Forms of Organisational Structure: Line, Functional, and

Line and Staff Organisation

The adoption of a particular form of organisational structure largely depends upon the nature,
scale and size of the business. The organisational structure is primarily concerned with the
allocation of activities or tasks and delegation of authority.

1. Line Organisation:
Line organisation is the simplest and the oldest type of organisation. It is also known as scalar
organisation or military type of organisation. In the words of J.M. Lundy, It is characterized by
direct lines of authority flowing from the top to the bottom of the organizational hierarchy and
lines of responsibility flowing in an opposite but equally direct manner.

An important characteristic of such type of organisation is superior-subordinate relationship.

Superior delegates authority to another subordinate and so on, forming a line from the very top
to the bottom of the organisation structure. The line of authority so established is referred as
line authority. Under this type of organisation authority flows downwards, responsibility
moves upwards in a straight line. Scalar principle and unity of command are strictly followed in
line organisation.

This type of organisation resembles with the army administration or military type of
organisation. As in case of military, commander-in-chief holds the top most position and has
the entire control over the army of the country, which in turn is developed into main area
commands under major-generals.

Each area has brigade under brigadier-generals, each brigade is fabricated into regiments under
its colonels, each regiment into battalions under majors, each battalion into companies under
captains, each company sub-divided under its lieutenants and so on drawn to corporal with his
squad.

Types of line organization:

Line organisation is of two types viz. (a) Simple or Pure Line Organisation (b) Departmental Line
Organisation

(a) Simple or Pure Line Organisation:

In the Pure Line organisation the activities (at any level of management) are the same with
each man performing the same type of work and the divisions primarily exist for the purpose of
control and direction. In practice, such type of organisation rarely exists.

The following diagram shows the pure line organisation:

In this type of organisation all the workers perform the same type of work. The departmental
divisions are made only for the sake of convenience of supervision and management.

(b) Departmental line organisation:

Under this type of organisation, an organisation is divided into various departments headed by
different departmental heads. All the departments operate under the ultimate control of
general manager. The orders flow directly from the general manager to all the departmental
heads that in turn pass on to their respective subordinates.

Likewise, the subordinates, inturn, communicate the orders to the workers under them. The
various departmental heads will be perfectly independent of each other and they will enjoy
equal status the central idea, in the formation of such departments is not similarly or dis-
similarity of functions or activities, but unity of control and line authority and responsibility
from the top of the organisation to the bottom.

Suitability of line organization:

The line organisation can be successfully followed where (a) scale of operations is limited or
business is on small scale basis, (b) work is simple and routine in nature, (c) business is being
done in continuous type of industries like oil refining, sugar, spinning and weaving etc., (d) the
labour management problems are not complex and can be easily resolved, (e) the machinery is
automatic, and (J) the workers are disciplined.
Characteristics of line organization:
The main features of line organisation are as follows:

1. Orders and instructions flow from top to the bottom, whereas requests and suggestions
move from bottom to top.

2. The principle of unity of command is the most salient feature of this type of organisation. In
simple words, the orders are received by the subordinates from one boss.

3. The subordinates are accountable to their immediate superior.

4. There are limited numbers of subordinates under one superior.

5. This is simple to operate and control.

6. Co-ordination can be easily achieved.

Advantages of line organization:

Following are the main advantages of line organisation:

1. Simplicity:

It is very simple to establish and operate. It can be easily understood by the employees.

2. Fixed responsibility:

Duties and responsibilities are clearly defined for each individual with reference to the work
assigned to him. As a result everybody knows to whom he is responsible and who are
responsible to him. Nobody can avoid responsibility.
3. Discipline:

This type of organisation ensures better discipline in the enterprise. Singleness of

responsibilities facilitates discipline in the organisation. The workers at the lower levels will be
more loyal and responsible to one single boss rather than to a number of bosses.

4. Flexibility:

It is flexible in the sense that it is subject to quick adjustments to suit to changing conditions. In
the words of Wheeler, It permits rapid and orderly decisions in meeting problems at various
levels of organisation. In simple words, it is more adaptive to the changed circumstances.

5. Co-ordination:

It helps to achieve effective co- ordination. All the activities pertaining to single department are
controlled by one person.

6. Direct communication:

As there will be direct communication between the superior and the subordinates at different
levels it would be helpful in achieving promptness in performance.

7. Unity of command:

Every worker is accountable to one boss in the department under this type of organisation. In
this manner it is in accordance with the principle of unity of command.

8. Economical:

It is not complex and expensive. It is simple and economical in operation. It does not need any
expert and specialised personnel.

9. Quick decisions:

On account of its simple operation and unified control and responsibility, decisions can be
taken promptly. The process of decision-making is further quickened as the decision is taken by
one person.

10. Executive development:

Under this organisation, the department head is fully responsible for every activity in his
department. He discharges his responsibilities in an efficient manner. He comes across many
problems and obstacles in performing his duties.
This provides him an ample opportunity to enhance his capabilities and organisational abilities
and is greatly helpful in his overall development and performance.

Disadvantages of line organization:

Following are the main drawbacks of line organisation:

1. Overloading:

The main disadvantage of this system is that it tends to overload the existing executive with too
many responsibilities. The work may not be performed effectively on account of innumerable
tasks before the single executive.

2. Lack of specialization:

Absence of managerial specialisation is the major drawback of this system. On account of many
functions and complexities it is very difficult for a single individual to control all the matters
effectively.

The executive may not be expert in all aspects of managerial activities. The burden of
responsibilities on the shoulders of the manager can crush him under the heavy workload.

3. Scope for favoritisms:

There may be a good deal of favouritism and nepotism under this type of organization. As the
concerned officer will judge the performance of the persons at work according to his own
norms, it is possible that efficient people may be left behind and inefficient or yes men may
get higher and better posts.

4. Lack of co-ordination:

In reality it is very difficult to achieve proper co-ordination among various departments

operating in an organisation. This is because each departmental manager or head carries the
functioning of his department in accordance with the ways and means suitable to him.

This leads to lack of uniformity in operation among various departments which is detrimental in
achieving proper co-ordination in the overall functioning of the various departments operating
in the organisation.

5. Lack of initiative:

Under line organization, ultimate authority lies in the hands of top management and
departmental managers or heads have little powers. This adversely affects their initiative and
enthusiasm to motivate the subordinates working under them.
6. Lack of communication from lower ranks:

Under line organisation suggestions move from down to upwards the superiors usually do not
pay attention to suggestions sent by lower ranks. This leads to inadequacy of communication
from subordinates to superiors.

2. Functional Organisation:
F.W. Taylor, who is better known as the father of scientific management developed the concept
of Functional Organisation. As the very name suggests, functional organisation implies that the
organisation should be based on various functions. Taylors functional approach is mainly based
on principle of specialization and tries to bring about organisational balance.

The principle of specialisation embodies the concept that both the workers and the supervisors
can develop a higher degree of proficiency by separating the manual from the mental
requirements. Taylor recommended that there should be functionalisation even at the shop
level where workers have to produce goods. He felt that the usual practice of putting one
foreman in charge of some 40 to 50 workers should be avoided.

Taylors concept of Functional Foremanship (as he puts it), is a system comprising of eight
different foremen discharging different functions. Every worker in the organisation is directly
connected with these foremen.

The eight specialist foremen are:

(a) Route Clerk, (b) Instructions Card Clerk, (c) Time and Cost Clerk, (d) Shop Disciplinarian,
(e) Gang Boss, (f) Speed Boss, (g) Repair Boss, and (h) Inspector. The first four bosses
operate from Planning Department, whereas the other four are known as Executive
Functional Bosses. They function in the production department.

A brief explanation of these eight functional foremen is given below:

(a) Route clerk:

He lays down the exact path or route to be followed by raw material transforming it into
finished product.

(b) Instruction card clerk:

He prepares detailed instructions to be followed in doing the work as per the route laid down
by the route clerk.
(c) Time and cost clerk:

He determines the total time to be taken in the completion of a product and also works out the
cost of production per unit and total cost. He prepares various work schedules and cost sheets
in order to have proper control over time and cost incurred in producing goods.

(D) Shop disciplinarian:

He is responsible for maintaining proper discipline in the organisation. In fact, he is the guardian
of orderliness in the factory. In the words of Kimball and Kimball Jr. The shop disciplinarian is
responsible for discipline and good order, fie is also the peacemaker and assists in adjusting
wages.

He is helpful in resolving minor disputes regarding wages, holidays, working conditions and
hours of work etc. He initiates a proper code of conduct in the organisation.

(e) Gang boss:

He makes the availability of different machines and tools required by workers to carry out their
work. He also provides various production designs, drawings, raw materials etc.

(f) Speed boss:

He controls the speed of different machines operating in the organisation. He sometimes

demonstrates the workers the proper speed with which the machines should operate. He
undertakes proper supervision over speed of machines.

(g) Repair boss:

He is concerned with proper maintenance and repairs of machines for keeping them in working
order. In the words of Spriegel, His job of maintenance includes cleaning the machine, keeping
it free from rust and scratches, oiling it properly and preserving the standards which have been
set up for the auxiliary equipment connected with the machine such as belts, counter shafts
and clutches. His main task is to undertake immediate repair of the defective machines so that
the work may not suffer.

(h )Inspector:

He checks and certifies the quality of work i.e., whether or not it is up to pre-determined
standards. Achievement of pre-set standards is confirmed by the inspector. He develops the
feeling of quality consciousness among the workers. In order to carry out his job effectively, an
inspector must possess proper knowledge and the technicalities involved in quality control.

The following diagram shows Taylors Functional Foremanship:

While developing the concept of Functional Foremanship, F.W. Taylor suggested that it is
unscientific to overload a foreman with entire responsibility of running a department. He
advocated that direction of work should be decided by functions and not be mere authority.

He thought that to be successful in performing his duties a foreman should possess various
qualities viz., education, special or technical knowledge, manual dexterity or strength, tact,
energy, honesty, common sense and good health.

Spriegel has nicely explained Functional Organization. Each worker, instead of coming into
contact with one superior, would receive his orders from a group of specialised supervisors,
each of whom performs a particular function.

Functional organisation also operates at higher level of management. The whole work in the
organisation is divided in various departments. Similar type of work and transactions are put in
one department under the control of a departmental manager or head. Various departments
are also known as functional areas of management viz., Purchases, Sales, Finance, Production,
and Personnel etc. The respective managers of these departments will be responsible for
carrying out various activities of their departments in the organisation.

For example, marketing manager will be responsible for carrying out marketing activities and
personnel manager will be responsible for looking after the personnel matters in all the
departments of the organisation.

The underlying idea of functional organisation at the top level of management is that a
subordinate anywhere in the organization will be controlled and commanded directly by
number of managers operating in different departments.

Advantages of functional organisation. Following are the main benefits derived from
functional organisation:

1. Specialisation:

This system derives the benefits of specialisation. As every functional incharge is an expert in
his area, he will guide using his specialisation and with the help of the subordinates, try to
attain the specified objectives.

2. Increased efficiency:

This type of organisation ensures enhanced efficiency as the workers operate under the expert
and competent personnel and perform limited operations.

3. Limited duties:

The functional foremen have to carry out the limited number of duties concerning their area of
work. This considerably reduces the burden of work and makes possible for the foreman to
carry out the work in the best possible manner.

4. Scope for expansion:

Functional organisation offers a great scope for expansion of business enterprise without any
dislocation and loss of efficiency as each man grows on account of his own speciality.

5. Flexibility:

It is flexible pattern of organisation. A change in organisation can be made without disturbing

the whole organisation. In the words of Louis A. Allen, Function as a whole can he cut by
eliminating positions at the lower levels without seriously affecting its total performance.

Disadvantages of Functional Organization:

Despite the above advantages, this type of organization suffers from the following
disadvantages:

1. Conflict in authority:

The authority relationship violates the principle of unity of command. It creates several bosses
instead of one line authority. It leads to conflict and confusion in the minds of the workers to
whom they should obey and whom they should ignore.

2. Difficulty in pinpointing responsibility:

On account of the non-application of the principle of unity of control, it is very difficult for the
top management to fix the responsibility of a particular foreman. There arises a tendency for
shirking of responsibility.

3. Expensive:

This pattern of organisation is quite impracticable and expensive. Multiplicity of experts

increases the overhead expenditure. The small organisations cannot afford to install such a
system.

4. Discipline is slackened:

Discipline among the workers as well as lower supervisory staff is difficult to maintain as they
are required to work under different bosses and this may hamper the progress of the
organisation.

5. Lack of co-ordination:

Appointment of several experts in the organisation creates the problem of co-ordination and
delay in decision-making especially when a decision requires the involvement of more than one
specialist.

3. Line and Staff Organisation:

The line and staff organisation is an improvement over the above mentioned two systems viz,
line organisation and functional organisation. The line organisation concentrates too much on
control whereas the functional system divides the control too much.

The need was, therefore, for a system that will ensure a proper balance between the two. The
need has been fulfilled by line and staff organisation. The system like line organisation also
owes its birth to army.
The commanders in the field who are line officers are assisted by the staff that helps them in
formulating strategies and plans by supplying valuable information. Similarly in organisation,
line officers get the advice of the staff which is very helpful in carrying on the task in an efficient
manner. However, staffs role is advisory in nature. Line officers are usually assisted by staff
officers in effectively solving various business problems.

The staff is usually of three types viz:

(a) Personal Staff:

This includes the personal staff attached to Line Officers. For example, personal assistant to
general manager, secretary to manager etc. The personal staff renders valuable advice and
assistance to Line Officers.

(b) Specialised Staff:

This category includes various experts possessing specialised knowledge in different fields like
accounting, personnel, law, marketing, etc. They render specialised service to the organisation.

For example, a company may engage a lawyer for rendering legal advice on different legal
matters. Similarly, it may engage a chartered accountant and a cost accountant for tackling
accounting problems.

(c) General Staff:

This comprises of various experts in different areas who render valuable advice to the top
management on different matters requiring expert advice.
Advantages of Line and Staff Organization

Important advantages of Line and Staff Organisation are:

1. Specialisation:

This type of organisation is based on planned specialisation and brings about the expert
knowledge for the benefit of the management.

2. Better decisions:

Staff specialists help the line manager in taking better decisions by providing them adequate
information of right type at right time.

3. Lesser Burden on line officers:

The work of the line officers is considerably reduced with the help of staff officers. Technical
problems and specialised matters are handled by the Staff and the routine and administrative
matters are the concern of Line Officers.

4. Advancement of research:

As the work under this type of organisation is carried out by experts, they constantly undertake
the research and experimentation for the improvement of the product. New and economical
means of production are developed with the help of research and experimentation.

5. Training for line officer:

Staff services have proved to be an excellent training medium for Line Officers.

Disadvantages of Line and Staff Organisation:

1. Conflict between line and staff authorities:

There may be chances of conflict between line and staff authorities. Line Officers resent the
activities of staff members on the plea that they do not always give correct advice. On other
hand staff officials complain that their advice is not properly carried out.

2. Problems of line and staff authority:

There may be confusion on the relationship of line and staff authorities. Line Officers consider
themselves superior to Staff Officers. The Staff Officers object to it.

3. Lack of responsibility:
As the staff specialists are not accountable for the results, they may not perform their duties
well.

4. The system is quite expensive:

The appointment of experts involves a heavy expenditure. Small and medium size organisations
cannot afford such a system.

5. More reliance on staff:

Some of the line officers excessively rely on the staff. This may considerably reduce the line
control.

4. Organizational Structure of a Committee

Committees are commonly found in nonprofit organizations as governing boards or project-
based volunteer committees. Some for-profit companies use committees to help the board or
to manage non-essential functions of the business, such as handling monthly birthday parties or
planning a holiday celebration. Whether you're wanting to participate in a committee with a
nonprofit group to help you network or create committees among your employees, you must
know how committees are typically organized.

Executive Committee

Most boards of directors have executive committees made up of the three or four highest-
ranking leaders on the board, such as president, vice president and treasurer. The same can
hold true for other committees. For a committee to function effectively, there must be a clear
line of command. For example, if the president misses a meeting, the vice president should lead
the meeting. The executive committee often meets between regular committee meetings to set
the agenda for the next committee meeting and discuss any outstanding issues or projects.

Officers

In addition to members of the executive committee, large committees tend to have other
people who are considered officers, such as a secretary or sub-committee chairperson. These
people fall below the executive committee in the organizational hierarchy, but they usually
have more responsibility than other board members. These people are likely to give
presentations at committee meetings to share information with the rest of the committee, such
as a secretary presenting the minutes of past meetings.
At-large Members

At-large committee members are those who serve on the committee but who don't have
regular designated duties. These people vote on issues along with the executive committee and
officers. They often serve on subcommittees or agree to perform occasional tasks outside the
meetings, such as calling previous donors of a nonprofit or finding a location for an office
holiday party.

Subcommittees

Subcommittees help keep the organization lines clear in a committee by allowing people to
help with the projects they prefer. If the committee is in charge of planning all the events for
the year, there may be a subcommittee for each event. Or, the subcommittees could be broken
out by duties, such as marketing or decorations. Subcommittees can keep committee members
engaged by allowing them to choose their responsibilities within the committee.