2. ORGANIZATION CHART
The formal relationships in an organization are
explained in an organization chart.
Boxes represent various important position in
an organization.
Distance of the box from the top indicates its
position in the hierarchy.
Closer the box position to the top, the higher
is its status and vice-versa.
3. CONT.
Lines joining the various positions represent
the formal reporting relationships usually
between a superior and a subordinate.
Although the organization chart is a speculative
illustration of the structure yet it is an
extremely powerful tool for understanding the
organization structure of a firm.
5. AUTHORITY
Authority is the right to make decisions, to
direct the work of others, and to give orders.
Managers usually distinguish between line
authority and staff authority.
6. TYPES OF AUTHORITY
Line Authority- The authority exerted by an
HR manager by directing the activities of the
people in his or her own department and in
service areas(like the plant cafeteria).
Staff Authority- Staff authority gives the
manager the right(authority) to advise other
managers or employees.
8. LINE VS. STAFF AUTHORITY
1. Meaning
2. Main
Responsibility
Line authority is the type of
authority that reflects
superior- subordinate
relationships characterized
By the power of decision
making.
Line managers are
responsible
For directing, motivating
and supervising
employees towards
achieving organizational
goals.
Staff authority refers to the
right to advice on improving
the effectiveness for line
employees in performing
their duties.
Main responsibility of line
staff is to provide expert
advice and support to line
staff to allow smooth flow
of operations.
9. CONT.
3. Specialization
4. Adaptation to
Environment
Level of specialization is
low in line authority.
Line authority is mostly for
small and medium scale
Organizations.
High specialization is seen
in staff authority.
Staff authority can bring
wider
Benefits for large – scale
organizations.