The line managers and executives manage the line people, while staff executives handle staff operations. They constitute the backbone of an organization. Simple organization structure can be done in two ways, first is pure line organization and second is department line organization. 3. Sound Decisions: In this type, the decisions are made by experts and hence, there is a possibility of making sound managerial decisions. Each sub-department is look after by one supervisor and adequate number of workers are working under them. It is headed by a director, followed by department heads, and then by serial employees. The flow of orders, communication of suggestions and complaints etc. Suitability 6. Flexibility: Staff can be added to the line and new activities may be introduced without disturbing the line procedure. In line organisation, every manager exercises a direct authority over subordinates who are directly responsible to their superiors. Some assistants or new officers may be appointed to expand and delegate tasks. In line organisation final decision-making is done by the top management. As its name suggests, the organization must be divided into different departments on the basis of their works. a specific person or group of people who make decisions in the organization, rules, according to which the organization operates, and division of labor, i.e. He need not to waste time in getting instructions from above. Simple and Easy To Understand 2. Effective Control and Supervision: Merits 4. What are the advantages and disadvantages of line and staff organization? 8. Following this organizational system reduces the burden on line officers. Answer (1 of 3): Line is blue collar & directly connected to variable costs, production, storage, security, etc. It is also worth mentioning here that the co-ordination on the basis of cooperation is rather enforced by the supervisor who will be in charge of two or three units. In the words of J.M. 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. Thus it relates to Jack of All Traders But Master of None. Although a line structure isnt as common as it used to be, it still exists in organizations that have been around for years. It also governs the . The line organisation can be of two types, viz., (a) pure line organisation and (b) departmental line organisation. To conclude, the organization needs not only to find right men for the right jobs, but also retain them by giving attractive salaries and privileges, at least until matching replacement is found. Every employee is responsible for completing the given work. 3. Thus, this system may encourage carelessness on the part of the staff officer. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. In this type of organisation, the whole unit is divided into different departments that are convenient for control purposes. Analytical cookies are used to understand how visitors interact with the website. Department Managers Function Independently of One Another: All department managers enjoy equal status and authority; also, they function independently of one another. Under this system the departmental head is involved in taking and executing various decisions. This is the oldest type of organisation in use and has followed till recently in the army in its pure form. 1. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_1628583994") }). An advantage of a line-and-staff organization is the availability of technical specialists. A superior delegates authority to a subordinate who in turn delegates authority to his subordinates and so on. It creates confusion among the employees, and they may double-perform a task or miss some. Co-ordination: . They are only required to do as told to them by respective managers. The allocation of work will also help in fixing responsibility of various individuals. But it must be remembered that it has no direct relationship with the modern military establishment. The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. This also helps in having better control because the subordinates will be under constant watch. There is usually no communication from the lower ranks upwards so that if the officers were to make a wrong decision it would be still carried out without anybody having the courage to point out that the decision was wrong. Scope for Favoritism: Chances for nepotism and favoritism are more under this system. Profitability Organizations save an average of $11,000 per year per part-time telecommuter, or 21% higher profitability. There is an absolute lack of functional specialization. ul. Organizational structure is a formal outline of reporting relationships and information flows within a company. 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. Authority flows vertically from top level person to all the persons responsible for the execution of work. Theyre fully-aware of their responsibilities which helps them complete their tasks on their own. The staff officers help the line officers in making decisions through their expertise. 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. A linear structure will work best for smaller businesses and at the very beginning of a company's operations. about B2B Account-Based Marketing: How to Grow Sales? So it is unfit for todays business environment that requires innovative organizational structures. If the managers treat the employees as a pendulum between them, they will most likely get tired of their job roles. Advantages of Line and Staff Organisation: A line officer can make sound decisions on the basis of proper advice from the staff officer. (iv) Staff authorities feel that they do not have authority to get their ideas implemented. Line personnel command the workers and give feedback. Required fields are marked *. about Can a Healthy Lifestyle Save Money on Life Insurance? The adjustments in the organisation can be easily made to suit the changing conditions. Each position in the structure has an authority over a lower position. The lower level officials do not show initiative in suggesting new things. In spite of many limitations, the importance of line organisation cannot be minimised. According to , the most pressing challenges they face in human resource spectrum are: high degree of employee turnover, management risk (Omolaja ,2015), inadequate management knowledge, shortage of. to improve overall organization performance. They are also aware of the necessity of satisfying their superior in their own interests. (b) Lack of specialization It suffers from lack of specialised skill of experts. Necessary cookies are absolutely essential for the website to function properly. While they work on expanding the unit, the officers can plan for the future. The staff offers specialized/technical suggestions, advice and ideas to the senior management. Another benefit of line organization is that it is easier to make someone accountable and responsible for the task assigned to him or her so if any mistake happens one can easily pinpoint the person due to whom the mistake has happened and there is no scope for him or her putting blame on other persons of the company.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'letslearnfinance_com-medrectangle-4','ezslot_2',107,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-medrectangle-4-0'); if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'letslearnfinance_com-banner-1','ezslot_9',134,'0','0'])};__ez_fad_position('div-gpt-ad-letslearnfinance_com-banner-1-0');Since decisions are taken by the person at the top only the response time to any situation is quick and short besides there is a lot of flexibility due to the presence of a single authority which makes it easier to respond to any situations which may arise from time to time. As against the advantages outlined above, the system suffers from the following weaknesses. 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. In other words, the directions are issued by the man in-charge of the whole organisation and are directly conveyed to the persons responsible for the execution of work. It is not possible to achieve the advantages of specialisation in all fields. For example, quality control officers may guide the production department in improving the stability of the product. 4. This is a very simple organizational structure to understand and manage due to the implementation of the scalar chain of command (formal line of authority which moves from highest to lowest rank in a straight line). A foreman heads each department. Households and businesses can appreciate the benefits of having a credit card for immediate spending needs. The clarity of authority and tasks within the company introduces discipline. Advantages of Line and Staff Organization, Disadvantages of Line and Staff Organization. They should state reasons in case they cannot accept the advice. Everything you need to know about the line organisational . (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. In recent times, however, the military organisations have undergone changes similar to those occurring in the industrial and other organisations. 2. Organizational structure refers to how individual and team work within an organization are coordinated. Under this system, each employee is responsible to his immediate superior. This system of organization is also known as Scalar, Traditional or hierarchical form of organization. (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. Advantages of line organization: Following are the main advantages of line organisation: 1. Hence, it is quite expensive and small and medium-sized concerns cannot afford it. Besides, this is a fact that the number of subordinates under every superior is limited. Communication- Communication is fast and easy as there is only vertical flow of communication. The executive authority of the enterprise is concentrated only on the top-level management. One of the advantages of the line organization structure is simplicity. Moreover, it is easily understood by workers. Outside of reporting to senior management, each task belongs to individual employees. Among the advantages of a line structure, experts most often include: clear division of authority, competencies and responsibilities; employees are accountable to one person - the manager; possibility of quick interaction between employees and management; maximum speed of execution of orders; Managers have to involve themselves in jobs of different nature. The line organisation represents the structure in a direct vertical relationship through which authority flows. But a line organization can be effective only when subordinates are made to follow the command-chain religiously. Matthew is a Co-Founder at BusinessFinanceArticles.org. Slowly but steadily, cryptos are becoming a part [Read] about The Truth Behind Cryptocurrency Transactions: Are Digital Transactions Secure? Healthy Lifestyle save Money on Life Insurance their tasks on their own around for years oldest... 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