Line Organisation
For a line organisation authority is delegated directly from top to bottom in an unbroken line. There are no staff organisational units. In fact, both staff and line functions work in an integrated manner in the line units, e.g. in small organisations.
Advantages
It has simple, direct line of responsibility and authority which facilitates quick decision making, discipline and control and the flexibility to adjust to changing conditions.
Disadvantages
Line organisation leads to excessive load of administrative responsibility, resulting in problems such as low levels of specialisation, difficulty to find and train qualified personnel for the line function, and difficulty to centrally control the activities with the growth of the organisation.
Functional Organisation Structure
This kind of structure is one in which there are a number of functional specialists supervising the activities of a single subordinate.
Advantage
It can have a high degree of specialisation, easy filling of positions because of functional specialisation and the ability to provide better technical supervision for subordinates.
Disadvantages
It suffers from the disadvantages of dual authority and violates the principle of single accountability. Secondly, it is difficult to get technical experts to work together smoothly.
The Line and Staff Organisation
The third major type of organisation is the 'line and staff organisation'. In line aid staff organisation, line authority moves down in the same manner as in the line organisation. In addition, specialists are attached to line managers to advise them on important matters. The line and staff organisation provides for specialised assistance such as that found in the functional organisation, yet it avoids the pitfalls of dual authority and divided accountability.
Advantages
Its characteristic advantage is of having specialised knowledge, single lines of responsibility and authority and the relative ease in the employment and training of the line and staff.
Disadvantages
The biggest drawback is the conflict which generally arises between the two, i.e. line and staff. Such problems are more common in case the role and authority of
the line and staff is not well-defined.
Matrix Structure
More recently, the matrix structure has also been added. Matrix structure is an outgrowth of vertical hierarchy. It seeks to combine the characteristics of both functional and project structures. It may be defined as an integrated organisation system which encompasses a multiple command system and support mechanism duly insulated with organisational culture and behavior patterns. Matrix structure because popular with the development of aerospace industries in USA in 1960s. Its important elements are as follows :
(i) Key matrix roles
- Top leadership
- Matrix bosses
- Two boss managers/matrix subordinates
(ii) Inter-dependence of' departments - Thus, utilizing the resources optimally.
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