The oldest system of organisation is line organisation. Under this organisation authority flows from a man at the top of the organisation 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. This system suffers from the drawback of autocratic control.
However, this system of organisation is suitable and adopted in the business houses where:
(a) In routine type of business
(b) A small business with a number of subordinates.