Functional authority
Functional authority is usually a restricted kind of line authority. It gives a staff person a type of limited line authority over a given function, such as safety or quality, regardless of where that function is found in the organization.
For example, a staff safety specialist may have functional authority to insist that line managers follow standard safety procedures in their departments. The staff safety specialist may have top management's blessing to dictate to lower-level line managers exactly what they must and must not do concerning any matter that falls within the realm of safety. A human resources specialist may say to a line supervisor that the latter cannot fire a certain employee. A cost accountant may notify line departments that certain cost information must be furnished weekly[1].
Features of functional authority
Functional authority are characterised by the following[2]:
- Staff departments have functional authority, which is authority that is delegated to an individual or department to control specified processes or matters related directly to their respective functions
- For example, in the structure for a bank, the line departments receive their authority through the chain of command connected to the president. The bank's staff departments have functional authority in relation to other departments i.e. authority only in their area of staff expertise.
- Staff departments facilitate vertical coordination by making their considerable expertise available where it is needed, rather than following the strict chain of command
- Functional authority is not restricted to any particular type of department or manager. It may be exercised by line, service or staff head.
Levels of authority of staff man
There are four levels of authority of a staff man [3]:
- Voluntary consultation
A lowest level, consultation of a staff man for his ideas by the line head is purely voluntary. The line head may or may not consult him. In fact, at his level his persuasive ability, status, backing or technical expertise determine the extent of his influence over others.
- Compulsory consultation
At the next higher level, consultation is made compulsory for each department. Under this arrangement, the staff man must be consulted before action is taken.
- Concurring consultation
Concurring authority so that no action can be taken by the line people until he agrees to it. Thus, no finished parts may move to the next stage of production until okayed by the quality control inspector, no contract may be signed with a third party until approved by the legal expert.
- Functional authority
The highest level of the staff man's authority is one where he is granted functional authority. This means that he can give direct orders to people in other departments outside his formal chain of command instead of making recommendations to them.
Effective functional authority
Functional authority to be effective without being restricted to the line manager, should fulfil the following three conditions[4]:
- It should cover only a minor aspect of total job of the line manager. This can be achieved if such authority is limited to systems and procedures and does not interfere with the line supervisor's decision making and command authority
- It should relate to areas in which line supervisors do no have expertise. This means that functional authority should be restricted to a staff manager's area of speciality
- It should be granted only when company - wide uniformity is desirable. For example, grievance procedure followed in various parts of the company has to be uniform to avoid union problems.
Examples of Functional authority
- Allocating resources within a department: Functional authority may be granted to a manager in charge of allocating resources within a department. This could include decisions about which positions and projects to fund, and what type of equipment and supplies to purchase.
- Setting safety standards: In many organizations, the safety director is granted functional authority to establish and enforce safety standards across departments. This could include decisions about the types of protective equipment to be used, and the safety procedures to be followed.
- Establishing quality standards: Quality assurance personnel are often given functional authority to set and enforce quality standards throughout the organization. This could include decisions about the types of tests to be conducted, the acceptable levels of quality, and the processes used to ensure product or service quality.
- Deciding which suppliers to use: Procurement personnel may be given functional authority to decide which suppliers to use for different products and services. This could include decisions about which suppliers offer the best quality and price, and which ones are most reliable.
Advantages of Functional authority
Functional authority has several advantages. It can provide an organization with the ability to focus on specialized tasks and functions, while allowing for increased efficiency and productivity. Specifically, some of the advantages of functional authority include:
- Improved efficiency and productivity. By giving staff a limited line authority over a specific function, it allows them to focus on a specialized task, rather than having to manage multiple responsibilities at once. This can help to improve efficiency and productivity in the workplace.
- Reduced costs. By streamlining the process and delegating responsibilities, functional authority can help to reduce costs associated with the completion of tasks. This can help to reduce overall expenses for the organization.
- Increased specialization. By delegating a specific task or function to a team member with limited line authority, it allows them to specialize in a particular field or function. This can help to improve the quality of work and the organization's overall performance.
- Improved communication. Functional authority can help to improve communication between staff members, as they are more likely to understand each other's roles and responsibilities. This can help to streamline the process and ensure tasks are completed more quickly and efficiently.
Limitations of Functional authority
- Functional authority limits the authority of a staff person to just a single function, such as safety or quality, which can lead to a lack of a holistic view of the organization.
- It also limits decision making to that single function, which can lead to inefficiencies if decisions must be made at the organizational level.
- It can also lead to a lack of accountability of those staff persons, as they are not held accountable for decisions made outside of their functional area.
- Furthermore, functional authority can lead to a silo mentality, where departments do not communicate and coordinate with one another, leading to a lack of collaboration and synergy.
- Finally, it can be difficult to manage staff members with functional authority, as they may be resistant to changes or suggestions outside of their own area.
Functional authority includes a range of other approaches to authority beyond the traditional line authority. These approaches include:
- Matrix Authority: Matrix authority involves the sharing of authority between line and staff managers. It is used to coordinate multiple departments within an organization and to ensure that each department is meeting its goals.
- Budget Authority: Budget authority gives staff members authority to control and manage the budget of an organization. This involves setting the budget, controlling spending, and making sure that funds are allocated efficiently.
- Consultative Authority: Consultative authority involves staff members giving advice to line-level managers about the best way to manage their departments. This authority allows staff members to make recommendations on how to improve the efficiency and effectiveness of an organization.
- Subject Matter Authority: Subject matter authority involves staff members having expertise or knowledge in a particular area, such as finance or technology. This allows them to provide guidance and advice to line-level managers on how to best use their resources.
In conclusion, functional authority is a form of line authority that involves a range of other approaches, including matrix authority, budget authority, consultative authority, and subject matter authority. These approaches can help an organization to be more efficient and effective in its operations.
Footnotes
| Functional authority — recommended articles |
| Staff authority — Span of control — Grouping of posts — Front line management — Delegation of authority — Hierarchical dependence — Distribution of decision-making powers — Functional dependence — Tall organization |
References
- Agarwal R.D., (2007), Organization and Management, Tata McGraw-Hill Education, New Delhi.
- Bagad V.S., (2008), Financial & Industrial Management, Technical Publications, Bombay.
- Mosley D.C., Pietri P.H., (2010), Supervisory Management, Cengage Learning, Ohio.
- Tripathi P.C., Reddy P.N., (2010), Principles Of Management, Tata McGraw-Hill Education, New York.
Author: Karina Stefańska
