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Line Structure:
The line structure is defined by its clear chain of command, with final approval on decisions affecting the operations of the company still coming from the top down. Because the line structure is most often used in small organizations-such as small accounting offices and law firms, hair salons, and "mom-and-pop" stores-the president or CEO can easily provide information and direction to subordinates, thus allowing decisions to be made quickly.

Line structures by nature are fairly informal and involve few departments, making the organizations highly decentralized. Employees are generally on a first-name basis with the president, who is often available throughout the day to answer questions and/or to respond to situations as they arise. It is common to see the president or CEO working alongside the subordinates. Because the president is often responsible for wearing many "hats" and being responsible for many activities, she or he cannot be an expert in all areas.

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Q: Characteristic of the line type organization?
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