Line Organization Meaning, Advantages & Disadvantages

Thu, 07/26/2012 - 21:52 -- Umar Farooq

What is Line Organization Meaning

Line organization is also known as vertical organization or departmental organization. This is the oldest form of organization. Line organization assumes that direct authority is exercised by a superior over his subordinates. The flow of this authority is always downwards. This organization is based on scalar basis.

J.D Mooney and A.C Reiley introduced the idea of line organization. They pointed out that “the degree of authority exists in all organization as on uninterrupted scale or series. The basic of scalar organization is that in any organization there must be a series of superior and subordinates relationship from top organization to the very downward structure of organization.

Advantages of Line Organization

Below are some merits and advantages of line organization or vertical organization

1. Simplicity. It is the simplest form of organization and very simple to understand and implement. It can be easily define and explain to all staff.

2. Responsibility is fixed. In this form of organization responsibilities are fixed and defined. Every person is crystal clear to whom he is answerable and who are accountable to him. In this type of organization shifting of responsibility is not possible because responsibilities are fixed.

3. Unified Control. Good control, direction and direction is possible in line organization because of fixed responsibility. Lower level personnel favorably react to simple the multiple authority.

4. Quick Decision. Single authority, unified control and fixed responsibility to help in quick decision.

5. Flexibility. In type of organization is flexible in character. This is capable of adjusting itself quickly to changing circumstances. This obviously flows from fixed responsibility because of which the executive is sole master in his own sphere of activity.

Disadvantages of Line Organization

Following are some demerits and disadvantages of line organization or vertical organization

1. Over loading. The executive is overloaded at each level of organization. There are several things he must manage independently. Here his level of efficiency is not the same that is why most of the time the organization activities suffer due to overloading.

2. Lack of Specialization. Different types of jobs are looked after, supervised and control by executive. It is physically not possible for him to learn and acquire the skills of the jobs he looks into and at the same time be able to do justice to each job. He cannot claim to be an expert in all types of jobs he handles. Today complex business and industrial organizations need specialization. If unfortunately it is not there the attainment of objectives may not be smooth.