Advantages and Disadvantages of Different Types of Organisations

After reading this article you will learn about the advantages and disadvantages of different types of organisation:- 1. Advantages and Disadvantages of Line Organisation 2. Advantages and Disadvantages of Staff Organisation 3. Advantages and Disadvantages of Functional Organisation 4. Advantages and Disadvantages of Committee Organisation.

1. Advantages and Disadvantages of Line Organisation:

Advantages of Line Organisation:

Following are the advantages of Line Organisation:

(i) It is the simplest type of organisation which can be defined easily and can be understood by all easily.

(ii) In this organisation, there is no difficulty in fixing the responsibilities at various levels of organisation. Members of the organisation find no difficulty in determining to whom they have to report and who is responsible to them.

(iii) It helps in taking quick decision as it is headed by an individual who does not have to consult any committee or staff.

(iv) It brings about unity of command and helps in unifying the control which results in greater discipline.

(v) It is less expensive from the point of overhead costs as it does not involve expenses for employing the staff personnel.

(vi) It provides flexibility and any desirable change may be brought about quickly without bringing about any dislocation in the organisation.

Disadvantages of Line Organisation:

Following are the disadvantages of Line Organisation:

(i) As it is headed and run by one man, often there is a danger that one man may rule arbitrarily or even on dictatorial basis.

(ii) It results in leaders of the organisation being over worked as there is no staff to assist them.

(iii) The leader may place unduly heavy reliance on the subordinates which may result in ineffective operation sometimes.

(iv) It may create problems of replacement when the leader leaves or dies as, in line organisation, there is no provision for training or developing persons who may later replace the leaders when necessary.

(v) There is no scope for specialisation and we cannot expect an individual to be an expert in various fields.

2. Advantages and Disadvantages of Staff Organisation:

Advantages of Staff Organisation:

Following are the advantages of this type of organization:

(i) It helps in maintaining discipline and stability in the organisation.

(ii) It enables the line authority to get expert or specialist advice on the various problems which he might face and which he may not be able to solve due to shortage of time or lack of expert knowledge.

(iii) It increases the opportunity for the members of the organisation to get a higher post, as in such type of organisation the number of posts increases.

Disadvantages of Staff Organisation:

The disadvantages of this type of organisation are as follow:

(i) The allocation of authority and responsibility of the staff with respect to the line supervisors may not be very clearly made which may result in confusion and create difficulties.

(ii) Fractions and jealousies may develop among line and staff authorities.

(iii) Often the staff man, if aggressive in nature may usury some of the authorities of the line man. causing irritation in the mind of the latter.

(iv) The original thought, action and initiative of the line supervisors may be depended because, in the presence of the staff men, they start depending too much upon them.

3. Advantages and Disadvantages of Functional Organisation:

Advantages of Functional Organisation:

Following are the advantages of this type of organisation:

i. Functional organisation provides specialisation at every step. Every department in the organisation has its own specialist dealing with problems related to his field of the whole organisation.

ii. As expert advices are available for working and decision making in functional organisation, managers are able to take better, sound and well balanced decisions.

iii. Growth and expansion is easy in functional organisation as it is not limited to the abilities of line managers only. There are staff specialist for each work and hence this enables the organisation to grow and expand easily.

iv. As every activity is needed by a specialist, each work is done with full concentration and hence executives are not over-burdened with work. At the same time, one-man control is abolished leading to joint supervision and maintains a balance between authority and responsibility.

v. This type of organisation is the best for enterprises working at large scale. As the size of the enterprise increases so does need for specialisation. And hence, as functional organisation provides all the essentials needed by a big enterprise, it befits exactly with them.

Disadvantages of Functional Organisation:

Following are the disadvantages of functional organization:

i. As principle of unity of command is not followed, there are conflicts among staff experts and line executives leading to physical and financial loss.

ii. Existence of too many cross relationships leads to complicity which creates overlapping, confusion and conflicts. It is difficult to fix responsibility for a particular result,

iii. Due to multiplicity of bosses, co-ordination becomes difficult. An employee, answerable to many bosses finds it difficult to obey all of them together and hence results in confusion.

iv. Decisions many a times are delayed as many officers are to be consulted before taking any step delayed decisions tend to delay action which may result in loss of some unexpected opportunity, accidents and conflicts.

v. Expensiveness is one of its major drawbacks. This is so because the enterprise is to be equipped with staff experts which are to be paid with high salaries. At the same time, clerical work also increases adding to its expensiveness.

4. Advantages and Disadvantages of Committee Organisation:

Advantages of Committee Organisation:

The advantages of Committee Organisation are as follows:

(i) It inculcates the spirit of cooperation among the members as sense of involvement is developed among them.

(ii) It helps in pooling the ideas of many members of the organisation which may be superior to the ideas of one individual.

(iii) It promotes better understanding among members.

(iv) In committee organisation decisions or judgements are based on the group thinking and consultations which may tend to be more correct, creative and integrated.

(v) It inculcates an interest among the members about the implementation of the decisions, as they feel that they have also participated in the decision-making.

(vi) It follows the principle of democracy in the business world and thus helps to bring about the dispersal in authority.

(vii) It saves the time of executive, as he may discuss the problems with many persons at the same time, remove their difficulties, if any, and take prompt decisions.

Disadvantages of Committee Organisation:

The disadvantages of Committee Organisation are as follows:

(i) In a committee the opinions may be divided and decisions may be delayed.

(ii) The quality of deliberation may not be better, as the members either may not take active part in it or they may be over-active carrying on discussions which are not necessary.

(iii) The committee members’ work may often suffer due to time-consuming meetings.

(iv) This final decisions arrived at may simply reflect the compromises positions and may not reflect the opinion of any individual member, therefore, each of them may not be feeling much enthusiastic about the decision.

(v) The committee may be used for shifting the responsibility of one individual to serve members of the committee, resulting irresponsibility among the members.