Even the workers at the lower level can understand the structure of this organization. The General Manager is responsible to the Board of Directors who are elected by the shareholders of that business organization. He has to take various decisions by himself. 3. Functional Organization 4. Line organization structure is the oldest and simplest form of organization. 7. It is the oldest form of organization. Every person is crystal clear to whom he is answerable and who are accountable to him. 2. Line organization is also known as vertical organization or departmental organization. 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. Line officers take their own decisions without looking to specialized personnel. 8. Today we will learn a little more about the functional organizational structure. The whole organisation is put under the overall control of Chief Executive who may be called by the name of General Manager. Content Guidelines 2. The flow of this authority is always downwards. This organization is based on scalar basis. Only one person is in charge of a department or division. Line organization has direct vertical relationship. Any communication between them is routed through their immediate boss. 2. Divisional organizational design involves grouping of all functions requires to produce a specific product or product line into one division or department. In the given article we’ve made a comparison of the two types of organization… 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. For example, Sales Department. Everybody is responsible for his work and is accountable to his boss. Staff authorities’ means authority to advice, support and serve the line managers. The line officers cannot be experts in every line of business. It is the simplest form of organization and very simple to understand and implement. This avoids all kinds of misinterpretations and ensures peak performance. A "line function" is one that directly advances an organization in its core work. 5. 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. Following is an overview of some commonly used organizational structures. They judge the performance of persons according to their own yardsticks. 6. His task is challenging and he is expected to discharge his responsibility in an efficient way. Prohibited Content 3. Each employee is taking decision according to the level of authority delegated by his/her immediate superior. The superior can exercise effective control and supervise over the persons under him. 10. LINE AUTHORITY: The most fundamental authority within an organization, reflects existing superior-subordinate relationships. They have staff wings like intelligence, medical and so on. Others include: divisional structure, matrix structure, and flat structure. 2. The deputy managers get orders from the departmental manager and in turn pass them on to the supervisors. A new record is inserted in the last page of the file; if there is insufficient space in … Directness: Since the authority flows directly from the immediate superior, each employee knows to whom he is responsible. A foreman heads each department. Line organization assumes that direct authority is exercised by a superior over his subordinates. The departmental head has full authority to manage and control of that department. Report a Violation, Line Organisation: Meaning, Types, Merits and Demerits, Line and Staff Organisation: Meaning, Merits and Demerits, Committees: Meaning, Need, Types, Advantages and Weakness. The operation of line organization is very simple. All departmental heads try to run the departments in their own way and according to their suitability. Each position in the structure has an authority over a lower position. Line organization can be further classified into two kinds: 1. There are no staff personnel for consultation too. 2. 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“. The lower level officials do not show initiative in suggesting new things. 11. In this type of organization shifting of responsibility is not possible because responsibilities are fixed. Line Management vs Staff Management A line manager is directly involved in the revenue generating outputs of a business. The divisions are solely for the purpose of control and direction. Flexibility: This system is flexible in the sense that it is subject to quick adjustments to suit the changing conditions. The chain of command and each department head has control over their departments. The self-contained department structure can be seen as its main characteristic. An unordered file, sometimes called a heap file, is the simplest type of file organization. Likewise, several groups are formed and placed under the control of an individual for the sake of convenience of control. This is a highly collaborative work environment where every individual is valued and communication is a top priority. All managerial functions are practiced by line authority with the help of specialized skill of staff authority. The line organisation can be of two types, viz., (a) pure line organisation and (b) departmental line organisation. The line sales organization is the oldest and simplest sales organizational structure. The officers work according to their whims and preferences. 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 … 5. All the employees are performing the same type of work at one level. A matrix organizational structure is a bit more complex, in that there’s more than one line of reporting managers. Under this method, authority flows in a vertical manner form top to bottom. Development of Executives: This system offers more opportunities to the executives for training and development. This line system is not without disadvantages. 3. The ultimate authority for taking all decisions lies with line officers. In line organisation too much is expected from executives. All persons at the same level of authority should be independent of one another. Each of these has their own advantages and drawbacks. There is a likelihood that some persons may be given favours and deserving persons, on the other hand, may be ignored. This type of organisation helps in co-ordination and control. https://www.toppr.com/.../organizing/formal-organization-line-organization The modern military organisations do not entirely rely on line organisation. 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 … Sometimes, several sub-departments are formed within one department for effective administration purposes. Content Filtrations 6. Lack of Initiative: Since there is utmost concentration of authority in the hands of the top management, the section heads will lose their initiative. The departmental manager is responsible or answerable to his immediate superior i.e. TOS 7. And so, formal relationship between the members of the organization is set up, so as to coordinate their efforts. A foreman heads each department. This type of organisation is in accordance with the principle of scalar chain. TYPES OF ORGANIZATION TYPES OF DEPARTMENTALIZATION CENTRALIZATION AND DECENTRALIZATION “Organization is a system of co-operative activities of two or more persons.” Organization is the process of dividing up of the activities. In pure line organisation all persons at a given level perform the same type of work. Every department has its own line of organisation. Manager and the sudden disappearance of such persons from the departmental manager and in turn pass on. 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