Before one can create a chart for an organization, it is necessary to classify what organizational structure is in place. There is no complexity in the organisation because every person is accountable to only one boss. 7. Line organization is also known as vertical organization or departmental organization. It is the oldest form of organization. Line organisation helps in fixing authority and responsibility of each and every person in the organisation. Line organisation is the basic framework for the whole organisation. Under such organizational design, authority flows downwards and responsibility flows upwards throughout the organization. Unifie… According to this type of organization, the authority flows from top to bottom in a concern. The links in the chain of command should not be skipped. The reactions of subordinates also reach top management in a short span of time. The term “Line” has been borrowed from the military administration. Any change in the policy can be effected promptly in all the branches of the organization without any difficulty. In the given article we’ve made a comparison of the two types of organization… 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. Read this article to learn about the meaning, types, merits and demerits of line organisation. Sometimes, several sub-departments are formed within one department for effective administration purposes. The divisions are solely for the purpose of control and direction. Line Organisation: Line organisation is the simplest and oldest form of organisation structure. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. 6. Where the labor and management problems are not difficult to solve. 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. 1) LINE ORGANIZATION : In this type of organization, authority flows from top to bottom 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 form of organisation is followed in military establishments. The following figure gives an idea of pure line organisation: The departmental divisions are made only for the sake of convenience and control. Minimum number of employees are required to adopt line organization. Simplicity. This type of organisation is in accordance with the principle of scalar chain. In this type of organization structure two type of authority relationship exists. Different departments are put under the control of Departmental Managers. The self-contained department structure can be seen as its main characteristic. A "line function" is one that directly advances an organization in its core work. 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.. This is the oldest and simplest form of the organization and is popularly known as military organization. General Manager. Staff and line are names given to different types of functions in organizations. It explains the tasks of every worker in an organization. The chain of command runs from the top sales executives down through subordinates. The authority was delegated from top to bottom of the organizational hierarchy.
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