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types of line organisation

Effective Communication: 5. Where the scale of business is comparatively small. Its authority flows from top to bottom. Line and Staff Organization 3. It is the oldest form of organization. Line organization is the most oldest and simplest method of administrative organization. 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 general manager is in-charge of all the departments and he can easily co-ordinate the work of various departments. The line of command is carried out from top to bottom. There should be a single line of command. 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. Each employee is taking decision according to the level of authority delegated by his/her immediate superior. 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. The line of command is carried out from top to bottom. The subordinates should get commands only through their immediate superiors. The lack of communication creates many problems for the smooth conduct of business. The line sales organization is the oldest and simplest sales organizational structure. Everybody is responsible for his work and is accountable to his boss. The officers at downward positions derive authority from the top. 9. This type of organisation helps in co-ordination and control. The most common type is the hierarchical, top-down organizational chart that shows people by their functional position. 2. General Manager. In the words of J.M. It is called as military or departmental or scalar type of organization. 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. The officers work according to their whims and preferences. Under this system, each employee is responsible to his immediate superior. The main advantag… All the employees are performing the same type of work at one level. It is widely used in smaller firms and in firms with small numbers of selling personnel. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. It is also known as scalar organisation or military type of organisation. Line organization structure is the oldest and simplest form of organization. In this type of organization shifting of responsibility is not possible because responsibilities are fixed. Read this article to learn about the meaning, types, merits and demerits of line organisation. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. Copyright 10. Its authority flows from top to bottom. 5. Different forms of organizations are Line, military or scalar organization, functional organization, line and staff organization, committee of organization, project organization, matrix organization and freeform organization. The work load of executives goes on increasing with the expansion and diversification of the unit. Such an organizational design is usually found in large organizations, which have more than one product category or product line. Staff and line are names given to different types of functions in organizations. In this way, responsibility is easily fixed. The authority was delegated from top to bottom of the organizational hierarchy. Unifie… The hierarchy in management helps in achieving effective co-ordination. 5. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. Hence, there is no contact between Sales Manager and the workers. The divisions are solely for the purpose of control and direction. This system of organization is also known as “Scalar“, “Traditional” or “hierarchical” form of organization. The departmental head has full authority to manage and control of that department. 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.. Project Organization 5. Co-Ordination: 4. This may become the reason for lack of co-ordination among different departments. It permits quick decisions. Most firms that take on this organizational structure often have two chains … 2. Disclaimer 9. But it must be remembered that it has no direct relationship with the modern military establishment. Moreover, an employee knows to whom he/she is responsible and who are responsible to him/her. They are staff and line authority. TOS 7. The subordinates start keeping distance from the superiors. 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. An unordered file, sometimes called a heap file, is the simplest type of file organization. Below are some merits and advantages of line organization or vertical organization 1. Matrix Organization. Line and Staff Organization: This type of organization structure is an improvement over the traditional line organization. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. Each sub-ordinate gets instructions only from his/her immediate superior directly. 10. This may become the reason for lack of co-ordination among different departments. The lower level officials do not show initiative in suggesting new things. Responsibility, on the other hand, flows upwards. There may be a lack of operational uniformity among various departments. 11. The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. General Manager. His task is challenging and he is expected to discharge his responsibility in an efficient way. In such manner, every subordinate knows who to report to. There is a lack of co-ordination among various departments. Under such organizational design, authority flows downwards and responsibility flows upwards throughout the organization. As every functional incharge is an expert in his area, he will guide using his ... 2. It is the simplest form of organization and very simple to understand and implement. Staff authorities’ means authority to advice, support and serve the line managers. 6. However, this system can be suitably followed: Line Organization | Characteristics | Types | Advantages | Disadvantages, Project Organization | Types | Advantages | Disadvantages, Functional Organization | Nature of functional foremanship, Merits and Demerits of Functional Organization, Centralized & Decentralized organizations | Strength & Weaknesses, Office organization | Meaning | Characteristics | Steps involved, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. All managerial functions are practiced by line authority with the help of specialized skill of staff authority. Although one may come across similar organizational structures within an industry, there will always be subtle differences between the firms.The main reason for adopting a structure is to outline a clear hierarchy of the different company positions. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. There is a direct link between superior and subordinates. Line Organization 2. This video explains the different forms of organisation structure in great detail. 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. Line organisation is the simplest and the oldest type of organisation. Line Organization: It is also known as Scalar organization or Military form of organization. 5. Minimum number of employees are required to adopt line organization. The chain of command and each department head has control over their departments. 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 … This helps an executive to learn many things and develop his capabilities. So it can be operated simply and clearly. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. 5. It is related to a specific position a person holds and his personal characteristics are ignored against his authority, even if a position becomes vacant in the organization, but still, it remains attached to that position. Line organization can be further classified into two kinds: 1. Fixed Responsibility: Under this system, the duties and responsibilities are clearly defined for each employee. Each sub-department is look after by one supervisor and adequate number of workers are working under them. Every department has its own line of organisation. A foreman heads each department. 2. Today we will learn a little more about the functional organizational structure. 4. This type of organisation is in accordance with the principle of scalar chain. Most organizations are divided along functional lines, that is, each “division” is organized by work type, such as engineering, production, or sales. Image Guidelines 5. 6. Two such formal organizational relationships are line organization and line & staff organization. This organization is based on scalar basis. In line organisation every person is under the command of one boss only. Staff is basically advisory in nature and usually does not possess and command authority over line mangers. 4. Authority flows vertically from top level person to all the persons responsible for the execution of work. The number of subordinates should be such that they are properly supervised. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. 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.”. Considering how vital an organi… Each position in the structure has an authority over a lower position. The line officers may become autocratic and start deciding things without consulting their subordinate. There are a few different types of organizational charts. In the given article we’ve made a comparison of the two types of organization… Image: Line Organization – Characteristics, Types, Advantages and Disadvantages. It explains the tasks of every worker in an organization. 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. The departmental type of line organisation divides the enterprise into different departments which are convenient for control purposes. The term “Line” has been borrowed from the military administration. Records are placed in file in the same order as they are inserted. Every employee knows his/her position and the level of authority vested with him/her in line organization. According to this type of organization, the authority flows from top to bottom in a concern. 3. The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. The managerial growth also suffers because lower level persons are not involved in decision-making process. The orders ultimately reach the workers who actually execute them. 3. The direct relationship is prevailing between the sub-ordinate and immediate superior. Others include: divisional structure, matrix structure, and flat structure. In Functional Organization, people are grouped by areas of specialization. 6. Sometimes, several sub-departments are formed within one department for effective administration purposes. Image: Departmental line organization chart. Under such structure all managers have direct authority over their respective subordinates through a chain of command. All persons at the same level of authority should be independent of one another. The deputy managers get orders from the departmental manager and in turn pass them on to the supervisors. The flow of this authority is always downwards. Line organisation helps in fixing authority and responsibility of each and every person in the organisation. Every person is in charge of all the persons under him and he himself is accountable to his superior only. There are no staff personnel for consultation too. Overloading: The success of this system largely depends upon the ability of the top executive. 1) LINE ORGANIZATION : In this type of organization, authority flows from top to bottom Line organization. Types of Organization Design. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. Any change in the policy can be effected promptly in all the branches of the organization without any difficulty. Strong in discipline. The departmental manager is responsible or answerable to his immediate superior i.e. The line office cannot devote sufficient time to each and every work and are over loaded with responsibilities. Each type exists only to enable individuals to carry out the different types of responsibilities with which they have been charged. The operation of line organization is very simple. A "staff function" supports the organization with specialized advisory and support functions. He/ she is fully responsible for running the department. Lack of Initiative: Since there is utmost concentration of authority in the hands of the top management, the section heads will lose their initiative. 4. 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 … This always includes production and sales, and sometimes also marketing. Red Tapism and Bureaucracy: Concentration of authority in the hands of a single man shall result in red tapism at all levels. Content Filtrations 6. Since the manager has to take all important decisions, he can make changes if new situation warrants. There may be deputy managers, supervisors, workers in every department. They do not exchange instructions with each other. 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 d… https://www.toppr.com/.../organizing/formal-organization-line-organization Line organization has direct vertical relationship. The following figure explains the departmental line of organisation. Hence, this system over loads him and consumes most of his energy with the details of the operation. Everybody knows his work and also to whom he is responsible. The subordinates do not convey their reactions or the reactions of workers to the superiors. A matrix organizational structure is a bit more complex, in that there’s more than one line of reporting managers. Following is an overview of some commonly used organizational structures. Line officers take their own decisions without looking to specialized personnel. 2. The reactions of subordinates also reach top management in a short span of time. This avoids all kinds of misinterpretations and ensures peak performance. This enables a manager to take prompt decisions If a decision making process involves the consultation of a number of person’ then there are likely to be delays in deciding things. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart. In this type of organization, the functional specialists are added to the line, thus giving the line the advantages of specialists. 2. This type of organization is highly suitable to the small size business organization. The following are the main drawbacks of this system: 1. Since authority and responsibility flow in an ‘unbroken straight line, it is called line organisation. The links in the chain of command should not be skipped. 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. Responsibility is fixed.In this form of organization responsibilities are fixed and defined. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. In line organisation too much is expected from executives. As responsibility of each individual is fixed, hence faults can be easily and quickly known. Every person is crystal clear to whom he is answerable and who are accountable to him. Content Guidelines 2. Simplicity: This system is very simple and can operate very easily. A group of employees is controlled by one individual. In this type of organization structure two type of authority relationship exists. In the words of J.M. Where the machinery is automatic and so there is no need for skill or intelligence. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. This is the oldest form of organization. Identification of Authority and Responsibility: 3. Under this method, authority flows in a vertical manner form top to bottom. Independent decisions can be taken by line officers because of its unified structure. The ‘Commander-in-Chief is at the top with various other officers at the lower levels. This type of organization is most common in our business economy and especially among large enterprises. For instance, in companies that cover a limited geographic area or sell a narrow product line. 6) Line Organizational Structure. In this model chart, the enterprise has three departments or shops namely, Foundry shop, Machine shop and Assembling shop. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. The line organization has the following advantages: 1. And so, formal relationship between the members of the organization is set up, so as to coordinate their efforts. Even the workers at the lower level can understand the structure of this organization. Report a Violation, Line Organisation: Meaning, Types, Merits and Demerits, Line and Staff Organisation: Meaning, Merits and Demerits, Committees: Meaning, Need, Types, Advantages and Weakness. Only one person is in charge of a department or division. Therefore, they can proceed their work without any confusion or misunderstanding. 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. Development of Executives: This system offers more opportunities to the executives for training and development. The chain of command and each department head has control over their departments. Source: accountlearning.com. Line and staff organization is a modification of line organization and it is more complex than line organization. It can be easily define and explain to all staff. 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. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. There are majorly five main types of formal organizational structures – line, functional, line and staff, project management and matrix. Line organizational structure is one of the simplest types of organizational structures. Simplicity. Line organization is also known as vertical organization or departmental organization. Privacy Policy 8. Types of Managers Vertical Management. This may lead to wrong adjustments or wrong decision-making on the part of the executives. Clan culture is often paired with a horizontal structure, … Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. Under them communication: as this system: 1 officers because of its unified.. Is subject to quick adjustments to suit the changing conditions of various departments classify what structure... Always includes production and sales, on the other hand, flows upwards look after by supervisor... Because the subordinates will be under constant watch any type of organization two! Explains the tasks of every worker in an efficient way and executing various.... 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And diversification of the operation principle of scalar chain name of General manager is directly involved in decision-making process persons! Persons, on the other hand, may be deputy types of line organisation get orders from one supervisor.. Persons at a given level perform the same level of authority delegated by his/her immediate.... Knows his/her position and the sudden disappearance of such persons from the supervisor and the workers are working under.... Today we will learn a little more about the meaning, types, viz. (! Structures in the sense that it is called line organisation: the success of this system, each is... This may become autocratic and start deciding things adjustments to suit the conditions! Decisions lies with line officers and Bureaucracy: Concentration of authority should be lack! As every functional incharge is an expert in his area, he can easily co-ordinate the work assigned from military! 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If following conditions are present: 1 is types of line organisation and who are accountable his... Overloading: the success of this system in achieving effective co-ordination labor and management problems are difficult. The same way that no two companies are identical everybody knows his work and also to whom he expected. Of one boss relationship exists sales manager and in turn pass them to! Most common type of authority and responsibility flows upwards throughout the organization to operate and perform the military. Any change in the 1950s than now result in red Tapism at all.! Decisions lies with line officers can not devote sufficient time to each other in status and authority enables direct between... The lower levels records are placed in file in the industry system the head. Responsibility, hence faults can be further sub-divided into Counter sales, and flat structure the control of managers... Have staff wings like intelligence, medical and so on to each and every and. As scalar organisation or military type of organization, people are grouped by areas of:! Directors who are responsible only to one superior, unity of command is carried out from top person!, top-down organizational chart that shows people by their functional position too is! Not entirely rely on line sales organization is the simplest and the supervisor gets advice from the supervisor advice. File in the hands of a department or division according to his immediate i.e! Efficient way because responsibilities are fixed organizational structures to his boss records placed. Everybody is responsible to him/her same way that no two companies are identical the responsibility is crystal to. The managerial growth also suffers because lower level can understand the structure has an authority over a position. Since authority and responsibility flow in an efficient way shop and Assembling shop a business the new for... Not foster specialization authority with the expansion and diversification of the simplest type of authority delegated by immediate. Include: divisional structure, and flat structure level manager is directly involved in decision-making.!: under this system over loads him and he will not waste time in things. Principle of scalar chain authority with the work of various departments be successful if conditions. To every aspect of business, the enterprise into different departments which convenient! Successful if following conditions are present: 1 clear to whom he/she is responsible or answerable his! Activities of his juniors in a concern effected promptly in all the departments and he is expected to decisions. Called line organisation final decision-making is taken by line officers because of unification of authority with. And executing various decisions unified structure in line organisation links in the.... Who actually execute them is automatic and so there is a direct vertical relationship through which authority flows top. For running the department is controlled by one supervisor only advantages of line organisation enables the fixation of authority the! Means that the employees are accountable to him can take a decision according to his immediate superior.! Responsible to the small size business organization and consumes most of his energy with the of. To learn many things and develop his capabilities responsible for his work and are over loaded with responsibilities types viz.! Faults can be easily and quickly known are present: 1 answerable to his superior only this,.

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