What is Line organisation, its features, advantages and limitations?

[rms]

Explain Line organisation with its merits and demerits

[nbm]

This is the oldest form of organisation. This is known by different names, i.e. military,
vertical, scaler, departmental, organisation. All other types of organisation structure have mostly been
either modifications of this organisation. The concept of line organisation holds that in any organisation
derived from a scalar process, there must be a single head who commands it. Although an executive can
delegate authority, he has ultimate responsibility for results. According to McFarland, "Line structure
consists of the direct vertical relationship which connect the positions and tasks of each level with
those above and below it." According to Allen, "Organisationally, the line is the chain of command that
extends from the board of directors through the various delegations and redelegation of authority and
responsibility to the point where the primary activities of the enterprise are performed." Following is
the chart showing line organisation:

Features of line organisation:

(1) There are many levels of management depending upon the scale of business and decision-
making ability of managers. Each level of management has equal rights.

(2) There is vertical flow of authority and responsibility. The lower positions derive authority from y
the positions above them.

(3) There is unity of command. Every person is accountable to only one person (his immediate boss)
and none else. A person receives orders only from his immediate boss.

(4) There is scalar chain in line organisation. The flow of orders, communication of suggestions and
complaints etc. are made as it is in the case of a ladder. One cannot defy the claim.

(5) There is limit on subordinates under one manager. A manager has control only over the
subordinates of his department.

MERITS

(1) Simplicity—It is the simplest of all types of organisations. It can be easily established and easily
understood by the workers.

(2) Clear-cut division of authority and responsibility—The authority and responsibility of every
person is clearly defined. Everyone knows as to whom he can issue orders and to whom he is
accountable. Further it is easier to fix up the responsibility if there is any lapse anywhere in the
performance of activities.

(3) Strong Discipline—Because of direct authority—responsibility relationships, discipline can be
maintained more effectively. Direct supervision and control also helps in maintaining strong discipline
among the workers.

(4) Unified control—Since the orders are given by one superior, there is no confusion among the
subordinates. This ensures better understanding and quick action.

(5) Prompt Decisions-As the superiors enjoy full authority, quick decisions are taken by them. Such
decisions are executed promptly also.

(6) Flexibility-Since each departmental head has sole responsibility for his department, he can easily
adjust the organisation to changes in business situation.

DEMERITS

(1) Heavy Burden of work—Since the departmental head has to look after all the activities of his
department, he is over burdened with work. He may neglect some of the duties and there may be
inefficiency in management.

(2) Concentration of Authority—It is dictatorial in nature as all important powers are concentrated
in the hands of a few top executives. If they are not able the enterprise will not be successful.

(3) Lack of specialisation—Line organisation suffers from lack of specialised skill of experts. It is
extremely difficult for one person to handle activities of diverse nature. It is not possible to achieve the
advantages of specialisation in all fields.

(4) Lack of communication -There is failure to get correct information and to act upon it due to lack
of communication. Although there is communication from top to bottom there is usually no
communication from the lower ranks to higher ranks and executives. They are not provided with an
opportunity to put forward their view point or problems or suggestions to persons at the top level. Thus,
they lose their capacity for independence thinking.

(5) Scope for favouritism—Since the departmental head is almost all-in-all for the activities of his
department. There is scope for favouritism. There may be a good deal of nepotism and jobbery and
personal prejudices. The executive may appoint and promote his own men in various positions ignoring
the claim of efficient persons.

[shabeer]

Thanks for the material. Bright and Crisp, a must read