APR what is it and how to calculate it for a loan? Where the process of production is continuous or special. Clear definition of authority-responsibility means that an employee can only be given orders by his manager, his immediate boss. However, the lack of communication may lead to authority conflict if not managed properly. Their boss is the foreman to whom they communicate their problems and suggestions and from whom they receive their orders. Under this system the departmental head is involved in taking and executing various decisions. The only problem with a credit card is that it will usually carry a high APR. 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.. Image Guidelines 4. Opportunities for Advancement. Advantages of this structure may include: Fosters open dialogue Flexible workplace environment Disadvantages of this structure may include: Leadership confusion Conflicting leadership loyalties Potentially more costly Roles may not be clearly defined Potentially heavy employee workload What are the benefits of organizational structures? 1. Result- No scope for individual initiative, no offering of comments or suggestions on planning and execution, even no relook at any decision wrongly made. 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. vii. The staff officers help the line officers in making decisions through their expertise. So it can be operated simply and clearly. Reference for Business: Line-and-Staff Organizations, TransTutors.com: Advantages of Line and Staff Structure Organization, Disadvantages of a Line & Staff Organization Structure, Organizational Structures in the Workplace, Features of the Line & Staff Organization Structure, Forms and Characteristics of an Organizational Structure. If they are not able the enterprise will not be successful. No one can exchange their duty to others nor can they avoid it. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. You have to be mindful of the levels of management when you want to communicate or exchange ideas. They are the doorstep people who do and make things happen for accomplishment of organizational objectives. The clarity of authority and tasks within the company introduces discipline. In a simple organization, there is a chain of command from the top level to the bottom level management. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. It can be easily understood by the employees. Clearly defined rights and responsibilities of all managers and employees create conditions for quick decision-making. . Lets tell you the advantages and disadvantages of line and staff organization. 11. Learn about:- 1. Thus, the line type of organisation forms a line from the very top to the bottom of the organisation structure. Line officers should give due consideration to staff advice. (iii) Line organization is not suitable to big organizations because it does not provide specialists in the structure. The chain of command goes from top to bottom. Line and staff officers and managers must understand each others work scope and not try to interfere. Similarly, a manager has to look after various departments and functions at a time. Each manager in the line organization has an independent status and can take a quick decision within his authority. They are responsible for sharing the information with the rest of the team. Responsibility is fixed. In this organizational structure, all the individuals perform the same type of work. Line managers plan, and staff helps in execution and betterment. (iv) Advice given by the staff is not always sound. General Manager. Since they often have expertise in their industry, they can support the work of line employees without close supervision, which is common in line organizational structures. Moreover, an employee knows to whom he/she is responsible and who are responsible to him/her. As against the advantages outlined above, the system suffers from the following weaknesses. Profitability Organizations save an average of $11,000 per year per part-time telecommuter, or 21% higher profitability. 2. iv. Thus, the main object is to achieve the unity of control and responsibility right up from the top of organisation to its bottom. 2. Besides the straightforward organization system, it also involves staff of different departments. Confusion: If the pattern of authority relationship between line and staff executives is not clearly indicated, there may be considerable confusion throughout the organisation. For example, Sales Department. 1. about 5 Ways your Company can Achieve Regulatory Compliance. It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. (vi) It is the oldest type of organization in use in which authority flows from the men at the top to the lowest man vertically, i.e., the directions are issued by the person incharge of the whole organization and are directly conveyed to the persons responsible for the execution of the work. (iv) Which are engaged in the work which is largely of a routine nature. c. Responsibility is fixed and unified at each level and authority and accountability By this method, specialisation is attained. More training and development cost is involved in improving staff performance. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. immediate boss. Further promotion of the workers would depend upon the reports made about them by the foreman concerned. The viewpoints of both line and staff of this conflict are given below: A. Line organization enables the staff to work more toward the . There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. There is a direct link between superior and subordinates. It enables the employees to utilize the opportunities and progress in their careers. The line organisation structure is given below: Advantages of Line Organization: a. Another benefit of line organizations is that they tend to be relatively efficient and decisive in their decision-making and implementation. The open office arrangement has the fantastic benefit of enhancing business culture. He can take a decision according to the requirements of the situation. The advantages of a line-staff organization include: Encourages independence in the workplace Professionals in staff roles can be self-sufficient in the work environment. Vertical Organizations A "vertical" company is known for having a large staff of middle managers between the CEO and the front line. Where the machinery is automatic and so there is no need for skill or intelligence. There are no better examples than those of history. Each level of management has equal rights. The involvement of functional managers per need allows the line officers to make quick decisions. 2. All the staff members of the organization clearly understand the their jobs and responsibility easily. Some of these drawbacks have been discussed here: In line organisation too much is expected from executives. This type of organisation is largely existing in modern industry. Thus, they lose their capacity for independence thinking. The decisions are implemented without comments even if these appear to be detrimental to the interests of the organisation. Thus, this system may encourage carelessness on the part of the staff officer. (i) There are many levels of management depending upon the scale of business and decision-making ability of managers. 2. A line function is one that directly advances an organization in its core work. Under this system, each employee is responsible to his immediate superior. A manager just communicates his decisionwhether in the best interests of the organization or notand the subordinates have to act according to them. This greatly reduces the establishment cost. You may say that it is limited line authority. Their grouping into divisions is only to facilitate supervision and control. Many jobs require specialized knowledge to perform them. It means a subordinate is responsible to only one superior. Above all the departmental heads, there is a general manager to whom all the department heads are responsible. This type of organisation is in accordance with the principle of scalar chain. Teamined.com is a meeting room for employer and employee that will help you build positive employer branding or get your dream job. 7. Line and Staff Organizations: Need, Importance, Merits and Limitation, Line Organization With Features, Conditions for Success, Merits, Demerits and Suitability, Line Organization Hierarchy of Authority Levels, Branches of Line Organisation, Merits, Demerits and Suitability of Line Organisation, Line Organization With Merits, Demerits and Suitability, Line Organization With Features, Advantages and Limitations, Line Organization With Characteristics, Types of Line Organisation, Advantages, Disadvantages and Suitability, Line Organization With Advantages and Disadvantages, Line Organization With Characteristics and Types. Quick Decisions: . For example, the person heading the marketing department will have the knowledge and skill necessary to carry the process with full responsibility and successfully run his team. Under this organisation, activities on any one level are the same. 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. Under this, the line of authority flows vertically downward from top to bottom throughout the organization. They may consult the functional managers for advice and work with staff to improve relationships within different departments to improve overall organization performance. One person should get orders from one supervisor only. Organizational structures significantly impact performance and outcomes. The production manager, for example, will not interfere in the decision-making by sales manager, or finance manager, and vice-versa. The advantages of a divisional structure include the following: each specialty area can be more focused on the business segment and budget that it manages; everyone can more easily know their responsibilities and accountability expectations; customer contact and service can be quicker; and coordination within a divisional grouping is easier, Employees are fully aware of the boundaries of their jobs. It allows them to look for plans for the growth of the company. Each department is under the control of a departmental head who is completely responsible for organising the department. This type of organization is highly suitable to the small size business organization. What is Line and Staff Organizational Structure? Minimum number of employees are required to adopt line organization. Managers have to involve themselves in jobs of different nature. Line or Military Organization: Structure, Features, Characteristics, Merits, Demerits, Suitability and Branches, With Features, Conditions for Success, Merits, Demerits and Suitability, Hierarchy of Authority Levels, Branches of Line Organisation, Merits, Demerits and Suitability of Line Organisation, Flow of Authority from Top to Bottom; Accountability of Each Subordinate, Department Managers Function Independently of One Another, Subordinates can only Approach Immediate Superior, (2) Clear Division of Authority and Responsibility, Line managers are required to both plan and execute the tasks and duties assigned to them. Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. And others may be good at execution but not so when it comes to planning. Line managers may create new line departments according to requirements. The hierarchy is different in each of them. (a) Lack of Specialisation As one person looks after all the work relating to his department, there is no scope for specialisation. For example, at the lowest levels, all workers may perform a similar activity, but for control and supervision they may be divided into different groups, each placed under a foreman. Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. No employee has more than one manager to order him and no manager can order an employee who is not his subordinate. This structure brings in specialized or supporting staff to aid line executives. The cookie is used to store the user consent for the cookies in the category "Analytics". Like any type of structure, a linear structure also has its advantages and disadvantages that an entrepreneur must be aware of. When it comes to planning must be aware of each manager in the work environment a credit card is they... 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