KAUSHIK

KARTEEK
HRYUDAY BHANU
MOBEEN
PALLAVI

MBA-CMU
LINE & STAFF AUTHORITY
DELEGATION
oAdvantages & Disadvantages
oGuide Lines
CENTRALIZATION
DE-CENTRALIZATION
Line / Staff Authority
Power - Authority
• POWER: The ability of individuals or
groups to induce or influence the
beliefs or actions of other persons or
groups.
• AUTHORITY: The right in a position
(the right of the person occupying
the position) to exercise discretion in
making decisions affecting others.
{Legitimate Power}
 Line & Staff Concepts

• "Line refers to those positions and elements of

the Organisation, which have the
responsibility and authority and are
accountable for accomplishment of primary
objectives. Staff elements are those which
have responsibility and authority for providing
advice and service to the line in attainment of
objectives". – Louis Allen
Nature of Line & Staff Relationship

• Line authority gives a superior a line of

authority over a subordinate.
• SCALAR Principle: The clearer the line of authority
from the ultimate management position in an enterprise
to every subordinate position, the clearer will be the
responsibility for decision making and the more effective
will be organization communication.
• Nature of Staff relationship is advisory
( investigate, research and give advice to line
managers).
Example
Activity…
Functional Authority
• The right which is delegated to an
individual or a department to control
specified processes, practices,
policies, or other matters relating to
activities undertaken by persons in
other departments.
• Delegation of Functional Authority.
(small slice of authority of a line
authority)
• Restricting Functional authority.
 Benefits

• Operating Managers are now faced with

making decisions that require expert
knowledge in various areas (economics,
technical, political, legal, social …)
• Specialists may be allowed the time to think,
to gather data, and to analyze, where as busy
managers cannot do so.
• When Complexity increases.
Limitations

• Danger of Undermining Line

Authority.
• Lack of Staff responsibility.
• Thinking in a Vacuum.
• Manegerial Problems.
Line or Staff? Whats your Career Goal?
• Having real authority for executing
decisions can be exciting, but not
everyone can make the transition.
• Aspiring managers should carefully
analyze their strengths, weaknesses
and motivations before choosing
their career paths.
• What do you think you are cut out for
?
 DELEGATION

Act of assigning formal authority &

responsibility for completion of specific
activities to a subordinate.
Necessary for the efficient functioning of
any organization.
ADVANTAGES
Function with maximum effectiveness
Improves self-confidence & willingness to take initiative
Effective & Fast Decision-making

DISADVANTAGES
Manager-Disorganized or inflexible
Insecurity & confusion about responsibility (manager or
employee)
Fear of self-authority
Avoid responsibility & risk
PREREQUISITES
Freedom to choose different methods & solutions for
employees
Open communication between managers & employees
Manager’s ability to analyze factors such as organization’s
goals, task’s requirements & employee’s capabilities

TASKS FOR EFFECTIVE DELEGATION

Decide which tasks can be delegated
Decide who should get the assignment
Provide sufficient resources for carrying out the delegated
task
Delegate the assignment
Be prepared to run interference
Establish a feedback system
Decision authority is located at the
top of the organization hierarchy.
Allows management to coordinate
the various parts of the organization in
a consistent manner.
Decision authority is pushed to lower levels
in the organization.
Greater flexibility to respond to change
Spurs innovation, risk taking & engage in
experimentation
Common in organization
Greater utilization of the talents & abilities
PROS
Unburdening of top managers
Better decision making
Better training, morale & initiative at lower levels
More flexibility & faster decision making

Decentralization as “GOOD” & Centralization as “BAD”

CONS
Requires more thorough manager training
Additional staff
It helps organization members achieve their
objectives.
Factors usually considered:
i. Environmental influences
ii. Organization’s size & growth rate
iii. Other characteristics : costliness of given
decisions, top management preferences,
organization’s culture & abilities of lower-
level managers
THANK YOU!!