Answer to Question 1
There are two distinct types of authority: line and staff authority. Line authority entitles a manager to directly control the work of subordinates by hiring, discharging, evaluating, and rewarding them. Line managers hold positions that contribute directly to the strategic goals of the organization. The line managers of a manufacturing firm include production managers and sales managers who contribute directly to the bottom line.
Staff authority includes giving advice, making recommendations and offering counsel to line managers and other members of the organization. Staff managers help line managers achieve bottom-line results, but they contribute only indirectly to outcomes. The accounting, legal, and human resource management staffs of a manufacturing firm provide specialized advice on cost control, federal regulations, and staffing requirements to line managers.
In an accounting firm, the accountants have line authority since their work directly contributes to the bottom line, whereas accountants in a manufacturing firm are used in an advisory capacity and have staff authority.
Answer to Question 2
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