Difference Between Line Organization and Functional Organization
Line organization means the direct flows of authority from the top level to lower-level management wherein functional organization various activities divided into different departments based on specialization. The major differences between line organization and functional organization are as follows:
|Basics of |
|Line Organization||Functional Organization|
|Meaning||Line organization is a structure where there|
is a direct line of authority from
subordinate level with unbroken chain.
|A functional organization is a structure where all |
activities of an organization divided into
various functions and each function is entrusted
to a functional specialist.
|Nature||Line organization is a simple type|
of an organization where there is a clear line
of authority from top to bottom level.
|A functional organization is comparatively complex|
type of organization and there is a lack of
a clear line of authority.
|In a line organization each subordinate|
has only one superior to command
|In a functional organization every subordinate |
has several superiors to command him.
|Authority||Here is a centralized authority and|
subordinate levels have no authority
to make a decision.
|Here is a decentralized authority and |
functional specialists have the authority to make
a decision of their own department.
|Only line authority is involved|
in management, hence it is
|Functional specialists are in every|
the department, hence it is a costly type
|Only top-level management has |
solo authority to take any decision,
as such, it is possible to take quicker
|It is essential to gather suggestions and |
information from functional specialists, as
such, it is not possible to take quicker
|There is no provision|
of functional specialist
for specific work.
|Every specific work of every department|
is entrusted on a functional
|In a line organization, the main|
executives are over-burdened.
They have to involve in both
executives and operational
|In a functional organization, works are |
divided among functional specialists, hence
the workload on top-level management is
|Coordination||It is easy to maintain coordination|
among all the members involved in
|It is difficult to maintain coordination|
as every functional specialist performs
|Suitability||This organization is only suitable|
for small and medium scale
|This organizational structure is suitable for|
large scale organizations.