Hierarchy of Authority Levels 7. Line organization structure chart tends to simplify and clarify responsibility, authority, and accountability relationships. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. So, learning more about different organizational structures, stakeholders and power structures will help you navigate your workplace. 3. WHO IS A STAFF MANAGER? Since one man controls the whole show, the subordinates have to dance according to his tune. The top-level manager can control the entire organization through the hierarchy of authority. Secondly, there should be only one chain, i.e., command should be received from only one immediate superior. Its like an organizations grapevineyou dont know what youre going to get because information gets recycled at each level. Learn about:- 1. One of the most commonexamples of line organizationis small businesses with the owner overseeing daily operations. He has to perform all the functions connected with production, including planning of work, ensuring the proper condition of equipment, training of workers and instructing them in the methods of work. The superior can exercise effective control and supervise over the persons under him. He does not have to carry out orders of two or more managers, thus clearing any confusion about whose orders to give priority in performance. The workers themselves have the particular foreman to look to for all their problems, and they do not have the authority to approach higher officers except through their immediate boss. Quick Decision and Implementation 3. In todays business world, marketing is the [Read] about B2B Account-Based Marketing: How to Grow Sales? A line organization is the oldest and traditional form of organizational structure. His message will first travel up the command-chain (called scalar chain by Fayol) and reach the manager who has authority over production department and the department in which the said subordinate works. As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. This cookie is set by GDPR Cookie Consent plugin. In a line organization, authority follows the chain of command. Staff authorities have the following complaints against line officers: (i) Line officers do not make proper use of advice given by staff. The line management must give appropriate reasons in case of rejection. The production manager, for example, will not interfere in the decision-making by sales manager, or finance manager, and vice-versa. (iv) Advice given by the staff is not always sound. You have to be mindful of the levels of management when you want to communicate or exchange ideas. The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. 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. Advantages Of Line Organization A line organizational structure has many advantages but they depend on the type of business and number of employees. In smaller organizations, where the work is streamlined and tasks are assigned, its the most effective way to achieve your goals. This cookie is set by GDPR Cookie Consent plugin. The line and staff structure may promote over-dependence on staff members. However, a line and staff. 5. Since all work is done according to the wishes of one person alone, the efficiency of the whole department will come to depend upon the qualities of management displayed by the head of that department. Uploader Agreement. Since the manager has to take all important decisions, he can make changes if new situation warrants. Everyone knows as to whom he can issue orders and to whom he is accountable. Thus, the functional authorities may think their suggestions are not taken well. This is because of unified control. Your email address will not be published. And, every employee is directly responsible to his immediate superior. Suitability 6. Both are equally important to an organization. Thus, this system can be successfully practised where: (a) The business is carried on a small scale with a small number of subordinates and operatives. C. benchmarking. 1. The Christian Church has also been organised in a similar manner. In line organisation, each department is generally a complete self- sustaining unit. It provides flexibility in the decision making and an immediate decision can be as required. This system of organization is also known as Scalar, Traditional or hierarchical form of organization. put an organization on the path to competitive advantage. But opting out of some of these cookies may affect your browsing experience. It is headed by a director, followed by department heads, and then by serial employees. (c) It enables clear cut definition of authority and responsibility. A linear structure will work best for smaller businesses and at the very beginning of a companys operations. 3. There are no staff personnel to advice line officers. The staff offers specialized/technical suggestions, advice and ideas to the senior management. How Outdoor Advertising Can Help Your Business Grow, Hybrid Events: How to Make the Most of Stationary and Remote Employees. The business is dependent upon some key persons and the sudden disappearance of such persons from the scene may create instability in the business. The following are the main drawbacks of this system: 1. There are no better examples than those of history. Advantages of a linear structure. Therefore, they can proceed their work without any confusion or misunderstanding. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation. A line manager is responsible of achieving the main objectives of the organization by executing main functions such as policy making, target setting and decision making. The line organisation represents the structure in a direct vertical relationship through which authority flows. Their boss is the foreman to whom they communicate their problems and suggestions and from whom they receive their orders. (adsbygoogle = window.adsbygoogle || []).push({}); Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). whereas Staff is white collared & directly connected to fixed costs, administration, legal matters etc. Prof. Florence enunciates three principles which are necessary to realise the advantages of this system, and the non-observance of which would involve inefficiency. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. Thus it relates to Jack of All Traders But Master of None. For the three indicators of inclusionequality, openness, and belongingwe found particularly high levels of negative sentiment about equality and fairness of opportunity. ii. Each unit is placed under a commander and his word is final as far as his subordinates are concerned. It creates confusion among the employees, and they may double-perform a task or miss some. It gives complete control to the top hierarchy, exhibiting authoritative leadership. Advice is only theoretical and unrealistic. 6. Organizational structures significantly impact performance and outcomes. The viewpoints of both line and staff of this conflict are given below: A. The managerial growth also suffers because lower level persons are not involved in decision-making process. 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. List of the Advantages of a Line of Credit. 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 cookie is used to store the user consent for the cookies in the category "Analytics". 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. Management should not ignore the guidance and development advice offered by functional officers. It represents a direct vertical relationship through which authority flows. Though the term Military Organisation still persists in management writing, the reader should note that it has no relationship to modern military establishment. He is given the required authority and responsibility to manage his department. The modern military organisations do not entirely rely on line organisation. Advantages and Disadvantages of Line Organization Advantages are: 1. In this type, a greater variety of responsible jobs are available and this provides more opportunities for advancement of capable workers. Line organization is the oldest and simplest method of administrative organization. In line organisation every person is under the command of one boss only. A top-down approach is a rigid structure that can hamper coordination and collaboration. Where the labor and management problems are not difficult to solve. He can take a decision according to the requirements of the situation. It is simply used to indicate a straight flow of authority resembling the lines of command in a combat unit. : 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. These cookies ensure basic functionalities and security features of the website, anonymously. Line organization enables the staff to work more toward the execution of tasks. It enables the employees to utilize the opportunities and progress in their careers. Specialized employees help the line staff in processes by offering expert advice. The departmental manager is responsible or answerable to his immediate superior i.e. 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 Organization: The Workers Safety and Insurance BoardFounded 1915 Location Toronto Employees 5,000 1999 premiums revenue $2.7 million 1999 benefits . Similarly, there is no provision of guidance and suggestions from the experts in making managerial decisions. Each staff is clear about his authority and . (vii) There is a hierarchical arrangement of authority. A line-staff organizational structure attempts to render a large and complex enterprise more flexible without sacrificing managerial authority. This means relying a little too much on their individual capability, knowledge and experience. This cookie is set by GDPR Cookie Consent plugin. Thus, in the production department, there may be a number of foremen each having a number of workers under him. One of the most important advantages of line and staff organization is that it improves specialization in the system. The Line and Staff Organization is a dual-organization structure with two prominent authorities. The line and staff officers perform their functions smoothly through better coordination and cooperation. The line staff organizational structure offers more flexibility than others. Each person in the organization structure has authority over subordinates holding positions lower than him. This is the most conventional type of structure, and it is easy to establish and understand. Features of Line Organisation 2. What is line and staff Organisation? They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. Since the departmental head is almost all-in-all for the activities of his department. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_1628583994") }). Based on this statistical analysis, remote work is not going anywhere . This affects their creativity and capacity for independent thinking. The links in the chain of command should not be skipped. This can lead to an increased load on the top management to solve these conflicts. 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. (ii) Line officers reject the advice without giving reasons. As a business owner, there may be different [Read] about How does a Valuator Value a Business? Under this method, authority flows in a vertical manner form top to bottom. Line organisation suffers from lack of specialised skill of experts. i. Simplicity- Simple to understand and develop. A line organization is hard put to find managers who are good at both, planning and execution. What is Strategy Implementation and How To Implement it? The reactions of subordinates also reach top management in a short span of time. So within the limits of his authority, he feels free to adjust and adapt his activities to realize the objectives set for him by his superior. Even within a department, there may be several sub-departments or units. Source: accountlearning.com. They are only required to do as told to them by respective managers. There is a lack of co-ordination among various departments. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. It does not involve a large number of people. This greatly reduces the establishment cost. However, authority does not always translate to effectiveness. Line structures are suitable for Small businesses where there are few subordinates and organizations where there is largely of routine nature and methods of operations are simple. The hierarchy is different in each of them. Hence, there is no contact between Sales Manager and the workers. Members of the . In simple words, in the case of this organizational structure, there is no need for a 100-page document to ensure that employees understand whom to report or whose order to follow as everything is crystal clear thus ensuring that employees do not have any reason to pass the blame to others for their failure. (2) Clear Division of Authority and Responsibility: There is clear definition of authority-responsibility of each individual employee. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. 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. At each level, the superior makes decisions within the scope of authority derived by him from his own boss. If, therefore, something happens to an efficient manager, the future of the department and of the concern as a whole would be in jeopardy. This cookie is set by GDPR Cookie Consent plugin. There are no staff personnel for consultation too. Subordinates can only Approach Immediate Superior: Workers placed under a foreman have no direct access to production manager. It improves coordination, encourages communication and helps management drive innovation. Study with Quizlet and memorize flashcards containing terms like The process of rating an organization's practices, processes, and products against the best of the world is known as: A. webworking. A superior delegates authority to a subordinate who in turn delegates authority to his subordinates and so on. It means a subordinate is responsible to only one superior. Further, if superiors were to make a wrong decision, it would still be carried out, because the subordinates are afraid of pointing out that the decision is wrong. There are fixed responsibilities so theres little to no room for error. (ii) Which do not have many subordinates and operatives; (iii) Which have straight and simple methods of operations; and. Analytical cookies are used to understand how visitors interact with the website. ADVERTISEMENTS: (ii) In this organisation, there is no difficulty in fixing the responsibilities at various levels of organisation. military, vertical, scalar, departmental organization. This can be effective when organizations are short on time. Both line and staff should try to understand each other's responsibilities and difficulties and try to co-operate with each other for the achievement of enterprise objectives. The lower-level employees have no knowledge and authority about their performance. Direct supervision and control also helps in maintaining strong discipline among the workers. An advantage of a line-and-staff organization is the availability of technical specialists. It consists of direct vertical relationships. Another disadvantage of line organization is that due to the presence of a single authority the scope of favoritism and biased towards some employees increases leading to dissatisfaction among other employees and a hostile working atmosphere within the company which in long run can be a disaster for the company. The line organization again can be of two kinds: In a pure line organization, at every level of work, all the individuals perform the same type of work. Thirdly, the number of subordinates whose work is directly commanded by the superior should be limited. As a result of this direction, guidance and restraint are easily achieved in this type of organisation. It is simply used to indicate the straight flow of authority resembling the line of command in a combat unit. (ii) Staff authorities are not acquainted with the practical problems of the enterprise as they are only academics. One of the most important advantages of line and staff organization is that it improves specialization in the system. 6. (ii) It facilitates unity of command and thus conforms to the scalar principle of organisation. (iv) Fixed responsibility Everybody in this type of organisation knows to whom he is responsible, and who are responsible to him. iv. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. Similarly, a manager has to look after various departments and functions at a time. (3) Limited Superior-Subordinate Communication, (4) Line Manager may Take Decisions Arbitrarily, With Features, Advantages and Limitations. It depends on the type of work, functions and industry the organization operates in. (e) Unitary Administration All decisions relating to a department are taken only by one executive and hence, the successful functioning of that department depends on his abilities. Advantages of Line and Staff Organisation: A line officer can make sound decisions on the basis of proper advice from the staff officer. It allows them to look for plans for the growth of the company. Advantages and Disadvantages of Line Organization. Identification of Authority and Responsibility: . (v) Scope for Favouritism- Since the departmental head is almost all-in-all for the activities of his department. 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. 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. Advantages of Line and Staff Organisation: Specialization: Line and staff organisation introduces specialization in a systematic manner. He has earned a Bachelor of Arts in management from Walsh University. The line officers may become autocratic and start deciding things without consulting their subordinates. This kind of authority flows down the line. Power structures will help you navigate your workplace these cookies may affect your browsing.... Following are the main drawbacks of this conflict are given below: a line organization the. 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