LINE AND STAFF ORGANIZATION

Line functions are those which have direct responsibility for accomplishing the objectives of the enterprise.

Staff refers to those elements of the organization that help the line of work most effectively in accomplishing the primary objectives of the enterprise.

Line and Staff Authority

• Staff functions are those that help line functions in attaining the objectives.

• Staff relationship is advisory. This function of people in a pure staff capacity is to investigate, research, and give advice to line managers to whom they report.

LINE AUTHORITY STAFF AUTHORITY

• Line functions are those that are related directly with the attainment of the organizational objectives.

• Line authority becomes apparent from the scalar principle as being that relationship in which a superior exercises direct supervision over a subordinate.

Line and Staff Authority

• Staff authority is exercised by a staff man over line personnel.

• The exercise of this authority depends on the degree of authority delegated to a staff man or department.

• Staff authority may be in the following norms:• Advisory staff authority• Concurring Staff authority• Control staff authority• Functional staff authority

LINE AUTHORITY STAFF AUTHORITY

• Line authority exists between superior and his subordinate.

• The direct relationship between a superior and his subordinate is created through the enforcement of line relationship.

• The relationship works as:• As a chain of command• As a channel of

communication• As a carrier of

Responsibility

LINE ORGANIZATION STRUCTURE

Production Manager

Foreman A Foreman CForeman B

WorkersWorkersWorkers

LINE ORGANIZATION STRUCTURE

• Lack of Specialization• Absence of Conceptual

Thinking• Autocratic Approach• Problems of Coordination• Lack of Ground work for

Subordinates Training

MERITS DEMERITS

• Simplicity• Discipline• Prompt Decision• Orderly Communication• Easy Supervision and

Control• Economical• Overall Development of the

Managers

LINE AND STAFF ORGANIZATION STRUCTURE

Suitability: followed in large organizations where specializations of activities is required.

• Lack of Well defined Authority

• Line and Staff Conflicts

MERITS DEMERITS

• Planned Specialization• Quality Decisions• Prospect for Personal

Growth• Training Ground for

Personnel

LINE AND STAFF ORGANIZATION STRUCTURE

General Manager

The positions and departments in rectangles are staff and others are line

Manager-production Manager-Marketing

Salesmen

Foreman

Workers

Production Engineer Sales Officer

Sales Supervisor

Public Relations OfficerSecretary

Manager-Finance Manager-Personnel

Functional Organizationon Structure

Head Quarters

Production Marketing Finance Personnel

Functional Organization Structure

Features:• Specializations by functions• Emphasis on sub-goals• Pyramidal growth of the organization• Line and staff organization• Functional authority relationships among

various departments.• Limited span of management and tall

structure.

FUNCTIONAL ORGANIZATION STRUCTURE

Suitability: followed in large organizations where specializations of activities is required.

• Responsibility for ultimate performance cannot be fixed.

• Slow decision making process because the problem requiring a decision has to go to various departments.

• Lacks responsiveness to new changing works.

• Line and staff conflicts.

MERITS DEMERITS

• High degree of specialization.

• Clarity in the organization.

• Provides satisfaction to specialists.

• Economy in the natural resources.

• High degree of control and coordination of functions.

DIVISIONAL ORGANIZATIONAL STRUCTURE

Basis of Divisionalisation: Product Divisionalisation Territorial Divisionalisation Strategic Business Unit

Strategic Business Unit (SBU): Multi product or multi-geographical

area companies/divisions are created in the form of SBU’s

Each product / market segment has a distinct environment, a SBU should be created for each such segment.

Divisional Organization StructureManaging Director

Legal Services FinanceCorporate

Planning R & D

Manufacturing

Marketing

Personal

Purchasing

Accounting

Corporate Product division

Manufacturing

Marketing

Personal

Purchasing

Accounting

Chemicals division

Manufacturing

Marketing

Personal

Purchasing

Accounting

Electronics division

Project Organization StructureGeneral Manager

Project A

Quality Control

R & D

Contract administration

Scheduling

Manufacturing Project B

Quality Control

R & D

contract administration

Scheduling

Engineering

Purchasing Purchasing

Engineering

Matrix Organization Structure: Pure Project structure and functional

structure are merged together to create matrix structure.

Separate units for taking and managing projects.

Complete responsibility for the tasks as well as all the resources are assigned to a project manager.

Project manager has to share the resources with others in the organization.

Once the project is completed its resources are directed to other projects.

Design of Matrix Organization Structure: Project manager is appointed to

coordinate the activities of the project. Personnel are drawn from their

respective functional departments. Each functional staff has two bosses –

his administrative head and his project manager.

During his assignment to a project, he works under the coordinative command of the project manager and he may be called upon by his permanent superior to perform certain services needed in the project.

MATRIX ORGANIZATION STRUCTURE

General Manager

Production

Marketing

Finance

Personnel

Project A Project B Project C Project D

Team based OrganizationTEAM: Team is a small number of people

with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

Characteristics: Small number of people Complementary skills Common purpose and performance goals Common approach Mutual accountability

Team based OrganizationImportance of Teams:

Enhanced Performance Synergy effect is generated Improves productivity, quality, service

Employee Benefits Less hierarchical control Self control, quick feedback, human dignity.

Reduced costs Feeling of Stake in the outcomes Fewer errors, reduced absenteeism and turnover. Higher degree of utilization of existing facilities.

Organizational enhancements Increased creativity, innovation, flexibility working

conditions. Focus on the team effort outcomes.