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 Organization	Functional Organization
Meaning	Line 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.
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.
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.
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.
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.
Coordination	It 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.
Suitability	This organization is only suitable for small and medium scale organizations.	This organizational structure is suitable for large scale organizations.