Line and Staff Organization

Line and staff organization is a modification of line organization and it is more complex than line
organization. According to this administrative organization, specialized and supportive activities
are attached to the line of command by appointing staff supervisors and staff specialists who
are attached to the line authority. The power of command always remains with the line
executives and staff supervisors guide, advice and council the line executives. Personal Secretary
to the Managing Director is a staff official.

MANAGING
DIRECTOR

↓ ↓ ↓

Production Manager Marketing Manager Finance Manager

↓ ↓ ↓

Plant Supervisor Market Supervisor Chief Assisstant

↓ ↓ ↓

Foreman Salesman Accountant

Features of Line and Staff Organization

1. There are two types of staff :
a. Staff Assistants- P.A. to Managing Director, Secretary to Marketing Manager.
b. Staff Supervisor- Operation Control Manager, Quality Controller, PRO
2. Line and Staff Organization is a compromise of line organization. It is more complex
than line concern.
3. Division of work and specialization takes place in line and staff organization.
4. The whole organization is divided into different functional areas to which staff
specialists are attached.
5. Efficiency can be achieved through the features of specialization.
6. There are two lines of authority which flow at one time in a concern :
a. Line Authority
b. Staff Authority
7. Power of command remains with the line executive and staff serves only as counselors.

Merits of Line and Staff Organization

1. Relief to line of executives- In a line and staff organization, the advice and counseling
which is provided to the line executives divides the work between the two. The line
executive can concentrate on the execution of plans and they get relieved of dividing
their attention to many areas.
 2. Expert advice- The line and staff organization facilitates expert advice to the line
executive at the time of need. The planning and investigation which is related to
different matters can be done by the staff specialist and line officers can concentrate on
execution of plans.
3. Benefit of Specialization- Line and staff through division of whole concern into two types
of authority divides the enterprise into parts and functional areas. This way every officer
or official can concentrate in its own area.
4. Better co-ordination- Line and staff organization through specialization is able to provide
better decision making and concentration remains in few hands. This feature helps in
bringing co-ordination in work as every official is concentrating in their own area.
5. Benefits of Research and Development- Through the advice of specialized staff, the line
executives, the line executives get time to execute plans by taking productive decisions
which are helpful for a concern. This gives a wide scope to the line executive to bring
innovations and go for research work in those areas. This is possible due to the presence
of staff specialists.
6. Training- Due to the presence of staff specialists and their expert advice serves as ground
for training to line officials. Line executives can give due concentration to their decision
making. This in itself is a training ground for them.
7. Balanced decisions- The factor of specialization which is achieved by line staff helps in
bringing co-ordination. This relationship automatically ends up the line official to take
better and balanced decision.
8. Unity of action- Unity of action is a result of unified control. Control and its effectivity
take place when co-ordination is present in the concern. In the line and staff authority all
the officials have got independence to make decisions. This serves as effective control in
the whole enterprise.

Demerits of Line and Staff Organization

1. Lack of understanding- In a line and staff organization, there are two authority flowing
at one time. This results in the confusion between the two. As a result, the workers are
not able to understand as to who is their commanding authority. Hence the problem of
understanding can be a hurdle in effective running.
2. Lack of sound advice- The line official get used to the expertise advice of the staff. At
times the staff specialist also provide wrong decisions which the line executive have to
consider. This can affect the efficient running of the enterprise.
3. Line and staff conflicts- Line and staff are two authorities which are flowing at the same
time. The factors of designations, status influence sentiments which are related to their
relation, can pose a distress on the minds of the employees. This leads to minimizing of
co-ordination which hampers a concern’s working.
4. Costly- In line and staff concern, the concerns have to maintain the high remuneration of
staff specialist. This proves to be costly for a concern with limited finance.
5. Assumption of authority- The power of concern is with the line official but the staff
dislikes it as they are the one more in mental work.
 6. Staff steals the show- In a line and staff concern, the higher returns are considered to be
a product of staff advice and counseling. The line officials feel dissatisfied and a feeling
of distress enters a concern. The satisfaction of line officials is very important for
effective results.

Functional Organisation

Meaning of Functional Organisation:

The line organisation suffers from a number of drawbacks. The line officer is over
burdened with responsibilities and he is unable to devote required time for each
and every activity. Moreover, line officer cannot be an expert in every field of
business activity. The expansion of business and large-scale production has
necessitated the use of experts in different fields. In functional organisation the
task of management and direction of subordinates should be divided according to
the type of work involved. All activities are grouped together according to certain
functions like production, marketing, finance, personnel, etc. and are put under
the charge of different persons.
All the persons in the organisation dealing with a particular function are put under the
charge of a person controlling that particular function. The person in-charge of a
function is a specialist in it and brings out the best in himself. In case a person
performs a number of functions then he will be accountable to all those persons
who are in-charge of those areas.
F.W. Taylor, father of scientific management, developed the concept of functional
organisation. He recommended functional organisation even at the shop level
where workers have to produce goods. He thought that one foreman could not
manage all the aspects of production work for directing a group of employees as
they could not have varied knowledge. He suggested the substitution of line
authority by functional foremanship at the lower levels of the organisation
structure.

Taylor suggested the division of supervisory functions into two

groups, viz:
(1) Office specialists and;

(2) Shop specialists.

1. Office Specialists:
They are concerned with the design, scheduling, recording and planning of work.

The office staff consists of following persons:

(i) Route Clerk:
The route clerk is responsible for planning the route from which work will pass from
machine to machine. He schedules the work in such a way that finished goods are
ready in time.

(ii) Instruction Card Clerk:

This clerk records instructions for doing every piece of work. The exact method of
doing the work is recorded.

(iii) Time and Cost Clerk:

He lays down the standard time for completing a particular work. He supplies every
information required for completing the job. He also records the time taken for
completing a job. This helps him in working out the cost of various jobs.

(iv) Disciplinarian:

He ensures the implementation of various rules and regulations. He tries to maintain proper discipline at work.

2. Shop Specialists:
They guide and supervise the work in the factory.

Following are the shop specialists:

(I) Gang Boss:

He should arrange machines and tools at the work. He ensures adequate work for the workers and sees that necessary tools, etc.
are available to the workers. He also tries that every work is completed at the earliest.

(ii) Speed boss:

He determines the speed at which work should go on. It is his duty to ensure that work is completed at standard time. He also
guides the workers in keeping proper pace of work.

(iii) Repair boss:

The duty of repair boss is to ensure that machines and tools are maintained in proper condition. He should see that workers clean
their machines properly and regularly and maintain them with standard care.

(iv) Inspector:
The inspector ensures that the work is done according to the prescribed standards and qualities. The workers should also maintain
proper workmanship of the goods manufactured.
Advantages of Functional Organisation:
Functional organisation has the following advantages:
1. Specialization:
This type of organisation has the benefit of having specialists in each area. The work is performed by those who have the

specialist knowledge of that work. The workers have the advantage of getting instructions from specialists. This makes possible
the fullest use of energy in the organisation.

2. Increase in Efficiency:
There is a division of labour up to manager level. Planning and execution are also separated. This helps to increase the overall
efficiency in the organisation. The workers get guidance from expert supervisors and this enhances their performance at work.

3. Scope for Growth:

The functional organisation provides wide scope for growth and mass production. The employment of specialists at various levels
of work enables the organisation to grow as per the needs of the situation.

4. Flexibility:
Functional organisation allows changes in organisation without disturbing the whole work. The span of supervision can also be
adjusted according to the requirements.

5. Relief to Top Executives:

Top executives are not unnecessarily burdened as happens in line organisation. The line officer is supposed to be a jack of all

trades and is burdened with all types of works. On the contrary a specialist is a master of his line and he has the expertise and
capability of taking his own decisions.

Functional organisation is shown in the following table:

 6. Economy of Operations:
The use of specialists helps in controlling the waste of materials, money and time. The
consolidation of activities leads to optimum use of facilities like office
accommodation, plant and machinery, etc.

7. Better Supervision:
Every superior is an expert in his own area and he will be successful in making proper
planning and execution. The superiors, being well acquainted with the work, will be
able to improve the level of supervision.

8. Democratic Control:
This type of organisation eliminates one man control. There will be a joint control and
supervision in the organisation. This boosts the morale of employees and also
enthuses a sense of co-operation among them. The democratic approach motivates
workers to go deep into their work and make suggestions for work improvement.

Disadvantages of Functional Organisation:

Following are the disadvantages of functional organisation:
1. Conflict in Authority:
The principle of ‘unity of command’ is violated in functional organisation. A
subordinate is answerable to many bosses. Every superior considers his work
important and wants the workers to give top priority to his assignment. The workers
feel confused and are unable to decide about the priorities of their work.

2. Lack of Co-Ordination:
The appointment of several specialists creates problems of co-ordination, especially
when the advice of more than one is needed for taking decisions. Specialists try to
give more importance to their work as compared to other areas. This creates conflicts
among specialists and co-ordination becomes a problem.

3. Difficulty in Fixing Responsibility:

Since there is no unity of command, it becomes difficult to fix responsibility for
slackness in work. So many persons are involved in completing a work and everybody
tries to blame others for low performance.
 4. Delay in Taking Decisions:
The involvement of more than one person in decision-making process slows the
process down. The speed or action tends to be hampered by the division of authority.
Much time is taken in consulting different specialists prior to decision-making.

5. Poor Discipline:
The division of authority creates problem of discipline. The workers have to obey
many bosses, their loyalty becomes divided. Discipline tends to break down not only
among workers but also among lower level supervisors.

6. Expensive:
Multiplicity of experts increases overhead expenses of the organisation. A number of
specialists are appointed for manning various lines of work. These persons being
specialists demand much higher emoluments. Small units cannot afford to have
functional organisation.

7. Group Rivalries:
The emergence of many persons of equal status encourages group rivalries among
executives. Persons connected with different fields try to create their groups and then
rivalry starts among these groups. Every group tries to dominate the other. The growth
of the unit is adversely affected in a vicious atmosphere.
DIRECTING
Directing is said to be a process in which the managers instruct, guide and
oversee the performance of the workers to achieve predetermined goals. Directing is said
to be the heart of management process. planning, organizing, staffing have got no
importance if direction function does not take place.

Directing initiates action and it is from here actual work starts. Direction is said
to be consisting of human factors. In simplewords, it can be described as providing
guidance to workers is doing work. In field of management, direction is said to be
allthose activities which are designed to encourage the subordinates to work effectively
and efficiently. According to Human,“Directing consists of process or technique by which
instruction can be issued and operations can be carried out as originallyplanned”
Therefore, Directing is the function of guiding, inspiring, overseeing and instructing
people towards accomplishment oforganizational goals.

"Activating deals with the steps a manager takes to get subordinatesand others to carry
out plans".

Newman and Warren.

After plans have been ready and the organization has been established and
staffed, the next step is to progresstowards its distinct objectives. This role of manager
can be called by various names likeand so on. But whatsoever the name used to
recognize it, in carrying out this function the manager clarify to hispeople what they
have to do and facilitate them do it to do the best of their capability. Directing thus
engages three subfunctions;they are communication, leadership and motivation.
Communication is the process of passing information andunderstanding from one
person to another person. Leadership is the process in which a manager guides and
influences theeffort of his subordinates. Motivation means arousing desire or wish in the
minds of workers to give their greatest to theenterprise. It is the act of inspiring or
rousing workers. If the workers of an organization are appropriately motivated they
will pulltheir weight efficiently, give their loyalty to the enterprise, and perform their
duty effectively. Motivation is classified under twobroad categories; financial and
nonfinancial.Financial motivation takes the form of bonus, profitsharing,distribution
ofcompany share etc. whereas nonfinancialmotivation takes the form of opportunity of
advancement, job security, recognition,praise, etc.

Directing in Management
Directing means giving instructions, guiding, counselling, motivating and
leading the staff in an organization in doing work toachieve Organizational goals.
Directing is a key managerial function to be performed by the manager along with
planning,organizing, staffing and controlling. From top executive to supervisor
performs the function of directing and it takes placeaccordingly wherever superior –
subordinate relations exist. Directing is a continuous process initiated at top level and
flows tothe bottom through organizational hierarchy
Importance of Directing
Directing function is the basis of management process and the accomplishment
of goals depends on this. This function is alsoknown as actuating function of
management as an enterprise’s running really begins on the direction. Several benefits
areprovided to an organization because direction is the central point of an organization
and they are as follows:

Directing initiates actions:

Directions is the beginning of the subordinate’s execution of their work. Actions

beginright from this function onward as the employees learn their jobs and carry out the
proper instructions that are given to them.Plans which are made can be carried out only
after the actual job begins and it is only then that the direction turns out to behelpful.
Directing integrates efforts:

The superiors are capable of directing, inspiring and instructing the employees to work
only bydirecting. To do this, every person needs to work hard in order to accomplish the goals of
an organization. Every department’sefforts can be easily connected and included along with the
other departments through proper direction. This can also beachieved through influential
leadership and efficient communication. A concern achieves certain stability only through
effectivelyincorporating all the efforts made by all.

Directing is a means of motivation:

The function of direction aids in achieving all the goals effectively. A manager uses this

motivation factor effectively in order to enhance the employee’s performance in the organization.
This can be easily achieved

by giving proper salaries or rewards and this in turn enables to help as a sort of ‘’Morale Booster’’
for the employees in an

organization. The employees can do their best through effective motivation and this in turn aids
in the eventual expansion of an

organization.

Directing provides stability: An organization’s balance and constancy is very vital for surviving in
the market in the long run.

The managers can achieve this effectively by using four tools or essentials of direction, cautiously
blending influential

leadership skills, able communication, a firm command and also a wellorganized

motivation. Stability is very vital as it is an

indication of the enterprise’s expansion. Hence, a manager can utilize all the four traits within
himself in order to uphold the
standards of performance of an organization.

Directing will enable to cope with the changes: It is normal for humans to resist any

new changes that are brought in an organization. However, in order to become a leader in the
market, it is important to able to

adapt oneself to the everchanging

environment which in turn aids in supporting planned growth of an organization. The

function of direction is necessary for meeting the new challenges in a fastchanging

environment, both internally and externally.

The changes in an environment can be managed easily through effective communication. The
manager’s role is to effectively

communicate all the contents and nature of new modifications explicitly to the employees. This
aids in clarifying, easily adapting

and an enterprise’s smooth functioning. For instance, if an enterprise changes from handlooms to
doing power looms, it is

necessary to bring about a vital change in the methods of production. This results in a decrease of
human labor and an

increase in using more machines for this purpose. Hence, in this case, the manager can explain to
his employees that it is

important to bring about this change in order to benefit them. Production increases as a result of
utilization of more machines

and this in turn results in more profits for the enterprise. Hence, the subordinates are benefited
indirectly through this change in

the form of high salaries being given to them.

Directing helps in efficient utilization of resources: The proper direction of money aids in defining
the roles and

responsibilities of all the employees towards their own work. Utilization of resources can be
effectively done only when there is

no duplication of any efforts, no wastage, overlapping of achievements and so on. The roles of
employees become defined only

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through proper direction as the manager uses his control, guiding and instructional abilities and
skills of motivating and inspiring

all his subordinates in the organization. This aids in the greatest employment of resources
pertaining to humans, materials,

machines and finance and this further aids in cost reduction and an increase in profits of an
organization.

Elements of Direction

The elements of direction that are briefed here under are Supervision, Motivation, Leadership
and Communication.

Supervision :

"Guiding and directing efforts of employees and other resources to accomplish stated work

outputs" Terry

and Franklin. Supervision is an element of direction.

"Daytoday

relationship between an executive and his immediate assistant and covers training, direction,

motivation, coordination, maintenance of discipline etc"

Newman

and Warren.

Supervision denotes the functions performed by the supervisors.

Motivation :

"Motivation is the complex force starting and keeping a person at work in an organization.

Motivation is something that moves the person to action, and continues him in the course of
action already initiates."

Dubin.

Motivation is the core of management. Technically, the term motivation can be traced to the
Latin word movere, which means 'to

move'. Motivating is a term which implies that one person induces another, to engage in action
by ensuring that a channel to

satisfy the motive becomes available to the individual. Motive is energizer of action, motivating is
the channelization and

activation of motives, motivation is the work behavior itself. Motivation depends on motives and
motivating. It is a complex
process.

Leadership :

"Leadership is essentially a continuous process of influencing behavior A leader breathes life into

the group and motivates it towards goals. The lukewarm desires for achievement are
transformed into burning passion for

accomplishment".

George

R. Terry.

Leadership is the process of influencing the behavior of others to work willingly and
enthusiastically for achieving predetermined

goals. It is an essential ingredient for successful organization.The successful organization has one
major attribute that sets sets

it apart from unsuccessful organization that is dynamic and effective leadership.

Communication :

"Communication is the transfer of information from one person to another person. It is a way of

reaching others by transmitting ideas, facts, thoughts, feeling sand values."

Newstrom

and Davis.

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Communication is regarded as basic to the functioning of the organization, in its absence, the
organization would cease to

exist. It is the process through which two or more persons come to exchange ideas and
understanding among themselves.

Directing Characteristics

Direction has got following characteristics:

1. Pervasive Function Directing

is required at all levels of organization. Every manager provides guidance and inspiration to
his subordinates.

2. Continuous Activity Direction

is a continuous activity as it continuous throughout the life of organization.

3. Human Factor Directing

function is related to subordinates and therefore it is related to human factor. Since human
factor is

complex and behaviour is unpredictable, direction function becomes important.

4. Creative Activity Direction

function helps in converting plans into performance. Without this function, people become

inactive and physical resources are meaningless.

5. Executive Function Direction

function is carried out by all managers and executives at all levels throughout the working of

an enterprise, a subordinate receives instructions from his superior only.

6. Delegate Function Direction

is supposed to be a function dealing with human beings. Human behaviour is unpredictable by

nature and conditioning the people’s behaviour towards the goals of the enterprise is what the
executive does in this function.

Therefore, it is termed as having delicacy in it to tackle human behaviour.