Line And Staff Organization.docx

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 ↓

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Production Manager

Marketing Manager

Finance Manager

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Plant Supervisor

Market Supervisor

Chief Assisstant

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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 2/6/2019 Directing /Leading Principles of Management https://learnmgt.weebly.com/directingleading. html 3/4

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. 2/6/2019 Directing /Leading Principles of Management https://learnmgt.weebly.com/directingleading. html 4/4 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.