Merits and Demerits of Line Organization

TORAN LAL VERMA

Line Organization represents a direct vertical relationship through which activity flows. It is also known as scalar or military organisation. The line of authority flows from top to bottom throughout the organisation. The quantum of authority is highest at the top and reduces at each successive level down the hierarchy. Every person in the organisation is in the direct chain of command as shown below. The line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. The line of authority not only becomes the avenue of command to operating personnel, but also provides the channel of communication, coordination and accountability in the enterprise.

Merits of line organisation:

  1. It is very simple to establish and can be easily understood by the employees.
  2. There is a clear-cut identification of authority and responsibility relationship.
  3. It ensures better discipline in the enterprise because every individual knows to whom he is responsible.
  4. It facilitates prompt decision making because there is a definite authority at every level. An executive cannot shift his decision-making to others nor can the blame be shifted.
  5. It facilitates unity of command and thus conforms to the scalar principle of organisation.

Demerits of line organisation

  1. There is concentration of authority at the top. If the top level executives are not capable persons, the enterprise will not be successful.
  2. With growth, the line organisation makes the top executive overloaded with work.
  3. There is practically no communication from bottom upward because of concentration of authority at the higher levels. If superiors take wrong decision, it would be carried out without anybody having the courage to point out its deficiencies.
  4. Line organisation is not suitable in a big organisation because there is lack of specialisation. Many jobs create problems of their own which may not be within the competence of the superior and require handling by specialists.
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