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Organisational
structures of a business - Part 3
Yvonne
Harvey, Contributor
As
promised, I will outline for you the
advantages and disadvantages of the
line organisational structure we discussed
last week.
Advantages
of the line organisational structure
1.
Communication among individuals in
the line organisation is achieved
speedily.
2.
Direct information is given, therefore,
misunderstandings are minimal.
3.
The delegation of authority and responsibility
is clear cut. Therefore, there is
no overlapping.
Disadvantages
of the line organisational structure
1.
Top-level managers are often weighed
down with decision making and work.
2.
There is no advantage to be gained
from organisation.
3.
Since the main input is from the top
of the organisation, planning and
innovation are reduced.
Now
let us move on to the line and staff
organisational structure. This structure
is also referred to as staff organisation.
Line
and staff organisation
This
formal structure is a development
of the line organisation to which
a number of support or service departments
are added. These provide specialised
assistance to line managers so the
goals of the organisation can be easily
met. For example, a manufacturing
firm may establish a research division
to assist the production department
in ensuring that the type and quality
of goods that the customers need are
produced. The production is line and
the research division is staff. Together
they form a line and staff organisation.
Other
staff persons may include: secretaries,
legal services, advisory services/consultants
and personnel. Personnel may also
fall under line rather than staff.
Each
special advisory personnel or assistant
reports directly to their line manager/supervisor,
but they have no formal authority
to command the actions to others and
he acts in the name of his superior.
The
line and staff arrangement may be
long-term or short-term, depending
on the nature of the work of the organisation,
as well as its needs.
Broken
lines are usually used to indicate
staff relationship. (See diagram)
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Line
and staff organisation chart
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Board
of directors
l
|
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Managing
director
l
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| Research
--------- l_____________________________________________l |
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Production
-----------Marketing--------------Finance--------------Personnel
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Advantages
of line and staff organisation
1.
The expert advice provided by staff
persons can be effectively utilised
by line managers.
2.
Staff personnel do not give orders
to subordinates unless asked to do
so by line managers. Therefore, there
is no overlapping of authority.
3.
It is easy to employ specialised personnel.
Disadvantages
of line and staff organisation
1.
The advice of staff members is limited
to line managers, therefore, other
members do not benefit directly.
2.
Staff managers should be well-qualified
and experienced in order to give expert
advice. In many cases they are not.
3.
Responsibility and authority are less
clear cut than in the line organisation.
Therefore, disputes may arise between
staff persons and heads of departments.
Now
for homework
Below
is a list of persons in an organisation.
Draw an organisational chart to represent
the positions of each person. Use
four levels.
- Managing
director
- Assistant
general manager (two of them)
- General
manager
- Secretary
- Production
manager
- Marketing
manager
- Chief
accountant
Next
week I will show you what your chart
should look like and discuss functional
and committee organisational structures.
This will complete our look at the
formal organisational structures.
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A
trio of Wolmer's girls sing
during their school's ISCF concert
in the auditorium.
- Anthony Minott/Freelance
Photographer
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Yvonne
Harvey teaches at Glenmuir High School.
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