Question

Explain the demenits of line organisation structure.

Answer 1

Line organisation suffers from the following drawbacks:

1. Over-burdening: Key executives in line organisations are overworked with administrative tasks. As they spend more time and energy on operational matters, they are less able to ponder reflectively. Due to his limited skills and lack of staff assistance, a single executive is unable to meet the diverse and varied expectations of his department. He is too distracted by numerous details to give each task the attention it requires.
2. Lack of specialisation: Every task pertaining to his department must be completed by a specific manager. As a result, the line organisation lacks competent advice. The efficiency of operations and management are diminished by a lack of specialism. It is likely for every manager to become a “jack of all trades and master of none.”
3. Autocratic leadership: There is a risk of authoritarian governance when one CEO oversees every aspect of a department. Lower-level initiative and morale are diminished when power is concentrated at the top. Favouritism, nepotism, and red tape are probably going to increase. It's possible that subordinates lack cooperation and a sense of teamwork. The organisation is denied proposals for development, and there is essentially no upward communication.
4. Difficulty in staffing: Executives who can carry out the many tasks of a department are hard to find and train. An excessive focus on departmental objectives could lead to a lack of coordination and collaboration. Team spirit may be poor in the absence of solid horizontal relationships.
5. Instability: The organisation of lines is inflexible or inflexible. A select group of important executives are essential to the company's success. There isn't much room for corporate growth beyond their current skills. Since their positions cannot be readily supplied by current employees, the loss of top executives could lead to the organization's collapse. Issues with succession occur at the highest level of management.
6. Suitability: For a small business with few employees and fewer levels of management, line organisation works well. These businesses employ simple operating procedures and primarily regular tasks that requires little talent. It can also be applied to businesses that use continuous production processes and automated gear. Interpersonal communication and centralised control are present in these situations. A tiny organisation has few employees. Therefore, modestly sized trading, manufacturing, and service businesses use line organisation.