Line Organizational Structure

Introduction

• This is the simplest and oldest type of organizational structure.
• It is also known as scalar or military type organization.
• In this, authority flows from top to bottom and responsibility from bottom to top.

Learning Objectives

1. What is the line organizational structure?
2. Types of line organization structures.
3. Circumstances in which this structure is applicable.
4. Its features.
5. Its advantages and disadvantages.

Features

• Based on superior-subordinate relationships.
• Follows the scalar principle and unity of command.
• One superior over limited subordinates.
• Simple operation and control.

Types

1. Simple Line Organization

   • Same type of work and division just for control.
   • Example: Similar work under the Production Department.

2. Departmental Line Organization

   • Different departments, such as Marketing, Finance, HR.
   • Each department is independent but under the control of the General Manager.

Suitability

• Small scale business.
• Simple and routine work.
• Use of automatic machinery.
• Disciplined workforce.

Characteristics

• Orders top to bottom, requests bottom to top.
• Follows unity of command.
• Order adherence by limited subordinates.

Advantages

• Simple operation and control.
• Fixed responsibility.
• Disciplined workforce.
• Flexible structure.
• Direct communication.

Disadvantages

• Overloading and stress.
• Lack of specialized knowledge.
• Possibility of bias.
• Lack of initiative.

Conclusion

• Line structure is simple but less useful in modern times.
• Links to other structures available for detailed review.