Page 125 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 7: Organising

2. There should be only one chain. That is, command should be received from only one Notes
immediate superior.

3. The number of subordinates whose work is directly commanded by the superior should
be limited.
The following Figure 7.1 depicts the line organisation:

Figure 7.1: Line Organisation

Sales Manager

Sales person A Sales person B Sales person C

Advantages or Merits of Line Organisation

1. It is the easiest to establish and simplest to explain to the employers.
2. It fixes responsibility for the performance of tasks in a definite manner upon certain
individuals.
3. There is clear-cut identification of authority and responsibility relationship. Employees
are fully aware of the boundaries of their job.
4. It is most economical and effective.
5. It makes for unity of control thus conforming to the scalar principle of organisation.
6. It ensures excellent discipline in the enterprise because every individual knows to whom
he is responsible. The subordinates are also aware of the necessity of satisfying their
superior in their own interests.

7. It facilitates prompt decision-making because there is definite authority at every level.
8. As all the activities relating to one department or division are managed by one executive,
there can be effective coordination of activities.

9. This system is flexible or elastic, in the sense that, as each executive has sole responsibility
in his own position and sphere of work, he can easily adjust the organisation to changing
conditions.
10. Under this system, responsibility and authority are clearly defined. Every member of the
organisation knows his exact position, to whom he is responsible and who are responsible
to him. Because of the clear fixation of responsibility, no person can escape from his
liability.

Disadvantages or Demerits of Line Organisation

1. With growth, the line organisation makes the superiors too overloaded with work. Since
all work is done according to the wishes of one person alone, the efficiency of the whole
department will come to depend upon the qualities of management displayed by the head
of that department. If therefore, something happens to an efficient manager, the future of
the department and of the concern as a whole would be in jeopardy.

2. Being an autocratic system, it may be operated on an arbitrary, opinionated and dictatorial
basis.

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