Organizations

2nd Lecture
 Organizational Authority
Structures
Some of the most commonly known forms of
Authority Structures are:

• Line authority
• Line and Staff Authority
• Functional Authority
 Line Authority
• Line authority is the simplest and in its pure
form is usually found among small
organizations. Sometimes called the military
type of structure, authority runs from top to
bottom and responsibility runs from bottom
to top.
Example
 Advantages and Disadvantages:
Advantages
• It is simple and easy to establish
• Eliminates doubt about responsibility and authority
• Is flexible and permits speedy decision making.

Disadvantages:
• Overworks top managers with minor details because they
have to approve subordinates’ activities
• Does not use skilled specialists, who are often needed in
organizations
• Inhibits initiative because of the fear of disapproval from
higher level managers
 Line and Staff Authority
Staff members ordinarily do not have direct
Authority over the line members. Because of
their technical or professional knowledge,
staff members commonly provide assistance
and advice, which helps the line managers.
 Advantages (Line and Staff Authority)
• The staff is a source of technical and specialized
information
• It takes advantage of the specialization of labor
• It relieves line managers of specialized detail
work
• It combines the advantages of the line authority
with the flexibility of staff members who can cut
across department lines
 Disadvantages (Line and Staff
Authority)
• Staff specialists may be resented by line
managers because of their position and
influences
• Staff members can cause friction if they
attempt to exercise direct authority over line
personnel.
• Confusion and delay can be created if
responsibilities of line and staff are not clearly
spelled out.
 Functional Authority
• Functional Authority is that in which the staff
specialists exercise direct authority over some
line department activities.
 Advantages
• The specific function is given to another
manager. So, the line manager can concentrate
on his regular job.
• The specific function is performed by an expert.
So, it will be done efficiently.
• The service of the staff managers will be utilized
fully for the benefit of the organization.
• It is suitable for large organizations.
• The authority and responsibility is well-defined.
 Disadvantage
• Serving two bosses can be difficult
 The Scalar Principle
• The scalar principle is related to the chain of
command and asserts that authority and
responsibility in an organization should flow in
a clear unbroken line from the point of
ultimate authority (the top boss) to the
workers at the bottom of the hierarchy.

• Example : Bypassing immediate supervisor

 Unity of Command
• The principle of unity of command simply
means that no subordinate shall be
responsible to more than one superior.

Dual command is when one subordinate is

accountable to more than one superior. A
situation which should be avoided wherever
possible.
 Span of Control
Refers to the number of subordinates
reporting to one manager. The larger the
number of subordinates reporting to one
manager, the harder it is for him or her to
supervise effectively.
 How many persons should report or
be responsible to one manager?
Debatable

Depends upon
• The type of Organizational Structure
• The supervisor
• His or her employees
• The nature of work itself
Tall structure
Flat Structure
 Tall vs. Flat
• In tall structures each manager works with fewer people
and therefore, he may be able to supervise them more
effectively.

• Managers of large companies prefer tall organizations

because they usually offer more opportunities for
promotion than do flat organization.

• In flat organizations, managers usually have more persons

accountable to them

• Flat structures are usually preferred by managers of small

organizations.