Professional Documents
Culture Documents
NOTES Philosophy of PA
NOTES Philosophy of PA
NOTES Philosophy of PA
ADMINISTRATIVE ORGANIZATION Organization has come a long way to the complexity that it is today:
The present world of formal organization is not neatly divided into
DEFINITION OF ORGANIZATION democratic and -authoritative types, nor into traditional and modem
ones.
Achievement is the be-all and the end-all of any organization. For any
organization to achieve something, it must be organized, operated and THEORIES ON ORGANIZATION
administered.
In most organizations, various forms may be adopted to achieve
Organization is nothing more than the mechanism 'by which organizational goals effectively with the least cost. For instance, a
administration directs, coordinates and controls its business. It is, government may adopt not only one but several theories on organization,
indeed, the very foundation of administration. may discard some principles of one theory but adopt what it finds suitable
for its purpose.
When the organization is ill-designed structurally, when it passes for a
makeshift arrangement, administration is made difficult and ineffective. In many ways, the interest in organization theory is a particularly apt
On the other hand, when.it is logical, clear- cut and streamlined, the example of the interdisciplinary focus of many of the social sciences. It
paramount need of administration has been met. broadens part of the economist’s traditional theory of the firm. For
the student of business, narrowly considered, there are customary
To be more precise, organization seeks re know "who Is to do what problems of control and administration, The sociologist turns to
is to be done."! A good executive may be able to secure good results status, roles, and the informal structure, as well as to the micro
with a poor organization, and a good organization may produce results cosmos itself. Political scientists join several other groups in the
from a poor executive. The ideal set-up, however, is a combination of a interest in power and authority in hierarchical structure and in the
good organization and a good executive. institutional forms of governing structures. Social psychologists apply
their concepts about group structures and communication nets.
A social scientist, Robert S. Weiss, has defined organization as a social
form with four basic characteristics, name (1) a set of individuals in office: For purposes of comparison, some organization theories with their
(2) individual responsibility for definite tasks - functional activities - unique characteristics, usefulness and, perhaps, limitations, will be
which are parts of a division of labor; 3) an organizational goal to examined in this chapter.
which the activities of the staff contribute; and (4) a stable system Firstly, there is the machine model or scientific management theory of
of coordinative relationships, or a structure. an organization: As propounded by its discoverer, Frederick W.
Taylor, the machine model bears the following peculiarities:
Another author, Alvin Toffler, defines organization as a "structure of ·
rules filled by humans." 1. Division of labor and specialization. The functions of the
organization are differentiated and placed in separate departments.
Formal organization is, however, differentiated from informal (Departmentalization).
structure, which latter type "develops during the spontaneous interaction 2. Unity of command and centralization of decision-making.
of persons and groups within the organization.” For the various parts of the organization to function correctly, there
must be unified command at the top of the organization.
In a line organization, there is no staff executives. Despite these disadvantages, the line
Both staff and line functions are performed by line organization is best used under certain
executives. Each exercises line authority over his conditions.The line organization is ideal for a small
own subordinates. organization with stable management and
operations. Due to its small size, it could avoid the
Figure 2 shows a line organization. It shows that inherent defects. Besides, it cannot financially
the line executives, usually called division chiefs in afford the cost of staff services.
government institutions, exercise authority on those
below them. However, all individuals on one level Moreover, due to its stable structure, it permits
are independent of others at the same level. Each also standardization of its operations to an
individual is responsible only to the person extent that there is practically no need for staff
immediately above him. specialization to support it.
Advantages of line organization. The advantages of A purely line organization is, therefore, seldom
line organization can be summarized as follows: found in large, complex organizations.
Oftentimes, it is used by small organizations and
1. It is simple. It shows the direct lines of by divisions of a large and complex organization.
responsibility, authority and accountability of Since small organizations have a right to exist and
each individual in the organization. to govern themselves as have the big organizations,
2. It facilitates decision-making within the the line organization will continue to be used.
organization due to the simplicity of its Besides, it can be used by the divisions of large
organization structure. organizations to have some of the advantages of
3. It facilitates discipline and control of small organizations.
individuals in the organization for its clarity
of chain of command. Staff Function
4. It facilitates flexibility within the
organization as it responds to the The authority to decide is, with the line
changing conditions and demands of its executive. The primary function of the staff
organizational environment. executive is to assist his superior officers make the
right decisions and implement them.
Disadvantages of Line Organization. Although a
line organization is good in most respects, it has James D. Mooney and Alan C. Reiley explain this
certain inherent disadvantages. Some of these relationship as follows:
defects can be summarized as follows;
The staff is purely an advisory service… This
difference from line command is implicit in the very
1. It encourages the development of
meaning of the word staff, which is something to
excessive load of administrative
support or lean upon, but which of itself has no
responsibility. It becomes the breeding
authority to decide or initiate.
place of "organizational dictators."
2. It encourages the development of
The objectives of the staff executives were
centralization of line control of activities.
explained by Davis and Filley in this manner:
3. It lengthens the chain of command of the
organization, which causes the delays in
The objectives of staff units are to provide
administrative decisions.
secondary values to the line which will, in turn,
enable the line to achieve its primary service
ADMINISTRATIVE ORGANIZATION LECTURE NOTES |
objectives with greater economy or effectiveness. However, he may choose not to exercise such right.
Some staff units contribute, in addition, values that He may instead elect to advise, inform or
represent some accomplishment of the company’s recommend rather than command them.
collateral objectives. The staff makes an indirect
contribution to the accomplishment of primary These exemptions normally create the conflict
objectives. between line and staff executives. On the other
hand, as pointed out by Mooney, the staff
As a support to the line executive, the objectives of service could be totally useless to a line
a staff executive should depend upon the kind or executive.
type of service, advice, or assistance needed by his
superior officers. As staff executive, his In pointing out one of the weaknesses of the staff
responsibility is limited to the authority given to him services, Mooney said:
to achieve his staff function. The weakness of many forms of staff service is that
the counselor is dependent on the man whom he
As often stated, a staff position is created not to counsels, and hence is subject to the danger of
separate the line executive from his own sinking to the level of a "yes" man.
organization but for him to link together.
Hence, one of the problems of staff function is
It should be pointed out that the staff executive, how to integrate the individuals with the
within his own organization, exercises line authority organization without losing their individual freedom
over his immediate subordinates. In this particular and effectiveness.
situation, he has the right to make decisions and to
command his subordinates to accomplish their Finally, it could perhaps be said that the
assigned task. The exercise of these rights is effectiveness of the staff executive is a matter of
considered final by his immediate subordinates. He personal relationships between the line executive
has the authority to hold them accountable for the and himself.
results of their assigned functions.
Line and Staff Organization
The situation, however, with respect to the other
units of the organization is different. There, the staff The line and staff is the pattern of most large and
executive has no authority, except staff authority, if complex organizations. In it, all executives are
he was assigned to do so. By this, it means that he either on the staff or in the line depending on their
was given the right to advise, inform, and authority and functions. As such, its inherent
recommend action to the executives of these units. nature is one of authority relationships.
However, he cannot command them or their
subordinates to accept such action in the same In this arrangement, the line authority carries
manner he can upon his own subordinates. the right to require the execution of orders, while
the staff executive has the authority to suggest
Theoretically, the function of the line or staff on how such orders could be implemented. In
executives is properly defines. Accordingly, a line short, the staff executive serves the line executives.
executive's function is to act and the staff
executive's function is to think. However, in actual This is supposed to a very simple arrangement.
practice, these functions are not properly Yet, it is very difficult to implement. People do not
delineated. just have organization; they make organization.
Moreover, there are certain exemptions to this An example of a line and staff organization
concept. As has been mentioned, a staff executive is shown Figure 3.
normally exercises staff authority with respect to the
other units of the organization. The same situation The chief executive of the organization,
is also true to line executives in the other regardless of his title, is head of both line and
chains of command. As such, the line staff. As such, he has the responsibility and the
executives perform staff functions when dealing authority of coordinating these. Some of the titles of
with members of other units of the organization. chief executives are President, General Manager,
Administrator, Director-General, and Managing
Of course, the staff executive, with respect to his Director.
own subordinates, may exercise line authority.
ADMINISTRATIVE ORGANIZATION LECTURE NOTES |
Figure 3 shows the sharp lines of supervision Disadvantages of Line-Staff Organization. The
and control, as well as the lines of coordination, disadvantage of line and staff organization may be
of and among executives of the different units summarized as follows:
of the organization. It shows also that the line
executives are directly under the chief 1. It creates a source of conflicts between line
executive. These line executives are directly and staff executives. The existence of staff
responsible for the implementation of plans, executives, oftentimes is a source of
programs, and projects of the organization problems in the organization. Line
in their respective jurisdictions. executives may consider the staff as a
threat to their own positions.
Some of the titles of line executives are 2. It forces the staff executives to insist on
Vice-President, Department Manager, their advices to line executives to show
Division Director, and Regional their importance in the organization and to
Commander. On the other hand, the staff attain a certain degree of professional
executive may carry the title of Personnel achievement. In contrast, it may be under-
Officer, Budget Director, Assistant to the utilized if they wait to be called for staff
President, Director of Research, and Special support. The knowledge of some line
Assistant. executives might be limited with regards to
the special problems of the
The activity of the staff may be based on organization, such as budgeting
functional requirements of the organization, personnel administration, and related areas.
such as personnel, fiscal, planning, research, 3. It creates administrative problems if the staff
training, and public relations. A staff executive authority is not carefully defined.
may be assigned to be responsible for each
function. There is no easy way to avoid these
disadvantages, but for both line and staff
Moreover, the staff department by itself is executives to know, understand, and accept
structured internally, as shown in Figure 3, as their personal and official limitations.
line organization. Meaning, within the
organization, its people report in a straight line Conflicts between Line and Staff Executives. Why
to its head. is it that there has been a conflict between line and
staff executives for so long and in so many
Speaking of the line-staff relationships, Leonard organizations?
D. White has said that:
To Irving Smith Kogan, the cause of such conflicts
Line authorities ... are the central elements of could be explained in this manner:
any administrative system; staff and auxiliary
agencies are necessary in a large and complex It is not always clear which functions are line and
organization, but they are secondary. They serve which are staff. Indeed, an individual may be staff
the line; the line serves the people. in relation to another. In general, however, the
specialized departments or units which carry
Advantages of Line-Staff Organization. The out the main activity of the corporation are
advantages of line and staff organization may be line; those which act in an advisory or service
summarized as follows: capacity to the line units are staff.
1. A committee may have a broad decision- 1. Certain dangers of committees have been
making authority. The chief executive may so widely reviewed that many managers
be included in the membership of top make little use of them. Disparaging
committees. Under such circumstances attitudes are reflected in such definitions as
the committee makes decision with the “a committee is made up of the unfit
approval of the top executive of the selected by the unwilling to do the
organization, and this executive is held unnecessary.”
accountable for its success. 2. The cost of committee action in time is likely
2. A committee may have limited functional to be considerable. A committee may
authority making decisions within its require members to travel some distance to
specialized functional area subject to reach a meeting. During the meeting, each
approval by the chief executive. member has the right to be heard, to have
3. A committee may have advisory, his point of view discussed, to challenge
investigative, and recommendatory and cross-examine the points of view of
authority. The nature and scope of such others, and to go over grounds for a
authority should be specified clearly. considered group conclusion. If the
4. A committee may have no authority, committee must reached a unanimous or
functioning merely as an educational or nearly unanimous decision, the discussion
communicative tool of management. is likely to be lengthy. And if a decision can
be reached quickly, the meeting may have
The granting of different types of authority to been unnecessary in the first place.
committee has resulted in much confusion as 3. Where the committees are required to come
to their real nature and functions. to some conclusion or reach some decision,
there is danger that their action will be
The functions of a committee are like that of an watered down or even meaningless. If the
individual executive. It may function as a line matter under consideration is so simple that
executive supervising an operative and specialized differences of opinion do not exist, the use
unit of the organization. Or, it may function like a of committee time is wasteful. The danger
staff executive supporting the activities of the line of compromise at the level of the least
executives of the organization. common denominator of agreement grows
as the percentage of agreement felt
Advantages of the Committee Organization. The necessary for committee action increases.
benefits re be gained by the use of committees 4. The time required for thorough deliberation,
may be summarized as follows: the discussion of peripheral or tangential
subjects, and the difficulty of reaching
agreements often result in indecision.
1. Harmony may be developed among
5. The indecisiveness of committees gives the
executives who were formerly suspicious of
chairman or a strong member opportunity to
each other. Through group action, they
force the committee into a decision, for it is
become better informed about the attitudes
a rare group of men who can participate in
and reasoning of the others.
the exercise of authority on a team basis. In
2. The viewpoint of young executives is
other cases, the members join in combat
broadened the participation in large-scale
until one wins his point or until the group is
problems. Capable talent may be spotted
disbanded by a superior authority.
early.
6. When the authority to study or make
3. Continuity of committee functions may be
recommendations is delegated to a group,
provided replacing only a few committee
the fact is that authority is dispersed
members at a time.
throughout the group. This splitting of
responsibility is one of the chief
disadvantages of a committee. Since no
one can practically or logically feel
accountable for the actions of the group,
ADMINISTRATIVE ORGANIZATION LECTURE NOTES |
no one feels honestly, responsible for his an opportunity to clear up points that are not
action within it. understood.
7. Committees seek unanimous or (h) Training. The conference, which is a special
near-unanimous conclusions or decisions. type of committee, is an excellent means of training
a limited number of executives. While slower than
Best Use of Committees. When is a committee best the pure lecture or textbook as a training device, the
used? The following are some of the conditions method is superior in that it enables the conferee to
under which the use of a committee is most participate in arriving at conclusions. Even though
suitable: the points brought out in conference discussions
have predetermined by the conference leader, the
(a) Where group deliberations and Judgment are participant tends to accept and remember them
important. When the problem facing an executive better because of this involvement.
may mean great expense or even failure for the (i) Innovation. In recent years, there has been a
business, it is wise to obtain the studied opinion of a great deal of controversy about whether a group can
group of intelligent and informed persons. produce more or better ideas than individuals acting
(b) Fear of improper use of authority. Important separately. While it is unlikely that mediocre
decisions may be made at divisional of plant levels participants can produce any more than mediocre
when both administrative and operative results when acting in a group, it is true that there is
management functions have been highly some advantage in group activity when applied to
decentralized. We cannot hold subordinates creative endeavors. The interaction brings out
completely accountable for results unless we points of view that would otherwise remain latent
delegate the rights of decisions and command that and permits a cross fertilization that would be
are necessary for the accomplishment of these impossible if each acted individually.
results. On the other hand, actions taken on the Q) Avoid action. Because it is inherently slow, the
basis of these decisions may affect the reputation, committee may be used to advantage by a line
growth and profitability the entire company. manager who wishes to avoid taking immediate
(c) Represent interested groups. Often there are action. The manager who is faced with an
groups within the organization which have a emotional demand of some importance may appoint
functional interest in committee matters. While no a committee. By the time a decision is reached, the
committee can be fully representative and still retain emotion of the moment usually will have given
the efficiency associated with a limited membership, way to reason and intelligence.
ii is wise to provide for as much representation as
practicable. Avoidance of Use of Committees. Under the
(d) Motivation through participation. The very fact following conditions the use of a committee is
that an individual has a part in arriving at a definitely not suitable:
recommended course of action does much to insure
his support. It is axiomatic that we usually support
our own ideas. An executive can do much to assure a) When one manager is better. The
acceptance of a plan if interested parties are committee cannot be used effectively where
invited to participate in its development. direction, supervision, and corrective action
(e) Coordination of planning. The committee must be performed. Leading is an
is useful to coordinate the thinking of various individual, not a group function;
technical staffs and line functions. The committee b) Fact-gathering and research. Gathering and
provides for an immediate exchange of ideas that tabulating data is the job of an individual.
would be impossible in formal channels of Where committee work necessitates such
communication. activity, it should be made the responsibility
(f) Policy, development and interpretation. Because of a single individual. .He, in turn, may
it is a representative group of various facets of the assign phases of the investigation to the
organization, the committee is useful in members of his task force.
recommending policy or in deciding questions about c) Fast decision making. Authorities generally
policy interpretation. agree that the committee is not suitable
(g) Administrative communication. The when decisiveness is at a premium.
committee provides a means of communicating d) Substitute for other weaknesses. The
information .quickly and efficiently to members of an committee cannot cure existing weakness in
organization. It permits immediate communications the organization structure, in the planning
to many functions of the organization and provides
ADMINISTRATIVE ORGANIZATION LECTURE NOTES |
ability of management, or in the general individual could practically give orders, without
quality personnel. assuming any responsibility, and all others have to
e) Rubber-stamp predetermined solutions. The obey, no standing the objectives of the group.
benefits of participation are not present
when a committee has only the right to But no organization, large or small, wants to be
rubber-stamp predetermined solutions. ruled by a force. An organization ruled by a single
Indeed, the opposite effect may occur, with individual might continue to exist, but it would be
motivation reduced rather than increased. ineffective.
f) Present technical reports or printed material
which could be circulated. Lengthy technical In fact, even dictators must seek the support of a
reports which are outside the knowledge of majority of his people. In doing so, sometimes, he
executives should be reduces to a pertinent must keep them formed to hide the weaknesses of
summary and presented in that fashion. his administration.
Furthermore, committee time should not be
used to read printed material which could To avoid such situation happening in a committee,
be circulated among the participants to be each individual should realize that he is an
read at their leisure. important part of the organization. He is a leader,
g) Perform work. The committee is not a work even if he only leads himself.
group. As in fact-gathering, detailed work
activities should be done by members In many organizations, for instance, the need is
individually and should be merely great individuals to band and work together to
coordinated in committee meetings. prevent the emergence such "organizational
dictators."
While the strength of the committee is on its ,
membership, it is also its limitation. As such, Despite the disadvantages, it is observed that the
additional limitations could be added in the use of use committees in all types of organization continue
committee. to increase.
Summary
a) If a committee has to decide an issue which
Organizations may come in all sizes and types.
has been argued by members, the decision
Each organization is unique to some extent. With
may be a mediocre compromise by its
its advantages and disadvantages, however, all of
members. This problem, of course, can be
them must possess certain common characteristics.
reduced by not requiring a unanimous
agreement, by competent chairmanship,
The line organization is the simplest and oldest form
and by the willingness of members to
organization structure.
cooperate.
b) Group thinking is often influenced by
The line and staff is the pattern of most large and
emotionalism.
co-organizations. In it, all executives are either on
c) The committee tends to diffuse
the staff or line depending on their authority and
responsibility, making it difficult to fix
functions.
accountability for committee decisions upon
any one of the members.
The authority to decide is with the line
d) Group action is inherently slow and
executive. The primary function of a staff executive
indecisive. If the decisions must be made
is to assist his superiors make the right decisions
quickly, it is better to use a single executive.
and in implementing them.
e) There is an opportunity, particularly where
an unanimous opinion is required, to one
The existence of staff executives is often a source
person to dominate group. He may do
of conflicts in the organization. The conflicts,
this by refusing to agree otherwise
however, can be removed certain conditions.
unanimous agreement, forcing
compromise with his point of view.
Frederick W. Taylor was the first man to
advocate concept of a completely functional
As has been pointed out, in the working of the management. For a functional organization to be
committee, one individual could become so effective, well-qualified individuals should be
powerful that he could dominate the rest. That appointed. ·
ADMINISTRATIVE ORGANIZATION LECTURE NOTES |
The committee is one of the most controversial
devices of organization. It is no substitute for
individual action. However, it does perform some
functions more effectively than an individual could
perform. Due to the variations of authority vested
in committees, much confusion has resulted as
to their nature and functions. The committee
should be used under certain conditions. In
certain cases, its uses should be definitely avoided.
Despite the disadvantages, it is observed that
the use of committees in all types of
organizations continue to increase.