For example, the functional structure provides all authority to the manager. They only impart their suggestions to line authorities. There is a clear definition of authority and responsibility relationship. Many subordinates do so because they lack ability to judge whether the decision is right or wrong, but the mischievous ones among them may carry out even apparently wrong decisions to pinpoint the incompetence of manager. 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. 5. Strong Discipline- Because of direct authority-responsibility relationships, discipline can be maintained more effectively. Line should value the special skills of staff and similarly the staff should try to appreciate the difficulties in implementing new ideas. Definition, Types, and Ways To Implement, 4 Types of Corporate Level Strategy [+Pros/Cons], What is Retrenchment Strategy? The functional staff does not have any direct input in organizational operations. This type of organization is highly suitable to the small size business organization. Advantages of Functional Organization The executive or the team leader has good knowledge and experience in that particular field. For example, it is not possible for a foreman alone to give full guidance on all matters relating to use of materials, use of machines, methods, personnel practice, and so on. Five key benefits of implementing a service line management structure are highlighted below: Improves patient experience: At its core, service line development aims to connect and enhance care coordination across all sites and levels of care. All the departmental heads are responsible to their immediate superior i.e. The higher management must clarify the roles of functional, staff, and line officers and executives. It is shaped depending on the objectives of the company and the units necessary to achieve them. Economical: . The cookie is used to store the user consent for the cookies in the category "Other. However, this system can be suitably followed: Line Organization | Characteristics | Types | Advantages | Disadvantages, Project Organization | Types | Advantages | Disadvantages, Centralized & Decentralized organizations | Strength & Weaknesses, Centralization and decentralization of Organization, Functional Organization | Nature of functional foremanship, Functional Authority | Definition | Examples |, Western managers vs Eastern managers: difference in, Problems of supervision | solutions for effective, Important Role of CEO in Strategic Management, Committee | Meaning & Definition | Features, Under what circumstances Delegation of Authority is, Accountlearning | Contents for Management Studies |. 3. The meaning of LINE ORGANIZATION is the part of a business organization that forms an integrated whole concerned with the production of the goods or services that are the stock in trade of the organization often distinguished from staff. 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.. Line organization structure chart tends to simplify and clarify responsibility, authority, and accountability relationships. An executive cannot shift his decision-making to others, nor can the blame be shifted. There is no provision for growth and development. Fixed responsibility: Duties and responsibilities are clearly defined for each individual with reference to the work assigned to him. How Does a Human Resource Manager Have Line, Staff & Implied Authority? Decision-making responsibilities are static with limited flexibility. There is a lack of provisions for experts and specialists in the decision-making process. Organizational structures significantly impact performance and outcomes. One of the ways they cooperate is through networking. By providing staff managers with total authority in particular areas, line managers have more free. Line organisation has the following features/characteristics: (i) In line organisation authority flows from the top to the lower levels and responsibility flows upwards. Regulatory compliance means sticking to the laws [Read] about 5 Ways your Company can Achieve Regulatory Compliance. Every person in the organization is only accountable to his superior who has delegated authority to him, and to none else. Line executives are the people directly involved in the basic activities of an organization. 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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. Direct supervision and control also helps in maintaining strong discipline among the workers. 3. A staff function supports the organization with specialized advisory and support functions. Under this type of organization, each department control is vested with one individual who is known as Departmental Head. It is the simplest form of organisation structure and is also known as scalar or military organisation. A line organization is hard put to find managers who are good at both, planning and execution. (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. The top-down approach helps streamline communication. Advantages of Functional Organizational Structure The executive or the team leader has the knowledge and experience of that particular field. Development of Executives: This system offers more opportunities to the executives for training and development. The departmental head has full authority to manage and control of that department. Last Updated on February 10, 2023 By Methew Harbor Leave a Comment. Although a line structure isnt as common as it used to be, it still exists in organizations that have been around for years. Staff officers do not have the authority to implement their opinions and recommendations without the line officers approval. Continue with Recommended Cookies. Your email address will not be published. They are also aware of the necessity of satisfying their superior in their own interests. 4. 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 different groups and each group is placed under the control of a foreman. You can change your cookie settings at any time. Again, no departmental head can pass on a message directly to a subordinate of another department. 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. Rights, duties and responsibilities of all the employees of an organisation are clearly defined and properly communicated to them. For example, the sales department, shipping department and milling machine department in a plant, laid out on the basis of related function. Advice Ignored: As the staff officers lack authority to put their recommendations into practice, their advice may be ignored by the line executives. Effective Communication: . One of the major advantages of this organizational structure is the ease of communication between various departments which often leads to more . Classical theories of organization associated with Henri Fayol, Frederick W . This leads to the losing of economies to scale. 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. The clarity of authority and tasks within the company introduces discipline. Each organizational structure has its specific characteristics. APR what is it and how to calculate it for a loan? This makes the line of authority straight and vertical. So line organisation enables the fixation of authority and responsibility. (c) Inadequacy of communication There is a failure to get correct information and to act upon it. Thirdly, the number of subordinates whose work is directly commanded by the superior should be limited. More training and development cost is involved in improving staff performance. Lack of Specialization 3. Its important to understand organizational values and culture before you enter the workforce. The work load of executives goes on increasing with the expansion and diversification of the unit. This affects their creativity and capacity for independent thinking. Everything you need to know about the line organisational . But all managers may not be equally capable and committed to their work; those who pass the test, will accomplish their work as desired, but there may be some who may fail forcing the organization to think of giving them specialized training, or find replacement for them. Members of the . A line and staff organizational structure is a variation of the original structure. Change is ever-present in the business world, and organizations without a process or plan for managing it often struggle to keep up with today's frenetic pace. Although there is communication from top to bottom there is usually no communication from the lower ranks to higher ranks and executives. (iii) Line officers are slow to accept new ideas and they resist change. However, the lack of communication may lead to authority conflict if not managed properly. Line-staff organization, in management, approach in which authorities Every employee is responsible to his immediate superior. Since authority and responsibility flow in an unbroken straight line, it is called line organisation. However, you can make the best out of it by making adequate changes in the organizational structure. Line organisation suffers from lack of specialised skill of experts. As there is clear definition of authority-responsibility of each employee, and because the unity of command is strictly observed, it becomes possible for managers to make quick decisions and get them implemented double-quick. (ii) There is concentration of authority at the top. (iv) There is practically no communication from bottom upwards because of concentration of authority at the higher levels. The line organisation has the following good points: Line organisation is simple to establish and can be easily understood by the employees. It will encourage others to follow the same path. Line and staff organization is a little more complicated than the line system. Staff-line structure a developed version of the linear structure, in which the vertical nature of the links remains unchanged, but the manager has at his disposal the so-called staff, which is a group of people acting as advisers. Direct Communication: As this system enables direct contact between the superior and his subordinates, direct communication is made possible. Finding out your culture fit can help you thrive in the workplace. Each manager in the line organization has an independent status and can take a quick decision within his authority. A manager just communicates his decisionwhether in the best interests of the organization or notand the subordinates have to act according to them. Only one person is in charge of a department or division. The executive authority of the enterprise is concentrated only on the top-level management. It is suitable for concerns. Confusion: If the pattern of authority relationship between line and staff executives is not clearly indicated, there may be considerable confusion throughout the organisation. There is a direct link between the superior and his subordinate, both can communicate properly among themselves. 5. 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). Both are equally important to an organization. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. Staff authority refers to advising the people with line authority for better results. Hence, nobody is escaped from the responsibility. Such decisions are executed promptly also. 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. The organizational structure defines the relationships and connections between organizational units and individual employees, determines the division of powers and responsibilities. Provides all authority to manage and control also helps in maintaining strong discipline among the.. 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