Economics

Distinguish between line, staff and functional organisation

Distinguish between line, staff and functional organisation

Distinguish between line, staff and functional organisation

Key difference between line and line & Staff organization

The points given below explain the difference between line and staff organization:

1. Line organization can be understood as a vertical organisation. wherein the superior can give orders to a subordinate, through a direct chain of command. Line and staff organization is the organisation structure, in which there is a normal departmentation of the regular business operation. and there is the functional specialist to perform specialised activities.

2. While line authority relies on command, line and staff authority is based on command and advise

3. As we talk about discipline, line organization, is strict, whereas line and staff organization is loose.

4. In a line organization, the line executives are the generalist, who is directly responsible for accomplishing the objectives of the organization. On the other hand, in line and staff organization, the staff executives are specialist who supports and advice the line managers in the accomplishment of organization’s objectives.

5. There is centralization of authority in a line organization, and so all the decisions of the organization are taken by the top authority only. Conversely, in line and staff organization, these is a combination of centralisation and decentralisation, in essence some of the decisions are centrally taken while some are diffused.

6. Line organization, is good for small corporations, as in such a structure, the authority is concentrated at the top, which makes it difficult to manage if the number of employees are large. On the contrary, line and stain organization, is best suited for large corporations due to the presence of staff specialist, who use their knowledge to advice line managers on complex issues.

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