Question
“Linear organization is also called divisional organization”-Explain.

Answer

In liner organization, various activities are divided in various divisions.
  • For each division a head is appointed.
  • He is given full authority and responsibility of that division, e.g. production division, sales division, finance division, administrative division etc.
  • In each of these divisions the various functions related to that division are performed.
  • E.g. With production division, the functions purchase, storage of materials, machine maintenance etc.
  • Are connected. With the sales division, distribution activities are connected.
  • Thus, not on the basis of functions but on the basis of division the activities are divided, hence it is also called divisional organisation.

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