difference between line organization and functional organization

Important Difference Between Line and Functional Organization

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
Difference
Line OrganizationFunctional Organization
MeaningLine organization is a structure where there
is a direct line of authority from
top-level to
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.
NatureLine 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.
Unity of
Command
In a line organization each subordinate
has only one superior to command
him.
In a functional organization every subordinate
has several superiors to command him.
AuthorityHere 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.
Cost
Factor
Only line authority is involved
in management, hence it is
more economic.
Functional specialists are in every
the department, hence it is a costly type
of organization.
Decision
Making
Only top-level management has
solo authority to take any decision,
as such, it is possible to take quicker
decisions.
It is essential to gather suggestions and
information from functional specialists, as
such, it is not possible to take quicker
decisions.
Provision
of
Specialization
There is no provision
of functional specialist
for specific work.
Every specific work of every department
is entrusted on a functional
specialist.
Burden
of work
In a line organization, the main
executives are over-burdened.
They have to involve in both
executives and operational
works.
In a functional organization, works are
divided among functional specialists, hence
the workload on top-level management is
minimum.
CoordinationIt is easy to maintain coordination
among all the members involved in
the organization.
It is difficult to maintain coordination
as every functional specialist performs
functions independently.
SuitabilityThis organization is only suitable
for small and medium scale
organizations.
This organizational structure is suitable for
large scale organizations.
Line and Functional Organization Differences

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