2. LINE ORGANISATION
In a line organization, top management has complete
control, and the chain of command is clear and
simple.
Oldest type of organization followed.
Each department is a complete self contained unit.
A separate person will look after the activities of
the department and he has full control over the
department.
Followed mainly in military organization.
Under this the line organization,authority flows
from top to bottom vertically.
3. `BOARD OF DIRECTORS
GENERAL MANAGER
PURCHASE M
PRODUCTION M
SALES M
FINANCIAL M
WORKERS
WORKERS
WORKERS
WORKERS
4. LINE AND STAFF ORGANISATION
According to Allen, “Line refers to those positions
and elements of organisation, which have the
responsibility and authority and are accountable for the
accomplishment of primary objectives. Staff elements
are those which have responsibility and authority for
providing advice and service to the line in the
attainment of objectives.”
5.
6. MERITS
1. There is a planned specialization.
2. There is a well defined authority and responsibility.
The line of command is maintained.
3. There is bifurcation of conceptual and executive
function.
4. The staff with its expert knowledge provides
opportunities to the line officers for adopting a
rational multidimensional view towards a problem.
5. This type of organisation nourishes organisation
growth as each man grows in his own speciality. It also
helps co-ordination through co-operation and
leadership
7. Demerits
1. There are bound to be occasions when line and staff
may differ in opinion. This may result conflict of interest &
prevents a harmonies relationship.
2. There is a misinterpretation of expert advice by
incompetent line executives.
3. The staff people feel themselves status-less without
authority.
4. Staff becomes ineffective in absence of authority.