Line Organization

Line Organization

This form of organization has several names like Vertical Organization, Scalar Organization, Military Type Organization, or Departmental Organization. This is the oldest and most popular form of organization. It creates a chain of command, which allows the flow of authority downwards, from the top management to the subordinates. In other words, the highest official commands his next junior official who passes the directions to his subordinates, until it reaches the lowest level in a straight line.

Note that Line Organization is different from Line and Staff Organization.

An employee under line organization gets promotion or demotion only on the backing of his immediate senior official and no employee can come into direct contact with the management without the medium of his immediate senior officer. In this way, employees at the same level can neither give orders to each other nor receive any commands.

Characteristics

1. All commands and directions flow downwards, from the top management to the lower level.
2. Directions are always received from the same executive or officer.
3. Commands are received from the immediate superior.
4. The number of subordinates working under each executive is fixed.
5. The various employees in this form of organization are joined like a chain for the fulfillment of similar objectives.

Merits of a Line Organization

1. Quick Decision-Making

   Under this kind of organization, the rights and responsibilities of a job are laid on a single person, which makes decision-making quicker and easier.

2. Fixed Liability

   Each person in this organization has a fixed liability, thus he has the knowledge of the extent of his accountability. Due to this, no official can transfer his own liabilities to another.

3. Punishment to Offender

   Since the responsibilities under this system are fixed, it becomes, easier to pin out the offender, if any, and punish him.

4. Control and Discipline

   Since commands are received by one person, there exists complete control and discipline, among the employees. The discipline here can be compared with that in the army.
   That is why, it is also called a Military Type Organization.

5. Work with Devotion

   Each individual performs his best with devotion and hard work because his promotion depends on his! performance.

Demerit of Line Organization

1. Lack of Coordination

   Each head of a department or division knows the working policies of their departments and possesses no direct information on the working of other divisions. This makes the coordination of activities of different divisions difficult.

2. Lack of Cooperation and Group Thinking

   The line organization gives undue importance to the top executives which puts an end to group thinking and cooperation among the employees.

3. Dependence on Few Persons

   The success of the line organization depends on the abilities of a few powerful officials only. The absence or death of any of them results in a major setback to the whole organization.