Line organization structure:
This is the oldest as well as the most common type of organization. It is still used by many concerns, especially the small ones. It is also known as the military system as this type of organization is usually found in the army.
In the line organization, the line of authority moves directly from the top level to the the lowest level in a step-by-step manner.
It is straight and vertical. The top-level management takes all major decisions and issues directions for actual execution. The general manager, for example, issues orders to various departmental managers.
Thereafter, the departmental manager issues instructions to the works manager. The works manager will issue instructions to the foreman. In this manner, the orders and instructions will be issued to the workers working at the lowest level.
Thus authority moves downward and also step-by-step. The responsibility, on the other hand, moves in the upward direction. The authority is greatest at the top and reduces through each successive level down the organizational scale.
Advantages of line organization structure:
- Line organization structure is easy to understand and followed by superiors and subordinates. It is simple and clear as regards authority and accountability
ii. Prompt Decisions:
- Line organization facilitates prompt decision-making at all levels as the authority given is clear and complete.
- It brings discipline to the organization due to unity of command, a delegation of authority, and direct accountability.
- Line organization is economical as experts are not appointed.
v. Attraction to Talented Persons:
Line organization brings out talented workers and develops their quality of leadership. It offers opportunities for self-development to employees,
Quick Communication, High Efficiency, Flexibility, and High Employee Morale are some more advantages of line organization structure.
Limitations of line organization structure:
i. Heavy Burden online Executives :
- The line executives are given too many duties and responsibilities. Even the quality of the decisions of executives may suffer due to the heavy burden of duties and responsibilities.
ii. Non-availability of Services of Experts:
- There is an absence of skilled experts in the line organization. Expert assistance is not available promptly when needed by line executives.
- There is wide scope for favoritism in the line organization. The leadership of the departmental executives is autocratic due to the heavy concentration of powers. He may favor some employees at the cost of others.
iv. Too Much Dependence on Limited Executives:
- In the line organization, all powers are concentrated in the hands of a few executives. Naturally, the success and stability of the entire organization depend on their personal skill, initiative, and interest.
There is rigidity in the working of line organization.
Delays in Communication, Limited Freedom to Employees, and Unsuitability to Modern Large Business Units are some more demerits of line organization.