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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

LINE AUTHORITY STAFF AUTHORITY

he
those
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the organizational
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the objectives.

siple
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This
thatfunction
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ove

 Line and Staff Authority

LINE AUTHORITY STAFF AUTHORITY


r and his
Staff
subordinate.
authority is exercised by a staff man over line personnel.

perior and
The
hisexercise
subordinate
of this
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authoritythrough
depends
theonenforcement
the degree of authority
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delegate

Staff authority may be in the following norms:
Advisory staff authority
on Concurring Staff authority
Control staff authority
Functional staff authority
LINE ORGANIZATION STRUCTURE

Production Manager

Foreman A Foreman B Foreman C

Workers Workers Workers


 LINE ORGANIZATION STRUCTURE


MERITS DEMERITS

Simplicity

Discipline
Lack of Specialization
Prompt Decision
Absence of Conceptual Thinking
Orderly Communication
Autocratic Approach
Easy Supervision and Control
Problems of Coordination
Economical
Lack of Ground work for Subordinates Train
Overall Development of the Managers

 LINE AND STAFF ORGANIZATION STRUCTURE



MERITS DEMERITS


Planned Specialization 
Lack of Well defined Authority
Quality Decisions  Line and Staff Conflicts
Prospect for Personal Growth

Training Ground for Personnel 

Suitability: followed in large organizations where


specializations of activities is required.


LINE AND STAFF ORGANIZATION STRUCTURE

Secretary General ManagerPublic Relations Officer

Manager-Finance Manager-Personnel

Manager-production Manager-Marketing

Production Engineer Sales Officer

Foreman
Sales Supervisor

Workers Salesmen

The positions and departments in rectangles are


staff and others are line
Functional Organizationon Structure
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


MERITS 
DEMERITS

degree of specialization. 

Responsibility for ultimate performance
 cannot be fixed.
ty in the organization.

Slow decision making process because the problem requiring a decision h
ides satisfaction to specialists. 

Lacks responsiveness to new changing works.


nomy in the natural resources.


Line and staff conflicts.
degree
 of control and coordination of functions.

Suitability: followed in large organizations where


specializations of activities is required.
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 Structure
Managing Director

Corporate Planning Legal Services R&D Finance

Corporate Product division Chemicals division Electronics division

Manufacturing Manufacturing Manufacturing

Marketing Marketing Marketing

Personal Personal Personal

Purchasing Purchasing Purchasing

Accounting Accounting Accounting


Project Organization Structure

Engineering Engineering

Purchasing Purchasing
 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
 Team based Organization
 TEAM: 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 Organization
 Importance of Teams:
qEnhanced Performance
§ Synergy effect is generated
§ Improves productivity, quality, service
qEmployee Benefits
§ Less hierarchical control
§ Self control, quick feedback, human dignity.
qReduced costs
§ Feeling of Stake in the outcomes
§ Fewer errors, reduced absenteeism and
turnover.
§ Higher degree of utilization of existing
facilities.
qOrganizational enhancements
§ Increased creativity, innovation, flexibility
working conditions.
§ Focus on the team effort outcomes.