Difference Between Line Organization And Functional Organization
The main dissimilarities or difference between line organizational structure and functional organizational structure can be pointed as follows:
1. Introduction
Line Organization: Oldest form of organizational structure where line authority flows from the manager to immediate subordinate
Functional Organization: It is a modern form of structure where organizational activities are divided into various functional areas.
2. Nature
Line Organization: Simple form of organizational structure which can be easily understood and operated.
Functional Organization: Complex form of organizational structure which lacks clear line of authority.
3. Specialization
Line Organization: It lacks specialization
Functional Organization: This organizational structure if fully based upon functional specialists.
4. Authority
Line Organization: Centralized authority
Functional Organization: Decentralized authority
5. Unity Of Command
Line Organization: Properly followed because of only one superior
Functional Organization: Difficult to follow because of several superiors
6. Cost Factor
Line Organization: It is more economical than functional organization
Functional Organization: It is costlier than line organization
7. Superior - Subordinate Relation
Line Organization: One superior to command one subordinate
Functional Organization: Several superiors to command one subordinate
8. Discipline
Line Organization: Strict discipline can be maintained in line organization
Functional Organization: It is difficult to maintain discipline in functional organization
9. Decision Making
Line Organization: Superior or manager has the right to take decision without consulting others. So, prompt decision is possible.
Functional organization: Ideas and opinions of specialists and departmental heads are required to take decisions. So, decision making is slower than line organization.
10. Coordination
Line Organization: Proper coordination can be maintained
Functional Organization: Because of several functional heads and specialists, it is difficult to maintain coordination in functional organizational structure.
11. Burden Of Work
Line Organization: More burden to the superiors
12. Suitable For
Line Organization: Suitable only for small organizations and business firms
Functional Organization: Suitable for large organizations and business concerns.
13. Flexibility
Line Organization: It is more flexible than functional organization
Functional organization: It is less flexible than line organization
14. Responsibility
Line Organization: Fixed responsibility
Functional Organization: Not properly fixed
Line Organization Vs Functional Organization (Comparison Chart)
I hope this post is helpful to understand the difference between line organization and functional organization and to make comparison between them.
Line Organization Vs Functional Organization (Comparison Chart)
Basis For Difference
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Line Organization
|
Functional Organization
|
Introduction
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Organizational structure in which line authority moves from top to bottom
|
Organizational structure in which activities are classified into different functional areas
|
Nature
|
Simple
|
Complex
|
Specialization
|
No
|
Yes
|
Authority
|
Centralized
|
Decentralized
|
Unity Of Command
|
Followed
|
Difficult to follow
|
Cost Required
|
Less
|
More
|
Superior-subordinate Relationship
|
One superior to one subordinate
|
More superiors to one subordinate
|
Maintenance Of Discipline
|
Easy
|
Difficult
|
Prompt Decision
|
Possible
|
Not possible
|
Proper Coordination
|
Yes
|
Difficult
|
Work Burden
|
More
|
Less
|
Suitability
|
For small organizations
|
For big organizations
|
Flexibility
|
More
|
Less
|
Responsibility
|
Fixed
|
Not Fixed
|
I hope this post is helpful to understand the difference between line organization and functional organization and to make comparison between them.
