The pattern of an organizational structure may differ from plant to plant or industry to industry depending upon the specific needs of an enterprise. There are three basic types :

·        Line Organization (Military or Scalar Organization)

·        Functional Organization

·        The line and staff organization


Line Organization

It is one of the oldest types of organizations. It was also known as the Military Type of Organization in the past. This organization is based on the relative authority and responsibility. Immediate superior is the one, who gives order to his subordinates, assigns duties, dismisses and takes action against defaulters. An example of line organization is given below.


Advantages of Line Organization

  • This type of organization is easy to understand, control and strong in discipline.

  • Delay can be avoided.

  • Responsibility of job can be fixed on an individual worker. As a result, each one of the workers can take full interest in the work.

  • There is unity of control and authority.

  • There is flexibility in operations because persons can be moved from one position to another without much difficulty.

  • Departmental Heads are given freedom to take decisions.



Disadvantages of Line Organization

  • This organization lays too much of emphasis on the ability of a few able men. If they go away, the working of the organization becomes difficult or at times it may completely get paralyzed.

  • The person in authority being fully busy with the routine work, does not find time to think about improvements.

  • Persons in the authority may some times adopt their own methods which may lead to increase in the waste of materials. They may adopt favouritism to their nearest in the organization. This may cause apathy in the workers and lead to inefficiency in the work.

  • It puts too much reliance on the ability of a person in the authority. It is difficult to get such an able man everytime.

  • Person who is in charge of various departments, may not possess knowledge of all the trades. Hence, instructions given by him may not have a desired effect.

  • There always exists, communications gap from lower level to upwards levels, although there might be good communication flow from top to bottom.



Functional Organization

In case of functional organizations, it is necessary to divide the organization into different departments. These different departments should invariably be headed by specialists appointed to look after each one. The ideal situation would be such wherein each person performs a specialized function only. Such an organization is known as functional organization. The basic object of this organization is to divide the work in such a way that each person has to do the minimum number of functions and that he is fully responsible for that aspect of work.



Advantages of Functional Organization

  • This system provides specific knowledge and guidance for each workman through expert advice and supervision.

  • The division of work is planned out on the specific basis since there is an expert involved in each of the specialized fields, leading to greater efficiency.

  • The functional heads are relieved of their routine work. They can get more time to think and plan about the development and improvement in work.

  • Manual work is separated from mental work.

  • Capable and efficient supervision for a particular type of function can be found. The organization can, therefore take up more specialized jobs.

  • Functional efficiency of each work is high. It naturally develops sense of responsibility.



Disadvantages of Functional Organization

  • The system cannot maintain strict discipline as each Foreman receives different sets of orders from different experts. Being issued by different experts, the orders may be conflicting.

  • Separation of mental work from manual work leads to some kind of monotony. This may be especially true in the case of workers at the lower levels.

  • The success of this scheme much depends upon proper co-ordination between different departments. If this is not done, this scheme is bound to fail.

  • This is an expensive type of organization, as a great deal of finance is required for payment of salaries to a large number of functional heads.

  • There is always a heavy consumption of stationery.

  •  Sometimes it creates friction in the work.



Line and Staff Organization

This form of organization has gradually been evolved to become line and staff organization. This form of organization prevails in almost all companies. Line organizations are not useful for large and complex organizations, where the key men need assistance and advice from specialists. The staff personnel save to perform advisory functions. The line personnel execute the work to fulfill the objectives of the organization where responsibility and authority is strictly defined at the various levels.


This form is a combination of good points from both the line and functional organizations. To begin with, the complete work in this form of organization is divided into two groups viz., Planning group and Executive group. Planning group works on planning, designing and preparing policies while the Execution group works on the actual implementation of the policies and aims of the organization. Line staff devotes full attention towards attaining skill, and efforts towards completing production tasks assigned to them.

Staff officers are mostly specialists and work as advisors. All executive orders have to pass to the workers through line head. Line heads are vested with the powers to take decisions. They are responsible for production and distribution. This type of organization is quite suitable for carrying on a big business, where administrative efficiency and utmost economy is expected at all levels in general and top-level in particular.


Advantages of Line and Staff Organization

  • As the number of specialists is reduced, the organization becomes economical.

  • Line authorities are concerned with the planning work. They need not, therefore, concentrate their efforts on day-to-day work.

  • The effective co-ordination of functional heads and supervisory staff is achieved.

  • Specialists are meant only to think about the ways to improve the rate of production and increase profits by carrying research.

  • Shrinking of responsibility is not possible at any level.

  • It avoids the confusion that may prevail in the functional organization.



Disadvantages of Line and Staff Organization

  • The prestige of the line executive suffers as the work is planned in advance and many decisions are already taken. This hampers his authority.

  • To establish exact relationship between line and staff departments, the sphere of their activity is one of the most difficult problems to be solved by management since there is an ample scope for misunderstanding in relationships.

  • To make this system of line and staff organization an effective one, provision is made for various committees of executives at all levels. Sometimes, important committees are appointed for the items like budget, research and manufacture. This systems brings more understanding between the various sections.