DEMERITS OR DISADVANTAGES OF LINE ORGANISATION
1. Overburden upon top executives:
In a line organisation, the burden of one department is upon the single executive. Therefore, in this form of organisation, senior executives are overburdened with administrative work.
2. Autocratic leadership:
As one department is under the complete control of one executive, there is the possibility of the concentration of all decision-making powers with only one person.
3. Lack of Initiative at Lower Level:
As subordinates have no decision power in this form of organisation, there is a lack of initiative at lower levels. It lowers their motivation and morale.
4. Lack of Specialisation:
In this form of organisation, there is a complete lack of specialisation. All the activities of one department are under the control of one executive and no person can be supposed to be an expert of all the activities to be performed in his department. Therefore, this form of organisation results in a lack of specialisation.
5. 0ver Dependence on Top Executives:
In this form of organisation, the success of an enterprise entirely depends upon the efficiency of its top executives. If any of its top executives is not so much efficient, his department will be lacking success.
6. Inflexibility:
The success and survival of the enterprise depend upon a few individuals. There is little scope for the expansion of business enterprises beyond the capabilities of these individuals.
7. Lack of the Spirit of Cooperation and Groupism:
As the subordinates have no role to play in the enterprise, it kills their feeling of cooperation. They feel like machines to obey the orders of their executives only. Therefore, there is a complete lack of cooperation and groupism.
SUITABILITY OF LINE ORGANISATION
Line organisation is suitable only for the following conditions:
1. Where the size of the enterprise is small.
2. Where the number of employees is limited.
3. Where the division of work can be made clear.
4. Where the work is of simple nature.
5. Where the number of activities to be performed is limited.
6. Where the top executives are capable and experienced.
RELATED TOPIC
Characteristics of Human Resource Management
Objective of Human Resource Management
Scope of Human Resource Management
