Line Organisation

It is perhaps the oldest and the simples organisational structure. In this kind of structure every manager exercise a direct authority over his subordinate who in turn directly reports to their superiors. There is a hierarchical arrangement of authority. Each department is self contained and works independently of other departments. Lines of authority are vertical i.e. from top to bottom. There are no staff specialists.

download Line organisational structure

Advantages
Simple to establish and operate Promotes prompt decision making. Easy to control as the managers have direct control over their subordinates. Communication is fast and easy as there is only vertical flow of communication.

Disadvantages

Lack of specialisation Managers might get overloaded with too many things to do. Failure of one manager to take proper decisions might affect the whole organisation.

However, line structures are suitable for

small businesses where there are few subordinates organisations where there is largely of routine nature and methods of operations are simple.

Line organization is the most oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom. This is the reason for calling this organization as scalar organization which means scalar chain of command is a part and parcel of this type of administrative organization In this type of organization, the line of command flows on an even basis without any gaps in communication and co- ordination taking place.

Features of Line Organization

1. 2. 3. 4. 5. It is the most simplest form of organization. Line of authority flows from top to bottom. Specialized and supportive services do not take place in these organization. Unified control by the line officers can be maintained since they can independently take decisions in their areas and spheres. This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern.

Merits of Line Organization

1. 2. 3. 4. 5. Simplest- It is the most simple and oldest method of administration. Unity of Command- In these organizations, superior-subordinate relationship is maintained and scalar chain of command flows from top to bottom. Better discipline- The control is unified and concentrates on one person and therefore, he can independently make decisions of his own. Unified control ensures better discipline. Fixed responsibility- In this type of organization, every line executive has got fixed authority, power and fixed responsibility attached to every authority. Flexibility- There is a co-ordination between the top most authority and bottom line authority. Since the authority relationships are clear, line officials are independent and can flexibly take the decision. This flexibility gives satisfaction of line executives. Prompt decision- Due to the factors of fixed responsibility and unity of command, the officials can take prompt decision.

6.

Demerits of Line Organization

1. 2. Over reliance- The line executives decisions are implemented to the bottom. This results in o ver-relying on the line officials. Lack of specialization- A line organization flows in a scalar chain from top to bottom and there is no scope for specialized functions. For example, expert advices whatever decisions are taken by line managers are implemented in the same way. Inadequate communication- The policies and strategies which are framed by the top authority are carried out in the same way. This leaves no scope for communication from the other end. The complaints and suggestions of lower authority are not communicated back to the top authority. So there is one way communication. Lack of Co-ordination- Whatever decisions are taken by the line officials, in certain situations wrong decisions, are carried down and implemented in the same way. Therefore, the degree of effective coordination is less. Authority leadership- The line officials have tendency to misuse their authority positions. This leads to autocratic leadership and monopoly in the concern.

3.

4.

5.

Committee

A committee organization is an association of people set up to arrive at solutions to common problems. The line people are given opportunities to discuss their problems in the committee. The committee organization is not like line or functional organization, but is similar to staff organization. Its decisions are implemented, whereas staff decisions are not necessarily implemented. It is a formal part of the organizational structure wherein the members are specifically mentioned. For example, the Finance Committee will include all the functional managers, viz. Marketing Manager, Production Manager, Personnel Managers, etc. as members, and the Managing Director as the Chairman. It will decide the financial requirements of each and every department. The decisions taken by the committee are followed by the line people, as the committees are representatives of various functional departments. Committee organization provides integrated ideas of various related people of the company. Participative management in true form is visible under committee organization. It is an incentive to volunteer to from integrated ideas and to willingly follow them. New ideas and solutions of various problems are feasible with the committee organization. It is a very good example of democratic management wherein every member has an equal opportunity to raise his voice and come to a common solution. Flexibility and technical excellence are possible under this organization. The top management is relieved from certain problems. The company can encounter the changing and uncertain environment in a better way. It facilitates high quality and innovative solutions to technical problems. Coordination and control become easy because open discussion is invited in the committee. Ideas and specialized functions are feasible under committee organization. However, committee organization may prove ineffective in some cases because of time consuming and inefficient devices, aggressive attitudes of some persons and inactive role of a particular group. The committee organization should not be used to supplement or support inefficient managers. An able and competent top manager with the capacity to handle the proceedings of the committee and manage disgruntled employees during meetings can get the maximum benefits out of committee organization. On the contrary, a weak and submissive manager or chairman may cause a number of problems in committee organization.

Committee refers to a formal group of people created to discuss, decide, and act in patters related to specific ares of work assigned to them. Members of a committee generally are drawn from different departments, functions in an organization, or may be from even different organizations. As a result, usually they work part time for the work of the committee, and represent the interest of their parent department or organization in the committee. A common feature of committee is the joint discussions and decisions of the committee in formal meetings. The advantages of committee include the following.

Committees help to bring together a variety views, interests, and expertise together for completion of task. Committees provide a mechanism for discussion and and agreements based on consideration of a wider range of interests and alternatives. Committee enable use of specialized manpower or expertise for a specific task, by permitting such experts to work part time on the committees. Committees avoid the mistakes of hasty decisions taken without due considerations. Decision taken by committee are more easily accepted by the all departments because of representation of their interests and viewpoint in the decision making process by way of their representative working on the committee. Disadvantages of Committee include the following.

Committee dilute the responsibility for a task. No single person can be held responsible for poor results produced by committee. Members of the committee have dual loyalties - towards their parent department and toward the committee. Because of this the meeting of committees can degenerate into a battle ground for conflicting interests of different departments, rather than a forum for joint action. Work in a committee being part time and an additional responsibility beyond normal responsibilities within parent department, members of the committee may not take the work of committee very seriously. Committees take too much time to decide and act because committee often work part time and the discussion and decision in meetings of the committee is a time consuming process. Many times committees delay taking decision as they are not able to reach consensus. Committees in addition to causing delay in decision and action, also cause waste of time of people working on the committee. Decisions of committee are frequently in the nature of recommendations and therefore cannot be enforced easily in the organization. Decisions of committees often lack the authority of decisions taken at higher levels of management within the regular organization structure.