Line organization

Simplest and oldest form of organizational structure. It is also known as military, departmental,
scalar or hierarchal organization. As it is clear from the figure, in line organization, authority flow
vertically downwards from top to bottom.

This structure identifies authority, responsibility and accountability at each level. In this structure,
authority flows directly from top

Advantage:

1. Very simple to understand and to operate

2. Fast communication and easy and feedback can be acted upon faster
3. Rapid decision. So, effective coordination is possible
4. Responsibility is fixed. Hence, mistakes can be easily identified
5. Very strong discipline

Disadvantages

1. Rigid form of organization so there is lack of flexibility

2. Authority may be dictator
3. Lack of Specialization

Suitability

1. Small scale organization

2. Organization having simple routine operation
3. Organization having short chain of command
4. Having few subordinates at each level

Line and Staff Organization

Combination of Line and Functional Organization. It is large in size.

A modified version of line organization. In this structure, the line managers are integrated with staff
specialist. These specialist are experts of various departments who provides technical support and
advise to the line managers. It is basically line in nature and they usually do not pass and command
over line managers

Here, line manager is not bound to follow the advice of staff and he is free to refuse the advice of
staff specialist. In line and staff organization, the flow of authority and responsibility remain same
like line organization and does not undergo any change.

Advantages

1. Reduce burden on line managers

2. Promotes better decision as the staff help the line manager
3. Expert knowledge is available
 Disadvantage

1. Allocation of duties between line and staff is not clear

2. Staff often feel powerless
3. Confusion and conflict may arise between line and staff

Functional Organization Refers to the organization which is divided into numbers of functions.

Each functions of this organization performed by an expert.

Function experts have authority to issue orders in their expertise area.

Every department has its expert who have authority to direct and control their own department

So, we can say that in functional organization, multiplicity of commands ae found.

Formal Organization – Line Organization
Line organization is the simplest framework for the whole
administrative organization. Line organization approaches the
vertical flow of the relationship. In line organization, authority flows
from the top to the bottom. It is also known as the chain of command
or scalar principle. In this article, we will talk about a line
organization.

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Line Organization
Line organization structure is the oldest and simplest form of
organization. In these organizations, a supervisor exercises direct
supervision over a subordinate. Also, authority flows from the top-
most person in the organization to the person in the lowest rung. This
type of an organization is also called a military organization or a
scalar-type organization.
Advantages of a Line Organization

 Simple to work
 Economical and effective. It also allows quick decisions and
efficient coordination.
 Conforms to the scalar principle of organization. Further, it
promotes the unity of command.
 In a line organization, the responsibility for the performance of
tasks is fixed upon definite individuals. Therefore, there is
accountability of delegated tasks.
 There is excellent discipline in a line organization due to unified
control and undivided loyalties.
 The overall cost of running the organization is low due to the
non-involvement of staff personnel.
 It is a stable form of organization.
rganizational structure involves, in addition to task organizational boundary
considerations, the designation of jobs within an organization and the relationships
among those jobs. There are numerous ways to structure jobs within an
organization, but two of the most basic forms include simple line structures and line-
and-staff structures.
In a line organization, top management has complete control, and the chain of
command is clear and simple. Examples of line organizations are small businesses
in which the top manager, often the owner, is positioned at the top of the
organizational structure and has clear "lines" of distinction between him and his
subordinates.
The line-and-staff organization combines the line organization with staff departments
that support and advise line departments. Most medium and large-sized firms exhibit
line-and-staff organizational structures. The distinguishing characteristic between
simple line organizations and line-and-staff organizations is the multiple layers of
management within line-and-staff organizations. The following sections refer
primarily to line-and-staff structures, although the advantages and disadvantages
discussed apply to both types of organizational structures.
Several advantages and disadvantages are present within a line-and-staff
organization. An advantage of a line-and-staff organization is the availability of
technical specialists. Staff experts in specific areas are incorporated into the formal
chain of command. A disadvantage of a line-and-staff organization is conflict
between line and staff personnel.

LINE-AND-STAFF POSITIONS
A wide variety of positions exist within a line-and-staff organization. Some positions
are primary to the company's mission, whereas others are secondary—in the form of
support and indirect contribution. Although positions within a line-and-staff
organization can be differentiated in several ways, the simplest approach classifies
them as being either line or staff.
A line position is directly involved in the day-to-day operations of the organization,
such as producing or selling a product or service. Line positions are occupied by line
personnel and line managers. Line personnel carry out the primary activities of a
business and are considered essential to the basic functioning of the organization.
Line managers make the majority of the decisions and direct line personnel to
achieve company goals. An example of a line manager is a marketing executive.
 Figure 1
Line-and-Staff Organization

Although a marketing executive does not actually produce the product or service, he or she
directly contributes to the firm's overall objectives through market forecasting and generating
product or service demand. Therefore, line positions, whether they are personnel or
managers, engage in activities that are functionally and directly related to the principal
workflow of an organization.

Staff positions serve the organization by indirectly supporting line functions. Staff
positions consist of staff personnel and staff managers. Staff personnel use their
technical expertise to assist line personnel and aid top management in various
business activities. Staff managers provide support, advice, and knowledge to other
individuals in the chain of command.
Although staff managers are not part of the chain of command related to direct
production of products or services, they do have authority over personnel. An
example of a staff manager is a legal adviser. He or she does not actively engage in
profit-making activities, but does provide legal support to those who do. Therefore,
staff positions, whether personnel or managers, engage in activities that are
supportive to line personnel.

LINE-AND-STAFF AUTHORITY
Authority within a line-and-staff organization can be differentiated. Three types of
authority are present: line, staff, and functional. Line authority is the right to carry out
assignments and exact performance from other individuals.

LINE AUTHORITY.
Line authority flows down the chain of command. For example, line authority gives a
production supervisor the right to direct an employee to operate a particular
machine, and it gives the vice president of finance the right to request a certain
report from a department head. Therefore, line authority gives an individual a certain
degree of power relating to the performance of an organizational task.
Two important clarifications should be considered, however, when discussing line
authority: (1) line authority does not ensure effective performance, and (2) line
authority is not restricted to line personnel. The head of a staff department has line
authority over his or her employees by virtue of authority relationships between the
department head and his or her directly-reporting employees.

STAFF AUTHORITY.
Staff authority is the right to advise or counsel those with line authority. For example,
human resource department employees help other departments by selecting and
developing a qualified workforce. A quality control manager aids a production
manager by determining the acceptable quality level of products or services at a
manufacturing company, initiating quality programs, and carrying out statistical
analysis to ensure compliance with quality standards. Therefore, staff authority gives
staff personnel the right to offer advice in an effort to improve line operations.

FUNCTIONAL AUTHORITY.
Functional authority is referred to as limited line authority. It gives a staff person
power over a particular function, such as safety or accounting. Usually, functional
authority is given to specific staff personnel with expertise in a certain area. For
example, members of an accounting department might have authority to request
documents they need to prepare financial reports, or a human resource manager
might have authority to ensure that all departments are complying with equal
employment opportunity laws. Functional authority is a special type of authority for
staff personnel, which must be designated by top management.

LINE-AND-STAFF CONFLICT
Due to different positions and types of authority within a line-and-staff organization,
conflict between line and staff personnel is almost inevitable. Although minimal
conflict due to differences in viewpoints is natural, conflict on the part of line and staff
personnel can disrupt an entire organization. There are many reasons for conflict.
Poor human relations, overlapping authority and responsibility, and misuse of staff
personnel by top management are all primary reasons for feelings of resentment
between line and staff personnel. This resentment can result in various departments
viewing the organization from a narrow stance instead of looking at the organization
as a whole.
Fortunately, there are several ways to minimize conflict. One way is to integrate line
and staff personnel into a work team. The success of the work team depends on how
well each group can work together in efforts to increase productivity and
performance. Another solution is to ensure that the areas of responsibility and
authority of both line and staff personnel are clearly defined. With clearly defined
lines of authority and responsibility, each group may better understand their role in
the organization. A third way to minimize conflict is to hold both line and staff
personnel accountable for the results of their own activities. In other words, line
personnel should not be entirely responsible for poor performance resulting from
staff personnel advice.
Line-and-staff organizations combine the direct flow of authority present within a line
organization with staff departments that offer support and advice. A clear chain of
command is a consistent characteristic among line-and-staff organizational
structures. Problems of conflict may arise, but organizations that clearly delineate
responsibility can help minimize such conflict.

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