The oldest and simplest form of organisation is line organisation. This organisation is formed on the basis of scalar chain of principles. It is a system of organisation in which a supervisor exercises direct supervision over a subordinate. In this type of organisation, authority flows directly from top to bottom and authority is maximum at the top and reduces at each successive level because of delegation. Line organisation b also termed as military, vertical, hierarchical and direct organisation.
This organisation makes the use of unity of command in unbroken line. This organisation has the advantages like simple and easy to establish, it is economical, enables in quick decision and effective communication, and ensures unity of command. It is unfavourable to go for line organisation because it increases the burden of lops executive and hick of specialisation.