BBA Line Organisation Advantage Disadvantage Study Material

BBA Line Organisation Advantage Disadvantage Study Material

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BBA Line Organisation Advantage Disadvantage Study Material
BBA Line Organisation Advantage Disadvantage Study Material

Line organisation (Business Management notes)

It is the basic framekwork for the whole organisation. It represents a direct vertical relationship in the organisation. This is the simplest and oldest form of internal organisation. This organisation is also known as scalar organisation. The authority flows from the top to the lower level.

The organisation is vertically structured where one person delegates authority to his subordinates and who in turn delegate to his subordinate and so on. Authority flows vertically and from top persons to all persons responsible for execution of work.

Advantages of Line organisation

Advantages of line organisation are as follows :

  1. It is simple to establish and can be easily understood by the employee.
  2. Line organisation helps in fixing authority and responsibility of each and every person in the organisation.
  3. There is effective communication. The chain of command goes from top to bottom.
  4. Line organisation is easy to operate and less expensive.
  5. As only one person is incharge of a department or division, the decisions are quick.
  6. Unity of command principle is followed.
  7. As the number of subordinates are permitted under line organisation, there is an effective control and supervision.
  8. It is flexible. Since, the manager has to take all important decision, he can make change if new situation arise.

Disadvantages of line organisation

Disadvantages of line organisation are as follows :

  1. There is excessive work. Too much is expected from the executives.
  2. The lack of managerial specialization.
  3. There is lack of coordination among various departments.
  4. The ultimate authority for taking all decision lies with line officer. The flow of information is downward.

Difference between Formal Organisation and Informal Organisation(BBA Stady Material)

Basis Formal Organisation

Informal Organisation

1.       Purpose It is created to achieve predetermined objectives.


It has no predetermined objectives.
2.       Structure It is an official hierarchy of relation. It refers to the structure of well defined authority and responsibility relationship. Its structure is based on human emotion and sentiments. It refers to the personal relationship which develop automatically when people work together.


3.       Formation Formal relation are well planned and are created deliberately. Informal are unplanned and they originate automatically.


4.       Focus Formal organisation focus on authority and task. It focus on people and relationship.



5.       Flow of authority Authority flow from top to bottom, i.e., vertically downward.


Authority flows vertically as well as horizontally.
6.       Chain of command Formal organisation follows the official chain of command which can not be changed.


Informal organisation does not have a fixed chain of command.
7.       Flexibility It follows a rigid structure. It is loosely structured. It is highly flexible.


Delegation of Authority

BBA Line Organisation Advantage Disadvantage Study Material
BBA Line Organisation Advantage Disadvantage Study Material

Delegation means the assignment of work to other and conferring them the requisite authority to accomplish the work assigned. It enables the mangers to distribute their work load to other and concentrate on important functions which only they can perform better. So delegation is based on the principles of division of work between the superior and subordinate.

In the word of Theo Haimann, “Delegation means the granting of authority to subordinate to operate within the prescribed limits.”

Delegation of authority involves granting of authority to subordinate with a view to make them perform the assigned duties.

Advantages of Delegation Authority

  1. Reduction of work-load : Delegation lightens the burden of the top executives. it enables them to assign the routine matters to the subordinates. They can concentrate on the vital aspects of management.
  2. Quick decision making : The subordinate have sufficient authority to take quick decision. They need not go to their superior again and again for taking decision concerning the routine matters.
  3. Business growth : Delegation of authority prepares executives for the future. This help the organisation to face future challenges effectively. The business can afford to implement growth plans as managerial talent is available.
  4. Healthy relations : Delegation helps in maintaining healthy relationships in the organisation. The authority and responsibility of the subordinates are clearly defined. As a result conflicts are avoided.
  5. Technique of training : Delegation of authority allows the subordinates to take decision independently. Thus, it is a technique for developing managers for the future.

Disadvantages or Weakness Delegation Authority (BBA Notes)

There are many difficulties come in the way of effective delegation. Those difficulties may be grouped into three categories which are as follows :

  1. On the part of the organisation.
  2. On the part of the superior.
  3. On the part of the subordinates.
  4. On the part of the organisation : The difficulties on the part of the organisation includes :
  5. Lack of effective control mechanism.
  6. Defective organisation structure and non clency of authority responsibility relationships.
  7. Violation of unity of command principle.
  8. On the part of superior : Failures in delegation arises because of the following reasons :
  9. Lack of ability of direct.
  10. Lack of willingness to test subordinates.
  11. Lack of willingness to give subordinates a chance.
  12. Lack of setting control standards for subordinates.
  13. On the part of subordinates : Subordinates may be reluctant to accept delegation of authority due to the following reasons :
  14. Lack of self confidence.
  15. Derive to play safe by depending upon the superior for all decisions.
  16. Subordinates performance to depend on superior rather than to take decisions themselves.
  17. Lack of information and resources to use the authority and achieve desired results.

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Montey Parjapati



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