Mr. Latif and Mr. Haroon both are directors in a textile firm. The CEO of the firm is convinced by Mr. Latif that hiring is required in his departments of Finance and Marketing. Mr. Latif asked Marketing manager and Finance manager to estimate the minimum number of vacancies that should be filled in order to well accommodate the need of the departments. The estimated number was 9, but Mr. Latif decided to forward the requirement of only 7 new employees to keep the cost minimum. The CEO talked to Mr. Haroon about the dearth of employees and asked him to check if the requirement and the number of minimum vacancies are justified. Mr. Latif then asked the Finance and Marketing Managers to specify the KSAs (Knowledge, Skills and Abilities) the candidates needed to have. The hiring process took place after which both Latif and Haroon arranged for orientation of the newly hired 7 employees.
Later in the year, Mr. Latif was informed by the Finance and Marketing managers about the training requirement for few new employees. He discussed the training needs of the employees with Mr. Haroon. Mr. Haroon discussed the required training with the CEO and asked the HR manager to make arrangements for the training after approval from the CEO. The training was outsourced.
Now the time for yearly appraisal was around. Marketing and Finance managers apprised the employees of their respective departments and sent results to Mr. Latif for approval. He then forwarded it to Mr. Haroon for further working of the HR department on the performance appraisal.
Question: Keeping in view the given scenario, you are required to identify and justify who among the CEO, HR, Finance and Marketing managers, along with Mr. Latif and Mr. Haroon holds staff authority and who holds line authority.
Mr. latif CEO mr Haroon holds line authority because they are making decesion and HR , finance and marketing managers holds staff authority because they give advise to line managers and assist for approval.
Line authority or function is a Direct or main function of an individual or department. It involves Direct and Legitimate Authority over subordinates. It decides what to do, and when to do it. eg., Production for a Manufacturing company.
Staff Authority on the other hand is an assistant function as it guides line managers or functions into performing a specific activity. They are more specialized and therefore provide advice to Line authority. eg., Human Resource (HR) for a Manufacturing company.