Merits of Line Organisation Structure
- Quick Decision
The decision making authority is with the top level management in the line organization structure. They can make the decision immediately in times of need.
The line organization structure is simple and easy to understand. Everyone is clear about their authority and responsibility.
The line organization structure is economical as compared to others. It does not need the team of experts to make the decisions so it is economical.
- Maintain Discipline
In the line organization structure, the employees should follow the order of top-level management without any questions. So, proper discipline can be maintained in the organization.
- Fixation of Responsibility
The managers are responsible to make an organizational structure. Every employee has fixed responsibility and authority. They are responsible for the responsibility given to them.
However, some of the benefits of the line organization structure include effective management, flexibility in operation, etc.
Demerits of Line Organization Structure
- Lack of Specialization
All the decisions are taken by the top level managers. They need to be involved in different types of works at once, so it lacks specialization in one work.
- Overloaded Task
A manager needs to handle different types of work such as planning, organizing, implementation, and control. So, all the works need to be done at once which creates workload in the managers.
- Autocratic Leadership
The line organization structure lacks delegation of authority to subordinates. The subordinates are bound to follow the instruction of superior which creates dissatisfaction, weak moral and frustration in them that ultimately decreases the productivity of the organization.
- Lack of Stability
As the line organization structure lacks delegation of authority, the subordinates are exposed to a limited area that does not let their creativity and knowledge to put forward. It results in a high turnover of employees in the line organization structure.
- Unsuitable in Present Business Environment
The line organization structure is not suitable in the present global business environment. Moreover, it becomes difficult for a single manager to manage all the functions of the organization without the delegation of their authority and workload.