Line Organisation

It is the classical form of organisation structure. It is the oldest, simplest and at the same time the most common type of organisation.

The term line refers to the line of authorities. The top level has the greatest decision-making powers. The executives in the line of authority are involved in planning, directing and executing the part of the operations assigned to them. The line set up, automatically lays its own channel of communications.

Orders and instructions flow from the top to the bottom reports, returns and suggestions move from the lower level to the higher levels. No individual is supposed to act without authority and that too within the scope of one’s authority.

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In line organisation while the authority flows from top to the bottom, the responsibility takes the reverse direction. However, authority can be delegated but not the responsibility.