Three types of authority are present: line, staff, and functional.
Line Authority – Line authority flows down the chain of command. Line authority is the right to carry out assignments and exact performance from other individuals. For instance, line authority gives an accounts supervisor the right to direct an employee to operate a particular account, and it gives the vice president of finance the right to request a certain report from a department head. Therefore, line authority gives an individual a certain degree of power relating to the performance of organizational activities. The superior has legitimate power over the subordinate. The nature of the staff relationship is advisory.
Two important clarifications should be considered, however, when discussing line authority – line authority does not ensure effective performance, and line authority is not restricted to line personnel. The head of a staff department has line authority over his or her employees by virtue of authority relationships between the department head and his or her directly-reporting employees.
Staff Authority – Staff authority is the right to advise or counsel those with line authority. For instance, human resource department staff assists other divisions by selecting and developing a qualified workforce. A quality control manager helps a production manager by confirming the acceptable quality level of products or services, initiating quality programs, and executing statistical analysis to ensure compliance with quality standards. Therefore, staff authority provides staff personnel the right to offer advice in an effort to improve line operations.
Functional Authority – Functional authority (limited line authority) gives a staff member power over a particular function, such as safety or accounting. Generally, functional authority is provided to specific personnel with expertise in a certain subject. For instance, members of an accounting department might have authority to request documents they need to prepare financial reports. Functional authority is a special type of authority for staff personnel, which must be designated by top management.
