The Advantages And Disadvantages Of Zero Based Budgeting (ZBB) Wrangling budgets and cutting costs are two less than thrilling but absolutely essential chores that come with optimizing your company’s financial health. This is because each department manager is concerned only with the activities of his own department. Encourage improved management practice: Perhaps a subtle benefit of informal groups is that they encourage managers to prepare, plan, organize, and control in a more professional fashion. Specialisation: This type of organisation is based on planned specialisation and brings about the expert knowledge for the benefit of the management. This increases administrative cost. Advantages of a Line Organization. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. Relief to line of executives: In a line and staff organization, the advice and counseling which is provided to the line executives divides the work between the two. For example, the production manager will not interfere in the decision making of sales manager or finance manager and vice versa. “Starting a company extracts so much energy and conviction that not having a clear-cut goal and meaningful mission can hamper your success,” said Sami Inkinen, co-founder of Virta Health. The classical form means a bureaucratic structure where there is a hierarchy of power and responsibility and the directions primarily flow from the top management to the lower levels of workers through its hierarchical ranks. Merits of Line Structure. It is very easy to make and it can be easily studied by the workers to understand its functionality. So what are 6 key advantages of teams? These advantages come at the cost of speed, accountability, and confidence. Unity of control 3. The advantages of an internal coach include: there are no direct costs, they have the opportunity to know coachee better, they already interact with coachee, they know culture & processes of organization, and they can build and demonstrate trust & respect by their day-to-day interactions with the coachee. Advantages of Functional Organizational Structure The employees are made into groups according to their skills, and thus the overall effectiveness and efficiency of the tasks increase. This system is simple to establish and operate. This is a type of organizational structure which facilitates a horizontal flow of skills and informations. It is difficult to establish and is costly too. This type of organizational structure supports excellence in job and guarantees quality work. Multinational companies can do more to guarantee the quality of their work. Read Also: Advantages of Strategic Alliances. Business VoIP providers include robust conference calling features built right into their service. Below are some merits and advantages of line organization or vertical organization 1. Advantages of functional departmentalization Establishing a hierarchical structure of authority, power and, hence, decision-making. 4. In a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. Basically a functional organizational structure is the one in … You can take breaks at any moment, feel no rush to hang up on your family members when they call, and eat lunch at any weird time you want. Defining the roles and responsibilities of all personnel within the organization. Welingkar’s Distance Learning Division Advantages and Disadvantages of Line Organisation We Learn – A Continuous Learning Forum Advantages of line organisation Disadvantages of line organisation 1. A line organization a business structure with self-contained departments. the chart showing line organisation: Features of line organisation: (1) There are many levels of management depending upon the scale of business and decision-. Relatively easy to administer. Division of authority and responsibility 2. Therefore, the decision are very good. Lets get started by exploring the benefits of organizational charts. A Committee or a task force is the most important form of a formal group appointed by the management to perform certain functions or tasks. It can also help increase your company's credibility, both abroad and at home. Cross-training employees to ensure job rotation and minimize assignment coverage gaps. This type of organization is costly than line organization structure. There is … Let’s look at these advantages of eLearning in more detail. 2. ADVANTAGES OF TRAINING Improves The Performance: Training improves the performance of the employees.It helps them to become more skilled and more productive. It also allows quick decisions and efficient coordination. MAN connect users within an area larger than local area network (LAN) but smaller than a wide area network (WAN). 1. Usage of the Organization Chart. Advantages and disadvantages of line and staff style of organizations Omolaja Muhammad 7 Abstract In the paper we discussed the fact that the dichotomous concepts of modern organizations exist in reality. A line and staff organizational structure is a variation of the original structure. The Matrix Organization Structure can deliver this, provided people have the skills to make the matrix work. Profitability — Organizations save an average of $11,000 per year per part-time telecommuter, or 21% higher profitability. Speed up the buying process and save time for customers. Flexible schedule. 6 comments. Convenience and Quick Service. Line organization is the simplest form of organization and is most common among small companies. None of us, no matter how good we are can be great at everything. … Thus, the line managers get the benefit of specialized knowledge of staff specialists at various levels. Advantages The functional structure gives you the least power as a project manager, but offers plenty of other advantages: 1. 2. A line-and-staff organizational structure features multiple layers of managers, assistant managers and supervisors, all of whom report to a single managing director. When employees feel comfortable sharing, asking for, and receiving performance analyses, notable changes will occur in your … ~Prompt decisions result in quick and effective actions. Committees and task forces have become more and more necessary and important, as the organization … We’ll let the HRA advantages speak for themselves. The internet has extremely easy accessibility with consumers using the internet and reaching markets anywhere in the world. Benefit of Specialization. 2. Merits of Line and Staff Organization Relief to line of executives- In a line and staff organization, the advice and counseling which is provided to the line executives divides the work between the two. Expert advice- The line and staff organization facilitates expert advice to the line executive at the time of need. The main goal of this paper is to discuss the advantages and disadvantages of adopting a coaching and mentoring system in the organization and to prove the fact that all the modern organizations should introduce a coaching and mentoring system in order to improve the work of organization and to share knowledge for getting better results. There are no complications in defining the relationships. Merits of Line Organization Simplest- It is the most simple and oldest method of administration. 7 Advantages of Online Marketing Campaigns. This is also known as territorial sales force structure, and it means that the organization assigns each sales rep to a certain geographic area. (2) There is vertical flow of authority and responsibility. We decided to grow by X percent … 4. Advantages of a Line Organization It also allows quick decisions and efficient coordination. b. There are two types of staff : a. can be classified on the basis of the kind of relationships prevai­ling in them. - A line organization can suffer from a lack of specialization. Further, it promotes the unity of command. ~Strict authority results in a stronger discipline. 1. Advantages . Line organisation is simple to establish and can be easily understood by the employees. Development of Skills: It helps the employees to widen their skills. authority flows directly from the immediate superior, each employee knows to whom he is responsible. Geographic Organizational Structure. The lower positions derive authority from y. Line organisation is the basic framework of the organisation. Instead of being limited to their own silo, workers can be moved from place to place when demands make it necessary. Organization. 1. The organizational structure of a company affects which department is powerful, which department takes more decisions or which department has less power.. HR professionals may feel like the sole drivers of performance and development processes, but even though they are responsible for kick-starting continual feedback in the organization, their success is dependent on managers and employees embracing it. Simplicity 1. Dotted Line Reporting. Simplicity:. Some of them are discussed below:-. Lack of initiative 4. Advantages of Informal Organization. Noted economist Oliver E. Williamson termed it as the ‘U- form’ (for unitary) design. Staff Supervisor- Operation Control Manager, Quality Controller, PRO 2. It is more complex than line concern. The hierarchy still begins with the company’s C-Suite, but there isn’t a “buffer layer” between them and the front-line staff. Some of these include: Recruiting and hiring talent to fill team positions. Functional organization structure is optimal for small businesses or companies producing standardized goods or services. Organizations which hire more than 500 employees produce 5.75 times more research and development than smaller ones. Line and staff organization has its own advantages and disadvantages. The advantages of online training thus show how the internet is buzzing with positive information with the low costs to the accessibility as well as the flexibility of the online training. Much confusion has arisen among both scholars and managers as to what “line” and “staff’ mean. (Dublin, 2005). Hierarchical structure of an organization usually has vertical levels leading up to the top head – the CEO or Managing director. Merits of Line and Staff Organization. The choice is … The staff has expertise on the matter, and the line executives can greatly benefit from this advice. Line and Staff Organization is a compromise of line organization. It is more complex than line concern. Division of work and specialization takes place in line and staff organization. The whole organization is divided into different functional areas to which staff specialists are attached. ~It is the simplest kind of organizational structure. Organizational culture is a vital aspect of any successful business or organization. Merits of line organisation: It is very simple to establish and can be easily understood by the employees. 6) Clearer Voice Quality It ensures better discipline in the enterprise because every individual knows to whom he is responsible. Advantages of the hierarchical organizational structure are many, the most impelling of which is that your employees will have clearly defined roles and responsibilities, and a sense purpose in accomplishing those roles. Help to plan. (2) very large data are stored for information and decision-making. Line and Staff Relationship in Organization (with Example Diagram) For running an organization properly both line and staff member’s contribution is required and their relationship must be well defined in the organizational structure. Technology also helps us in other fields like the agricultural, medical field, space program, gaming, media, online and offline apps, internet and others. Organizations large and small often need a separate conference call provider that enables many people to join the same call. 4. Features of Line and Staff Organization 1. Each SBU can manage its' own product and project managers. Some of the definitions of the term e-learning as given by different researchers and institutions are reviewed below. Unity of Command- In these organizations, superior-subordinate relationship is maintained and scalar chain of command flows from top to bottom. Conforms to the scalar principle of organization. This always includes production, sales and marketing. The project manager probably has line management responsibility for the project team members. Technical problems and specialised matters are undertaken by the staff, and the routine administrative matters are the concern of line officers. The father of the scientific management F.W. In an organisational set-up, those who possess line authority are the people directly involved in the basic activities of the enterprise. List of the Advantages of the Matrix Organizational Structure. Merits of Line organisation. Committee Organizational Structure. Dedicated teams are put together to work on projects in a project organizational structure. 1. Communication, collaboration and decision-making are enhanced or limited by the organizational … 12 Advantages and 6 disadvantages of email and other types of electronic communication. 1. Advantages of sustainable development. Simplicity:. The Perks of Offering an HRA. 3. Organizational culture is a vital aspect of any successful business or organization. Important advantages of Line and Staff Organisation are: 1. to Managing Director, Secretary to Marketing Manager. The benefits or merits or advantages of a matrix organisation are:-Sound Decisions: In a Matrix Organisation, all decisions are taken by experts. Competitive pay is a common approach to setting employee salaries. List of Advantages of a Flat Organizational Structure. Guidelines for Effective Organization. Unity of Command- In these organizations, superior-subordinate relationship is maintained and scalar chain of command flows from top to bottom. Better decisions: Advantages of Matrix Organisation. 2. You’re reducing fees for trainers and employee time, as well as costs related to training rooms, travel, catering, and materials. 3. Staff working skills can be … What is a metropolitan area network (MAN) A metropolitan area network (MAN) is a network which covers a city or a large university campus. Providing training and support to new hires. Merits of functional organization: The following are the merits of functional organization. When a matrix organizational structure is implemented, then everyone stays busier on any given day. Advantages of the matrix organization. Organization. Merits: (a) The work of the line officers is considerably reduced with the help of staff officers. 19 Advantages of Mentoring in the Workplace Mentoring has shown to be one of the most valuable and effective development opportunities an organization can offer employees, per the numbers. International markets can open up avenues for a new line … The line executive is often described as the individual who stands in the primary chain of command and is directly concerned with the accomplishment of primary objectives. Some advantages are its simplicity, unified control and flexibility. Every member of the organisation knows his exact position, to whom he is responsible and who are responsible to him. In a work place, communication is extremely important. Companies that follow this method periodically review their jobs and descriptions and compare them to similar jobs at competing companies. 6. If the organization is not moving in the right direction, the problem lies in the engagement of employees with one another and with the organization as a whole. Employees are now luckily able to make use of the many advantages of email. Hierarchical organizational structure puts the authority and responsibility on the top side of the company and makes them flow down from the top to the lowest level gradually. • Staff can retain membership on teams and their functional department colleagues. Applications. Simple to work; Economical and effective. However prior to outsourcing any component of your business to a third-party vendor, it is essential to understand the advantages and disadvantages of outsourcing. A set of day to day activities related to financial planning, maintaining personnel records, processing of payroll, record-keeping, maintaining files, billing, distribution of data, logistics are part of office administration. Speed up the buying process and save time for customers. Saves your company money. This means that there are less wages, fringe benefits, and so on, to pay for management. There is a clear-cut identification of authority and responsibility relationship. ~There is clarity in the structures of authority and responsibility. Organising Important Questions for CBSE Class 12 Business Studies Organisational Structure and Types of Organisation Structure. Expertise Knowledge. A review of the advantages and disadvantages of sustainable development allows us to better answer this question, while helping us to understand the different dimensions of the concept, beyond its simple and idyllic definition, incomplete in reality. A line-and-staff structure is a somewhat antiquated view of a large corporate culture. 3. Definition: The bureaucratic management theory, introduced by Max Weber stated that to manage an organization efficiently, it is essential to have a clear line of authority along with proper rules, procedures and regulations for controlling each business operation.Bureaucracy refers to the possessing of control over a group of people or activities through knowledge, power or authority. Conforms to the scalar principle of organization. Expensive. 2) Affordable than Traditional Marketing & Measurable with Analytics. Here we will describe some of the advantages of online business, namely: 1. Advantages of a corporation include personal liability protection, business security and continuity, and easier access to capital. Lack of specification 2. Another benefit of line organization is that it is easier to make someone accountable and responsible for the task assigned to him or her so if any mistake happens one can easily pinpoint the person due to whom the mistake has happened and there is no scope for him or her putting blame on other persons of the company. Items are grouped by departments or costs to show which areas are using the bulk of the company’s funds. Can be administered remotely via online, mobile devices, mail, email, kiosk, or telephone. Conducted remotely can reduce or prevent geographical dependence. We use technology in maintaining and promoting our business also. Cost minimization. Taylor introduced and developed the concept of functional organization. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.6, No.36, 2014 57 type of organizational structure because of several layers and guidelines. Email is just one of the types of electronic communication available to us. Following are the advantages of Matrix organizational structure: - Minimization of project costs, due... What Are The Advantages And Disadvantages Of Functional Organizational Structures? The Internet provides access to your bank account to view the balance, make transactions, and send money. Advantages & Disadvantages of Competitive Pay Policies. Following are the advantages of Matrix organizational structure: - Minimization of project costs, due... What Are The Advantages And Disadvantages Of Functional Organizational Structures? An effective centralization offers the following advantages: 1. The weight of the line is meant to represent the level of power and influence of the different managers. Automation - Automation - Advantages and disadvantages of automation: Advantages commonly attributed to automation include higher production rates and increased productivity, more efficient use of materials, better product quality, improved safety, shorter workweeks for labour, and reduced factory lead times. The image shows that marketing, production, engineering, and finance are the four most common functions in most organizations. By recognizing these potentially negative elements as they appear, an organization can limit their influence and take advantage of all the benefits without much fear of losing industry influence. This is one of the advantages of international trade that may be difficult to quantify and, therefore, easy to ignore. For instance, a senior manager can discuss ideas and goals with a chief supervisor.