Question

Which kind of organisation structure is recommended in the case,where the scale of business is small,number of subordinate and operative employees are not many and the organisation is in continuous process industry?

• A. Line organisation
• B. Line and staff organisation
• C. Matrix organisation
• D. Functional organisation

Answer 1

Answer: (A)

Line organisation

The line organisation system can be successfully utilised. The characteristic feature of this type is that line of authority flows from the top most executive to the lowest subordinates throughout the entire organisational structure .The authority is greatest at the top and reduces through each successive level down the organisational scale.

merits :

1) 1) It is the simplest of all types of organisation.It can be easily established and easily understood by the workers.

2) It is economical and effective.

3) Because of direct authority -responsibility relationships,discipline can be maintained more effectively.

4) Since The authority and responsibility of every person is clearly defined.It is easier to fix up the responsibility if there is any lapse.

5) As the superiors enjoy full authority,quick decisions are taken by them.

6) Promotes unity of command.

7) Conforms to the scalar principle of organisation.