LINE Merits:

1). Simplicity 2).

ORGANIZATION Prompt decision

3). Fixed responsibility 4).
BOARD OF Flexibility
DIRECTORS 5). Unified control 6) No Staff
Personnel
7). Fixed Channel of Promotions
MANAGING
DIRECTOR Demerits:
1).Unitary Administration 2)
Overloading
GENERAL
3) Lack of Specialization 3) Lack
MANAGER
of Commn.
4) Problem of Coordination
PRODUCTION
MANAGER LINE & STAFF
FACTORY
ORGN
SUPERINTENDENT BOARD OF
DIRECTORS

FOREME FOREME FOREME

N N N MANAGING
DIRECTOR
WORKER WORKER WORKER
S S S

Suitability: GENER
1). It is suitable for factory of small AL
& Medium Size 2). Suitable for MANAG
continuous process such as Sugar, ER
Paper, Oil refining, Spinning &
weaving PRODUCTI
It is also known as Scalar, ON
military, vertical or MANAGER
departmental organization.

Features: PRODUCTION
1). It implies vertical relationship SUPERINTENDENT
2). Unity of Command is followed
3). It specifies authority and FOREMEN
responsibility for the job.
 WORKERS

This type of organization has

been evolved to achieve the
advantages of two forms of
organizations i.e. Line organization
and functional organization…
Merits:
1). Advantages of Line& Functional
organization
2). Planned Specialization
3). Sound and Quality Decisions
4). Prospects for Personal growth

Demerits:
1) Line & Staff Conflicts
2) Lack of well defined authority
3) Advisory capacity
4) Lack of responsibility
5) Uneconomical

Suitability:
1. Suitable for medium and large
scale industries
2. It is applied in automobile
industries