The Business organization in which authorities and responsibilities decrease step by step directly, decrease from top level to button level is know as line organization. here parallel operation of authorities are formed in which GM (General Manager) is not present.
In this type of organisation only one GM can be present. A typical flow diagram for line organisation is as shown below.
such type of business organization can not be very large because it have only one G.M. This is one of the oldest type of organization. such that of organization is easy to form and easy to run. It is also very simple to understand.
Advantages:-
- This type of organization is very simple to form.
- It is very simple to run and understand.
- Here department can be controlled easily.
- Here we get same type of workers for each department so the controlling of worker will be very easy.
Disadvantage :-
- This type of business organization can be very large.
- Here GM is overloaded so can not perform the task properly.
- Here decision making of the GM not due to large number of worker.
- In such type of organisation there may be chance to misuse of authority.
- Here better communication between GM and worker may not be proper due to presence.
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