Line and staff authority, departmentalization

This presentation discusses about line and staff authority, departmentalization in Principles of Management

1. LINE AND STAFF AUTHORITY,
DEPARTMENTALIZATION
R.Arun Kumar, AP/Mech, RIT

2. LINE AND STAFF AUTHORITY :
LINE AUTHORITY :
Line authority is directly related with attainment of the
organizational objectives.
R.Arun Kumar, AP/Mech, RIT

3. LINE AUTHORITY :
In line authority, the superior will be exercising the authority
directly over the subordinates to carry out orders and
instructions.


R.Arun Kumar, AP/Mech, RIT

4. LINE AUTHORITY :
Advantages:
Simple and easy to understand.
Delegation of authority is clear.
Channel of communication is clear.
Ensures discipline in an organization.
Disadvantages:
Inflexible.
Neglects advices from experts.
Limited to small organization.
R.Arun Kumar, AP/Mech, RIT

5. STAFF AUTHORITY :
Staff authority is authority that helps line authority in
attaining the objectives of the organization.
Staff authority involves giving advice to the line managers to
carry out the operation.
R.Arun Kumar, AP/Mech, RIT

6. STAFF AUTHORITY :
Staff authority can be classified in following forms:
1. Advisory staff authority:
Provides advice and assistance to line manager.
2. Compulsory staff consultation:
Line authority must compulsorily consult with staff authority
while taking decision.
3. Concurring authority:
Staff will be given complete authority to take decisions.
R.Arun Kumar, AP/Mech, RIT

7. STAFF AUTHORITY :
Advantages:
Improves the quality of decision.
Reduces complexity to line authority.
Leads to innovations.
Disadvantages:
Managerial problem.
Weakens line authority.
R.Arun Kumar, AP/Mech, RIT

8. DEPARTMENTATION :
Departmentation is a process of dividing the large monolithic
functional organization into small and flexible
administrative group.
R.Arun Kumar, AP/Mech, RIT

9. IMPORTANCE OF DEPARTMENTATION :
Provides autonomous.
Increases operating efficiency.
Helps in fixing the responsibilities to various executives.
Easier for appraisal identification.
Facilitates budget preparation, control over expenditure.
R.Arun Kumar, AP/Mech, RIT

10. DEPARTMENTATION TYPES:
1. Departmentation by numbers:
Departments are created on the basis of strength of employees.
Same activities will be performed by small groups.
e.g.: Military
R.Arun Kumar, AP/Mech, RIT

11. DEPARTMENTATION TYPES:
2. Departmentation by time:
Departments are formed on the basis of time of performance.
e.g.: Shift work
R.Arun Kumar, AP/Mech, RIT

12. DEPARTMENTATION TYPES:
2. Departmentation by time:
Advantages:
24 × 7 service.
May provide part time work.
Disadvantages:
Night time supervision.
Lack of coordination.
R.Arun Kumar, AP/Mech, RIT

13. DEPARTMENTATION TYPES:
3. Departmentation by function:
Departments are formed on the basis of work nature.
Large scale enterprise follows this method.
R.Arun Kumar, AP/Mech, RIT

14. DEPARTMENTATION TYPES:
3. Departmentation by function:
Advantages:
Ensures performance control.
Facilitates delegation of authority.
Ensures coordination.
Disadvantages:
Lack of interdepartmental communication.

R.Arun Kumar, AP/Mech, RIT

15. DEPARTMENTATION TYPES:
4. Departmentation by territory:
Departments are formed on the basis of geographical function
of organization.
R.Arun Kumar, AP/Mech, RIT

16. DEPARTMENTATION TYPES:
4. Departmentation by territory:
Advantages:
Helps the organization to improve sales.
Reduces operation cost.
Expands business.
Disadvantages:
Lack of communication among branch organization.
Friction between regional managers.

R.Arun Kumar, AP/Mech, RIT

17. DEPARTMENTATION TYPES:
5. Departmentation by customers:
Departments are formed on the basis of needs of customer.
Each expert will serve a specific group of customer.
R.Arun Kumar, AP/Mech, RIT

18. DEPARTMENTATION TYPES:
5. Departmentation by customers:
Advantages:
Facilitates concentration on customer satisfaction.
Helps to analyze the market requirement.
Disadvantages:
Need experts in specific problems.
Production activities cannot be organized effectively.
R.Arun Kumar, AP/Mech, RIT

19. DEPARTMENTATION TYPES:
6. Departmentation by process:
Departments are formed on the basis of equipments and
process.
e.g. Ginning, spinning, weaving, etc. in a textile industry.
R.Arun Kumar, AP/Mech, RIT

20. DEPARTMENTATION TYPES:
6. Departmentation by process:
Advantages:
Focuses on optimistic technology.
Effective utilization of resources.
Disadvantages:
Lack of coordination.
Experts are required.
Conflicts.
R.Arun Kumar, AP/Mech, RIT

21. DEPARTMENTATION TYPES:
7. Departmentation by product:
Departments are formed on the basis of type of service and
product.
Each department will have individual functional
departments.
e.g. Kirloskar, Honda
R.Arun Kumar, AP/Mech, RIT

22. DEPARTMENTATION TYPES:
8. Matrix organization
9. Strategic Business Unit.

R.Arun Kumar, AP/Mech, RIT