Linear structure

Linear structure is a type of organizational structure where: every employee has only one superior (manager), the main bond between organizational levels is hierarchy, there is no specialization of managers, usually formalization is low and centralization high.

A linear structure, also known as a hierarchical structure, is a type of organizational structure in which authority and decision-making power is centralized at the top of the organization and flows downward through various levels of management. This structure is characterized by a clear chain of command and a defined line of authority. It is often used in large organizations, such as corporations and government agencies, where there is a need for a clear and efficient decision-making process. This type of structure tends to be more rigid and bureaucratic, with a clear set of rules and procedures to follow.

Genesis of linear structure

Linear structure belongs to the classic structural solutions. It has been used in military organizations, thousands of years ago. For example, in ancient Babylon and Roman army. The oldest written text concerning the creation of the linear structure is part of Exodus in the Old Testament.

Today linear structure in its pure, classical form occurs only in small companies, because this solution is characterized by a number of limitations (see below). It can be a step in the development of the organization.

Example of linear structure

A real-life example of a linear organizational structure is a traditional large corporation, such as a multinational company. Such companies typically have a clear hierarchy, with a CEO or President at the top, followed by a group of senior managers (such as a CFO, COO, and CTO), then a number of middle managers, and finally, the front-line employees.

In this structure, the CEO or President makes the major strategic decisions for the company and sets overall company policies. The senior managers are responsible for implementing these decisions and policies within their respective departments or divisions. Middle managers are responsible for managing the day-to-day operations of the company, while front-line employees are responsible for carrying out the specific tasks and functions that support the overall operations of the company.

An example of this structure is a large manufacturing company that has a clear chain of command, which starts from CEO, followed by Vice President, Director, Manager, Supervisor, and finally the operators or workers. The CEO is responsible for making major strategic decisions and setting overall company policies, while the Vice President and Director are responsible for implementing these decisions and policies within their respective departments or divisions. The Managers and Supervisors are responsible for managing the day-to-day operations of the company, while the operators or workers are responsible for carrying out the specific tasks and functions that support the overall operations of the company.

It's important to note that linear structures work well in large organizations, where a clear chain of command is necessary to manage a large number of employees and ensure that everyone is working towards the same goals.

Development of organizational structure

While the company is very small, usually the structure has radial shape. The owner in the middle manages all employees. If the company grows, the owner is not able to deal with every problem, therefore he delegates some managerial tasks to trusted employees. Those employees usually become managers. The further growth of the company leads to the situation when the owner leads only managers, not workers. That is situation of pure linear structure.

The further growth usually lead to creation of divisions, departments, matrices or other types of structures. The linear structure is inconvenient in large and dynamic organizations.

Construction of linear structure

Fig. 1. Linear organizational structure

In a linear structure, there are two types of positions: managers and employees.

• The manager can lead a certain number of workers. The maximum number of workers is span of control.
• In the organization with many levels of management, the higher-rank manager leads the lower-rank managers.
• Every employee in the organization has only one superior, so that limits the possibility of conflicting commands.
• In vertical communications (between manager and workers) a business route is used (see: communication problems below).

Communication problems in linear structures

Business route is a process of transfer of information through all levels of management along hierarchy lines. So, if an employee wants to pass information to the director of the company, before this, information has to be provided to a direct supervisor of the employee.

This carries the risk of diffusing the content of the information in the submission from the bottom level to upper levels, as well as the enrichment of the content of the information transferred from top level to bottom levels. Manager passes to upper levels only information it deems to be relevant. Transmission to bottom levels is often accompanied by additional instructions to complete a task. A large number of levels of management can cause problems with transmission of information. Therefore, managers should restrict in linear structure situations in which information must run through a lot of levels.

Steps to develop linear structure

The construction of a linear structure, also known as a hierarchical structure, typically involves the following steps:

• Define the roles and responsibilities of each level of management: This includes determining the specific tasks and duties that will be assigned to each level of management, as well as the level of authority and decision-making power that each level will have.
• Establish a clear chain of command: This involves determining the lines of communication and reporting relationships within the organization, so that everyone knows who they should report to and who is responsible for making certain decisions.
• Create a system of rules and procedures: This includes developing a set of guidelines and procedures that employees must follow in order to ensure consistency and efficiency within the organization.
• Assign specific individuals to each level of management: This involves selecting individuals who are best suited for the specific roles and responsibilities at each level of management, and training them to fulfill those responsibilities.
• Establish a system for monitoring and evaluating performance: This includes developing a system for measuring and evaluating the performance of employees at each level of management, and using this information to make adjustments and improvements as necessary.
• Communicate the structure and it's process to the employees and make sure they understand it.

It's important to note that a linear structure may not be the best fit for all organizations and it's best to evaluate and compare it with other types of organizational structures to determine which one is the best fit for your organization.

Disadvantages of linear structure

Disadvantages of linear structures include:

• Lack of creativity and innovation: Because decision-making power is centralized at the top, employees at lower levels may feel less empowered to come up with new ideas and solutions. This can lead to a lack of innovation and creativity within the organization.
• Inefficiency in decision making: Because all decisions have to go through multiple levels of management before they can be implemented, the process can become slow and bogged down by bureaucracy.
• Limited communication: Because of the hierarchical nature of the structure, communication is often limited to the top-down flow of information. This can make it difficult for lower-level employees to provide input or feedback on important decisions.
• Difficulty in motivating employees: Because employees at lower levels have less decision-making power and autonomy, they may feel demotivated and disengaged from the work they are doing.
• High staff turnover: Due to lack of empowerment and job satisfaction, employees may look for opportunities outside the organization where they can have a more fulfilling role.
• Difficulty in adapting to new technologies: linear structures are not as agile as other structures, they may find it hard to adapt to new technologies or change in the market conditions.

Overall, a linear structure may be effective in certain situations, such as in large organizations with a clear chain of command and a need for consistent and efficient decision-making. However, it is important to consider the potential disadvantages and evaluate whether a different type of organizational structure might be better suited for your organization.

Advantages of linear structure

Advantages of linear structures include:

• Clear lines of authority: Because there is a clear chain of command and defined lines of authority, it is easy for employees to understand who they should report to and who is responsible for making certain decisions.
• Efficient decision-making: Because the structure is centralized and decision-making power is concentrated at the top, decisions can be made quickly and efficiently.
• Good for large organizations: linear structures work well in large organizations, where a clear chain of command is necessary to manage a large number of employees and ensure that everyone is working towards the same goals.
• Specialization: Linear structures allow for the creation of specialized roles and departments, which can be beneficial for certain types of organizations. This allows for employees to be experts in a certain area, and to focus on the tasks that they are best suited for.
• Accountability: Linear structures make it clear who is responsible for what, which helps to maintain discipline among employees and ensure that everyone is held accountable for their actions.
• Better control: Linear structures provide a clear understanding of the company's goals, objectives, and policies, making it easier for the management to control and monitor the performance of the employees.
• Easier to plan and forecast: Linear structures make it easier to plan and forecast future developments, as the management can predict the behavior of the employees.

It's important to note that these advantages are most relevant for organizations where a clear chain of command and efficiency in decision making is necessary, and where the employees are motivated by clear roles and responsibilities.

Other types of organizational structures

There are several other types of organizational structures in addition to linear structures, including:

• Flat or horizontal structure: This type of structure is characterized by a relatively low number of layers of management and a more decentralized approach to decision-making. This can lead to more autonomy for employees and a greater sense of empowerment, but can also make coordination and communication more difficult.
• Matrix structure: This type of structure combines elements of both linear and flat structures, with employees reporting to both a functional manager (such as a department head) and a project manager. This can allow for more flexibility and better coordination of different functions within the organization, but can also lead to confusion and conflicting loyalties among employees.
• Network structure: This type of structure is characterized by a high degree of collaboration and coordination between different organizations or units, rather than a centralized hierarchy. This can be beneficial for organizations that operate in a rapidly changing environment and require a high degree of flexibility and adaptability.
• Team-based structure: This type of structure is characterized by the organization being divided into small, cross-functional teams that are responsible for specific tasks or projects. This can lead to greater empowerment and engagement among employees, but can also make coordination and communication more challenging.
• Flexible structure: This type of structure allows companies to adapt to different situations, by combining different structures. This allows for a high degree of flexibility and adaptability, and is ideal for organizations that operate in a rapidly changing environment.

Each structure has its own advantages and disadvantages, and the best structure for an organization will depend on the specific goals, needs, and operating environment of the organization. It's important to evaluate different structures and choose the one that best fits the organization's needs.

Linear structure — recommended articles

Centralized organizational structure — Adhocracy — Hierarchical dependence — Radial structure — Tall organization — Hierarchy — Characteristics of bureaucracy — Organizational systems — Bureaucratic organization

References

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