16.5 MERITS OF LINE ORGANISATION (A) Simplicity: Line organisation is simple to establish and can be easily understood by the employees.
Everybody knows his work and also to whom he is responsible. So it be operated simply and clearly.
(B) Quick Decisions: Only one person is incharge of a department or divisions.
(C) Clear-cut of authority and responsibility: Responsibility, authority and accountability are all
clear-cut, easily assignable and traceable.
(D) Effective Communication: Communication is fast and easy and feedback can be acted upon
faster.
(E) Co-Ordination: The hierarchy in management helps in achieving effective co-ordination. The
general manager is incharge of all the departments and he can easily co-ordinate the work of various
departments.
(F) Flexibility: Since the manager has to take all important decisions, he can make changes if new
situation warrants. He can take a decision according to the requirements of the situation.
(G) Unity of Command: In line organisation every person is under the command of one boss only.
The type of organisation is in accordance with the principle of scalar chain.
16.6 DEMERITS OF LINE ORGANISATION (A) Rigid and inflexible: It is a rigid and inflexible form of organisation and there is a tendency for
line authority to become dictatorial.
(B) Instability: The business is dependent upon some key persons and the sudden disappearance
of such persons from the scene may create instability in the business.
(C) Favouritism: There is scope for favouritism in line organisation. The officers work according to
their whims and preferences. They judge the performance of persons according to their own likings.
They judge the performance of persons according to their own yard sticks. There is a likelihood that
some persons may be given followers and deserving persons, on the other hand, may be ignored.
