Departmental line organization, and 2. Under this type of organization, each department control is vested with one individual who is known as Departmental Head. The hierarchy in management helps in achieving effective co-ordination. According to this type of organization, the authority flows from top to bottom in a concern. Before one can create a chart for an organization, it is necessary to classify what organizational structure is in place. Such an organizational design is usually found in large organizations, which have more than one product category or product line. The workers get instructions from the supervisor and the supervisor gets advice from the departmental head. In the same way that no two people can ever be the same, no two companies are identical. The general manager is in-charge of all the departments and he can easily co-ordinate the work of various departments. There is a lack of co-ordination among various departments. Where the labor and management problems are not difficult to solve. In the words of J.M. 7. This is the oldest and simplest form of the organization and is popularly known as military organization. The modern military organisations do not entirely rely on line organisation. The authority flows from top to the lower levels. They judge the performance of persons according to their own yardsticks. 1. 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. He/ she is fully responsible for running the department. Image: Departmental line organization chart. Line organisation is easy to operate and less expensive. Line organization assumes that direct authority is exercised by a superior over his subordinates. The superior can exercise effective control and supervise over the persons under him. The subordinates do not convey their reactions or the reactions of workers to the superiors. The self-contained department structure can be seen as its main characteristic. 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. Strong in discipline. Hence, there is no contact between Sales Manager and the workers. Instability: As the success of the system mainly depends upon the ability of one or two persons, the whole organization shall upset and collapse if they leave the enterprise. Type # 1. The number of subordinates should be such that they are properly supervised. 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 … Functional Organization 4. Line organization structure is the oldest and simplest form of organization. The number of subordinates is limited under line organisation. All persons at the same level of authority should be independent of one another. In such manner, every subordinate knows who to report to. Different departments are put under the control of Departmental Managers. Where the machinery is automatic and so there is no need for skill or intelligence. They have staff wings like intelligence, medical and so on. Moreover, an employee knows to whom he/she is responsible and who are responsible to him/her. All managerial functions are practiced by line authority with the help of specialized skill of staff authority. This organization is based on scalar basis. 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“. 6. Types of Managers Vertical Management. Project Organization 5. 3. Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. Simplicity: This system is very simple and can operate very easily. There are majorly five main types of formal organizational structures – line, functional, line and staff, project management and matrix. (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 flow of this authority is always downwards. Line organisation is the basic framework for the whole organisation. There should be a hierarchical arrangement of giving commands. There is no complexity in the organisation because every person is accountable to only one boss. The line organization has the following advantages: 1. The officers work according to their whims and preferences. 8. Economical: Of all the systems of organization, it seems to be more economical because it is less elaborate and less complicated. Line organization has direct vertical relationship. It is also known as scalar organisation or military type of organisation. Each position in the structure has an authority over a lower position. 4. An unordered file, sometimes called a heap file, is the simplest type of file organization. Clan culture is often paired with a horizontal structure, … It is the oldest form of organization. Simplicity: Line organisation is simple to establish and can be easily understood by the employees. The main advantag… 3. The authority should be commensurate with the work assigned. In this way, responsibility is easily fixed. Line organizational structure is one of the simplest types of organizational structures. A foreman heads each department. The ‘Commander-in-Chief is at the top with various other officers at the lower levels. The officers at downward positions derive authority from the top. Operational work maintains an existing sales channel, whereas projects are one-time, unique expenditures with a defined budget, beginning and end dates, and they accomplish a specific goal.. Heap (unordered) File Organization. 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 following figure explains the departmental line of organisation. The departmental type of line organisation divides the enterprise into different departments which are convenient for control purposes. Since one man controls the whole show, the subordinates have to dance according to his tune. In the words of J.M. This may become the reason for lack of co-ordination among different departments. It represents a direct vertical relationship through which authority flows. An organization can be arranged according to a variety of structures, which facilitate the organization to operate and perform. They are staff and line authority. Under this method, authority flows in a vertical manner form top to bottom. Authority flows vertically from top level person to all the persons responsible for the execution of work. This is a highly collaborative work environment where every individual is valued and communication is a top priority. The departmental manager is responsible or answerable to his immediate superior i.e. In line organisation every person is under the command of one boss only. 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 |. 2. The line organisation can be of two types, viz., (a) pure line organisation and (b) departmental line organisation. The managers are not dependent upon each other. The chain of command goes from top to bottom. Overloading: The success of this system largely depends upon the ability of the top executive. Today we will learn a little more about the functional organizational structure. A "line function" is one that directly advances an organization in its core work. It is the simplest form of organization and very simple to understand and implement. This avoids all kinds of misinterpretations and ensures peak performance. The authority was delegated from top to bottom of the organizational hierarchy. According to this type of organization, the authority flows from top to bottom in a concern. Matrix Organization. This is the simplest and oldest, known as chain of command or scalar principle. 1. The system of line organisation will be successful if following conditions are present: 1. He has to take various decisions by himself. Every department has its own line of organisation. Following is an overview of some commonly used organizational structures. 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. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. Its authority flows from top to bottom. Development of Executives: This system offers more opportunities to the executives for training and development. A foreman heads each department. Type # 1. Each type exists only to enable individuals to carry out the different types of responsibilities with which they have been charged. Below are some merits and advantages of line organization or vertical organization 1. Various departmental managers are equal to each other in status and authority. 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. In this type of organization shifting of responsibility is not possible because responsibilities are fixed. This also helps in having better control because the subordinates will be under constant watch. 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 this type of organization, the functional specialists are added to the line, thus giving the line the advantages of specialists. Types of Organization Design. TOS 7. Responsibility is fixed.In this form of organization responsibilities are fixed and defined. Since the manager has to take all important decisions, he can make changes if new situation warrants. Coordination: Since each department is controlled by one man, complete coordination throughout the department is assured. The managerial growth also suffers because lower level persons are not involved in decision-making process. It can be easily define and explain to all staff. For instance, in companies that cover a limited geographic area or sell a narrow product line. 3. 2. 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 and Staff Organization. Staff authorities’ means authority to advice, support and serve the line managers. Line Organisation: Line organisation is the simplest and oldest form of organisation structure. In the given article we’ve made a comparison of the two types of organization… Economical: The lack of communication creates many problems for the smooth conduct of business. Line organization. The term “Line” has been borrowed from the military administration. Unlike other structures, specialized and supportive services do not take place in these organizations. 5. They are expected to take numerous decisions and supervise the work of subordinates under them. For example, Sales Department. Specialisation: This system derives the benefits of specialisation. The most common type is the hierarchical, top-down organizational chart that shows people by their functional position. Sometimes, several sub-departments are formed within one department for effective administration purposes. Characteristics of line organization are listed below. He need not to waste time in getting instructions from above. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. The reactions of subordinates also reach top management in a short span of time. The orders ultimately reach the workers who actually execute them. Read this article to learn about the meaning, types, merits and demerits of line organisation. There are a few different types of organizational charts. Divisional organizational design involves grouping of all functions requires to produce a specific product or product line into one division or department. 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. The lower level officials do not show initiative in suggesting new things. Line and staff organization is a modification of line organization and it is more complex than line organization. It explains the tasks of every worker in an organization. Its authority flows from top to bottom. Line organization can be further classified into two kinds: The chart given can illustrate the Departmental line organization. They are staff and line authority. The chain of command and each department head has control over their departments. 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. Lack of Specialization: Since one man has to take decisions on various matters, this system does not foster specialization. His task is challenging and he is expected to discharge his responsibility in an efficient way. The allocation of work will also help in fixing responsibility of various individuals. A matrix organizational structure is a bit more complex, in that there’s more than one line of reporting managers. Most organizations are divided along functional lines, that is, each “division” is organized by work type, such as engineering, production, or sales. General Manager. Unifie… Hence, this is unstable. 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. Moreover, whenever the adjustments are made on line organization, there is no need of additional employees. Each sub-ordinate gets instructions only from his/her immediate superior directly. 5. Considering how vital an organi… Since they are to take decisions with regard to every aspect of business, the quality of decisions may suffer. 6. Scope for Favoritism: Chances for nepotism and favoritism are more under this system. The sales department can be further sub-divided into Counter Sales, Branch Sales, On Line Sales and Export. There is a scope for favouritism in line organisation. The officers will have to depend heavily on subordinates for advice. Identification of Authority and Responsibility: 3. Where the scale of business is comparatively small. 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. Line organizational structure is one of the simplest types of organizational structures. A common way to differentiate between business organizational structures is between ongoing operational work versus capital projects. Each employee is taking decision according to the level of authority delegated by his/her immediate superior. Where the number of subordinates and operatives is less. Privacy Policy 8. The following figure gives an idea of pure line organisation: The departmental divisions are made only for the sake of convenience and control. The work load of executives goes on increasing with the expansion and diversification of the unit. Copyright 10. Simplicity. 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… There is also a lack of grooming the new persons for taking up important work. So line organisation enables the fixation of authority and responsibility. This greatly reduces the establishment cost. Quick Decision: Quick decisions are taken by the employees because of unification of authority and responsibility. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. Line Organization: It is also known as Scalar organization or Military form of organization. The line sales organization is the oldest and simplest sales organizational structure. The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. This may become the reason for lack of co-ordination among different departments. The line office cannot devote sufficient time to each and every work and are over loaded with responsibilities. Departmental managers get orders directly from the General Manager. Red Tapism and Bureaucracy: Concentration of authority in the hands of a single man shall result in red tapism at all levels. This type of organisation helps in co-ordination and control. One person should get orders from one supervisor only. Independent decisions can be taken by line officers because of its unified structure. 3. LINE AUTHORITY: The most fundamental authority within an organization, reflects existing superior-subordinate relationships. This is the oldest form of organization. There may be deputy managers, supervisors, workers in every department. Line organisation suffers from a number of drawbacks. Two such formal organizational relationships are line organization and line & staff organization. Content Guidelines 2. The ultimate authority for taking all decisions lies with line officers. The subordinates start keeping distance from the superiors. All the employees are performing the same type of work at one level. They feel that their suggestions may not carry weight with their superiors so they avoid taking any type of initiative. Line Organization 2. This may lead to wrong adjustments or wrong decision-making on the part of the executives. Everybody knows his work and also to whom he is responsible. Disclaimer 9. 4. Line and staff organization structure In this type of organization structure two type of authority relationship exists. Line organization is also known as vertical organization or departmental organization. Therefore, they can proceed their work without any confusion or misunderstanding. There is a unity of control and line of authority flows from top to the bottom. 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. Responsibility, on the other hand, flows upwards. 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. Hence, nobody is escaped from the responsibility. This terminology is dated and was more common in the 1950s than now. So it can be operated simply and clearly. 11. There is a direct link between superior and subordinates. The subordinates should get commands only through their immediate superiors. Line organization is the most oldest and simplest method of administrative organization. The line officers may become autocratic and start deciding things without consulting their subordinate. A new record is inserted in the last page of the file; if there is insufficient space in … The whole organisation is put under the overall control of Chief Executive who may be called by the name of General Manager. 2. The divisions are solely for the purpose of control and direction. Storage Discipline: The vertical arrangement of authority and the singleness of responsibility ensures excellent discipline. The chain of command and each department head has control over their departments. 4. Line and Staff Organization 3. Under such structure all managers have direct authority over their respective subordinates through a chain of command. Every person is in charge of all the persons under him and he himself is accountable to his superior only. In line organisation final decision-making is taken by the top management. The line of command is carried out from top to bottom. A clear-cut division of authority and responsibility, hence no scope of shifting the responsibility. 6) Line Organizational Structure. In line organisation only departmental head is required to take decisions and he will not waste time in deciding things. Functional Organization is the most common type of organizational structures in the industry. The following are the main drawbacks of this system: 1. 4. This video explains the different forms of organisation structure in great detail. Line and Staff Organization: This type of organization structure is an improvement over the traditional line organization. Since authority and responsibility flow in an ‘unbroken straight line, it is called line organisation. 1) LINE ORGANIZATION : In this type of organization, authority flows from top to bottom Merits of Line Organisation: 1. In this type of organization structure two type of authority relationship exists. Following are the main benefits derived from functional organisation: 1. 2. Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. This type of organization is most common in our business economy and especially among large enterprises. 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. As responsibility of each individual is fixed, hence faults can be easily and quickly known. 2. Unity of Command: Since the workers are responsible only to one superior, unity of command is made possible. Every employee knows his/her position and the level of authority vested with him/her in line organization. 4. There may be a lack of operational uniformity among various departments. Others include: divisional structure, matrix structure, and flat structure. Prohibited Content 3. 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