Organisation structure denotes the system of staff organisation or the relationship between the staff positions. Every staff of the organisation should know his position and status in the organisation and to whom he is accountable.
The oldest system of organisation is line organisation. Under this organisation authority flows from a man at the top of the organization to a man in the lowest vertically. This type of organisation follows a scalar principles of organisation and everybody in the organisation knows that who is responsible to them.
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.